LONDON, UK: IQGeo Group plc (AIM: IQG), the innovative developer of geospatial productivity and collaboration software for telecoms and utility network operators, has announced its final audited results for the year ended 31 December 2023, marking a year of substantial growth and operational achievements.
Operational Achievements: The company has made significant strides across all regions, boasting over 500 customer logos by year-end, setting a new record for the Group. The net retention rate soared to 133% on a constant currency basis, up from 108% in 2022. Notable achievements include securing contracts with top-tier telecom and utility operators in North America and a major national utility and broadband operator in Southern Europe. IQGeo also launched innovative solutions tailored for telecom and electrical operators and introduced various editions of its Network Manager products.
A new office in Malaysia was inaugurated to bolster the Group’s expansion in the Asia-Pacific region in 2024. Additionally, the successful integration of Comsof, acquired in August 2022, was evidenced by the payment of £1.3 million of deferred consideration, with a second earn-out of the same amount due by the end of March 2024.
Financial Highlights: IQGeo’s financial performance exceeded market expectations, with a record order intake of £57.2 million, representing a 40% growth from the previous year. Total revenue surged by 67% to £44.5 million, and organic growth was reported at 64%. The Group also saw a 48% increase in recurring revenue, reaching £15.7 million. The exit Annual Recurring Revenue (ARR) grew by 41%, amounting to £21.3 million, which is a 50% increase on a constant currency basis. The gross profit margin improved slightly to 60%, and the adjusted EBITDA experienced substantial growth, reaching £6.6 million. The year concluded with a breakeven, a significant improvement from the £0.9 million loss in 2022, and the Group reported a positive free cash flow with net cash of £11.0 million.
Outlook for 2024: With a 50% growth in exit ARR in 2023 and a robust pipeline, IQGeo enters 2024 with confidence and a clear vision for continued success. The Group anticipates further improvements in gross margins as it recognizes more high-margin recurring revenue. The focus remains on expanding the recurring revenue stream through the “Editions” strategy, which caters to a diverse customer base with varying demands and budgets.
IQGeo’s growth trajectory is propelled by the global push for fibre network rollouts and the modernization of electric grids for renewable energy integration. These trends present a long-term market opportunity for IQGeo’s network management solutions, positioning the company at the forefront of the telecom and utility sectors’ evolution.
Richard Petti, CEO, commented that: “I am delighted with our performance in 2023. We have delivered a very strong set of results and at the same time we have strengthened both our product competitiveness and our organisation.
On 1 January 2024 we celebrated our 5-year anniversary as IQGeo over which time we’ve delivered two successful acquisitions and dramatically reshaped our software technology portfolio and global presence. Our Integrated Network solution is now well established as a market leader in the telecom industry, and we are building similar momentum in the electric utility industry for our Adaptive Grid solution.
Our record order intake, strong growth in exit ARR and more than three-fold growth in adjusted EBITDA demonstrate the strength of our proposition, our position in our chosen markets and the innovation of our technology. Our future is underpinned by global megatrends that will deliver long-term sustainable growth in our end markets for many years to come.
I would like to acknowledge the hard work and commitment of the IQGeo team that performed so well in 2023 and we look forward to an exciting 2024.”
IQGeo Group has acquired COMSOF N.V. for €13 million
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