This just caused the Vection (ASX:VR1) share price to leap 17%

How is the company tracking so far for FY22?

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The Vection Technologies Ltd (ASX: VR1) share price stormed higher today. This comes after the company announced a market update and revenue guidance for the 2022 fiscal year.

At the closing bell, the real-time software company’s shares finished the day at 17 cents, up 17.39%.

How is Vection performing for FY22?

Investors have been driving up the Vection share price after digesting the company’s latest financial figures.

In a statement to the ASX, Vection advised that it has outperformed its first-half FY22 Total Contract Value (TCV) target.

Earlier this month, the company revealed it exceed its TCV goal by $1 million, reaching a milestone of $11 million. Notably, the metric represented an increase of 120% compared to the FY22 first quarter TCV level of $5 million.

As such, Vection now expects a first-half fiscal year 2022 revenue guidance of between $8 million to $9 million. The full fiscal year 2022 revenue guidance is anticipated to come around $17 million to $19 million.

Second quarter cash receipts from clients are projected to be more than $3.5 million. This is assumed to lead to half-year cash receipts from clients in excess of $6.3 million.

The company is seeking to accelerate its aggressive global acquisition strategy targeting the XR and metaverse enterprise technology sector. It believes the technology suite delivers high growth potential through broad industrial adoption.

Vection Technologies Managing Director, Gianmarco Biagi commented:

Our growing global team, clients, leading partnerships and TCV give us comfort in providing the market with a revenue guidance of $8 to $9 million for the first half fiscal year 2022, with full fiscal year revenue guidance of $17 to $19 million.

A strong global client base provides strong credibility to grow major multinational sales channels across consultancy firms’ clients. With a strong M&A focussed war-chest, we are positioned to leverage an aggressive programmatic acquisition approach to drive XR organic growth during 2022 and 2023, to deliver continued shareholder return.

Vection share price snapshot

Over the past 12 months, the Vection share price has lifted 13%, with year-to-date around 8% higher.

The company’s shares reached an all-time high of 29 cents last month, before sharply pulling back and erasing the gains.

Based on today’s price, Vection commands a market capitalisation of around $143.26 million and has 1.10 billion shares on issue.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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