Xtract One Technologies (XTRA) Sidoti Micro-Cap Virtual Conference summary

Innovation and technology overview

• Demonstrated AI-powered SmartGateway system for weapons detection, offering faster, more accurate screening than traditional metal detectors.

• System uses purpose-built sensors and AI to distinguish between weapons and benign objects, reducing false alerts and improving guest experience.

• Technology validated by third-party organizations such as TSA, FAA, DHS, and NPSA, and included in their security product catalogs.

• Digital transformation enables scalable, proactive security solutions, addressing labor shortages and rising societal threats.

• Platform extensibility allows for future enhancements, including credentialization and guest journey insights.

Market opportunity and customer base

• Experiencing rapid revenue growth: 370% in 2022 over 2021, and 250% in 2023 over 2022.

• Backlog has grown from $1 million to nearly $30 million in three years, with over 100 customers and expanding pipeline.

• Customer base includes major venues and organizations such as Madison Square Garden, The Sphere, KC Current, and large healthcare networks.

• International expansion underway, leveraging anchor accounts in Japan, the UK, and Europe for further growth.

• Strategic partnerships with Oak View Group and the American Association of Professional Baseball support global reach.

Business model and financial performance

• SaaS-based recurring revenue model is preferred by most customers, providing predictable income streams.

• Gross margins currently at 60–65%, with potential to increase as more software-based features are layered onto the platform.

• Operating expenses have remained flat or declined while revenue has doubled or tripled annually, supporting scalability.

• Cash flow break-even could be achieved within the fiscal year, though further investment may extend this timeline.

• Manufacturing capacity has doubled twice in the past year, with flexibility to scale further as demand increases.