GeoJunxion NV (ticker: GOJXN.AS) - Business Update Full Year
2022-2023
GeoJunxion NV
(ticker:
GOJXN.AS)
Business Update Full
Year 2022-2023
Key Facts:
-
42% revenue
growth for the FY 2022/’23 compared to the same period in
2021/22;
- Net Operational
Expenses (OPEX) in FY 2022/23 are
flat compared to 2021/22, despite the significant
revenue growth;
-
EBITDA,
EBIT and
EBT all positive for the
FY 2022/23;
- Positive
Net Profit after tax for the FY 2022/23, compared
to a Net Loss of €841K in FY 2021/22;
- Positive Cash Flow of
€530K for the FY
2022/23, compared to €131K in FY 2021/22;
Capelle aan
den
IJssel,
The Netherlands, 27 July
2023:
for the second year in a row, GeoJunxion
generated positive cash flow for full year
2022/23
and delivered on revenue growth of
42% year-over-year, while keeping
costs flat compared to
the past year.
The end of June 2023 represents the end
of our Financial Year
2022/23 (1 July
22 – 30 June
23).
Our Location data and technology business has remained solid and
has significantly grown year-over-year. This is despite the general
market conditions, where major Tech companies announced massive
layoffs and budget reductions, the ongoing conflict in Ukraine, the
market volatility, the raising inflation and interest rates and the
general concerns about a potential upcoming recession. GeoJunxion
slightly exceeded the top end of the revenue guidance provided,
with a revenue growth of
42% YOY.
Location Intelligence Services for big Tech
Companies performed very well, showing relevant growth
year-over-year. We continue to be encouraged by the market interest
in developing and keeping up to date our premium location aware
products, in particular Eco Alert Zones (Environmental and Traffic
Limited Zones) and Safety Alert Zones, such as School Streets and
School Zones. All of them play a key role in our portfolio of
geofences, accurate geolocated boundaries which can be utilized in
a variety of use cases and market verticals. Within the Location
Intelligence Services, the Indoor and Outdoor Venue Plans, now
referred to as “Last Mile Mapping services”, are getting more and
more traction, attracting the interest of clients like stadiums,
museums, events and festivals, trade shows, municipalities and
other public institutions.
Our continued focus on cost control is paying
off: for the full year 2022/23, operating expenses were flat
compared with last year, despite the 42% revenue growth. This
confirms a positive attitude of the Company over the course of the
last two years. The increased revenues paired with cost
control measures, resulted in positive financial KPIs such as
EBITDA, EBIT, Net Profit and Cash Flow for the accounting year
2022/23. The positive cash flow from our business,
were at a significantly increased level, compared with the past
year. This despite the downpayments made on the COVID-related tax
debt. This is a major accomplishment for the second year in a row,
after years of ongoing negative cash flows.
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 used in developing smart
solutions for a large variety of use cases, in different industries
and market sectors.
Our strategy is solid as it has delivered
year-over-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 and
services.
GeoJunxion’s activities are directed towards
establishing long-term relationships with our customers, through
the creation of recurring business models rather than opportunistic
one-off contracts. 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
retains the Intellectual Property and ownership of the newly
developed datasets and solutions, for licensing to other customers.
Thereby, leveraging the initial investment and creating a virtuous
business cycle.
Our mission remains focused on improving
navigational safety and enhancing people mobility, contributing to
a more sustainable world, reducing the impact on the environment,
through intelligent solutions enabling more environmentally
conscious decisions through informed choices.
Central to GeoJunxion’s strategy are:
- Cost effective research, sourcing,
production, ingestion, and aggregation of geodata;
- Offering flexible licensing models
at competitive pricing;
- Direct delivery of dynamic,
up-to-date content via APIs;
- Highly flexible solutions and
content creation;
Market Developments
While existing and prospective clients strictly
monitor their expenditures and continue to be prudent in
contracting projects, we are experiencing a continuous growth of
interest in our Location Intelligence Services and last-mile
mapping.
