NextTrip, Inc.

Fiscal 2022 revenue totaled $630,000 versus $1.7 million in fiscal 2021. Fourth-quarter 2022 revenue was $154,000 versus $350,000 in Q4 2021. Full-year gross profit was $280,000 versus $1.1 million in 2021, and gross margin was 44% versus 66% in 2021. Net loss applicable to common shareholders was $8.7 million, or $0.83 per share, versus $7.5 million, or $0.76 per share, in 2021; Q4 net loss was $1.9 million versus $2.4 million a year ago. Cash was $2.8 million at December 31, 2022, working capital was $3.6 million, and the company used $8.2 million of cash in operating activities plus $389,000 for fixed assets and patent portfolio investment. Backlog was $125,000, and revenue to be recognized from prior transactions was $370,000, for a combined $495,000. Management said the software-only product suite is still targeted for Q2 2023.

Jacob Brunsberg framed 2022 as the third quarter of Sigma’s transformation toward a software-only, connected digital quality platform for additive manufacturing. He emphasized that the market is becoming more open to APIs, quality software, and collaboration as companies focus on profitability, and said Sigma is seeing validation from OEMs, software partners, and customers. He also said the company is moving with urgency toward the Q2 2023 launch and is evaluating strategic alternatives to strengthen the balance sheet.

Frank Orzechowski said the revenue decline mainly reflected the move away from one-off perpetual licenses toward subscription-based pricing, where revenue is recognized over time. He highlighted gross profit of $280,000 for 2022, gross margin of 44%, and operating expenses of $9 million for the year, with headcount reduced from 33 at year-end 2021 to 25 at year-end 2022 and to 19 as of the call. Cash ended at $2.8 million, burn averaged about $717,000 per month in 2022, improved to $650,000 per month in Q4, and dropped to under $600,000 per month in the first two months of 2023; he said the company is seeking additional ways to raise capital and conserve cash.

Analysts pressed management on whether macro uncertainty was hurting customer conversations, and Brunsberg said the bigger effect has been a stronger focus on profitability that is actually increasing collaboration and openness to connected solutions. Questions also focused on backlog growth, with management saying most current sales are new sales under the subscription transition and that the backlog reflects the shift to revenue being recognized over time rather than all upfront. On OpEx, Brunsberg said additional cuts are possible, but the company is trying to stay lean while preserving the ability to launch and grow in Q2.