Software developer Unith (ASX: UNT) has reported a busy June quarter, achieving all of the goals set out in its technology roadmap.
The company improved the appearance and quality of its digital human avatars while integrating its Talking Head platform with ChatGPT to enable open (as opposed to pre-defined and guided) conversations.
It also made significant progress with an undisclosed Big 5 tech client which it engaged in October, delivering its first digital human in preparation for an enterprise go-to-market in early 2024.
Big 5 companies are Google, Microsoft, Amazon, Meta (Facebook) and Apple and all are involved in the artificial intelligence (AI) race where digital humans interact with humanised responses in real time.
Lottery contract
In July, Unith secured an initial $44,000 contract with Xite Holdings (operator of international e-lottery product AZBillions) to deploy its digital humans to the AZBillions platform.
As part of the 12-month agreement, the company will develop a series of digital humans which cater to specific cultural regions with language proficiency, visual appearances, voices and facial expressions to provide an enhanced user experience.
The digital humans will provide customer support in areas including online lottery ticket purchases and upselling opportunities.
The first one will be fluent in Spanish and programmed for the Latin America region.
Mobile subscription users
Over the quarter, Unith’s mobile subscription division passed 100,000 users of new AI apps Bedtime Stories and AstroVIP in Europe and the Middle East, representing an 86% increase on the previous quarter.
Subscription retention rates one month after activation reached 70%, demonstrating strong engagement with Unith’s mobile subscriptions-based products.
The increased engagement resulted in over 18,000 hours of user interaction with digital humans.
Unith also secured approvals during the quarter to launch its conversational AI apps in Thailand, Bulgaria, Bahrain and Jordan.
Tracking well
Chief executive officer Idan Schmorak said Unith had been tracking well during the quarter.
“With an expanded team in place, we have been able to increase our business development efforts and establish a robust sales pipeline with several opportunities currently under discussion,” he said.
“Excitingly, these opportunities cover a range of industries within public and private sectors, demonstrating the broad spectrum of potential applications for our technology.”
The first half of the 2024 financial year was set up for strong growth.
“We are heading for a very exciting period with milestones expected to be reached on [Talking Head] platform development and commercialisation fronts,” Mr Schmorak said.
“Our progress and achievements with the digital humans continue to redefine customer interactions and provide a cost-effective solution for our clients… our team has worked extremely hard to build the foundations and develop the platform ready for launch, and we are almost there.”
Cash at hand
At the end of the June quarter, Unith’s cash at hand totalled $4.3 million.
Net cash used for operating activities was reported at $909,000 and mainly reflected a higher spend on marketing as the mobile subscription division continued to expand into new regions and the company put more research and development funds into advancing the digital humans technology.
Net cash of $400,000 was logged against further investment in intellectual property while net cash of $171,000 was attributed to financing activities including the remainder of a $271,000 share purchase plan once transaction fees and repayments of lease liabilities had been deducted.
