Revised 2023 Outlook, funding and introduction of 2024 outlook
MapsPeople has identified a need to revise its guidance for revenue in 2023. Consequently, the revenue guidance of DKK 52-62M, as informed in Company Announcement no 7-2023, is revised to DKK 38-45M. The revised guidance for revenue is due to a change in some of the underlying key assumptions for the 2023 budget, in regards to the order intake where both Q4 2022 and Q1 2023 were less than planned from Direct customers (1-4 months from order to revenue), compensated with a higher than planned order intake from New Partner Framework Agreements (12-24 months from order to revenue), which has delayed the planned revenue uptake.
Despite the delayed revenue, the EBITDA guidance is kept at negative DKK 52-62M, helped by implemented cost reductions initiatives eliminating annual cost run rates of DKK 21M that will have a DKK 9M positive impact on the EBITDA in 2023, and the acquisition of Point Inside that has a DKK 3M positive impact on EBITDA in 2023.
MapsPeople continues to guide ARR (invoiced and delivered ARR) at the end of 2023 to be DKK 77 - 87M. At present ARR has grown to DKK 48M, from DKK 32M at the end of 2022, including the Point Inside acquisition that has contributed with DKK 8M to the ARR growth.
Funding
In Company Announcement no 8-2023 MapsPeople informed that it expected to be fully funded until cash positive from the operation towards the end of 2023. However, as an outcome of the above mentioned changes to some key budget assumptions , in particular the delay of revenue, MapsPeople now expects to initiate a new capital raise of DKK 20-25M as soon as possible. The capital to be raised is to finance the transformation from Framework Orderbook to high ARR growth in 2023, that subsequently is expected to deliver the high revenue growth, and fully finance operations through 2024 until profitability. The Board will with its advisors initiate the structure of the capital raise.
Introduction of outlook for 2024 and cease of guidance on Contracted ARR also known as cARR
As part of the revised operational plan, MapsPeople introduces an outlook for 2024 whereby ARR is expected to grow to DKK 110-128M, revenue is expected to grow to DKK 90-105M and expected EBITDA of negative DKK 10M to positive DKK 5M.
The key drivers of the plan for 2023 and the outlook for 2024 is a more cost efficient structure with less employees and more lean processes that can be adjusted to changes in the external market conditions. Another key component for the plan is that there will be an immediate and focused effort through 2023 to renegotiate the current contracted order partner backlog to contracts with much higher predictability in how and when they transition into revenue.
In connection with these efforts and to communicate clearly and transparently, the company has decided to cease its guidance on Contracted ARR (cARR), and solely guide on ARR (delivered and invoiced), on revenue and on EBITDA.
MapsPeople A/S
The Board of Directors
FURTHER INFORMATION
MapsPeople A/S
Morten Brøgger, CEO
Mobile (+45) 31 23 48 72
Email mobr@mapspeople.com
Stigsborgvej 60, 9400 Nørresundby
Denmark
Certified Advisor
Grant Thornton
Stockholmsgade 45
2100 Copenhagen Ø
Denmark
IMPORTANT INFORMATION
This announcement is not an offer to sell or a solicitation of any offer to buy any securities issued by MapsPeople in any jurisdiction where such offer or sale would be unlawful and the announcement and the information contained herein are not for distribution or release, directly or indirectly, in or into such jurisdictions, including but not limited to, the United States, Australia, Canada or Japan.
This announcement does not constitute an offering circular, company description or other offer document and nothing herein contains an offering of securities. No one should purchase or subscribe for any securities in MapsPeople except as described in this company announcement.
Neither the existing shares of MapsPeople (the "Existing Shares") nor the New Shares have been, or will be, registered under the United States Securities Act of 1933, as amended ("Securities Act"). Neither the Existing Shares nor the New Shares may be offered or sold, directly or indirectly, in or into the United States or to persons residing there. Moreover, the Private Placement is not made to persons resident in Australia, Hong Kong, Japan, Canada, New Zealand, South Africa, Switzerland, or Singapore or to persons whose participation would require the publication of a prospectus, registration or other measures.
Certain statements in this announcement constitute forward-looking statements. Forward-looking statements are statements (other than statements of historical fact) relating to future events and the Company's anticipated or planned financial and operational performance. The words "targets", "believes", "expects", "aims", "intends", "plans", "seeks", "will", "may", "might", "anticipates", "would", "could", "should", "continues", "estimates" or similar expressions or the negative forms thereof, identify certain of these forward-looking statements. Other forward-looking statements can be identified in the context in which the statements are made. MapsPeople has based these forward-looking statements on its current views with respect to future events and financial performance. By their nature, forward-looking statements are based on certain assumptions and projections on future events and financial performance, which involve a number of risks and uncertainties that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial consequences of the plans and events described herein. Actual results are likely to differ from those set forth in the forward-looking statements. Any forward-looking statements speak only as at the date of this document and neither the Company nor any of its respective affiliates, directors, officers, employees, advisors, or any other person is under any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You should not and may not rely on these forward-looking statements.
Source: MapsPeople
Tag: MapsPeople-Company-Announcements