MapsPeople: Adjusts 2023 guidance, expects to raise new capital, and introduces 2024 outlook
Yesterday after the market was closed, MapsPeople announced a downgrade in its guidance for 2023, a new expected capital raise, and a new outlook for 2024.
In the announcement, MapsPeople comments that the order intake for Q4 2022 and Q1 2023 was less than planned from direct customers, where the time from order to revenue is 1-4 months and thus lower than with partners. On the other hand, the order intake in the new partner framework agreements was higher than planned, however, the time from order to revenue is 12-24 months with partners and therefore delays the planned revenue uptake. Consequently, MapsPeople now guides revenue of DKK 38-45m in 2023 (before DKK 52-62m).
EBITDA guidance for 2023 is now between DKK -62m and DKK -52m (before DKK -55m and DKK -45m). The company has implemented cost reduction initiatives, eliminating DKK 21m in costs with a positive EBITDA impact of DKK 9m in 2023. Moreover, the recent acquisition of US-based Point Inside will have a positive impact of DKK 3m on EBITDA in 2023.
With MapsPeople’s ARR methodology (invoiced and delivered ARR), guidance is kept at DKK 77-87m at the end of 2023. In the announcement, MapsPeople also updates on the current ARR, which has increased to DKK 48m (vs. DKK 33.6m at the end of 2022), including DKK 8m in ARR from the Point Inside acquisition.
Looking at the funding situation, MapsPeople has earlier projected that the company was fully funded until being cash flow positive from operations towards the end of 2023. However, the company now expects to initiate a new capital raise of DKK 20-25m as soon as possible due to the changes in key budget assumptions including revenue guidance. The use of proceeds is to finance the transformation from its framework order book to high ARR growth in 2023, which will finance operations through 2024 until profitability.
MapsPeople also introduces its new outlook for 2024. Following a more cost-efficient structure and lean processes, MapsPeople expects to grow its revenue to the range of DKK 90-105m and EBITDA is expected to be between DKK -10m and DKK 5m in 2024. By the end of 2024, MapsPeople expects ARR in the range of DKK 110-128m and cease its guidance on Contracted ARR (cARR), focusing solely on its ARR metric.
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HC Andersen Capital receives payment from MapsPeople for a Corporate Visibility/Digital IR subscription agreement. /Kasper Lihn 09:12 4 May 2023 (latest updated 11:00, 6 May 2023).
MapsPeople
MapsPeople er en Software-as-a-Service (SaaS) virksomhed med fokus på digital kortlægning til indendørs navigation. De to primære indtægtsstrømme er 1) MapsIndoors som er MapsPeoples egenudviklede kortløsning til indendørs navigation 2) Google Maps partnerskab med Google. MapsIndoors er nøglesegmentet med høje tocifrede vækstrater, og Google Maps-segmentet forventes at være en mere stabil forretning fremadrettet. MapsPeople har en global tilstedeværelse med kontorer i Danmark, Tyskland, Singapore og USA, og kunderne omfatter nogle af de største brands i verden. Virksomheden har været noteret på Nasdaq First North Premier i Danmark siden juni 2021.
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