IQGeo Group Plc (LON:IQG) said it remained confident about the "opportunities and prospects" for the remainder of the year after a strong first half.
The geospatial software group said recurring revenues increased over 170% to £1.6mln in the six months to June 30, while order bookings rose by over 120% to £5.5mln.
The pretax loss of £1.6mln narrowed from £3.16mln in the previous year, while total revenues rose by over 50% to £3.6mln.
WATCH: IQGeo says orders are up 120% and a 'substantial increase in subscriptions' for H1
IQGeo highlighted the success of its subscription model in the period, with over 90% of orders taking a multi-year subscription, while the company secured three new logos in the first half.
Looking ahead, the company said its customer end markets had “remained resilient” during the pandemic as the boom in home working lifted demand for broadband, 5G and utilities, while it's annual contracted value rose to £2.9mln from £1.6mln in the first half of 2019.
The company also expects “continued progress” in its second half thanks to its focus on digital marketing and its lead generation strategy alongside its customer’s investments in network infrastructure and productivity-enhancing initiatives.
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"I am pleased that we have executed our strategy well in the first six months of the year with continued good momentum in the second half. Despite the [coronavirus] related market downturn we were able to increase our bookings and revenue thanks largely to our subscription model which scales the number of paid seats as customers find their own use cases. Additionally, we have seen subscription orders signed in the second half of 2019 converting to revenue in 2020 supporting significantly improved gross margins and reduced cash outflow”, IQGeo chief executive Richard Petti said in a statement.
“By successfully scaling our digital presence and lead generation activity, targeted at senior decision-makers working at home with engaging content, we have increased the number of sales leads to pursue as we head into the second half of the year and 2021.
"Our target customers have remained resilient through the pandemic and their investment plans in networks (broadband, 5G, electricity and gas) and workflow productivity have remained substantially unaltered during the downturn - in fact in certain areas investments are increasing…We remain confident in the business opportunities and prospects for the remainder of the year", the CEO added.
IQGeo works with telecoms and utility companies to help them digitise their operational processes and capture their network assets.
Very simply, the firm's system ingests data to create a geospatially correct digital twin of a network that can be used by thousands of employees.
Not only that, but its functionality is also such that the mobile-first system can be used by maintenance technicians, sales, and even the accounts department.
Productivity and collaboration
Crucially, AI-driven systems help improve productivity and collaboration.
This means IQGeo’s platform fast becomes an integral part of its customers’ day to day operations.
It has 50 telecoms and utility clients in Europe, North America and Japan, which may not sound a lot until you realise that this translates to 50,000 global users.
Included on its roster are telecoms operators such as Bell and Cox in North America, and the Tokyo Electric Power Company. So, it’s a blue-chip client base.
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