First quarter software and solutions revenue increased 42% year over year
Subscription-based revenue represented 56% of total revenue in the first quarter
DENVER – Intermap Technologies (TSX: IMP; OTCQB: ITMSF) (“Intermap” or the “Company”), a global leader in 3D geospatial products and intelligence solutions, today announced 67% revenue growth in the first quarter. For the period ending March 31, 2023, the Company reported revenue of $2.0 million, compared with $1.2 million for the fourth quarter of 2022 and $2.0 million for the first quarter of 2022. Software and solutions represented 64% of total revenue as the Company continues to grow its commercial business with recurring subscriptions and high margins.
Intermap’s advanced technology and automation are driving scale and operating leverage, resulting in rising margins as volume increases. Contribution margins increased by more than 10 points during the first quarter of 2023. Cash and accounts receivable at March 31, 2023 improved to $2.2 million and adjusted EBITDA improved to $0.5 million for the quarter. Intermap projects total annual revenue for 2023 to be in the range of $8 – 10 million, largely realized late in the calendar year due to contracting cycles and timing uncertainties related to COVID delays and recovery. The forecast excludes any potential new revenue from international government contracts, which could provide upside to projections.
“We are pleased to announce strong revenue growth for the first quarter and remain on track for a successful 2023,” said Patrick A. Blott, Intermap Chairman and CEO. “We are winning new customers in government and commercial sectors, and we are increasing the size and length of contracts. With more than half of our revenue derived from multiyear software subscriptions, we have established a solid foundation for sustainable growth with high margins. Our advanced AI/ML technology and processing infrastructure allow us to deliver high-value, repeatable contracts.”
Government revenue represented 23% of total revenue for the first quarter, compared with 7% in the first quarter of 2022. Intermap is currently collaborating with the U.S. Department of Defense and other Allied national government agencies on critical strategic initiatives. Some ongoing unclassified government work includes:
- Received first task order for the U.S. Department of the Interior IDIQ prime contract for dam inundation analysis
- Completed first task order under the U.S. Department of Defense JANUS contract
- Continuing work on prime contract with the U.S. Air Force Research Laboratory (AFRL) to support its GPS-denied navigation solutions
- Selected by the U.S. Defense Department to present advanced AI/ML processing technology to support the government with actionable, geo-precise data for situational awareness and planning processes
Intermap’s commercial business grew 20% year over year, with a three-year CAGR of 16%. The Company’s recurring revenue now represents 74% of its overall commercial business. Intermap’s year-to-date European insurance business represents 60% of its total insurance business, driven by market expansion and increased functionality of its European product suite. Subscription size continues to grow in Europe and North America, driven by increased customer adoption and price increases. Some commercial highlights include:
- Multiple InsitePro® subscription renewals and upsells with major U.S. insurance underwriters
- Renewal with leading automated aviation company for NEXTView™ to support expansion of autonomous aviation operations across the U.S.
- Growing European insurance solution with a new $1.3 million contract in Slovakia for flood data and analytics
- Expanding European insurance solution to the Czech Republic real estate market for property valuation and risk assessment analytics
- New flood modeling initiative in Thailand to support urban development and expansion in Bangkok
- New contract with EDF Hydro to supply data for hydro projects in South America
- Added two patents to expand portfolio of IP and innovative solutions
- New telecom data subscription contract with major Vietnamese telecom provider
- New data subscription contract supporting agriculture management in Indonesia
The Company’s consolidated financial statements for the quarter ended March 31, 2023, along with management’s discussion and analysis for the corresponding period and related management certifications for first quarter financial results will be filed on SEDAR at www.sedar.com before May 15, 2023.
Reconciliation of Non-IFRS Measures
Adjusted EBITDA is not a recognized performance measure under IFRS and does not have a standardized meaning prescribed by IFRS. The term EBITDA consists of net income (loss) and excludes interest (financing costs), taxes, depreciation and amortization. Adjusted EBITDA also excludes working capital investment and share-based compensation. Adjusted EBITDA is included as a supplemental disclosure because management believes that such measurement provides a better assessment of the Company’s operations on a continuing basis by eliminating certain non-cash charges or gains that are nonrecurring.
The most directly comparable measure to EBITDA and Adjusted EBITDA calculated in accordance with IFRS is net income (loss). The following is a reconciliation of the Company’s net loss to Adjusted EBITDA.
Intermap Reader Advisory
Certain information provided in this news release, including reference to revenue growth and projections of total annual revenues for 2023, constitutes forward-looking statements. The words "anticipate", "expect", "project", "estimate", "forecast", “will be”, “will consider”, “intends” and similar expressions are intended to identify such forward-looking statements. Although Intermap believes that these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a variety of known and unknown risks and uncertainties. Intermap’s forward-looking statements are subject to risks and uncertainties pertaining to, among other things, cash available to fund operations, availability of capital, revenue fluctuations, nature of government contracts, economic conditions, loss of key customers, retention and availability of executive talent, competing technologies, common share price volatility, loss of proprietary information, software functionality, internet and system infrastructure functionality, information technology security, breakdown of strategic alliances, and international and political considerations, as well as those risks and uncertainties discussed Intermap’s Annual Information Form and other securities filings. Our 2023 revenue forecast is based on the following assumptions: The Company will deliver on subscription revenue according to the contract terms, repeating data products revenue will remain consistent with prior years, government task orders will be contracted according to verbal awards. Our 2023 revenue forecast is subject to the following specific risks and uncertainties: The timing of regulatory and budgetary decisions in government contracting, the internet and system infrastructure functionality and information technology security detailed in the Annual Information Form. While the Company makes these forward-looking statements in good faith, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected. Accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that the Company will derive therefrom. All subsequent forward-looking statements, whether written or oral, attributable to Intermap or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. The forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the forward-looking statements made herein, whether as a result of new information, future events or otherwise, except as may be required by applicable securities law.
About Intermap Technologies
Founded in 1997 and headquartered in Denver, Colorado, Intermap (TSX: IMP; OTCQB: ITMSF) is a global leader in geospatial intelligence solutions, focusing on the creation and analysis of 3D terrain data to produce high-resolution thematic models. Through scientific analysis of geospatial information and patented sensors and processing technology, the Company provisions diverse, complementary, multi-source datasets to enable customers to seamlessly integrate geospatial intelligence into their workflows. Intermap’s 3D elevation data and software analytic capabilities enable global geospatial analysis through artificial intelligence and machine learning, providing customers with critical information to understand their terrain environment. By leveraging its proprietary archive of the world’s largest collection of multi-sensor global elevation data, the Company’s collection and processing capabilities provide multi-source 3D datasets and analytics at mission speed, enabling governments and companies to build and integrate geospatial foundation data with actionable insights. Applications for Intermap’s products and solutions include defense, aviation and UAV flight planning, flood and wildfire insurance, disaster mitigation, base mapping, environmental and renewable energy planning, telecommunications, engineering, critical infrastructure monitoring, hydrology, land management, oil and gas and transportation.