MapsPeople A/S Adjust ARR expectations for 2023 and sets guidance for 2024
MapsPeople A/S | Inside Information
Company Announcement No.1 - 2024
Aalborg, February 27, 2024
MapsPeople adjust ARR expectations for 2023
Closing of 2023 MapsPeople adjust ARR expectations for 2023 to mDKK 52.0 from a range of mDKK 58-64 as guided in Company Announcement 29 from November 14, 2023. This corresponds to an ARR growth of 64% during 2023.
The large renewal mentioned in Company Announcement 29 on November 14th had not materialized by the end of 2023, despite the customer using the service, and MapsPeople is still in dialogue with the customer. This impacts ARR negatively with mDKK 3.5.
In addition two of our partners reconstructed their business, by closing down the companies and continuing activities in new legal entities. This leaves MapsPeople contracts difficult to enforce, and these contracts were planned to be invoiced in December generating additional mDKK 3.2 ARR by the end of 2023.
MapsPeople has decided not to include these contracts in the reported ARR for 2023. MapsPeople is currently pursuing all options to enforce these contracts to the extent possible. Any positive outcome from these activities will be accounted for in 2024.
Finally, one large project was delayed to go into production due to issues on the customer side resulting in difference of invoicing and ARR from December 2023 to 2024. This impacted ARR negatively with mDKK 0.7 in 2023.
MapsPeople guidance for 2024
On February 27th the board of directors approved the final budget for 2024 containing growth targets for 2024 according to the company's strategy and accordingly set out guidance for ARR, recognized revenue and EBITDA for 2024.
MapsPeople is guiding ARR at the end of 2024 to be in the range of mDKK 72 - 80 corresponding to a growth in the range of 39% - 54%.
Revenue outlook for 2024 is in the range of mDKK 58-63 corresponding to 44% - 57% growth.
EBITDA outlook for 2024 is in the range of mDKK negative 20 - negative 25.
The improved EBITDA is driven equally by the growth in revenues in 2024 and from the organizational simplifications and cost reductions carried out in 2023 including reducing the overall number of employees from 131 to 92 in the past 12 months. This will have almost full impact in 2024 driving a very significant productivity increase per employee in 2024.
As stated in Company announcement 36 from December 14 2023 the financial plan for 2024 is fully financed with the capital initiatives completed in Q4 of 2023. Both tranches of the new loans from EIFO have been paid out in February 2024 as the agreed milestone requirements have been met.
In addition to this, the above mentioned contract renewal stems from the Acquisition of the Point Inside Business, and as stated in Company Announcement 27 from November 10th, the contract MapsPeople entered gave the opportunity to adjust the purchase price with any occurred churn of customers, hence a clawback of 50% of the purchase price equal to 1,570,101 shares has been agreed and initiated.
MapsPeoples Annual report 2023 is planned to be released on March 19th 2024.
For additional information, please contact
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 up 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
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