Operational highlights:
- Acquisition of Comsof NV (“Comsof”), a provider of market leading automated fibre planning software which also brings a European hub and around 80 customers in Europe, for consideration of up to €13.0 million.
- Substantial progress in all regions with in excess of, 450 exit customer logos by the end of the year, a record for the Group
- £5.3 million of new Annual Recurring Revenue (“ARR”) added, excluding ARR acquired from Comsof, up from £3.4 million in the prior year
- 108% recurring revenue Net Retention Rate (“NRR” *) (2021: 113%)
- Initial 3 year contract and further extension won in period with Global top 5 telecom operator worth in excess $10.4 million delivering $2.6 million of ACV (Annual Contract Value) per year and $2.6 million of services
Financial highlights:
- Headline figures have continued to exceed market expectations
- Headline revenue growth of 92% to £26.6 million (2021: £13.8 million)
- Organic revenue growth of 57% to £21.8 million
- Recurring revenue growth of 84% to £10.6 million (2021: £5.8 million)
- Recurring revenues account for 40% of all revenues (2021: 42%)
- Material increases in exit ARR** of 84% to £15.1 million (2021: £8.2 million)
- Gross margin of 59% (2021: 64%)
- Substantially improved adjusted EBITDA*** profit of £1.9 million (2021: £0.8 million loss) and reduced loss for the year of £0.9 million (2021: £1.9 million)
- Comsof acquisition completed in August for a total consideration of up to €13.0 million (£11.1 million)
- Cash as at 31 December of £8.1 million (no borrowings) (2021: £11.5 million) after £7.5 million cash outflow for the acquisition of Comsof and a fundraising resulting in £3.5 million of inflow
Outlook:
- Our customers’ end markets have remained very resilient and our contract wins of new and existing software modules in both telecommunications and utilities markets give us great confidence that we have the right product set to meet our customers’ demands moving forwards
- Exit ARR** of £15.1 million provides strong visibility of future revenues and cash flows
- We remain very confident in our ability to deliver on our targets for 2023 and beyond
*NRR is the growth in recurring revenues from existing customers, less any customer churn
**Exit ARR is defined as the current go forward run rate of annually renewable subscription and M&S agreements
***Adjusted EBITDA excludes amortisation, depreciation, share option expense, foreign exchange gains/losses on intercompany trading balances and non-recurring items and is reported as it reflects the performance of the Group
Richard Petti, Chief Executive Officer, said:
“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.
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.”
