GeoJunxion NV (ticker: GOJXN.AS) - Financial & Business update
Q1 (July - September) 2022/23
Key Facts:
- 102%
revenue growth for Q1 2022/23 compared to the same period
in 2021/22;
- 10%
reduction in Net Operational Expenses
(OPEX) for Q1 2022/23 compared to the same period
in 2021/22;
- EBITDA and
EBT positive in Q1 2022/23 by respectively €875 K and €565
K;
- Net Profit after tax of
€448 K in Q1 2022/23, compared to a Net
Loss of €155 K in Q1 of 2021/22.
Capelle aan den
IJssel, The
Netherlands, 10
November
2022,
GeoJunxion announces to
have doubled Q1 revenue
(versus Q1 2021-22) and
realized a profit after taxes
of €448 K for
the first quarter of the 2022/23 accounting
year.
GeoJunxion CEO Ivo Vleeschouwers: "We are
excited with the progress in the first quarter of the financial
year. We had an exceptional order intake for Location Intelligence
Services compared to the same period last year. Moreover, we expect
the top line to continue its growth on a full year basis."
The current financial year covers the 12 months
period from 1 July 2022 to 30 June 2023. The first quarter of this
financial year covers the period from 1 July to 30 September
2022.
In the first quarter, GeoJunxion’s business
showed a very strong performance: Revenue
doubled (+102%) compared to the same quarter of
the previous financial year.
Order intake
was more than 6
times bigger than the value in Q1
last year. In this extremely positive first quarter of FY 2022/23,
we booked orders for a value higher than during the entire
accounting year 2021-22. Operational expenses reduced by 10% YoY.
The operating result, the result before tax and the Net Profit all
turned to positive numbers. The cash flow for the quarter was
negative by €388 K, as this metric lags revenue generation by
approximately 2 months. This cash out is expected to be recovered
during Q2 when the open receivable will be collected.
The main driver for the growth in the current
accounting quarter is our Location Intelligence Service. As
announced in August, we won significant new contracts. The
execution of these projects absorbed most of the company’s
resources during the quarter and is still on-going.
FINANCIAL
HIGHLIGHTS Q1
2022/23 (July–September)
vs SAME PERIOD
2021/22
- 102%
revenue growth for Q1 2022/23 compared to the same period
in 2021/22;
- 10%
reduction in Net Operational Expenses
(OPEX) for Q1 2022/23 compared to the same period
in 2021/22;
- Operating Profit
of €644 K for Q1 2022/23, compared to an Operating Loss of €125 K
in Q1 of 2021/22;
- EBITDA and
EBT positive in Q1 2022/23 by respectively €875 K and €565
K;
- Net Profit after tax of
€448 K in Q1 2022/23, compared to a Net
Loss of €155 K in Q1 of 2021/22.
OUTLOOK FOR THE ACCOUNTING YEAR
2022-2023
Despite the uncertainty pictured by the European
Central Bank in their September economic outlook, GeoJunxion
expects the top line to continue its growth by 25 to 30% for the
full year 2022-2023 compared to 2021-22. This expectation is built
on orders booked in the first quarter of 2022-23 and a promising
pipeline of opportunities. As a result of inflationary pressure and
growing staff costs to deliver revenues, we expect our full year
cost base to increase by 5 to 10%. GeoJunxion is reasonably
confident to convert the above-mentioned guidance into positive
EBITDA and EBIT at break-even, or close to that, for this financial
year. On this basis, cash flow is also expected to be positive for
the full accounting year 2022-23.
OPERATIONAL HIGHLIGHTS AND STRATEGY
UPDATE
Strategy Update
GeoJunxion’s strategy remains focused on
creating “map agnostic” data products: digital geo-localized
content, designed to be fully integrated into or overlaid on any
commercial or open-source maps, or to be utilised in developing
smart solutions for a large variety of use cases, in different
industries and market sectors.
This strategy has proven itself, as it delivered
year-on-year growth of +40% during the last 36 months. We will
therefore continue to diligently execute on this strategy and
expand the scope of our existing product portfolio.
GeoJunxion’s activities are directed towards
establishing long-term relationships with our customers, through
the creation of recurring business models rather than one-off
opportunities. Although the relationship with clients frequently
starts with a proof-of-concept or a custom one-off project, most of
the Company’s efforts go into building value-added, dynamic
content, requiring continuous and frequent updates to maintain and
increase their value over time. This means that most of our
proof-of-concept and one-off projects are a launch-pad for
establishing a service or license contract, converting the initial
activities into a recurring, more predictable and sustainable
business model.When executing projects, GeoJunxion typically also
retains the Intellectual Property and ownership of the newly
developed datasets and solutions, which can be subsequently resold
to other customers. Thereby, leveraging the initial investment and
creating a virtuous business cycle.
