Release Date: March 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Given the challenging funding environment, how long do you expect this softness to last? A: John Givens, CEO: We've been through these cycles before. The current environment is due to election-related uncertainties and frozen funding distributions. I anticipate that after a couple more quarters of assessments, the funding environment will stabilize and potentially improve for VirTra and similar companies.
Q: What initiatives are you undertaking to navigate the current funding uncertainty? A: John Givens, CEO: Our sales team is actively assisting departments in navigating federal funding and grants. We've created a grant program to guide customers to appropriate funding sources. Additionally, I've met with policymakers to advocate for clearer funding processes, ensuring grants are structured to meet our customer needs.
Q: Regarding the IVAS opportunity, how does the transition from Microsoft to Anduril impact VirTra? A: John Givens, CEO: The transition is positive for us. Anduril has extensive experience with government contracts, unlike Microsoft's commercial electronics model. Our product's strong performance has been recognized, and Anduril's involvement is expected to enhance contract management and execution.
Q: Can you clarify if bookings have a secured funding source and how much of the $22 million backlog will be recognized in 2025? A: Alanna Boudreau, CFO: If we record it as a booking, the funding is secured. We expect the majority of the $22 million backlog to convert into revenue in 2025, although some may extend into 2026 or 2027 due to service contracts.
Q: What is the market opportunity for the V-XR platform, and how do you see it impacting growth? A: John Givens, CEO: The V-XR platform fills a gap in our offerings, targeting smaller agencies with budget constraints. Price points range from $35,000 to $100,000. We anticipate significant adoption over the next two to five years, with the platform complementing our screen-based systems and expanding our reach into untapped markets.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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