WiMi, Provider of AR Services, Announces 42% Revenue Growth in 2019

The Chinese AR company moves aggressively to capitalize on China's big 5G push. WiMi's holograph AR advertisement services generated over 9.7 billion views in 2019
Belinda ZhouMay 05,2020,06:55

The holographic Augmented Reality company WiMi Hologram Cloud Inc. (Nasdaq: WIMI) reported its beefy 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 spaces. The company said that its holographic AR advertising services are the return driver, accounting for 84% of its revenue in 2019. 

The company said its holograph AR advertisement services generated over 9.7 billion views in 2019, 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 the report with the U.S. Securities and Exchange Commission Thursday.

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 in an interview right as the company's shares lifted off in trading in April.

WiMi lifted off on April 1 in the quarantined New York, selling its 4.75 million American depositary shares at $5.50 per share and ended its Day One at $5.51 per share. The company raises $26.1 million in its IPO.

Shares in WiMi were trading at $4.89 per share on Monday morning, nearly unchanged.