Oslo, 8 October 2021
Xplora Technologies ('Xplora') is today announcing a trading update for Q3 21.
For Q3 21 Xplora will report sales of 88.9k smartwatches. This represents a y/y
growth of 86% from the 47.7k smartwatches sold in Q3 20. YTD Xplora has sold
229.9k smartwatches, representing a growth of 129% from the 100.2k smartwatches
sold Q1-Q3 2020.
Xplora exited Q3 21 with 110.7k mobile subscribers. This represents a sequential
growth of 17% from 94.4k mobile subscribers at the end of Q2 21, and a 38%
growth from 80.2k mobile subscribers at the end of Q1 21.
Xplora entered the year with an ambitious target of 131% volume growth to 500k
smartwatches in 2021. YTD our performance has supported this target with growth
of +129% y/y with strong performance in existing markets. In our 2021 business
case North American retail and telco sales represent around 20% of our 500k unit
target. Sales processes in North America have proven more time consuming as
retailers and telcos have a stronger focus on existing product offerings and
online sales due to Covid-19 restrictions. Thus, our target for telco and retail
sales from North America is not expected to be reached in 2021. Our opportunity
pipeline in North America remains unchanged.
Xplora has actively and successfully handled longer lead times and shortage
across a variety of components in the last 12-18 months, securing necessary
components for our anticipated volumes. Component shortage remains an industry
wide issue, and component prices continue to rise. Most recently challenging
supply chain issues have been brought to attention through news of intermittent
power rationing in China. To date we have not received news of this affecting
our planned supply. The inventory level entering Q4 21 together with confirmed
and planned inbound shipments through Q4 21 is deemed sufficient.
Xplora has a strong focus on sales growth and introduction of value-added
services to expand customer value and drive further scalability and leverage
operations. Key recent operational achievements include:
oTelia AB has been announced as a new major telco introducing our
industry-leading eSIM X5 Play smartwatch bundled with two years of licensing
access to our internationally recognized Goplay activity platform in the Swedish
market from October 2021.
oXplora Connect has been introduced with our entry level smartwatch XGO2 in
online channels in the US market. Xplora Connect is made ready for rollout in
Germany, the UK and Canada in Q4 21.
oXplora Arcade went live by the end of Q3 21 with 20 titles and will gradually
be expanded to around 100 titles over the next months.
oXplora Pay has been initiated and will roll out through Q4 21 in our two
largest markets Norway and Germany.
oDuring Q3 21 Xplora has extended distribution through Vodafone in Hungary,
Tango Telecom in Luxembourg, and several new resellers in the Netherlands.
oXplora has recently introduced smartphones in its Norwegian web store as part
of its strategy to prove migration of children from smartwatches and extend
customer lifetime and value.
oXplora secured a prestigious award for its Goplay collaboration with Warner
Bros and their iconic Tom & Jerry characters, winning the award for
best-licensed advertising campaign in the worldŽs largest and most prominent
award ceremony for licensed campaigns.
Xplora will release its full Q3 21 report on 25 November 2021.
For further information please contact:
Sten Kirkbak, CEO +47 9220 3710
Mikael Clement, CFO +47 9900 8000
Karen Guillot Ruiz, Business Analyst +47 9488 5859
About Xplora Technologies AS: Xplora is a platform and services company and an
industry leader in the market for children's smartwatches. Xplora was founded to
give children a safe onboarding to the digital life and a better balance between
screen time and physical activity. Xplora's vision is to enable children around
the world to experience how their everyday activities can create value and make
a positive change to the world. The company is headquartered in Norway with
operations in leading European markets. The information contained in this
statement has not been audited and may be subject to change.
This information is subject to the disclosure requirements in Regulation EU
596/2014 article 19 number 3 and the Norwegian Securities Trading Act § 5-12.