GeoJunxion has no direct impact from the ongoing
war in Ukraine. Like other Companies however, we are impacted by
rising inflation rates, caused by increased energy and other raw
material prices and supply chain disruptions. This impacts
salaries, staff expenses, office costs and other indirect services.
However, we kept our OPEX costs under control due to diligent
monitoring and continuous finetuning of our spending.
We also remark on the interest in and demand for
location-aware content despite the concerns about the health of the
global economy. While many big Companies in the last 12 months made
reductions in their respective workforces and cutting costs,
GeoJunxion remained positive, strengthening the team in key
departments, with focused hires necessary to drive growth and
deliver strong results.
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 market segment, we are dedicating a significant portion of our
resources to project execution. We booked and executed sizable
projects in all previous quarters, awarded project extensions and
booked new opportunities also in the third and fourth quarter.
We continue to invest in the automotive
industry. Here we see a strong interest in cost-effective mapping
solutions, with the most up-to-date and relevant content. This
increased demand is also linked with the implementation of advanced
driver-assistance systems, such as ISA (Intelligent Speed
Assistance) and the adoption of geofences for safety and
environmentally conscious action in-car. Premium content pertaining
to road safety, environmental sustainability and social utility
therefore remains a primary focus in our strategy and product
development.
GeoJunxion also remains active in identifying
opportunities in other markets, such as Transport & Logistics,
Real Estate, Geo-Marketing, Business Analysis, Travel &
Tourism, as well as Public Administrations. In the last quarters,
significant market efforts have been made in the Last Mile Mapping
Services.
Business Development
In the fourth and last quarter of FY 2022/23, as
well as for the entire fiscal year, the Location Intelligence
Services continued playing an essential role in our business
development. The extension in scope of certain projects awarded
during the year and winning new Projects and Proof-of-Concepts,
gave us execution continuity in Operations and Research and
Development. Some of those projects have been just completed in the
fourth quarter of FY 2022/23.
In May, we announced the closing of two new
contracts with a global tech Company, for a total value exceeding
EUR 200 thousand. The first agreement is a Location Intelligence
Service in which GeoJunxion will collect, digitize and standardize
geolocated data on a limited number of countries. This is expected
to pave the way for future expansions of the geographic footprint,
under the same project scope. The second contract is a recurring
Data License Agreement, under which GeoJunxion will provide
quarterly updates on data previously delivered. This is a perfect
example of our Business Model and Company Strategy.
Business Development has been also very much
focused on developing new solutions for the last-mile mapping
market. In order to reinforce our capability to deliver
state-of-the-art last-mile mapping solutions, GeoJunxion
established and nurtured the partnership with WizzyMaps during the
last six months.
During Q3 and Q4, our Sales and Business
development teams attended more trade events in person. After the
Autonomy Mobility World Expo in Paris in March, we
also attended polisMobility
in Cologne in May. This gave us the opportunity to
meet with partners and clients face-to-face, to promote
GeoJunxion’s brand, its products and services. To continue such a
trend, we are already committed to attending IAA
Mobility in Munich in September, at the
Recreatie Vakbeurs in
Hardenberg and Festivak
België in
Mechelen, both in November.
Product Development
Custom project executionWe
continue to put significant efforts into the development of
proprietary location intelligence content for a global Tech
Company. The largest project, as announced in August ’22, has been
extended in scope, and was completed in Q4 of FY 2022/23. Other
projects for global Tech Companies were completed in Q4 of FY
2022/23. With the closing of two new contracts at the end of May,
we secured additional work for our Operation Team for Q4 FY 2022/23
and for Q1 of the new FY 2023/24. One of these new contracts is a
recurring activity and will be generating revenues for the years to
come.
Automotive
product developmentOn the R&D
side, most of the product development was focused on the execution
and refinement of the data for a leading Infotainment System
manufacturer. The first phase was completed and released, and we
are currently working on delivering a second step, industrializing
our process and regularly updating our content. This is expected to
pave the way for growing in that market together with our
client.
