Intermap Reports Strong 2022 Financial Results

Rhea-AI Summary

Intermap Technologies reported a 17% revenue growth year over year, reaching $6.8 million for 2022. The company saw a notable increase in recurring revenue, which now constitutes 57% of total sales, up 9% compared to 2021. Strong performance in government contracts included $813,000 in new GEOINT-related contracts, a 67% increase versus the prior year. The commercial business also thrived, generating $4.8 million in revenue, a 23% rise from 2021. The company secured a significant $3.1 million contract in Europe, solidifying 29% of its commercial revenue from that region.

Positive

• 17% revenue growth, reaching $6.8 million in 2022.
• Recurring revenue increased to 57% of total revenue, marking a 9% rise year over year.
• Awarded $813,000 in new GEOINT-related government contracts, a 67% increase over the previous year.
• Commercial revenue reached $4.8 million, up 23% compared to 2021.
• Secured a $3.1 million contract with European insurance companies.

Negative

• Adjusted operating loss improved to -$1.1 million from -$2.4 million, indicating ongoing financial challenges.

Revenue grew 17% year over year

Recurring revenue grew to 57% of total revenue, an increase of 9% over 2021

Awarded transformative U.S. government contracts and commercial software subscriptions

DENVER, March 28, 2023 (GLOBE NEWSWIRE) -- Intermap Technologies (TSX: IMP; OTCQX: ITMSF) (“Intermap” or the “Company”), a global leader in 3D geospatial products and intelligence solutions, today announced financial results for 2022.

For the year ending December 31, 2022, the Company reported revenue of $6.8 million, compared with $5.8 million the previous year. Intermap demonstrated 60% growth in the third quarter as COVID restrictions relaxed globally, which continued into the fourth quarter. The Company closed the year with over $2.3 million in liquidity (cash, accounts receivable and unbilled), compared with $1.7 million at the end of 2021. Intermap’s adjusted operating profit (operating loss plus depreciation and unearned revenue) increased over 50% from -$2.4 million to -$1.1 million, driven by growing software and data as a service sales. Intermap was awarded $813,000 in new, programmatic, non-acquisition GEOINT-related government contracts in 2022, representing a 67% increase over the previous year. These high-margin, repeatable contracts leverage Intermap’s scalable, advanced AI/ML technology and processing infrastructure.

Some notable government contract wins include:

• Expanding the scope of work with the U.S. National Geospatial-Intelligence Agency (NGA) under its JANUS and Low Latency Foundation Data programs
• Continuing collaboration with the U.S. Air Force Research Laboratory (AFRL) to support navigation in signal-contested environments
• Winning a position on the $950 million U.S. Air Force ABMS contract
• Completing multiple phases of the Colombian National Mapping Program
• Supporting the U.S. government’s dam inundation studies with precision flood modeling data
• Receiving a Prime Contract award on the GSA Schedule to extend the availability of Intermap’s products and services to U.S. government agencies

Intermap had a successful year in its commercial business with revenue of $4.8 million, an increase of 23% compared with the previous year. The Company grew its U.S. insurance software and data solution revenue by signing multiple top-10 underwriters, leading to a revenue increase of 40% year over year.

Intermap grew its European insurance business by signing a $3.1 million contract with multiple major European insurance companies under a multiyear, multi-license subscription to its flood data and analytics. Total European bookings in 2022 were $1.4 million, growing at a CAGR of 24.6% since 2019 when the cloud-based solutions were launched. Intermap’s European business now represents 29% of Intermap’s commercial revenue.

Some other notable achievements in 2022 include:

• Winning 32 subscriptions and services contracts for InsitePro and increased recurring revenue by 31%
• Expanding key European insurance customer acquisitions, including Allianz and Generali
• Winning two contracts to support clean energy development in the U.S.
• Joining the OneSky Future of Flight Program to integrate data with airspace management systems
• Winning three contracts supporting urban air mobility with UAV and UTM operations companies
  

“Intermap’s strong performance in 2022 is the result of high-margin, recurring, subscription-based revenue. We won multiple new GEOINT contracts and extended our commercial customer base,” said Patrick A. Blott, Intermap Chairman and CEO. “We invested in our technology and readiness. This included developing and integrating AI/ML, acquiring patents for key processes, upgrading sensors, and achieving mapping scales compliant with modernized military specifications. Intermap is well-positioned to serve expected demand from Southeast Asia as that important market emerges from COVID.”

The Company’s audited annual financial statements for the year ended December 31, 2022, the annual management discussion and analysis for the corresponding period, related management certifications of annual filings and its annual information form will be filed and available on SEDAR before March 31, 2023.

Intermap Reader Advisory
Certain information provided in this news release, including reference to revenue growth and run-rate, constitutes forward-looking statements. The words "anticipate", "expect", "project", "estimate", "forecast", “will be”, “will consider”, “intends” and similar expressions are intended to identify such forward-looking statements. Although Intermap believes that these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a variety of known and unknown risks and uncertainties. Intermap’s forward-looking statements are subject to risks and uncertainties pertaining to, among other things, cash available to fund operations, availability of capital, revenue fluctuations, nature of government contracts, economic conditions, loss of key customers, retention and availability of executive talent, competing technologies, common share price volatility, loss of proprietary information, software functionality, internet and system infrastructure functionality, information technology security, breakdown of strategic alliances, and international and political considerations, as well as those risks and uncertainties discussed Intermap’s Annual Information Form and other securities filings. While the Company makes these forward-looking statements in good faith, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected. Accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that the Company will derive therefrom. All subsequent forward-looking statements, whether written or oral, attributable to Intermap or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. The forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the forward-looking statements made herein, whether as a result of new information, future events or otherwise, except as may be required by applicable securities law.

About Intermap Technologies
Founded in 1997 and headquartered in Denver, Colorado, Intermap (TSX: IMP; OTCQX: ITMSF) is a global leader in geospatial intelligence solutions, focusing on the creation and analysis of 3D terrain data to produce high-resolution thematic models. Through scientific analysis of geospatial information and patented sensors and processing technology, the Company provisions diverse, complementary, multi-source datasets to enable customers to seamlessly integrate geospatial intelligence into their workflows. Intermap’s 3D elevation data and software analytic capabilities enable global geospatial analysis through artificial intelligence and machine learning, providing customers with critical information to understand their terrain environment. By leveraging its proprietary archive of the world’s largest collection of multi-sensor global elevation data, the Company’s collection and processing capabilities provide multi-source 3D datasets and analytics at mission speed, enabling governments and companies to build and integrate geospatial foundation data with actionable insights. Applications for Intermap’s products and solutions include defense, aviation and UAV flight planning, flood and wildfire insurance, disaster mitigation, base mapping, environmental and renewable energy planning, telecommunications, engineering, critical infrastructure monitoring, hydrology, land management, oil and gas and transportation. 

FAQ

What was Intermap's revenue for 2022?

Intermap reported a revenue of $6.8 million for 2022.

How much did Intermap grow its recurring revenue in 2022?

Recurring revenue grew to 57% of total revenue, an increase of 9% compared to 2021.

What notable government contracts did Intermap secure in 2022?

Intermap was awarded $813,000 in new GEOINT-related government contracts, a 67% increase from the previous year.

What was the growth of Intermap's commercial business in 2022?

Intermap's commercial business generated $4.8 million, showing a 23% increase from the previous year.

What was the significant contract Intermap secured in Europe?

Intermap signed a $3.1 million contract with multiple major European insurance companies.