Virtualware's 90% EBITDA Growth: A Tale of SaaS Expansion and Strategic Acquisitions

Virtualware (EPA: MLVIR), a leading expert in 3D-driven enterprise software, has reported a staggering 90% increase in EBITDA to 806,000 euros, according to its unaudited results submitted to Euronext. This remarkable growth was driven by the expanded adoption of the company's enterprise XR platform VIROO through its subscription-based model and new contracts secured in North America.



Since 2023, the Euronext-listed company has operated under three core pillars: expanding in the US and Canada, strengthening immersive and 3D-powered solutions, and pursuing inorganic growth to accelerate revenue. In 2024, Virtualware's core XR unit registered 4.17 million euros in sales, up 13.5% from 2023. Pre-tax profit climbed an impressive 760% to 561,864 euros.

Subscription-based services accounted for 41% of total revenue, with VIROO XRaaS revenue growing from 590,555 euros in 2022 to 1,288,060 euros in 2023, reaching 1,725,719 euros by the end of 2024, marking a 192% increase over two years.

Virtualware's strategic focus on SaaS expansion in North America has been a key driver of its success. The company launched a Strategic Plan in 2024 to expand its presence in the US and Canada over the next three years. North American sales represented 36% of total revenue in 2024, reflecting the company's commitment to growing in the region. Team expansions in Orlando, US, and Toronto, Canada, along with 10 new channel partners, have contributed to this growth.

Strategic partnerships have also played a crucial role in Virtualware's growth. The company established a strategic partnership agreement with HTC VIVE in October 2024, enabling its XR technology to enter the US market through HTC's channels. This partnership has accelerated the adoption of immersive technologies within the Americas market, as evidenced by the inauguration of their first Enterprise Simulation Lab at the HTC VIVE Americas Headquarters in Berkeley, California.

In Canada, Virtualware partnered with Invest WindsorEssex and Nexstar Energy on a 3.5 million euros technical training program for battery manufacturing professionals, supported by the Canadian government. As a program partner, the company will design and deliver cutting-edge VR training modules in a custom-built VR room tailored for hands-on training, all powered by VIROO.

Virtualware's shift towards 3D-driven enterprise software as a service has also been influenced by strategic acquisitions. In October 2024, the company acquired Simumatik, a Swedish firm specializing in emulation software and digital twins, for 1.37 million euros. This acquisition has already started generating new business opportunities with its industrial client base around Simumatik's technology, further driving growth and enhancing shareholder value.



In conclusion, Virtualware's 90% EBITDA growth in 2024 is a testament to the company's strategic focus on SaaS expansion in North America and its successful pursuit of strategic acquisitions in Europe. By expanding its client base, enhancing its product offerings, and demonstrating strong financial growth, Virtualware has solidified its position as a leading provider of real-time 3D enterprise solutions. As the company continues to execute on its strategic plan, investors can expect to see further growth and success in the real-time 3D enterprise software industry.