MapsPeople: Starting to see the effects of the cost programs

Today, MapsPeople released its Q1 2024 report, which showed ARR growth of 52% YoY in line with this year's guidance of 38-54% growth, and earnings that according to plan improved after cost optimization.

By the end of Q1 2024, total ARR landed at DKK 52.8m, a small improvement QoQ. This should, however, also be seen in the light of some timing Issues. Shortly after the quarter ended, MapsPeople announced a DKK 5.2m order (total contract value over 39 months) that will be prepaid in Q3. The first quarter was also hit by a contraction of DKK 900k which had been expected to occur later in the year. New business rose DKK 3.4m. MapsPeople explains the slow start to 2024 by the fact that the speed at which partners implement the MapsPeople platform into their application is slower than expected, affecting the onboarding of new end customers. Moreover, management's focus on streamlining the business has taken focus. From Q2, the company expects to accelerate its new business and ARR.

The cost focus and the shift from Contracted ARR to ARR can be seen in the financial P&L results. Revenue grew 65%, higher than the ARR growth, and EBITDA improved by 49% compared to Q1 2023. Revenue landed at DKK 14.5m, close to 1/4 of the current ARR. The higher revenue and lower staff- and external cost meant that EBITDA improved to DKK -8.5m (DKK -16.7m in Q1 2023).

Cash flow from operations showed a negative development compared to Q1 2O23 with operational cash outflow of DKK 11.3m (DKK 5.4m in Q1 2023). One-time items helped Q1 2023 last year. On the other hand, capitalization of costs was lower in Q1 2024 (approx. DKK 2m lower compared to Q1 2023), affecting the cash outflow from investing activities positively compared to Q1 2023.

The company reiterates its 2024 financial guidance. ARR is guided in the range of DKK 72-80m by the end of 2024, corresponding to a growth rate of 38-54% YoY. In 2024, revenue is expected to be in the range of DKK 58-63m, and EBITDA is expected to be between DKK -25m and -20m. 

Read more here and access the full Q1 report (PDF) here: https://4209721.fs1.hubspotusercontent-na1.net/hubfs/4209721/MapsPeople%20Q1%20Report%202024.pdf  

MapsPeople’s CEO Morten Brøgger and CFO Christian Læsø will present the Q1 2024 results and the 2024 outlook tomorrow, 23 May at 10:00. Sign up for the virtual live event and ask your questions now: https://www.inderes.dk/videos/mapspeople-presentation-of-q1-report-2024

HC Andersen Capital receives payment from MapsPeople for a Corporate Visibility/Digital IR subscription agreement. /Michael Friis, 13:24 (updated 13:45), 22 May 2024.