WiMi, Provider of AR Services, Announces 42% Revenue Growth in 2019
The holographic Augmented Reality company WiMi Hologram Cloud Inc. (Nasdaq: WIMI) reported its impressive financial results Thursday after its debut day in New York last month.
The Beijing-based AR cloud platform said it earned over $45.8 million in 2019, up 42% year-over-year. Its net income hit $14.6 million, or 13 cents per share, up 15% from the preceding year.
WiMi provides holographic AR solutions on its cloud platform to clients in the advertising and entertainment sectors. The company said that its holographic AR advertising services accounted for 84% of its revenues in 2019 and generated over 9.7 billion views in 2019, up from 6.6 billion views in 2018, representing an increase of 47% year over year.
For the augmented reality use cases, Apple launched its iPad Pro's new LIDAR sensor with the most recent iPad Pro refresh in March. The LIDAR tracking system can help to add up to significant improvements in AR performance, reportedly by Bloomberg.
"We believe that our holographic services will adapt to 5G technology," the company said in a report with the U.S. Securities and Exchange Commission.
Chinese authorities said that carriers in the country will deploy a total of 500,000 5G base stations in 2020. Operators had already installed nearly 200,000 5G base stations and had 50 million 5G users as of March, according to the Ministry of Industry and Information Technology.
China Telecom announced on April 23 that it added 12 million new 5G package subscribers, with a total of 17 million 5G subscribers by the end of March, according to the company.
WiMi said it also expects that 5G technology will lead to new heights in holographic AR development in the spaces of retail, travel, household, and communication, as Michael He, the general manager of science at the company, told CapitalWatch as the company's shares lifted off in April.
WiMi's initial public offering on April 1 in coronavirus capital New York resulted in the successful sale of 4.75 million American depositary shares at $5.50 per share; the stock ended trading at $5.51 per share. The company raised $26.1 million in its IPO.
Shares in WiMi were trading at $4.89 per share on Monday morning, remaining stable in the unstable market.