MapsPeople: 19% ARR growth YoY and improved EBITDA in Q2 2024
This morning, MapsPeople reported its Q2 2024 report. Total ARR increased to DKK 55.6m by the end of the quarter, corresponding to 19% growth YoY. The main solution, MapsIndoors, increased to DKK 40.9m, corresponding to a growth rate of 27% YoY. Revenue increased by 35% YoY to DKK 14.4m in Q2 2024.
In the quarter, growth was driven by nearly DKK 5m in upsell to existing partners and customers and nearly DKK 2m from new partners and customers. ARR was negatively impacted by contractions of DKK 1.4m and churn of DKK 3.6m. Overall, the growth has improved compared to Q1 2024, but MapsPeople reports that it is still somewhat challenged. With the ongoing rights issue aiming for DKK 36m in gross proceeds (96.5% is secured through irrevocable commitments and underwriting guarantees), MapsPeople will increase its investments in both M&A and sales and marketing initiatives after a period of cost reductions.
Looking at EBITDA before special items (MapsPeople has made restructuring activities and adjusted its management team, corresponding to special items of DKK 1.96m), the company has improved its EBITDA to DKK -8.2m in Q2 2024 (DKK -15.8m in Q2 2023). MapsPeople does not expect further special items for the rest of 2024.
The 2024 full-year guidance is maintained, implying that MapsPeople expects ARR in the range of DKK 72-80m by the end of the year, revenue of DKK 58-63m in 2024, and EBITDA before special items in the range of DKK -25m to DKK -20m in 2024. However, the special items imply that 2024 guidance for EBITDA after special items is now DKK -27m to DKK -22m. Growth is expected to be evenly distributed between EMEA and North America.
You can sign up for a live online presentation on Thursday 19 August at 14:30, where MapsPeople’s CEO Morten Brøgger and CFO Christian Læsø will present the Q2 2024 report. Sign up and ask your questions here: https://www.inderes.dk/videos/mapspeople-presentation-of-q2-2024
Disclaimer: HC Andersen Capital receives payment from MapsPeople for a Digital IR/Corporate Visibility subscription agreement. /Kasper Lihn 11:15, 19 August 2024.
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MapsPeople
MapsPeople is a Software-as-a-Service (SaaS) company focusing on digital mapping for indoor navigation. The two primary revenue streams are 1) MapsIndoors which is MapsPeople’s own developed mapping solution for indoor navigation 2) Google Maps partnership with Google. MapsIndoors is the key segment with high double-digit growth rates, and the Google Maps segment is expected to be a more steady business going forward. MapsPeople has a global presence with offices in Denmark, Germany, Singapore and United States, and customers include some of the largest brands in the world. The company has been listed at Nasdaq First North Premier in Denmark since June 2021.
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