Our mission remains focused on improving road
safety and contributing to a more sustainable world, reducing the
impact on the environment through intelligent solutions enabling
more environmentally conscious decisions.
Central to GeoJunxion’s strategy are:
- Cost effective research, sourcing,
production, ingestion, and aggregation of geodata.
- Flexible licensing models at
competitive pricing.
- Direct delivery of dynamic,
up-to-date content via APIs.
- Highly customised solutions and
content creation.
Market Developments
While clear signs of improvement were showing in
some industry sectors, the conflict in Ukraine and its direct and
indirect consequences brought new concerns in the market. Existing
and perspective customers continue to pay great attention to all
their expenditures. GeoJunxion has no direct material business
exposure to the events in Ukraine. We have no active customers, or
deliveries due to, or to be received from Ukraine or Russia.
GeoJunxion is however exposed to rising inflation rates, resulting
from increased energy and other raw material prices. This is likely
to have an impact on the salary & benefit expenses of our staff
in the near future.
All the above said, the demand for
location-aware content is still increasing in various industries
and markets despite the general concerns on the health of the
global economy.
The largest market opportunity for GeoJunxion
remains, by far, with big Tech Companies, making extensive use of
geo-localized data for their business and end-user solutions. In
this sector we dedicated most of the project execution efforts
during the first quarter of the financial year 2022/23. However, it
also has interesting opportunities in the pipeline to be explored
during the coming months.
In automotive we see growing opportunities with
the adoption of advanced driver-assistance systems, such as ISA
(Intelligent Speed Assistance). There is also a growing demand for
more cost-effective mapping solutions while providing the most
up-to-date and relevant data content. Premium data content towards
safety on the road and environmental sustainability remain our
major interest and focus of development.
GeoJunxion also believes that other
opportunities will be identified in markets traditionally consuming
geo-localized data such as Transport & Logistics, Real Estate,
Geo-Marketing, Business Analysis, Travel & Tourism, as well as
with the Public Administration.
Business Development
In Q1 (July to September) 2022-23, the Location
Intelligence Services have played, once again, a fundamental role
in our business development. We completed the execution of
tailor-made Location Intelligence contracts, won during the
previous quarters and started with the execution of newly won
projects. These new contracts will continue to convert into revenue
during the second quarter as well.
During the quarter, our Sales and Business
development teams attended various events in person and remotely,
to promote GeoJunxion’s brand, products and services:
- GeoJunxion was present at the State
of The Map (SoTM) 2022 in Florence (Italy) with our Head of Sales
and Marketing, Arjan Spigt, and CBO, Francesco Altamura. State of
the Map is the annual event for all mappers and OpenStreetMap
users. The State of the Map conference was a three-day hybrid
conference where our people had the opportunity to meet with
various potential partners and clients. It also offered the
opportunity to share opinions about future development in the field
of geo-localized data and location intelligence technology.
- In September, our Head of R&D,
Johannes Smits, attended, the ITS World Congress in Los Angeles, as
a speaker,
In July, we announced a partnership with the
Dutch Red Cross, providing a custom-made digital map to assist
first-aid responders to quickly find and get to the precise
location in case of an emergency at the Zwarte Cross, a 4-day Dutch
festival. The Red Cross was present with hundreds of volunteers, to
supervise an area of 2,800,000 m2 and about 220,000 visitors. This
makes it the biggest Dutch event and requires a high safety
standard. The Red Cross has been partnering with the Zwarte Cross
for many years. GeoJunxion developed the digital map of the area
with all relevant Points of Interest (POI), such as entrances,
campgrounds, stages, and all the Red Cross first aid locations. On
top of the Outdoor Venue Plan of the event area, GeoJunxion created
a grid to help the volunteers to identify the precise locations. In
case of an emergency, the volunteers receive the grid location of
the emergency place and are guided to this location on their mobile
device. In this way, they can easily find and navigate to the
emergency location and intervene quickly.
At the end of July, GeoJunxion announced also to
have signed a NDW framework agreement with Royal HaskoningDHV,
together with 11 other partners. This consortium was created to
deliver traffic data from non-road systems such as Probe Vehicle
Data, Floating Car Data and crowd-sourced data. The National Data
Portal for Road Traffic (NDW) will use the contract to supply
traffic data from navigation systems, vehicles and mobile apps,
among other things. In addition, the consortium will be given the
opportunity to offer complete services based on that traffic data.
The data supply and services relate to new methods for traffic
management, asset management, traffic safety analyses and
evaluations. The use of Floating Car Data, Probe Vehicle Data and
crowd-sourced data is central to applying data science and advanced
analytics.
