Iqgeo Share Discussion Threads

[p1nkfish] 20/7/2023 22:01

Last 2-3 mins suggest a strong H2, sounds possibly as strong as H1 or more so.

"Chapman says that he expects "to do at least what we've done in the first half of the year and hopefully more.""

[w13ken] 20/7/2023 15:58

More positive IQG coverage via the VSA Capital podcast, from 11:56. Awareness is growing...

[simon gordon] 20/7/2023 10:03

Vox Markets - 20/7/23:

Vox Markets Fund Manager Series: Josh Northrop of Whitman Asset Management

12:45 IQGeo #IQG

[p1nkfish] 20/7/2023 08:09

Now is a time to be extra active in US Telecom at the c-suite level to drive home the efficiency benefits across the entire network value chain.

[w13ken] 20/7/2023 08:09

Interesting new blog from CMO, Steve Tongish, on the 2023 IQGeo EMEA Meetup in Ghent.

[p1nkfish] 20/7/2023 08:08

Some things are counter-intuitive. Currently the telecom sector (particularly US) is under the kosh. Not just AT&T and Verizon but also the likes of the tower people, Crown Castle etc. Some of this is due to money flows into tech growth and a few other reasons. When money flows out, prices fall and yields can rise.

Now, you might think that could be bad for IQGEO.

Quite the opposite. There is (will be) an acceleration of digital transformation in Telecom to help ilines even further and force shareholder interest to return.

Rather than slow any spending on new subscribers connections or more efficient working practices it will lead to the opposite - good for IQGEO.

I saw similar a few years ago where I share I owned (since acquired) was thought to be likely to suffer as the end market it served was hammered. The opposite was true. Their customers put the foot to the metal to reduce op-ex and increased business with those helping make them more efficient.

TBD, DYOR etc.

[p1nkfish] 19/7/2023 04:56

Some furring inside water pipes can help protect but the less Pb the better.

[w13ken] 18/7/2023 23:41

...in the US, only 43% of households have access to fiber broadband...

[w13ken] 18/7/2023 23:33

Lead pipes are more of a problem than you might appreciate in the UK too. Around the turn of the 21st century roughly 8.9 million homes (34%) in England and Wales are estimated to have at least some lead pipework as part of their drinking water supply.

[p1nkfish] 18/7/2023 22:25

We've hardly seen Adaptive Grid kick into gear. Expect that to change relatively soon imho.

[p1nkfish] 18/7/2023 20:04

Even though its not a major environmental concern, chances are some remedial work will need to be done to keep on the right side of public opinion. Replace "X" with "h".

Xttps://about.att.com/pages/legacy-cables

[p1nkfish] 18/7/2023 19:51

There might be a source of new need for IQGEO GIS in helping with removal of old toxic cables.

The field workflow will need to be managed to handle this efficiently, as quickly as possible, and to offer documentation to prove it has been done for legal reasons.

Not just AT&T.

Because of this AT&T are back towards a stock price last seen around December 1992 !!!
There must be an opportunity for IQGEO to become even more important to them if someone at IQG can quickly illustrate the usage case. Would make a great environmental feather in the IQGEO cap too.

[p1nkfish] 17/7/2023 17:34

These type of growth rates are exactly what the US look for in this type of company.

It wont be taken seriously otherwise.

The metrics will all come into line over time with the right amount of revenue growth and after the global build out of support infrastructure is complete.

The gearing then shines through.

Notice the cash generated from the last half has been allocated to growth and cash reserves are down by the earn out amount. No new cash accrual. All to do with building the global operations needed for a sustainable growth model.

When that is complete cash will increase.

Growth is it, continue to do that with increased ARR and todays price will look a decent entry in future.

Dyor etc.

[w13ken] 17/7/2023 17:05

"Right place, right time, right product, right people."

Right enough...I think most investors will look at the P/S or P/E and move on despite the momentum, perhaps assuming they're too late. What's exciting is that the best could be yet to come. It's not too much of a stretch to see how 2023 revenue could nearly double again with a few more major wins.

2021 rev: £13.85m
2022 rev: £26.6m
2023 rev: £50m+?

