(Sharecast News) - Geospatial technology company IQGeo reported a set of results exceeding market expectations for 2023 on Wednesday, achieving a record order intake of £57.2m, representing 40% growth compared to the prior year.
The AIM-traded firm said total revenue surged 67% to £44.5m, with organic growth of 64%.
Recurring revenue, a key metric for the company, saw robust growth of 48% to £15.7m, while exit annual recurring revenue reached £21.3m, up 41% year-on-year.
Its gross profit margin stood at 60%, while it reported substantial growth in adjusted EBITDA, reaching £6.6m, compared to £1.9m in the prior year, resulting in a breakeven for the year and positive free cash flow.
Looking ahead, IQGeo said that with a 50% growth in exit annual recurring revenue in 2023 and a strong pipeline supported by record order intake, it was poised for continued success in 2024.
The company said it was confident in its ability to deliver on targets and capitalise on opportunities in the telecoms and utilities sectors.
IQGeo said it expected improving gross margins as it continued to focus on growing recurring revenue.
The company's 'Editions' strategy, offering flexible solutions tailored to varying customer demands and budgets, was proving effective in expanding its customer base while minimising implementation and service costs, the board explained.
"I am delighted with our performance in 2023; we have delivered a very strong set of results and at the same time we have strengthened both our product competitiveness and our organisation," said chief executive officer Richard Petti.
"On 1 January we celebrated our five-year anniversary as IQGeo over which time we've delivered two successful acquisitions and dramatically reshaped our software technology portfolio and global presence.
"Our integrated network solution is now well established as a market leader in the telecom industry, and we are building similar momentum in the electric utility industry for our Adaptive Grid solution."
Petti said the company's record order intake, strong growth in exit annual recurring revenue and more than three-fold growth in adjusted EBITDA demonstrated the strength of the firm's proposition, its position in its markets and the innovation of its technology.
"Our future is underpinned by global megatrends that will deliver long-term sustainable growth in our end markets for many years to come."
At 1117 GMT, shares in IQGeo Group were up 4.81% at 403.5p.
Reporting by Josh White for Sharecast.com.
Iqgeo (IQG)