According to preliminary estimated data, XTPL recorded the highest ever sales revenue from products and services in the fourth quarter of 2023. The revenue stood at PLN 4.4 million, representing a 29% growth year on year (y/y) and 20% quarter on quarter (q/q). The global supplier of groundbreaking nanoprint solutions for the modern electronics market achieved PLN 13.6 million in sales revenue throughout 2023, growing by 35% y/y and maintaining a high pace of commercialization of its solutions. The record result of the fourth quarter of 2023 was significantly influenced by the delivery of a total of 5 Delta Printing System (DPS) prototyping devices, and the completion of the fourth stage of development work in the technology phase with Nano Dimension Ltd. in the area of advanced PCB boards. The estimated cash balance of the Company as of December 31, 2023, was PLN 27.1 million, fully securing the implementation in 2024 of the Strategy for 2023-2026, announced by XTPL in November of the previous year. The Company’s backlog as of January 19 in the form of orders for the delivery of DPS devices in 2024 amounts to 5 units.
The commercialization of the Delta Printing System prototyping devices was initiated by XTPL at the turn of 2020 and 2021. The Company has confirmed a total of 25 DPS device orders to date, 13 of which were in 2023, 6 more than in 2022. The Company delivered and settled a total of 13 DPS devices in 2023, 10 more than in the whole of 2022. The unit price of the DPS device is approximately 170-200 thousand euros.
“The record fourth quarter is for us a very good complement and summary of 2023, one of the most intense and key periods for the long-term development of XTPL. We maintained a high pace of revenue growth from the commercialization of our three business lines, and all projects aimed at industrial implementations are progressing. In two of them, last year we progressed to the advanced stage of building an industrial prototype device with XTPL technology at its core. Additionally, we successfully carried out a public offering, securing the funds for the announced 2023-2026 development strategy, which widely addresses our business, operational, organizational plans, and foremost establishes a clear, measurable goal of achieving PLN 100 million from the sales of products and services by the end of 2026. We hence start the year 2024 with a clear path to achieving this goal and a sense of comfort in the form of an existing backlog of orders for our DPS prototyping devices and satisfaction with the increasingly strong brand that XTPL is becoming on the international stage.” comments Filip Granek, CEO of XTPL S.A.
XTPL is commercializing three owned business lines and generates additional revenue from grants, which are a significant part of co-financing R&D projects. The value of grants obtained in the fourth quarter of 2023 was PLN 0.7 million compared to PLN 2.9 million in the corresponding period last year. In total in 2023, the value of grants obtained amounted to PLN 3.4 million compared to PLN 5.9 million in 2022. Under the grant settlement principle, only a portion of the funds will be included in the income statement for the fourth quarter of 2023, the remaining part will be recognized in the balance sheet as future period revenue. The Company’s cash balance as at December 31, 2023, was PLN 27.1 million.
“The last quarter of 2023 is a clear growth in revenue as a result of effectively conducted activities of our company’s departments, from sales and marketing, through research, production, and logistics. We continue to strengthen each of these areas, keeping in mind the strategic goal of PLN 100 million in sales revenue in 2026. We are also expanding our sales department through agreements that we sign with new distributors of solutions offered by XTPL. In the fourth quarter, the markets covered by us were joined by Taiwan, the United States, Singapore, and South Korea. These are high-potential markets where XTPL products will now be even more visible and available to potential customers. With a view to generating further sales opportunities in 2024, we also plan to increase our presence at trade fairs. According to our estimates, over 60% of the generated qualified leads, which resulted in the order and delivery of DPS devices, are the result of our visibility at international trade fairs in 2023. We present ourselves there as a participant, exhibitor, or speaker. In 2024, we plan to be present in this capacity in over 13 countries at various conferences and events. We see tangible effects of this activity and believe that it will bring a series of benefits also in 2024 in each of our developed business lines.” says Jacek Olszański, board member for finance of XTPL.
The XTPL business model is based on three complementary business lines. They include modules for industrial implementations on production lines of global electronics manufacturers, Delta Printing System (DPS) prototyping devices, and High Performance Materials (HPM, nanoinks). The Company has a total of 9 projects aimed at industrial implementations of its technology, of which 4 projects are at advanced stages of development covering 3 strategic areas for the Company: semiconductors, displays, and advanced PCB boards. The total potential from all 9 currently developed industrial projects, assuming their positive validation, the Company estimates at approximately PLN 400 million in average annual revenues. The end customers are global entities responsible for the production of next-generation electronics including the leading semiconductor manufacturer from Taiwan, one of the world’s largest FPD (Flat Panel Display) display manufacturers from South Korea, and a leading industrial machine manufacturer from the USA listed on Nasdaq 100.
The XTPL strategy for 2023-2026 focuses on two main areas of activity. The first is the development of business and sales in order to achieve commercial revenues of PLN 100 million by the end of 2026 and to achieve the first implementations of XTPL technology on an industrial scale. Moreover, it is planned to expand the developed projects to new industries in the form of telecommunications and biosensors, as well as further expansion of the international network of distributors and the establishment of stationary sales centers in key technological destinations: USA, Taiwan, South Korea. The second area is the operational development and the entire organization in order to significantly increase production capabilities in all three business lines and the continuation of R&D work on the existing portfolio and future products of the Company. These activities will be accompanied by adjusting the organizational structure by improving internal processes and as a result building a strong brand with a tailored offer and targeted markets. Attracting new talents to the Company will allow us to develop the competencies we have and expand them.
