(Sharecast News) - Location data technology specialist 1Spatial reported continued positive progress in an update on Friday, on the back of opportunities presented by its new software-as-a-service (SaaS) solutions.
The AIM-traded firm, which was holding its annual general meeting, said investments made last year and at the start of this year, particularly in the sales team and product offerings, had resulted in a substantial and growing sales pipeline.
Although sales cycles were proving relatively lengthy, 1Spatial said it had secured multiple new customers and received positive market feedback for its new offerings at various industry events.
Notable among recent customer wins was a four-year contract with Société Walloon Des Eaux in Belgium, which uses 1Spatial's 1Water application.
The contract, with a total value of €3m, included a four-year extension.
Additionally, 1Spatial secured its first contract with the US State of Oregon, deploying its 1Integrate and 1DataGateway products.
The initial contract value there stood at $0.4m, with the company anticipating future expansion opportunities.
With the new wins, 1Spatial now counted 18 US states as customers, each presenting significant potential for growth.
The board said it was confident in the growth potential of the SaaS applications, considering them a major focus for the firm.
Two SaaS solutions had already been successfully sold - the NG911 solution secured a contract in its first US county, while the 1Streetworks product achieved three sales in the UK.
"The group has a strong order book, a growing recurring revenue stream and substantial sales pipeline," said non-executive chairman Andrew Roberts.
"We believe the investments we continue to make in people and technology have positioned the business well to take advantage of the huge opportunity ahead and the board remains confident in delivering results for 2024 in line with current market expectations."
At 1126 BST, shares in 1Spatial were down 0.28% at 50.85p.
Reporting by Josh White for Sharecast.com.
1Spatial Holdings (SPA)