Source: Cognizant Research calculations using AlphaSense data. Data reflects four-quarter running averages.
However, actual engagement remains at extremely low levels, with just over 2.5% of all companies studied mentioning metaverse-related terms in their earnings-call presentations in the average of the last four quarters.
There is, therefore, substantial room for further growth. Whether more companies will choose to discuss the metaverse in their earnings calls will probably depend on their ability to derive value from it.
While a likely economic downturn may well put companies in a more conservative stance when it comes to spending and more likely to focus on measures that preserve capital, profits and margins, we believe that investing in metaverse-based applications now could place them to be in pole-position when the economy picks up.
As discussed in our report “A pragmatist’s guide to the metaverse,” the technology for doing so is available, and early adopters, from banking to healthcare, are already exploring ways to generate value.
Intensity levels reflect a lack of plans
However, in our research, even those that have discussed the metaverse with investors have largely failed to move from signaling their awareness of its potential to being able to discuss specific plans for it.
This dynamic is seen in our intensity of engagement index. If businesses were at a point of presenting their plans, they would devote more time to the metaverse in their earning calls. Instead, in recent quarters we’ve seen a leveling off in our business metaverse engagement intensity index, which measures how often the terms associated with the topic are mentioned in these presentations. After a surge last year, enthusiasm has recently cooled.
Business intensity of engagement index.
Indexed average mentions of metaverse-related terms by engaged companies. (Engaged companies are those whose leaders mention at least one metaverse-related term in their earnings-call presentations.)