reports
- 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
- Ciaran Donnelly
- William Larwood
LIBERUM: 1Spatial* - Positive outlook for FY24
1Spatial is expected to deliver yoy revenue growth of 10% in FY23 and recurring revenue will account for 50%. Term license revenue has increased by 80% and the US has grown revenue 45% yoy. Adj. EBITDA grew by 16% in the period to £4.9m, representing a margin of 16.5%, which is a 100bps increase on FY22. Operating cash flow was >100% relative to FY22 and net cash is expected to end the year at £3m. The outlook for FY24E is to see continued progress and management will continue to invest in excit...
- Richard Williamson
1Spatial - Change of CFO
1Spatial has announced that Andy Fabian will be stepping down as CFO on 19 December, to be replaced by Stuart Ritchie, currently CFO at Fusion Global, an international provider of SaaS workflow software. Mr Fabian has played a key role in putting 1Spatial on a sound financial footing, rebuilding investor confidence in the business and developing the current growth strategy. With these foundations in place, this change is being made to help drive an acceleration in growth and transition to a SaaS...
- Richard Williamson
1Spatial - Making GIS data useable for a variety of verticals
1Spatial (SPA) delivered another period of robust results in H123, with annualised recurring revenue (ARR) up 29% y-o-y, revenues growing 11% and EBITDA rising 10%. 1Spatial’s success in driving transformational growth was marked by several contract wins with significant amounts of recurring revenue, the expansion of smart partnerships and further penetration of the US market. We maintain our FY23 and FY24 estimates and watch for catalysts that signal 1Spatial’s plan is continuing to bear fruit....
- Richard Williamson
1Spatial - Two recent wins highlight US potential
Spatial’s two recent wins in the United States highlight the potential for the business to deliver significant, high-margin recurring revenue growth in the world’s largest market. We are not changing our estimates at this stage, but the repeatable nature of both deals indicates there should be more to come and we believe there is upside potential to our estimates for FY23 and FY24. We believe the current ratings of FY23e EV/sales of 1.4x and FY24e P/E of 17x does not reflect the company’s long-t...
- Richard Williamson
1Spatial - Flying high with a major EU aerospace company
1Spatial has announced a sizeable contract with a major European aerospace company worth circa €3m over five years. Notably, the deal is the first major win for the company’s new 1Telecomms solution (together with 1Integrate) supporting a win in the aerospace industry, a new vertical for the business. We believe that this provides evidence that the company’s development of app solutions can broaden the company’s addressable market. We believe that the broader market for geospatial solutions is s...
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