Iqgeo Share Discussion Threads

[p1nkfish] 18/1/2023 08:13

Interesting thought - half life of the data managed and in the system of record.

That depends on how long it needs to be kept, how long it is relevant and how easily the manager is swapped out by another manager.

The longer the half-life of the data the more valuable.
The longer the half life of the manager of that data the more valuable the manager is.

Good news - Ultility data half-life is in decades. If IQGEO can make themselves indespensible as the manager then a high valuation is justified. Couple that with a business able to spin off cash at decent margin = $$$.

[p1nkfish] 13/1/2023 20:28

Revenue estimate upgrades.

E - 2023 to £31M from £28.1M, up £2.9M
E - 2024 to £32.4M from £35.4M, up £3M

Thing is, I think the 31M for 2023 is probably in the bag unless the $ collapses.
Not likely to be a stretch and another upgrade very possible during 2023.

[p1nkfish] 13/1/2023 01:13

Just had time to read it a little more closely.

Comsof only contributed 5 months and is about £3.2M of the £26M approx.

12 month Comsof run-rate of around £7.6M. Therefore potential upside of another £4.4M in 2023 if it continues at that rate.

They will transfer Comsof to a more recurring revenue model so a lumpy £7M approx p.a. could fall to a more predictable but lower value that is easier to plan with.

In any case, 2023 is lining up to be a record year and once the headcount increase is complete, 2024 better still. Even given the expansion and expenses in 2022 they swung an adjusted loss of £800K to adjusted profit >£1.8M. A fantastic £2.6M positive.

When get chance will compare what appears to be the revenue case for 2023 at this point vs Finncap revenue forecast. I suspect they could surpass that too.

Great to see such growth and positivity.

[p1nkfish] 12/1/2023 13:53

Petti has said from early doors they intend to land and expand.

Landed in a lot of places now, 450 vs 320 a year back. Includes big names like AT&T.
Expand will be next in parallel to landing at yet more places as they go global on the back of the Comsof footprint. Not sure the benefits of cross-sell have shown much at all so far as they only acquired Comsof in August. Another potential upside.

Doing that in the likes of AT&T........

The expand is on the back of an existing cost base (though they are adding heads currently) = margin expansion.

It is good to watch and have some exposure to these trends.
2023 is more foundation laying, 2024 onwards showtime imho.

[p1nkfish] 12/1/2023 13:38

Very toppy but quality won't be cheap.
Questions, will it grow into that valuation and surpass it by when?

This has the hallmarks of a quality business for the long term.
Able to spinoff cash in time, reliably, hard to displace, built from the ground up servicing essential utility needs with massive trends forcing them along. Solid quality share register too.

Yes, toppy.
You might have called it toppy when it was <50p, a fraction of the size and much riskier.

2024 will be showtime imho. This year OK but hits its stride a bit later.

Dyor etc.

An acquirer of this business would have to pay an even bigger premium.
There's nothing quite like it currently, again imho and I'm often wrong.

[mngf] 12/1/2023 13:18

Like the numbers but valuation a bit toppy?

[johnwise] 12/1/2023 10:14

12 January 2023

RNS Number : 4502M

IQGeo Group PLC Trading update
(no borrowings)

[w13ken] 12/1/2023 09:49

TU out on the same day as last year - even with the purchase of Comsof - and it's a cracker!

Tomorrow will be just 6 months since I bought IQG at 123p - my best stock buy for years. Bought quite a lot more to put it to #2 in the portfolio (soon to be #1) and at 46% up on my average I am obviously ecstatic.

My #1 holding, K3 Capital, is being bought out too cheap but I hope that IQGeo continue to grow for years to come. They have a great management team, industry-leading software and an excellent strategy so I will remain a happy holder.

[p1nkfish] 12/1/2023 08:51

225p Finncap target mentioned.

[p1nkfish] 12/1/2023 08:50

Am expecting some news after this TU has settled in.

The Adaptive Grid product is really interesting because it canlead to many interesting areas of expansion/growth.

[sig1978] 12/1/2023 08:35

Loving this. Great results!

[p1nkfish] 12/1/2023 07:21

Look at that turn in adj EBITDA on an annual basis.

No turning back imho, dyor etc but with that ARR, and some care this is a VERY loveable business.

[p1nkfish] 12/1/2023 07:13

TU, earlier than I would have expected.
Hard to do better than that performance, well done, excellent.