Eco Alert Zones and
School Safety ZonesSmart Geofences are key products in the
GeoJunxion’s portfolio. Eco Alert Zones and School Safety Zones
have been kept up to date during the course of the quarter. They
are increasing in number, geographical coverage and also in the
type of areas. School Streets are attracting more and more
attention.
We also continued investing in an innovative
proof of concept project with the intent to develop deep learning
methods in satellite imagery analysis and object recognition. This
activity has continued during Q4 FY 2022/23 and delivered promising
results. This will give us the possibility to further enrich our
existing datasets of geofences and create new ones during the next
FY 2023/24.
ORDER INTAKE
Order intake continued in the positive trend.
During the last quarter (Q4)
of FY 2022/23,
despite being slower than the other quarters, order intake
increased with
almost 52% compared with the same period of the
past year. This resulted in the value of orders booked during
the entire financial year
2022/23 to be more than
double of those
booked in the same period of the
last accounting year.
This is the end of an exceptionally good
financial year, that brought positivity and satisfaction to the
Sales and Business Development team and good results to the
Company, supported by the diligent and tireless project execution
by the technical departments.
REVENUE
During the entire FY 2022/23, total
revenue increased by 42% compared
to the same period of 2021/22. The growth has been realized in all
our product lines, with recurring revenue growing
by 10% and
non-recurring revenue growing by
approximately
63%.
GeoJunxion tracks its revenue by product and
service 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 grew as well, in line with expectations
and guidance provided at the end of the previous quarter. 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, collection of data sets and the
creation of geo-located content.
ORGANIZATION
During the past quarter we added two new resources in
Operations, to support the efforts in expanding recurring Location
Intelligence Services. During the fourth quarter, GeoJunxion
continued its attention to sensitive matters with social impact.
GeoJunxion cares about its employees, their health, working
conditions and encourages all of them to adopt a healthy
lifestyle.
FINANCIAL POSITION
GeoJunxion has made great progress in turning
its business around from a digital map supplier to a premium
location content and location intelligence service provider with
subscription based, recurring “data as a service” revenue models.
The results reported for FY 2022/23, with growing revenue, net
profit, positive cash flow and positive KPIs for the accounting
year, 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. The
cash at hand, is however not sufficient to repay the convertible
loan, which contractually matures on 3 August 2023.
EURONEXT DELISTING - STATUS
UPDATE
As mentioned in the previous quarterly reports,
we have had extensive discussions with OOB/PIE licensed auditing
companies. In spite of the improved financial results, positive
cash flows, improved governance & internal control processes,
none of the auditing companies contacted was willing to provide a
quotation for performing the audit work. The main reasons given by
the auditing firms are the lack of internal staff capacity to
execute the work and the limited size of the company and its market
capitalization.
As reported in our press release dated 14 April
2023, Euronext Amsterdam confirmed on 13 April 2023, its intention
to proceed with a delisting. This is due to GeoJunxion’s ongoing
non-compliance with respect to publishing audited annual accounts
for the financial years 2019, 2020 and 2021.
GeoJunxion formally objected to this decision
from Euronext on 25 April 2023. However, an additional letter was
received from Euronext on 3 May 2023, confirming the delisting
process, with the effective date of delisting scheduled for 6
November 2023. We are continuing to work on alternative solutions,
exploring various possible paths, with the intent of securing a
solid future for the Company, in the best interest of all
stakeholders involved.
It should be noted that the letter received from
Euronext qualified as an event of default under the convertible
loan agreement. As a result of this, the loan has become
immediately due and payable to the lenders. However, we have
received a suspension of rights letter, in which the lenders have
suspended their enforcement rights under the convertible loan
agreement. This suspension is valid for a limited period of time,
during which we are discussing and negotiating alternative
solutions.
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. Our people are our key assets,
and we do our utmost to keep them engaged, safe and healthy.
GROUP STRUCTURE
The GeoJunxion 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, 27 July2023,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.
- 270723 - Press Release - Full year Business update 2022-23
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