IQGeo Group PLC (AIM:IQG) chief executive Richard Petti and chief financial officer Haywood Chapman speak to Thomas Warner from Proactive after the network management software company released an update on its performance in 2023.
Petti highlights a remarkable 66% increase in total revenue, reaching over £44 million, with over 56% being organic growth. He attributes the success to strategic acquisitions and an enthusiastic client base. The company also saw a 40% increase in orders, amounting to nearly £57 million, and a striking 200% rise in EBITDA to £6.4 million.
Chapman emphasises the resilience of their markets—telecoms and utilities—even amidst economic downturns. He noted the ongoing demand for fibre and 5G in telecoms and the need for infrastructure upgrades in utilities. The company benefits from both private and public investments, particularly in North America, where government spending, including over $130 billion in broadband equity programs, bolsters demand.
Chapman talks about IQGeo's "land and expand" strategy, highlighting growth driven by acquiring major telecom and utility customers in North America and EMEA, coupled with a 132% net retention rate in recurring revenue from existing customers.
The company also reported an increase in gross margins to 60% and a positive cash flow for the first time in 2023, ending the year with £11 million in cash. The pair say that the company is poised for continued success in 2024, with the full results expected to be released in mid-March.