IQGeo Group plc, a UK-based developer of geospatial software, announced it expects strong revenue and profit growth for 2023, ahead of market expectations.
The company forecasts revenues exceeding £44.2 million, up 66% from 2022. Organic growth was 56%. IQGeo saw recurring revenue growth, with annual recurring revenue (ARR) reaching approximately £21.1 million, up 40% year-over-year on a constant currency basis.
IQGeo achieved a record order intake of £56.9 million in 2023, over 40% higher than 2022. The company also expects to report adjusted EBITDA over £6.4 million, a 237% increase from 2022, demonstrating substantial operational gearing.
IQGeo shares were 17% higher at the time of writing.
The growth was driven by IQGeo’s solutions for telecom and utility network operators rolling out fibre and modernising grids. IQGeo added major new customers in North America and Southern Europe. It retained 132% of revenue from existing clients.
IQGeo was net cash positive in 2023 after two years of negative free cash flow. It expects to end the year with £11 million in net cash reserves.
The company predicts continued strong growth in 2024, driven by recurring software sales and services. Gross margins should also improve as high-margin recurring revenue expands.
“Our record order intake, strong growth in exit ARR and more than three-fold growth in adjusted EBITDA demonstrate the strength of our proposition, our position in our chosen markets and the innovation of our technology,” said Richard Petti, CEO of IQGeo.
“Our future is underpinned by global megatrends that will deliver long-term sustainable growth in our end markets for the next decade and beyond.”
