Mapspeople (MAPS) Q3 2024 earnings summary

Executive summary

• Q3 is historically the weakest quarter due to vacation season, resulting in lower contract renewals and upsells, and Q3 2024 was weaker than anticipated.

• Achieved 9% YoY growth in total ARR to DKK 56.2M and 14% YoY growth in MapsIndoors ARR to DKK 42.4M, with recognized revenue up 38% YoY to DKK 14.8M in Q3 2024.

• EBITDA before special items improved by 51% YoY to negative DKK 6.4M; cost optimization and cash flow measures contributed to improved financial performance.

• Completed an oversubscribed capital increase of DKK 36M in September and secured a new loan package, improving cash flow by DKK 13.4M through end of 2025.

• Acquired Point Consulting Pte Ltd's mapping contracts, expected to add DKK 2.1M to ARR and improve 2025 revenue and EBITDA.

Financial highlights

• Total ARR at Q3 2024: DKK 56.2M (up 9% YoY, up 1% QoQ); MapsIndoors ARR: DKK 42.4M (up 14% YoY, up 4% QoQ).

• Recognized revenue: DKK 14.8M in Q3 2024 (up 38% YoY, up 2% QoQ); MapsIndoors revenue up 50% YoY.

• Net Revenue Retention (NRR) at 101% in Q3 2024; adjusted NRR would be 106% excluding non-renewed framework agreements.

• CAC payback period at 16 months, within target range of 12–18 months.

• Staff costs down 25% YoY in Q3 2024 due to cost reductions.

Outlook and guidance

• Updated 2024 guidance: ARR DKK 59–63M, EBITDA before special items negative DKK 30–26M; revenue guidance unchanged at DKK 58–63M.

• Additional sales and marketing spend of DKK 1.5M and higher cost of sales (DKK 1.2M) expected in H2 2024.

• Pipeline growth is expected to benefit results in 2025, not 2024, due to long sales cycles.