Nextech3D.ai says Kraftylabs achieves profitability in first month

0:00Welcome back inside our proactive newsroom and joining me now is Evan Gapelberg. He is the CEO of nexttech3d.ai. And Evan, nice to see you again. How are you today? I'm great. Great to be back, Steve. Yeah. So the company I was really interested in news today talking about crafty labs. And you and I have talked about the importance of this acquisition that you made. And now you've hit some pretty big milestones with this company. We have. I believe we've hit the inflection point that all investors, including myself have been waiting for when we acquired crafty labs in January. We knew the underlying business was solid, but plugging it into our AI-powered operating system provided the immediate turbocharge that we're starting to see in the business. And you know, when we make acquisitions, we're not just buying revenue. We're buying high margin components that scale without adding the massive overhead. And so, you know, if you look at the high margins

1:02of our business, they really, really make me very excited and very confident about our ability to go cash flow positive in 2026. And today's news is really just about that segment of the business showing profitability in the first month, but ultimately, Steve, you know, we're sitting on $3 million in annual recurring revenue. And you might think that that's a small number, but when you think about that's our baseline, that's, you know, the foundation. It's actually a quite exciting number for me. Yeah. And some of that will be accurate in 2027 as well, which I think is important because it gives you that sort of longevity that you're seeing and these contracts that you talk about and this recurring revenue now has not only in this year, but also next year as well. Yeah. That's true. And, you know, when we also look at the composition of that annual recurring

2:03revenue, it's anchored by hundreds of Tier 1 blue chip accounts. So, we have the classic land and expand strategy. We have the clients now, you know, that was the land part. Now we're working on the expansion, hiring enterprise salespeople and really working our book of business. And we are expanding. We're seeing Tier 1, 2, and 3 deals start to stack up. And when you have, you know, that happened, you know, you have these hundreds of accounts that are starting to move from Tier 1 to Tier 2 to Tier 3. And when you get into Tier 3, you know, you're moving into deals that are hundreds of thousands of dollars instead of 5 or 10 or 20,000. And that's actually our business as we go forward is building that essentially expansion part of our business in 2026 and 2027 and beyond Steve. Evan, are you surprised at how quickly this

3:08adoption has happened and the integration has happened? Because as you mentioned, you're trying to move these clients up the chain to get more of the products that you have. So, are you happy where it's at? Were you expecting this to be about where it is right now? Very pleased with where we're at right now. You know, again, February was a major milestone with profitability with crafty labs. We expect that to continue in the other businesses, map dynamics, event decks. And we expect to see some really, really exciting revenue numbers start to show up as we release our quarterly reports. And we expect that to turn into profitability and going cashflow positive. So, the tech is built, Steve. The customers are signed. And now we're simply scaling that engine. That is the best case scenario for me as a CEO. The hardest thing was really the two parts, building the tech and signing the customers. We're still signing

4:10customers. Let's be clear. But we have, as I said, hundreds of blue chip accounts we've mentioned before, the Googles, the Netflix, Meta, Microsoft, BMP, Parabas and many, many others. They're already signed. Actually, we just landed Lego signed the contract with Lego. And so, you know, again, it keeps on stacking the number of blue chip accounts. But ultimately, they start out as tier one. We move them to tier two and ultimately to tier three. That is what's happening at next tech today. All right. It's all about putting the pieces together. So to speak, Evan, thanks so much. Great to see you again. Thank you, Steve. Evan Gappelberg, the CEO of next tech3d.ai.