MapsPeople: Reports 31% ARR growth in Q1 2023 and comments on new initiatives

Analyst Comment

Today, MapsPeople announced its Q1 2023 results, reporting a total ARR of DKK 38.9m by the end of the quarter, corresponding to 31% growth YoY. As announced at the beginning of May, this number has grown to DKK 48m during Q2, mainly driven by the acquisition of Point Inside’s activities with an addition of DKK 8m in new ARR.  

In line with other comments from the SaaS sector, MapsPeople continues to see cautious buying behavior from large customers, prolonging the decision process. However, the company remains optimistic about the long-term growth potential, driven by smart building trends that require an underlying indoor mapping platform.

EBITDA amounted to DKK -16.65m in Q1 2023 (DKK -10.2m in Q1 2022). At the beginning of Q2, the company has taken steps to secure a more balanced cost structure, implying that the company is expected to reduce the cost base with an annual cost run rate of DKK 21m.  

Regarding MapsPeople's investments and cash position of DKK 8.1m by the end of Q1 2023, the company still expects to initiate a new capital raise of DKK 20-25m as soon as possible in line with the announcement from the beginning of May. The capital raise is expected to fully finance operations through 2024 until profitability.  

Looking ahead, MapsPeople maintains its recent outlook for 2023 (revenue and EBITDA were downgraded earlier in May). This implies that MapsPeople expects a total ARR of DKK 77-87m (129-159% growth) by the end of 2023, revenue in the range of DKK 38-45m (31-55% growth) in 2023, and EBITDA in the range of DKK -62m and DKK -52m.

The expected high growth in total ARR is supported by MapsPeople’s contracted orderbook from its partner channel of more than DKK 30m and combined orderbook (both partners and direct customers) of more than DKK 32m. MapsPeople also continues its focus to convert the orderbook into new ARR and comments that new initiatives switching partner contracts from a traditional committed framework agreement to a prepaid platform license model has resulted in some initial positive progress during Q1.

Read the full Q1 report here:

MapsPeople’s management will present the Q1 results at a virtual event on Thursday 1 June at 11:00. Sign up for the virtual event at the following link, where you can ask your questions to the management already now:

HC Andersen Capital receives payment from MapsPeople for a Corporate Visibility/Digital IR subscription agreement. /Kasper Lihn, 17:25 25 May 2023. Updated 26 May 9:00.