The following is a transcription of the above video, and The Market Online has edited it for clarity.
Xcyte Digital Corp. (TSXV:XCYT) deploys scalable, tailored solutions to address events and communications challenges. Its mission is to redefine experiences and provide best-in-class capabilities.
We recently spoke with CEO Randy Selman who provided details about the company’s latest activity and outlook moving forward.
TMO: Can you provide a brief background about the company?
RS: Xcyte was formed in February of 2022, and we actually listed on the Toronto Venture Exchange in November of 2023, probably in one of the worst markets in Canada’s history.
The reason we created Xcyte was because a confluence of events had occurred. First, because of the pandemic, many companies that were in the event technology space were pretty much damaged by the very fast rise, then all of a sudden abrupt ending to the business that was online, and everybody was using because they couldn’t go outside.
So, these companies that had great technology, many cases huge and great customer bases, they really didn’t have an upside anymore. They may have had still enough revenues to pay the bills and make a little profit but nothing that would eventually turn them into very wealthy companies. So we saw that as a really good opportunity to do a roll-up strategy.
Second thing that was going on was that all the indications from all the market studies was that although this industry had seen this fall-off for online virtual events because the pandemic was over and people were returning to the physical shows, that that category was still going to grow substantially over the next five to six years. In fact, virtual events and all the types of events that are online was going to quadruple from a quarter of a trillion to a trillion dollars by I’m going to say 2032. And the event industry overall was going to go from $1 trillion to $2 trillion. So all of a sudden now you’ve got a massive growing market. You’ve got companies that could be rolled up into one very capable company.
And then the third thing, which I think is the most important part of it, is that there was the introduction of two technologies, artificial intelligence and spatial computing technology, which would make these types of events more valuable in terms of the benefits to the users.
Artificial intelligence would create a means to really extract the data that they’re looking for from all the data that’s acquired during a conference, provide great services to the members of the conference, helping them set up meetings and translations and all these other things, and then spatial computing technology, making the environment even more realistic.
So that caused us to look at this and say, we’ve got to get back in the game. We’ve got to have an event technology company to go into the future.
TMO: Moving to some recent news, can you tell us about the company’s recently announced Xperience subscription service?
Selman: We think that the Xperience is a very unique solution. It addresses the core needs of anyone who’s doing multiple events today. This is true where a lot of the events are online. So, the Xperience deal bundles the best technology platforms out there today.
An immersive event is the type that have avatars that walk around the show. This allows people to have conversations. It’s very realistic, and so we offer as many as 11 platforms now to our subscribers and a subscriber just has to subscribe to our subscription. That gives them the right to use all of these different platforms as much as they want based on their subscription level.
One day they can do a mobile event. The next day they can do an educational event or a retail event. There’s different business cases represented by these Xperience platforms. You can choose any of those platforms under your license agreement, or your subscription agreement, and it covers it.
So, you don’t have to worry about any type of vetting of a technology that may or may not work for you. So that’s Xperience in a nutshell. It just gives people the right to have one subscription. They can then choose from different platforms in the event technology space.
TMO: How will global organizations, agencies and associations benefit from this subscription service?
Selman: These organizations with different conferences don’t need to vet these different technologies to fit the conferences they’re hosting. They can choose this one platform and have all of the platforms in their reach. Accordingly, if they’re hosting a retail conference, our managed services group would identify the best platform to meet their needs. Then they could actually produce the show for them or train them to do the actual production of the show.
So it’s a really great benefit for any organization worldwide that is doing events and different types of events.
TMO: In early May, Xcyte signed an agreement to purchase assets of Webinar.net. What does this deal mean for the company?
Selman: I’ve been telling people this is one of our crown jewels. Webinar.net has I believe, and with the experience of having been in the webinar webcasting business from the very beginning, that this is one of the best webcast platforms that we’ve ever seen.
It’s extremely capable from all of its features and functionality. Also, easy to use, and we’ve gotten phenomenal customer reviews on it. As a result, we know this is a great platform and especially with our Xperience. The Webinar.net deal gives us the ability to offer that, plus our own conferencing services. The package includes the webcasting, the conferencing and of course the Xperience package, which adds virtual events and immersive event.
Now with Webinar.net, we offer almost a complete range of events. You don’t have to go anywhere else. We can provide every aspect of any type of event. And we could provide the managed service function to make sure that the event goes well.
TMO: In terms of investment value, where do you see the company headed over the next year or so?
Selman: Up to date, we’ve done three acquisitions so far. Our revenues have gone from the listing date back in November of about a million (dollars) to where we’re now basically handling about $5.5 million in annualized revenues, which is actually based on 2023 numbers.
We don’t obviously have the numbers yet for 2024 but that’s essentially what we’ve acquired. We expect the numbers to actually be higher, and we’ll start showing that growth in the next quarter, which I expect will be a multiple of the prior quarter that we just announced and then continuing as we go along in this year, further acquisitions and I’m hoping that by year end, the company is in a position to potentially qualify for a much higher-level exchange.
You can find Xcyte Digital Corp. on the Venture Exchange under the symbol V.XCYT or head to its website at xcytedigital.com for more information.
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