Reads as being a bit of a rocket ship of growth.

I won't let go, exciting times.

[sig1978] 09/1/2023 20:38

Back on the charge :-)

[p1nkfish] 08/1/2023 23:47

It really is a game changer for customers and IQGEO. Can catapult them into the big league.

If we can get news of an adoption or two the market will really sit up and take note.

These areas are quite recession immune with a massive trend behind them. Serious $.

[p1nkfish] 08/1/2023 23:22

Very impressive. Can add real value and differentiate.

It integrates next to everything to manage an Electric Grid Network across the entire life-cycle.

Down to IoT and Meters. Look at all the sub-menus down to customer service. It could be a smart-city (type) capable platform too

[p1nkfish] 06/1/2023 10:12

Execution is everything and so far they have done what they said and pretty efficiently too.

Worth re-reading the older FY reports, CEO and Chairman statements back to 2019.

TU could be out to end of Jan if there is more work involved now they have Comsof to add in too.
1st TU as IQG was 31/1/19, 2nd was 28/1/20. They pulled the dates in thereafter towards 3rd/2nd week of Jan.

I bet it's not All Quiet on the Western Front.

[w13ken] 06/1/2023 09:10

A good read pf. TU expected next week (12th Jan last year), which I expect to contain positive news. Numerous blogs refer to the challenge of getting companies to be bold enough to consider a replacement of their existing out-of-date GIS and there being a generation of GIS specialists that don't want to switch to more non-expert friendly software. We've seen AT&T start a significant trial so would love to hear more on that. IQGeo have recruited heavily in the last 6 months so hope that new contracts will offset those staff costs.
Overall I'm excited that IQG have modern GIS software solutions, a great management tram, a good business model (with switch to SaaS) and ambition to grow.
They're up 35% for me so far, #2 in my ISA and they're the stock I've chosen in two 2023 stock challenges where you could only choose 1 stock. I'd like to see the company better known among investors this year.

[p1nkfish] 06/1/2023 07:37

New blog post, 5th Jan.
Very interesting and references 'IQGEO Adaptive Grid'.
Looks like an improved Network Manager for Electric.
Enterprise level down to the field and multi-layer.
Really could stir things up. Playing against the big boys with what looks like a more flexible offering across all layers.

[p1nkfish] 05/1/2023 17:10

As soon as a worthy small mobile competitor is bought by a large GIS competitor with deep pockets (if they know how to use what they have bought) then IQGEO has a problem.

Capital meets capability.

Vitruvi look useful and dangerous in the right hands. Wrong hands for IQGEO.

This TU is possibly the most important since separating from Ubisense.

I hold, haven't sold and want to see this come out a long lived winner.

[p1nkfish] 05/1/2023 09:57

Staying ahead of the pack will be critical. Once the pack catches up IQGEO becomes an also ran.

#1 is total customer satisfaction.

#2 stay ahead of the pack, #1 will help.

I'm a bit concerned by the appearance of some of the competition and how well they come across. IQGEO has some excellent assets but differentiators can disappear quickly.

[horseyphil] 05/1/2023 08:43

HNY to all holders, and special thanks to p1nkfish for another year of outstanding contributions to this board. Your early call on the merits of acquiring Comsof was amazing.

IQGeo made great progress in 2022. Maintaining that momentum won't be easy, but I have great confidence in the management team and am very hopeful for 2023.

[w13ken] 03/1/2023 23:31

Great research as always pf - Happy New Year to you and all.

Last year there was a TU on 12th Jan, in advance of the March FY end. IQG is my #2 ISA portfolio holding but I've bought in Trading this morning at 189p in anticipation of good news this month.

[p1nkfish] 03/1/2023 23:18

Iqgeo partner - Overstory - raises $5.2M. Why is it interesting?
Because you have to wonder if IQGEO are involved in the growth mentioned below. I suspect they are in some of it, perhaps not all. CAPITALS are added to emphasise and we're not on the original text.


"TWO TOP TEN US UTILITIES and ONE OF EUROPES LARGEST UTILITIES have joined the Overstory portfolio in the LAST THREE MONTHS. It also added investor-owned utilities and coops from Canada to Mississippi, and from California to Virginia.

Overstory's rapid growth has seen its customer base's total transmission and distribution mileage GROW from 36,000 miles TO MORE THAN 700,000 miles in less than 9 months, a 19X increase."

Summary -