- Xtract One Technologies, an under-the-radar tech stock underperforming its potential, has won a contract to outfit Wisconsin’s largest convention center with its patron-screening technology
- The three-year agreement will see the company install its SmartGateway system at all Baird Center entrances
- Xtract One’s recent revenue growth with strong gross profitability is a sign that management is efficiently scaling the business
- Xtract One stock has added 23.64 per cent year-over-year, but it has given back 68.08 per cent since 2019
Xtract One Technologies (TSX:XTRA), an under-the-radar tech stock underperforming its potential, has won a contract to outfit the Baird Center, Wisconsin’s largest convention centre, with its patron-screening technology.
The three-year agreement with the Wisconsin Center District, the venue’s owner, will see the company install its SmartGateway system at all Baird Center entrances, as part of a US$456 million expansion to double its size slated to open on May 16.
According to Xtract One’s website, the SmartGateway uses AI-powered sensors to unobtrusively scan patrons for potential threats, offering a high throughput of up to 2,400 patrons per hour, which represents a 2x-7x improvement in wait times compared with conventional metal detectors.
“From public safety and flexible meeting spaces to robust Wi-Fi, and sensational food and beverage options, the expanded Baird Center is dedicated to providing a second-to-none experience for our clients and guests,” Marty Brooks, chief executive officer of Wisconsin Center District, said in a statement. “In partnering with Xtract One, we’ve found a mission-oriented company that aligns with our values to be bold, be proud and be experience obsessed. We’re looking forward to working with their team to set the bar that much higher for forward-thinking event security in Milwaukee.”
“We’re excited for the city of Milwaukee to experience live events like never before with SmartGateway,” added Peter Evans, Xtract One’s chief executive officer. “As we expand our addressable market with purpose-built innovation to serve the diverse needs of each market segment, we are pleased to deliver our first convention centre agreement and look forward to more. This marks a significant step in expanding our scope of forward-thinking customers. We look forward to contributing to the success of WCD and Baird Center in setting a new standard of security and innovation for the greater Milwaukee community.”
The news follows a string of value-accretive contracts with the company’s first international clients, the U.S. Department of Veteran Affairs, Hyundai and Oak View Group, as well as a major investment from Madison Square Garden Sports.
An under-the-radar growth story
Xtract One’s focuses on growth and scaling toward profitability are evident in its financial results for Q1 FY2024, which revealed that total contract value of new bookings reached C$9.6 million, up from C$2.9 million year-over-year, representing an increase of 231 per cent.
Platform contractual backlog achieved a similarly exponential jump, reaching C$9.3 million, up from C$1.9 million year-over-year, representing an increase of 393 per cent. This excludes an additional C$10.6 million in signed agreements pending installation.
Xtract One’s platform operating segment took in C$3 million in revenue for the quarter, up from C$0.4 million year-over-year, rising by a monumental 602 per cent. The C$3 million quarterly figure is almost as much as the entirety of FY2022 at C$3.62 million, while surpassing the total for FY2021 and FY2020 combined.
Management has put the company on this high-growth trajectory while maintaining a healthy gross margin of 67 per cent, up from 55 per cent year-over-year, which should allow for a smoother transition towards profitability as new contracts enable further scaling and reduced input costs.
Xtract One Technologies offers threat-detection solutions enhanced by the power of AI.
Xtract One stock (TSX:XTRA) is down by 2.9 per cent, trading at C$0.67 per share as of 10:05 am ET. The stock has added 23.64 per cent year-over-year, but has given back 68.08 per cent since 2019.
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