Engage XR Holdings PLC on Monday said its loss in earnings before interest, tax, depreciation, and amortisation is expected to widen in 2022, following an increased headcount in the second half of the year to support new services.

Waterford City, Ireland-based Engage XR is a virtual communications solutions company.

Engage XR’s loss in earnings before interest, tax, depreciation, and amortisation is expected to widen to between €5.6 million and €5.9 million, compared to a loss of €2.8 million the year before.

The company said this reflects an increased headcount as Engage XR increased its sales, marketing, and support teams to handle demand in the second half of the year following the ‘strength’ of its new business pipeline, and to support new services following the launch of its corporate metaverse, Engage Link, in November.

Shares in Engage XR were down 49% to 6.63 pence on Monday afternoon in London.

Engage XR said it expects revenue for 2022 to be behind current market expectations, and it will now be between €3.5 million and €4.0 million. In 2021, revenue was €2.4 million.

The company said there has been a slower-than-expected conversion of Engage XR’s pipeline at the end of the second half of the year as customers have delayed making contract decisions amid ‘challenging global economic conditions’.

‘The board remains confident about the group’s growth opportunities in the next year and beyond. This confidence is based on our Engage platform revenues growing in excess of 70% during 2022 and our average deal size increasing more than 17% year-on-year. Despite the unique cost pressures this year, we have built a product that is selling, and our business model is working,’ Chief Executive David Whelan said.

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