IQGeo Group PLC (AIM:IQG) has bested its own guidance with revenues for 2023 soaring to over £44.2 million, marking a significant 66% increase compared to the previous year, with organic growth accounting for 56% of this surge.
In a trading update, the developer of geospatial productivity software for the telecoms sector said it expects to report exit annual recurring revenues (ARR) of £21.1 million, a near 50% increase on a constant currency basis.
IQGeo maintained a net retention rate of around 132% for its expanding customer base, which now includes top-tier telecoms and utilities operators.
The company noted a record order intake of about £56.9 million, representing a 40% year-on-year growth profile, with gross profit margins hitting 60%.
Its adjusted EBITDA flew 237% higher to £6.4 million, with net cash at the end of the period totalling £11 million.
IQGeo anticipates a continued upward trajectory in 2024, with further growth in exit ARR, combined with a strong pipeline of orders, setting the stage for further acceleration in recurring revenue growth and margins.
The company’s growth is intricately linked with global trends in the telecoms and utilities sectors, where there is a surge in investments for modernising infrastructure and meeting net-zero carbon emission targets.
Chief executive Richard Petti expressed delight at the performance in 2023 and optimism for the future, underpinned by these global megatrends.
"I am delighted with our performance in 2023,” he stated. “We have delivered a very strong set of results and at the same time we have strengthened both our product competitiveness and our organisation.
“On 1 January 2024 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.”