First quarter software and solutions revenue increased 42% year over year

Subscription-based revenue represented 56% of total revenue in the first quarter

DENVER, May 08, 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 67% revenue growth in the first quarter. For the period ending March 31, 2023, the Company reported revenue of $2.0 million, compared with $1.2 million for the fourth quarter of 2022 and $2.0 million for the first quarter of 2022. Software and solutions represented 64% of total revenue as the Company continues to grow its commercial business with recurring subscriptions and high margins.

Intermap’s advanced technology and automation are driving scale and operating leverage, resulting in rising margins as volume increases. Contribution margins increased by more than 10 points during the first quarter of 2023. Cash and accounts receivable at March 31, 2023 improved to $2.2 million and adjusted EBITDA improved to $0.5 million for the quarter. Intermap projects total annual revenue for 2023 to be in the range of $8 – 10 million, largely realized late in the calendar year due to contracting cycles and timing uncertainties related to COVID delays and recovery. The forecast excludes any potential new revenue from international government contracts, which could provide upside to projections.

“We are pleased to announce strong revenue growth for the first quarter and remain on track for a successful 2023,” said Patrick A. Blott, Intermap Chairman and CEO. “We are winning new customers in government and commercial sectors, and we are increasing the size and length of contracts. With more than half of our revenue derived from multiyear software subscriptions, we have established a solid foundation for sustainable growth with high margins. Our advanced AI/ML technology and processing infrastructure allow us to deliver high-value, repeatable contracts.”

Government revenue represented 23% of total revenue for the first quarter, compared with 7% in the first quarter of 2022. Intermap is currently collaborating with the U.S. Department of Defense and other Allied national government agencies on critical strategic initiatives. Some ongoing unclassified government work includes:

• Received first task order for the U.S. Department of the Interior IDIQ prime contract for dam inundation analysis
• Completed first task order under the U.S. Department of Defense JANUS contract
• Continuing work on prime contract with the U.S. Air Force Research Laboratory (AFRL) to support its GPS-denied navigation solutions
• Selected by the U.S. Defense Department to present advanced AI/ML processing technology to support the government with actionable, geo-precise data for situational awareness and planning processes

Intermap’s commercial business grew 20% year over year, with a three-year CAGR of 16%. The Company’s recurring revenue now represents 74% of its overall commercial business. Intermap’s year-to-date European insurance business represents 60% of its total insurance business, driven by market expansion and increased functionality of its European product suite. Subscription size continues to grow in Europe and North America, driven by increased customer adoption and price increases. Some commercial highlights include:

• Multiple InsitePro^® subscription renewals and upsells with major U.S. insurance underwriters
• Renewal with leading automated aviation company for NEXTView™ to support expansion of autonomous aviation operations across the U.S.
• Growing European insurance solution with a new $1.3 million contract in Slovakia for flood data and analytics
• Expanding European insurance solution to the Czech Republic real estate market for property valuation and risk assessment analytics
• New flood modeling initiative in Thailand to support urban development and expansion in Bangkok
• New contract with EDF Hydro to supply data for hydro projects in South America
• Added two patents to expand portfolio of IP and innovative solutions
• New telecom data subscription contract with major Vietnamese telecom provider
• New data subscription contract supporting agriculture management in Indonesia
  

The Company’s consolidated financial statements for the quarter ended March 31, 2023, along with management’s discussion and analysis for the corresponding period and related management certifications for first quarter financial results will be filed on SEDAR at www.sedar.com before May 15, 2023.

Reconciliation of Non-IFRS Measures
Adjusted EBITDA is not a recognized performance measure under IFRS and does not have a standardized meaning prescribed by IFRS. The term EBITDA consists of net income (loss) and excludes interest (financing costs), taxes, depreciation and amortization. Adjusted EBITDA also excludes working capital investment and share-based compensation. Adjusted EBITDA is included as a supplemental disclosure because management believes that such measurement provides a better assessment of the Company’s operations on a continuing basis by eliminating certain non-cash charges or gains that are nonrecurring.

The most directly comparable measure to EBITDA and Adjusted EBITDA calculated in accordance with IFRS is net income (loss). The following is a reconciliation of the Company’s net loss to Adjusted EBITDA.

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