Product Development
School
Safety
ZonesThe quarter from July to
September is the one when students return to school across Europe
and around the World. This means that more vehicles and vulnerable
pedestrians are on the road on weekdays. Increased traffic and
density of pedestrians in certain areas can also increase the risk
of collisions between vehicles and children or their relatives
commuting to/from school.
European statistics, global and for each
individual Country, confirm that thousands of accidents happen
during schooldays close to schools, with serious consequences and
injuries. Such accidents often involve car or bike drivers failing
to recognize the vulnerable pedestrians on the road. Most of these
accidents occur as children are getting on/off buses or crossing
intersections near the school. The root causes are various: when
drivers are speeding, driving recklessly or distracted and weather
conditions may worsen those risky behaviors.
To prevent similar situations, certain countries
started adopting and enforcing School Safety Zones by law. Speed
limits through those areas, during school hours, are often limited
to encouraging drivers to slow down and pay more attention to
children and pedestrians. In other cases, areas may be completely
closed to traffic. Drivers who are caught speeding in school zones
or entering areas closed to traffic are subject to severe penalties
and fines.
Unfortunately, not many Countries in Europe
adopted these solutions. Even in cases where such limitations are
in force, the decision of adopting and implementing such solutions
is left to local Municipalities. The result is that we still lack
wide adoption of School Safety Zones to protect children from
(deadly) accidents.For this reasons GeoJunxion decided to build and
maintain up to date a unique database of School Safety Zones,
including those defined and enforced by local Municipalities, as
well as hundreds of thousands of areas created through proprietary
algorithms, taking in consideration the location of the schools,
bus stops, zebra crossing, dangerous road intersections and many
other parameters.
Eco Alert
ZonesIn parallel with the efforts
on the School Safety Zones, GeoJunxion has continued the real-time
maintenance of the Eco Alert Zones, which are continuously
increasing in number. While at the beginning of 2022 the total
number of environmental areas encoded in the EAZ data suite was
about 2500, as of today it exceeds 2750, with an increase of 10% in
less than a year. This confirms the relevance of this type of data
and the strategic decision to have invested in such a
development.
Custom project executionAs
already remarked, however, the biggest challenge this past quarter
was to execute the custom project for a global Tech Company. That
project required a significant scale up of our resources, mainly in
Operations. This has been achieved during the summer period, when,
usually, limited resources are available. This is an additional
reason to be proud of the efforts made and satisfied with the
results achieved. The GeoJunxion team showed great adaptability and
flexibility: this allowed the company to promptly react to the
client’s request and timely made partial deliveries, despite the
extensive scope and the challenging deadlines.
Automotive
product developmentOn the R&D
side, the product development was focused on continuing the
development and refinement of new data for the unnamed Infotainment
System Manufacturer. The partnership together with this important
Tier 1 manufacturer in the Automotive Industry is strengthening
month-over-month. This is in line with our Company's strategy,
starting with custom Proof of Concepts converted and expanded step
by step into bigger projects, aiming to build a long strategic
partnership.
ORDER INTAKE
The order intake for the first
quarter of this financial year 2022/23 (July-September 2022) showed
an increase of more than 6 times compared with the
same period of the previous year, thanks to the big Location
Intelligence Contract announced early August. The value of orders
booked in this remarkable first quarter of
FY 2022/23, exceeded the
total order intake during the entire
financial year 2021-22.
REVENUE
In Q1 2022-23, revenue increased by
+102%, doubling
the amount realized during the same
quarter last year.
GeoJunxion tracks its revenue by product type
and by the nature of the underlying contract (recurring versus
non-recurring). The main revenue growth has been realized in
non-recurring location services, but also the recurring revenue
from licenses and royalties showed an increase. The recurring
service revenue showed a reduction, primarily due to the timing of
the project execution. This will be caught up during Q2 2022-23.
Recurring service revenue includes the updating services of our Eco
Alert Zones product and other data products. The non-recurring
service revenue includes tailored research and collection of data
sets and creation of geo-located content.
OPERATING RESULT
The Q1 2022-23 operating result showed a profit
€644K, compared to a loss of €125K during the same quarter last
year. There are three main drivers for this year over year
improvement:
- A very strong increase in revenue:
+€691K (+102% YoY)
- A decrease in operational expenses:
-€15K (2% YoY). This primarily resulting from lower personnel
expenses (-24K) linked to the December 2021 restructuring, lower
other operating expenses (-€24K), linked to diligent cost saving
measures and organizational structure simplification. These savings
are partially offset by higher depreciation, and amortisation costs
(+€21).
- Higher Capitalized development
costs +€24K (+22%) due to ongoing investments in new products and
coverage extension of existing products.
ORGANIZATION
GeoJunxion has received Level 2 certification on
Social Entrepreneurship: the Prestatieladder Socialer Ondernemen.
