Driven by subscription-based, as-a-service solutions adopted by major global insurance underwriters
Investing in readiness to meet pending foreign government awards
DENVER, Nov. 14, 2023 (GLOBE NEWSWIRE) -- Intermap Technologies (TSX: IMP; OTCQB: ITMSF) (“Intermap” or the “Company”), a global leader in 3D geospatial products and intelligence solutions, today announced third quarter results. For the period ending September 30, 2023, the Company reported revenue of $1.5 million, compared with $1.2 million for the third quarter of 2022 and $1.5 million in the second quarter of 2023.
Intermap recognized a 35% increase in subscription-based revenue year-over-year for the third quarter, driven by the expansion of its European insurance segment and growth in insurance software license values. Value-added data increased to $0.4 million in the third quarter of 2023, compared with $0.3 million in 2022. Due to timing effects, there was no government revenue recognized during the third quarter of 2023.
Intermap recognized a 46% increase in subscription revenue year-over-year. Software and solutions increased to $3.4 million for the first nine months, compared with $2.4 million in the same period in 2022. The Company remains focused on providing the world’s best geospatial data in exploitation formats that fit growing commercial and government applications. The Company believes this model of building and selling useful points through data-as-a-service ensures that the best quality and currency of geospatial intelligence is available cost effectively to the broadest number of potential users. In the last year, customers using Intermap’s tailored analytics called over 20 million data points characterizing peril risk to help them optimize their risk assessment and pricing. Notably, in the U.S., Intermap’s InsitePro customers displayed remarkable performance following Tropical Storm Hilary, with some large California underwriters reporting no claims at all.
Reflecting the Company’s positive operating leverage, loss for the third quarter improved to $(0.8) million, compared with $(1.9) million in 2022. Operating loss for the nine months ended September 30, 2023, improved to $(2.6) million, compared with $(3.8) million in 2022.
| Three months ended | Nine months ended | ||||||||||||||
| September 30, | September 30, | ||||||||||||||
| U.S. $ millions | 2023 | 2022 | 2023 | 2022 | |||||||||||
| Net loss | $ | (0.8 | ) | $ | (1.8 | ) | $ | (2.6 | ) | $ | (3.7 | ) | |||
| Amortization of intangible assets | - | - | 0.2 | 0.2 | |||||||||||
| Depreciation of property and equipment | 0.2 | 0.3 | 0.4 | 1.0 | |||||||||||
| Depreciation of right of use assets | - | 0.1 | 0.2 | 0.3 | |||||||||||
| EBITDA | $ | (0.6 | ) | $ | (1.4 | ) | $ | (1.8 | ) | $ | (2.2 | ) | |||
| Working capital investment | |||||||||||||||
| (Decrease) Increase in unearned revenue | (0.3 | ) | (0.2 | ) | 0.3 | 0.2 | |||||||||
| Share-based compensation | 0.1 | 0.1 | 0.2 | 0.3 | |||||||||||
| Loss (gain) on foreign currency translation | (0.1 | ) | (0.1 | ) | - | (0.1 | ) | ||||||||
| Adjusted EBITDA | $ | (0.9 | ) | $ | (1.6 | ) | $ | (1.3 | ) | $ | (1.8 | ) | |||
Adjusted EBITDA for the quarter was $(0.9) million, compared with $(1.6) million in 2022. The improvement in Adjusted EBITDA is primarily attributable to a greater mix of highly scalable, as-a-service revenue and decreased net loss for both periods.
Since the end of the quarter, cash on the balance sheet has risen from $265 thousand to $332 thousand.
In the third quarter, Intermap won significant contracts across various markets. These include:
- 3D data exploitation agreement for space infrastructure with the leading private commercial space operator
- New partnership with CAPE Analytics for property intelligence analytics
- Contract with USGS to support NASA’s moon landing simulations in preparation for the planned moon landing in 2024
- Multiple InsitePro® subscription upsells and early renewals with major insurance clients
- Letter of intent with the Slovak Insurance Association to provide major Slovak insurers with a comprehensive flood risk solution
- Contract to support a critical flood modeling project in Togo
- Data contract for mining exploration in Ecuador
Intermap’s insurance revenue continued to grow during the quarter with a major client renewing its subscription to InsitePro and another key customer increasing its multiyear subscription value by 36% to accommodate higher usage of the data and software.
“Intermap is focused on prioritizing high-value opportunities for as-a-service revenue as well as successful execution of pending government contracts, which will drive revenue gains into the fourth quarter,” said Patrick A. Blott, Intermap Chairman and CEO. “Our commercial business continues to grow, particularly within our global insurance segment. We are anticipating an expansion of government programs as traditional funding priorities unfold following COVID.”
The Company’s consolidated financial statements for the quarter ended September 30, 2023, are available on SEDAR+ at www.sedarplus.ca.
To learn more about Intermap, visit intermap.com/investors.
Intermap Reader Advisory
Certain information provided in this news release, including reference to revenue growth, growth and continuation of government contracts, pending government contracts and commercial opportunities, and closing of the second tranche of the Private Placement, constitutes forward-looking statements. The words “anticipate”, "expect", “project”, “estimate”, “forecast”, “continue”, “focus”, “will”, “intends” and similar expressions are intended to identify such forward-looking statements. Although Intermap believes that these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a variety of known and unknown risks and uncertainties. Intermap’s forward-looking statements are subject to risks and uncertainties pertaining to, among other things, cash available to fund operations, availability of capital, revenue fluctuations, nature of government contracts, economic conditions, loss of key customers, retention and availability of executive talent, competing technologies, common share price volatility, loss of proprietary information, software functionality, internet and system infrastructure functionality, information technology security, breakdown of strategic alliances, and international and political considerations, as well as those risks and uncertainties discussed Intermap’s Annual Information Form and other securities filings. While the Company makes these forward-looking statements in good faith, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected. Accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that the Company will derive therefrom. All subsequent forward-looking statements, whether written or oral, attributable to Intermap or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. The forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the forward-looking statements made herein, whether as a result of new information, future events or otherwise, except as may be required by applicable securities law.
About Intermap Technologies
Founded in 1997 and headquartered in Denver, Colorado, Intermap (TSX: IMP; OTCQB: ITMSF) is a global leader in geospatial intelligence solutions, focusing on the creation and analysis of 3D terrain data to produce high-resolution thematic models. Through scientific analysis of geospatial information and patented sensors and processing technology, the Company provisions diverse, complementary, multi-source datasets to enable customers to seamlessly integrate geospatial intelligence into their workflows. Intermap’s 3D elevation data and software analytic capabilities enable global geospatial analysis through artificial intelligence and machine learning, providing customers with critical information to understand their terrain environment. By leveraging its proprietary archive of the world’s largest collection of multi-sensor global elevation data, the Company’s collection and processing capabilities provide multi-source 3D datasets and analytics at mission speed, enabling governments and companies to build and integrate geospatial foundation data with actionable insights. Applications for Intermap’s products and solutions include defense, aviation and UAV flight planning, flood and wildfire insurance, disaster mitigation, base mapping, environmental and renewable energy planning, telecommunications, engineering, critical infrastructure monitoring, hydrology, land management, oil and gas and transportation.
For more information, please visit www.intermap.com or contact:
Jennifer Bakken
Executive Vice President and CFO
CFO@intermap.com
+1 (303) 708-0955
