IQGeo Group PLC (AIM:IQG) has reported results for 2022 showing substantial progress in all regions, with in excess of 450 exit customer logos by the end of the year, a record for the company, and said headline figures have continued to exceed market expectations.
Looking ahead, the market-leading provider of geospatial productivity and collaboration software for the telecoms and utility industries said customers' end markets have remained very resilient and its contract wins of new and existing software modules in both telecommunications and utilities markets give it "great confidence that we have the right product set to meet our customers' demands moving forwards".
The company said it remains "very confident in its ability to deliver on its targets for 2023 and beyond".
For the 12 months ended 31 December 2022, IQGeo said it added £5.3mln of new annual recurring revenue, excluding ARR from its acquisition of Comsof NV, up from £3.4mln in the prior year, and highlighted an exit ARR of £15.1mln which it noted "provides strong visibility of future revenues and cash flows".
The acquisition of Comsof NV, a provider of market-leading automated fibre planning software which also brings a European hub and around 80 customers in Europe, was completed in August for a total consideration of up to €13.0 million (£11.1 million).
The company posted a recurring revenue net retention rate (NRR) of 108% for 2022 (2021: 113%). During the period, an initial three-year contract and further extension was won with a global top 5 telecom operator worth in excess of US$10.4mln delivering US$2.6mln of annual contract value (ACV) per year and US$2.6mln of services,
IQGeo reported full-year 2022 headline revenue growth of 92% to £26.6mln (2021: £13.8mln) and gross margin of 59% (2021: 64%). The company saw substantially improved adjusted EBITDA profit of £1.9mln (2021: £0.8mln loss) and a reduced loss for the year of £0.9mln (2021: £1.9mln).
In the results statement, Richard Petti, IQGeo's chief executive officer, commented: "In 2022 we have delivered a strong financial performance with growth in revenues, profits and cashflows. The asset investment dynamics of the underlying markets we serve - telecoms and utilities - have remained resilient and we see continued long-term investment in fibre optic networks and in electric grid modernisation in all our key markets.
"Thanks to these strong fundamentals, IQGeo has produced another highly positive performance including enterprise deployments at some of the largest telecoms and grid operators in the world. Our strong competitive performance has been underpinned by investments we have made in our product and in our organisation and today our ability to operate at scale against our competition means we are no longer just challengers, but leaders."
He added: "Our acquisition of Comsof NV has been a strategic highlight for the year; not only have we augmented our product set with market-leading predictive design analytics but we have acquired a significant physical presence in continental Europe where we look forward to working with an exceptional team and an exciting new customer base.
"We expect current levels of investment for fiber optic networks and grid modernisation to continue for a significant time and thanks to our competitive software offering and our highly capable organisation, we head into 2023 with high degree of confidence."