19 July 2021
IQGeo Group plc
(the "Company" or the "Group")
IQGeo Group plc (AIM: IQG), a leading developer of geospatial productivity and collaboration software for telecoms and utility network operators is pleased to announce an update on current trading following the close of the Company's first half ended 30 June 2021.
The Group expects to report strong performance for the six months ending 30 June 2021 in line with expectations, achieved through the growth of the IQGeo core business and the successful integration of the OSPInsight (OSPI) business acquired in December 2020. During the first half of 2021, annual recurring revenue (ARR) order intake has increased by approximately 87% to approximately £1.5 million (H1 2020: £0.8 million). This has been achieved through winning over 35 new logos combined with the expansion of sales to existing customers. The Exit ARR* of the business as of 30 June 2021 has increased by 124% to approximately £6.5 million (H1 2020 £2.9 million).
Revenue for the six months ended 30 June is expected to be not less than £6.0 million (H1 2020: £4.7 million) with IQGeo own product revenue expected to grow by over 50% to exceed £5.5 million (H1 2020: £3.6 million). Own product order intake has grown by approximately 25% to £6.9 million (H1 2020: £5.5m).
Gross margins have continued to improve and are anticipated to be approximately 60% (H1 2020: 51%) driven by higher subscription revenues. This improvement along with expected levels of investment is anticipated to result in a reduced adjusted EBITDA loss that shall not exceed £0.5 million (H1 2020: £1.2 million).
As at the period end, the Board expects to report net cash of £12.1 million.
IQGeo remains focused on delivering industry-leading geospatial and network management software to telecommunications and utility operators around the world. We are achieving strong revenue and market share growth through our direct sales teams, expanding partner channels and through the acquisition of OSPI at the end of 2020. We have achieved our H1 targets for the integration of the OSPI team, delivering successful deployments of mobile field software to the OSPI customer base.
With a global focus on de-carbonisation and continued global investment in fibre and 5G rollout programmes, IQGeo operates in resilient, high profile markets with significant investment capital. The measurable business benefits delivered by our software solutions continue to resonate with organisations as they undergo digital transformation that demands increased process automation and greater network management. As awareness of the IQGeo brand and software offering continues to grow across these target markets, we anticipate consistently strong operational performance.
Richard Petti CEO said "We are very pleased with our first half performance which has been in line with our strategic milestones and financial plans. Notwithstanding the current pandemic demand for our geospatial software remains robust as our existing customers and new prospects continue to invest in improved service, new technology and network expansion. We look forward to the second half of the year with optimism and are confident of continuing to meet our expectations."
* Exit ARR is defined as the current go forward run rate of annually renewable subscription and M&S agreements.
The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 which is part of UK law by virtue of the European Union (withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
For further information contact:
IQGeo Group plc +44 1223 606655
finnCap Ltd +44 20 7220 0500
Henrik Persson, Seamus Fricker (Corporate Finance)
Tim Redfern, Richard Chambers (ECM)
Notes to Editors
IQGeo™ (AIM: IQG), delivers award-winning geospatial software solutions to telecommunication and utility network operators around the world ranging from large multinationals to smaller regional providers. The IQGeo software suite improves productivity and collaboration across enterprise planning, design, construction, maintenance, and sales processes reducing costs and operational risks while enhancing customer satisfaction. Our mobile-first, cloud-native software helps companies create and maintain an accurate view of their increasingly complex network assets that is easily accessible by anyone, wherever and whenever needed. Whether using our Enterprise IQGeo Platform or targeted OSPInsight fiber planning and design software, we enable a "System of Action" that breaks down information silos, improves data quality and accelerates decision making. Headquartered in Cambridge, with offices in Denver, Salt Lake City, Frankfurt and Tokyo, we work with some of the largest network infrastructure operators in the world. For more information visit: www.iqgeo.com/