reports
- Richard Williamson
1Spatial - £1m 1Streetworks deal highlights the opportunity
1Spatial has announced the completion of a landmark deal for its key 1Streetworks application. Originally highlighted at the interims, the company has now revealed the client to be Surrey County Council. The deal is encouraging for two reasons. Firstly, the size of the deal (£1m over 12 months) indicates that the potential opportunity for this product is large. Secondly, the council’s plan to use the product as a collaboration tool with contractors and utility companies should help stimulate wid...
- Richard Williamson
1Spatial - Contract momentum underpins growth prospects
1Spatial’s H1 results showed a continued improvement in the quality of revenues, while recent deal flow provides good support for our expectation of faster growth and margin expansion from H2. Most notably, with the results the company has announced a second win (subject to contract completion) for the key 1Streetworks SaaS product. The size of the deal – £1m over one year with a UK county council – provides a good indication that the market opportunity for this product is substantial, while the...
- Richard Williamson
1Spatial - Federal-level win in the US
1Spatial’s momentum in the US has continued, with the company securing a $1.4m deal with the United States Forest Service (USFS). This is a new Federal government-level deal for the business, building on the momentum 1Spatial has been reporting at state level, where it now has contracts or framework agreements with 21 states (up from 18 at the FY24 year-end).
- Richard Williamson
1Spatial - Contract wins underpin US growth opportunity
1Spatial’s announcement of contract wins in the US, spanning a number of products across several states, highlights the company’s progress and opportunity in the world’s largest market for software. It also gives an early indication that management’s investment in strengthening the US business development team could yield good results. In the US 1Spatial now has contracts or framework agreements with 21 states, up from 18 at year-end, with management setting a longer-term ambition of generating ...
- Richard Williamson
1Spatial - Investing in the transformational SaaS opportunity
1Spatial’s FY24 results reflected robust momentum for the enterprise business and continued improvement in the revenue mix, with investment in growth suppressing margin and cash generation. This investment phase will continue in FY25 to lay the foundation for transformational growth from 1Streetworks and in the US in the coming years. Our scenario analysis indicates the upside from successful execution is significant, with further wins for 1Streetworks and in the US being the key catalysts for m...
- Richard Williamson
1Spatial - SaaS applications to build on Enterprise strength
1Spatial expects its FY24 results to be at least in line with our forecasts on revenue and EBITDA, driven by continued Enterprise strength, though higher rates and working capital swings affected PBT and net cash. Recent wins, including the €9m utility project, coupled with a robust pipeline and order book, underpin strong FY25 momentum. The transition to higher-margin recurring revenue models and rising SaaS adoption improved the sales mix. In the US, five new annual NG9-1-1 licences demonstrat...
- Richard Williamson
1Spatial - Landmark 1Streetworks contract
SPA has announced that following a successful trial, UK Power Networks has signed a contract to deploy 1Streetworks, 1Spatial’s traffic plan automation application. This is a landmark win for this key SaaS product, the market opportunity for which management sizes at £400m for UK low-speed roads alone. The contract is worth at least £0.34m over 12 months, but with scope to significantly exceed this over time and UK Power Networks advocacy for the product is notable. A growing pipeline of paid t...
- Richard Williamson
1Spatial - €9m enterprise win with European utility
1Spatial has announced a significant contract win with a leading electricity and gas distribution network operator in Belgium. The work is to support the client in building a digital twin of its distribution network and was won following a competitive tender, which included Tier 1 systems integrators, further highlighting 1Spatial’s strength in location master data management. 1Spatial will be the primary contractor on the €9m project, of which €4.1m of services will be delivered directly by 1Sp...
- Richard Williamson
1Spatial - Enterprise growth through key contract wins
1Spatial has announced several enterprise contract wins across key geographies, with the group executing on its growth strategy through land and expand, strategic partnerships and investment in sales. Contract extensions with the California Department of Transportation (Caltrans) and a major European utility customer provide further validation of the core enterprise offering, while the new contract with ATKIS-1Gen for cloud-based solutions signifies growing market demand away from on-premise tec...
- Richard Williamson
1Spatial - Improving mix, SaaS potential draws nearer
1Spatial’s H124 results show robust revenue growth and continued improvement in the revenue mix, with recurring revenue growing by 24%. Investment in sales resource, inflationary pressures and FX compressed margins, but a strong pipeline for both renewals and SaaS products could drive revenues and margins in H2 and beyond. In particular, the market opportunity for both 1Streetworks and NG9-1-1 has the potential to be transformative. We have upgraded our revenue forecast but leave earnings largel...
- Richard Williamson
1Spatial - SaaS progress and pipeline support prospects
1Spatial’s AGM statement provides further support for our view that the company is establishing a good platform for scalable recurring revenue growth. 1Spatial has secured its first customer for its Next Generation 911 (NG 911) solution in the US and three customers for its SaaS 1Streetworks product (including an additional one since 19 June). The opportunity for both products is significant, in our view. Sales cycles continue to be somewhat protracted within the current macro-economic environm...
- Richard Williamson
1Spatial - First wins for key SaaS product
1Spatial has won its first two contracts for 1Streetworks, the company’s SaaS-based Traffic Management Plan Automation product. This is an important development for the company in that the potential addressable market for this product is large; management estimates around £250m for low speed roads in the UK alone and 1Spatial looks well positioned to gain a significant market share. 1Streetworks also runs on the company’s newly launched cloud-based platform, representing an important milestone i...
- Richard Williamson
1Spatial - New SaaS apps to drive high-margin growth
1Spatial’s full year results confirm the solid progress made over the course of the year with revenue growing 11%, recurring revenues growing 21% and EBITDA margins expanding from 15.5% to 16.7%. With momentum continuing into this year, and a healthy order book and pipeline, the company looks well set for 2024. Progress in its key strategic growth pillars – traffic management, US expansion and smart partnerships – looks promising and could accelerate scalable high-margin recurring revenue growth...
- Liberum Research Team
- Liberum Research Team
- Ciaran Donnelly
- William Larwood
LIBERUM: 1Spatial* - Investment to deliver growing pipeline
Revenue growth of 11% and Adj. EBITDA growth of 19% highlight the continued progress 1Spatial has made in FY23. Recurring revenue now accounts for c.50% of revenues and ARR has grown by 17%. Management is continuing to invest in building out its Sales function. This investment supports continued growth in the US and in its Traffic Management Plan opportunity. The increased investment leads us to take down our FY24E Adj. EBITDA forecast by 9%, but we still forecast 9% yoy growth. We introduce FY2...
- Liberum Research Team
- Richard Williamson
1Spatial - Encouraging trading and outlook
1Spatial’s trading update confirms that trading has remained robust, with FY23 revenues and EBITDA expected to be no less than £29.8m (+10.3% y o-y) and £4.9m (+17% y-o-y) despite some inflationary pressure. The revenue mix continues to improve, with recurring revenues now c 50% (+c 22% y-o-y) of the total and term licences up c 80% to £5.2m. With momentum continuing into Q1, and a healthy order book and pipeline, the company looks well set to deliver further progress this year. Trials of the co...
- Liberum Research Team
- Liberum Research Team
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