Companies worldwide have increasingly embraced virtual events, drawn by the convenience and cost-effectiveness they offer since the pandemic.
Attendees appreciate the reduced need for travel, while organizations benefit from the ability to host larger, more interactive gatherings featuring live Q&A sessions and polls.
Amidst this shift, Xcyte Digital Corp. (TSXV:XCYT) has emerged as an important player, leveraging strategic acquisitions and innovative offerings to drive revenue growth and enhance its market position.
Halfway through 2024, Xcyte has made quite a few major moves. Let’s take a deeper look at this company’s activity and see how we got here.
Strategic acquisitions fuelling growth
A+ Conferencing Ltd.
In April, Xcyte Digital signed an asset purchase agreement with A+ Conferencing Ltd., acquiring all the assets of the Texas-based business. This deal, which includes a revenue-sharing arrangement, promises Xcyte 100 per cent, in the first 12 months from closing, and 70% of the gross revenue from the acquired business thereafter. After five years Xcyte retains all the revenue. The transaction also involves a cash payment of US$300,000 and a US$200,000 promissory note, payable in four equal installments.
A+ Conferencing, known for its comprehensive audio, video and web conferencing services, generated US$1.4 million in revenue and approximately US$207,000 in normalized earnings before interest, taxes, depreciation and amortization (EBITDA) in calendar 2023. This acquisition is expected to enhance Xcyte’s service offerings and client experience.
“We believe combining A+ and Xcyte’s conferencing businesses will bolster our service offering, enabling us to begin to scale our revenue and EBITDA as we progress the company to its medium-term growth goals,” Xcyte CEO Randy Selman said in a media release. “This acquisition is the first from our deep M&A funnel, and is intended to help Xcyte grow our infrastructure, talent and client base, and accelerate our organic growth.”
‘Xperience’ launch
Building on its acquisition strategy, Xcyte launched “Xperience” a month later, an innovative all-in-one subscription service. Xperience offers subscribers the flexibility to choose from a wide range of third party, best-in-class event technologies and professional managed services within Xcyte’s expanding partner ecosystem. This service is designed to cater to companies hosting diverse events, including physical, virtual, hybrid, experiential and immersive formats. Key features include registration and ticketing, event management, mobile apps, audience engagement tools, analytics, compliance support and AI.
Xperience aims to deliver substantial cost savings by allowing clients to select the best-suited platform for their events without the burden of multiple subscriptions.
MCON Live Inc. agreement
In June, Xcyte further expanded its portfolio by completing a share exchange and asset purchase agreement with MCON Live Inc. This deal saw Xcyte acquiring 5 per cent of MCON’s common stock and 100 per cent of its online business. MCON is known for serving as hosts of annual events that celebrate military culture.
In a news release, MCON’s co-founder and CEO Todd Brockman said this move can leverage Xcyte’s capabilities to bring MCON to a global audience.
“Our last event had over 1,500 attendees. But we have so many in our community who cannot attend in person due to their obligations at home or service abroad, and they will now have the opportunity to attend virtually and experience the magic of MCON,” he said. “This also gives MCON the power to reach the estimated 5.4 million veterans and their families who have a disability and enable them to attend virtually.”
The upcoming MCON Live event, slated for Oct. 24-27, will be a global hybrid event powered by Xcyte, featuring live music, performances, speakers, exhibits and more. This event represents a major milestone, as it will be the first to utilize Xcyte’s immersive hybrid format, enhancing the experience for attendees worldwide.
Webinar.net acquisition
Xcyte continued its acquisition spree by purchasing all the assets of Webinar.net Inc., an online presentation platform known for its simple, engaging and cost-effective solutions for global webinars.
The of Webinar.net assets generated US$2.8 million annual revenue and
(unaudited) EBITDA of US$0.6 million for the 12 months ending Dec. 31, 2023.
Webinar.net, hosted on the cloud with enterprise-grade scale and security, simplifies online meetings for millions of attendees worldwide, further bolstering Xcyte’s capabilities in the virtual events space.
Future prospects and industry growth
Looking ahead, Xcyte is in a stable position for continued growth, with plans to further expand its revenue, EBITDA, and asset base. According to Allied Market Research data, the event industry is projected to double to US$2 trillion by 2032, with the virtual events sector expected to quadruple to $1 trillion. Xcyte’s strategic acquisitions and innovative service offerings position it well to capitalize on this booming market.
Investment corner
For investors, Xcyte Digital Corp. represents a compelling opportunity.
The company’s strategic acquisitions, innovative service offerings and focus on enhancing client experiences position it as a leader in the rapidly growing virtual events industry. With the event market expected to see significant growth in the coming years, Xcyte’s ability to deliver tailored, cost-effective solutions makes it a strong contender for substantial returns on investment.
You can find more on Xcyte Digital Corp. at its website, xcytedigital.com.
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(Top image: Xcyte Digital Corp. promotional video)