This independent assessment showed that GeoJunxion offers
high-quality employment to people who have difficulty accessing the
labor market and collaborates with like-minded organizations. With
this certification, GeoJunxion provides an above-average
contribution in the field of social entrepreneurship in a
sustainable way.
FINANCIAL POSITION
GeoJunxion continues to make great progress in
turning its business around from a digital map supplier to a
premium location content and location intelligence service provider
with a subscription based, recurring “data as a service” revenue
model. The results reported for Q1 2022-23 with growing revenue and
a net profit for the quarter, are evidence of this progress. Based
on our current outlook, the available cash on hand is estimated to
be sufficient to cover our operational requirements for at least
the next 12 months.
APPOINTMENT OF EXTERNAL
AUDITOR
With the 2021-22 Annual Accounts recently
published and strong Q1 2022-23 results in hand, we are starting
another round of consultations reaching out to OOB/PIE licensed
auditing firms in the Netherlands. In the past two years, we have
consistently delivered results, showing a continuous growth YoY, in
accordance with our guidance. We have significantly reduced the
Group’s complexity and, consequently, the inherent risks. We
believe that our position is stronger and more persuasive.
Therefore, we will re-engage auditing firms with renewed energy and
determination, with the goal to secure a statutory auditor for the
current and subsequent accounting years.
RISK MANAGEMENT
Risk management is an integral managerial task.
Our risk management and control procedures take into consideration
the size of the company and the character of the business to
identify the most significant risks which the company is exposed
to. The risks identified are discussed on a periodical basis and
mitigated or fully resolved, where possible. Such a system cannot
provide absolute certainty that objectives will be realized.
Neither can it guarantee prevention of potential cases of material
mistakes, damage, fraud, or breaches of statutory laws.
The 2021-22 annual report, as published on 27
October 2022, describes the primary strategic, operational, and
financial risks. The risks and uncertainties described in the
annual report are relevant and are deemed incorporated and repeated
by reference in this report. There were no cases of material
damage, fraud or breaches of law detected since issuing the Annual
Accounts.
On the Social aspect, we continue to pay
particular attention on preventive actions to limit exposure of our
people to Covid-19, encouraging and supporting smart working from
home, combined with making the best use of our office space to
facilitate personal contact and create an optimal work environment.
Our people are our key assets, and we do whatever we can to keep
them safe and healthy.
BOARD OF MANAGEMENT STATEMENT
The Board of Management hereby declares that, to
the best of its knowledge, the summarized Q1 (July – September
2022) interim consolidated financial statements, drawn up in
accordance with IAS 34 “Interim financial reporting”, represents a
faithful rendering of the assets, liabilities, financial position,
profit and cash flow of GeoJunxion NV and its subsidiary as stated
in the consolidated financial statements, and that the Board
Report, as included in this Interim Financial statements,
represents a faithful rendering of the information required in
relation to item 5:25d subs 8 and 9 of the Dutch Financial
Supervision Act.
G
ROUP STRUCTURE
The GeoJunxion group structure was simplified to
a maximum extent during the past 2 years. The group contains 2
entities: GeoJunxion N.V., (the holding entity, quoted on Euronext
Amsterdam) and its 100% operating subsidiary GeoJunxion B.V.
FORWARD-LOOKING STATEMENTS / IMPORTANT
NOTICE
This document contains certain forward-looking
statements with respect to the financial position and results of
GeoJunxion. We have based these forward-looking statements on our
current expectations and projections about future events, including
assumptions regarding our present and future business strategies,
operations, and the environment in which we will operate in the
future. These forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ materially
from those expressed in the forward-looking statements, and you
should not place undue reliance on them.
Many of these risks and uncertainties relate to
factors that are beyond the company’s ability to control or
estimate precisely, such as timing of placement of orders of our
customers, exchange-rate and interest-rate fluctuations, labor and
other cost inflation, changes in tax rates, regulatory and legal
changes, the rate of technological change, the competitive
landscape, political developments in countries in which the company
operates and the risk of a downturn in the market.
The forward-looking statements contained herein
speak only as of the date they are made. We do not assume any
obligation to update any public information or forward-looking
statement in this document to reflect events or circumstances after
the date of this document, except as may be required by applicable
laws.
Capelle aan den IJssel, 10 November 2022,Ivo
Vleeschouwers – CEO / CFO Francesco Altamura - CBO
This is a public announcement by GeoJunxion N.V., pursuant to
article 17, paragraph 1 of the European Market Abuse Regulation
(596/2014). This public announcement does not constitute an offer,
or solicitation of an offer, to buy or offer securities in
GeoJunxion N.V.
- 221110 Press Release Financial Update Q1 2022-23 GeoJunxion
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