XTPL’s strong growth continues

PLN 3.7 million revenues from the sale of products and services in Q3 2022

XTPL S.A. has published its preliminary estimate of revenues from the sale of products and services, which in the third quarter of 2022 stood at PLN 3.67 million and were 52 times higher compared to PLN 0.07 million reported in the same period last year. According to the Company’s estimates, revenues from the sale of products and services are PLN 6.64 million YTD, up 31 times year-on-year. This pronounced growth is primarily owed to the successful commercialization of XTPL’s technology implementations with global players. The Company’s estimated cash position as at 30 September 2022 was PLN 3.24 million, and remained stable and comfortable compared to PLN 3.47 million at the end of June this year.

The global supplier of nanoprinting solutions for the modern electronics market continues on its steady and strong upward trajectory in revenues from the sale of products and services. This performance is driven by the development of the Company’s three business lines. Nine projects are under way as part of partnerships geared towards industrial implementation of XTPL’s technological solutions. Another business line is the DPS (Delta Printing System) prototyping device. In Q3 2022, the Company sold it to e.g. China and the United States, where the device will be used by one of the Big Five tech giants from Silicon Valley to develop virtual reality technologies and products. The third line is the proprietary conductive nanoinks, which are attracting more and more buyers, mostly industrial clients.

“We continue to increase the sales of products and services on the back of development of all our three business lines. We are pleased with the progress in projects implemented with industrial clients and the steady and geographically expanding sales of the Delta Printing System, including the latest sales to a corporate client from the United States. In this way, we reach new partners with whom we can talk about potential industrial implementations, so we have a synergy effect here. Nanoinks are the third line, which is gradually building up sales volumes and helping us attract new clients, including a growing number of recurring ones. It’s also worth noting that most of the sales of our nanoinks are generated with industrial clients, who are key to us,” says Filip Granek, CEO XTPL S.A.

The second important source of financing for XTPL’s business is grants, which continue to represent a major part of overall revenues and support the Company’s R&D projects, while their contribution to total revenues has been diminishing. Grants obtained in Q3 2022 stood at PLN 0.70 million compared to PLN 0.88 million in Q3 2021. For 9 months YTD, the Company obtained grants of PLN 3.08 million, an increase from PLN 2.60 million achieved in the year-ago period. In accordance with the Company’s policy on accounting for grants, only a part of the proceeds will be recognized in the income statement for Q3 2022, while the remainder will be kept on the balance sheet as deferred income.

“We are on track to reach our goals for the current year – we are strongly increasing the share of revenues from the sale of products and services in total revenues, which in turn causes the share of grants in financing our business to decrease gradually. Historically, grants were a very important component for us, but now as we develop all our three business lines and successfully commercialize our technologies with large players, we are able to continue our further robust growth relying on our equity. At the same time, it’s worth adding that a comparison of our results with the year-ago period is distorted by the low base effect, while quarter on quarter we can see a steady growth: 80% in Q3 and 123% YTD. Having said that, we are happy about our estimated results for the third quarter and looking ahead with optimism to the second half of the year,” says Jacek Olszański, CFO of XTPL.

XTPL S.A., a global supplier of breakthrough nanoprinting solutions for the next-generation electronics market. The Company develops and commercializes its innovative technology and products, which are sold to the United States and China, among other countries. The Company forged key partnerships for industrial implementations with NASDAQ-listed Nano Dimension and a leading Taiwan-based semiconductor manufacturer. XTPL’s unique, additive technology is used in the areas of the strongly growing printed electronics sector, including displays, advanced integrated circuits and PCBs. XTPL S.A. has been listed on the main market of the Warsaw Stock Exchange and on the Open Market of Deutsche Börse in Frankfurt.

In 2020, the value of the rapidly growing printed electronics market was USD 41.2 billion (+11.0% YoY), while in 2025 it is forecast to grow to USD 63.3 billion (source: IDTechEx). This means an increase in the market value at a CAGR of 9.0% in 2020–2025.  According to market analyzes, the market of electronic prototyping devices (the category that includes the Company’s DPS prototyping devices) is to see CAGR of 31% in the years 2021–2031 (source: Transparency Market Research). Global annual sales of systems for R&D, rapid prototyping and small-lot production in the area of the broadly understood printed electronics sector amount to approx. 250–500 devices per annum, at a price of approx. EUR 50–500 thousand per device.