MapsPeople: Adjusts its 2024 guidance in connection with the Q3 2024 results and provides news about the recent acquisition

Today, MapsPeople reported its Q3 2024 results, adjusted its 2024 guidance, and provided news about the acquisition of Point Consulting's indoor mapping activities.

In connection with the Q3 2024 results, MapsPeople has downgraded its ARR guidance to DKK 59-63m (from DKK 72-80m), corresponding to a growth rate of 14-21% YoY. The 2024 revenue guidance is kept at DKK 58-63m, corresponding to a growth rate of 43-55% growth YoY. EBITDA before special items is downgraded to DKK -30m to -26m (from DKK -25m to -20m) in 2024 which is a significant improvement from DKK -59.7m in 2023.

The ARR downgrade is explained by longer-than-expected demand generation and sales after MapsPeople reduced its costs by 50% in Sales and Marketing headcounts. MapsPeople highlights multiple new large smart building partners in the pipeline; however, it normally takes 6-12 months to close and is therefore not expected to materialize in 2024. 

The kept revenue guidance is positively affected by a one-off in 2024 of DKK 1.5m after two settlements of disputed old framework agreements. Despite the kept revenue guidance, EBITDA is downgraded due to higher spending than MapsPeople originally planned. This includes DKK 1.5m in additional sales and marketing spend, more upgrades of partners and end customers to 3D indoor maps than planned with a negative effect of DKK 1.2m due to higher COGS on technology, and losses and related costs on customers, mainly old framework agreement customers, of approx. DKK 1.5m. Read more about the adjusted guidance here: https://www.inderes.dk/releases/mapspeople-as-issues-updated-arr-and-ebitda-guidance

Looking at the Q3 2024 results, ARR grew to DKK 56.2m by the end of the quarter, corresponding to a growth of 9% YoY (1% growth QoQ). Revenue grew to DKK 14.8m in Q3 2024, corresponding to a growth rate of 38% YoY. EBITDA before special items was DKK -6.4m in Q3 2024 (DKK -12.8m in Q3 2023). Read more about the Q3 2024 results here: https://www.inderes.dk/releases/mapspeople-as-releases-q3-2024-financial-results

Today, MapsPeople also announced that the consideration of its recently announced acquisition of Point Consulting Pte. Ltd.’s indoor mapping customer contracts and associated technology has changed, as they have secured five new agreements, including two additional airports, and thus increased its ARR from DKK 2.1m to DKK 2.4m. As MapsPeople will take over these new contracts, the consideration of the acquired contracts and assets increases to DKK 6.1m (still corresponding to 2.5x ARR). 80% will be paid in cash, while the remaining 20% will be paid in new MapsPeople shares for DKK 1.43 per share. Read more about the conditions here: https://www.inderes.dk/releases/mapspeople-as-mapspeople-acquisition-consideration-of-point-consulting-pte-ltd-announced-in-ca-21-2024-changes-as-five-5-new-agreements-increase-the-arr-to-mdkk-24   

Tomorrow, 14 November at 10:00, MapsPeople’s management will present the results and recent news. The management presentation will be followed by a Q&A session. Sign up and ask your questions here: https://www.inderes.dk/videos/mapspeople-presentation-of-q3-2024  

Disclaimer: HC Andersen Capital receives payment from MapsPeople for a Digital IR/Corporate Visibility subscription agreement. /Kasper Lihn 12:30, 13 November 2024.