[p1nkfish] 17/7/2023 16:10

I suspect the cup and handle target will come about, no timescales though.

[p1nkfish] 17/7/2023 16:09

This is without a lift from much Grid work in US compared to what is becoming available as systems upgraded for digital transformation and DER. Some Grid now, yes, but not the big stuff yet.

83% of the growth was organic x-Comsof. Comsof being moved to subscription model for higher ARR and less lumpy and more stable but 83% without it anyway.

What happens if they they turn in say 30%-50% next half? Not impossible.

Play with some numbers that are not beyond reality and you get an idea of what could happen and that is not necessarily fantasy.

Right place, right time, right product, right people.

Trade if you will but I bet there are a few that have on the way up and regret not just parking their holding and ignoring it.

Dyor etc. GLA.

[w13ken] 17/7/2023 15:01

FinnCap raise target to 350p.

"AIM-listed IQGeo should pen revenue of £40.2mln come the year-end, 22% higher than previous estimates, finCap said in a note, after the software solutions firm tipped interim incomes would sit around £20mln.

For 2024, finnCap bumped the figure up by 14% on previous guidance, tipping revenue would hit £43mln.

Gross profit could well then come in at £24mln and £27mln respectively in 2023 and 2024, analysts forecast, marking a rise of around 10% on previous estimates."

[w13ken] 17/7/2023 09:46

More positivity from Cambridge's Business Weekly.

[w13ken] 17/7/2023 08:25

Excellent TU but there seems to be so much more to come. Really exciting to be onboard on this one.

[nimbo1] 17/7/2023 07:06

Could be a much larger business. Just wish I owned more shares!

[p1nkfish] 17/7/2023 06:17

Dyor, but even in the face of future market turbulence how can this be anything other than a strong hold?

Growth like this is not common in the UK and its underpinned by long-life infrastructure investments by a whole spectrum of customers from SME to Tier1 mult-billion $ corps.

Well done IQGEO.

[p1nkfish] 17/7/2023 06:11

Excellent TU, well done all the contributors.

Onward!

Any decent Grid news out of the US and it will put even more fuel on the fire. It will come.

[red ninja] 16/7/2023 14:02

IQG continues to be covered by Investor's Champion which considers it a Stonking Small Cap. However, not sure if Investor's Champion is a big influenece. It tip is not really revealing any new to IQG followers.



Dated 12/7/23.

Second half of tip :-

Broker forecasts
For the year ending December 2023 revenue is forecast to climb 24% to £33.0m, adjusted EBITDA rise 220% to £6.1m and the Group register a maiden adjusted pre-tax profit of £3.5m. Forecast earnings per share of 5.0p result in a seemingly heady Price Earnings (‘PE) multiple of 60x or 4.2x forecast revenue. Forecast free cash flow of £5.5m equates to a free cash flow yield of 3% at the current market capitalisation of £183m (share price 298p - initially 213p).

Forecasts for the following year ending December 2024 are for revenue to continue its double digit rise to £38.0m, pre-tax profit of £5.7m and earnings of 7.5p per share.

Given recent newsflow covered below we anticipate upgrades.

Recent contract news
Since the acquisition of OSPInsight there has been a noticeable acceleration of material (£1m+) contract wins. These include contracts with several major Canadian telecoms network operators, a fibre network provider in Germany, electrical utilities in the US and Japan and a US telecom network operator.

The start of 2023 brought news of the extension of an existing relationship with a Global Top 5 telecom operator with a further software subscription value of US$4.2m (annual value US$1.5m) and US$0.5m of services.

This follow on contract demonstrates the expansion and upsell opportunities afforded by the integrated software suite. The software will streamline processes associated with the build out of fibre networks that were planned using IQGeo's fibre network planning and design software.

In February they announced a major new contract with NESIC in Japan to deliver a utility disaster assessment solution for Japanese public authorities. The £1.9m deal over 5 years includes IQGeo's software platform and mobile capabilities consisting of a £1.0m licence and associated support and maintenance.

IQGeo has a long-standing integration partnership with NESIC who has provided disaster assessment and emergency response solutions to some of Japan's largest electric utility operators. The new solution integrates a wide range of data streams and weather analytics into a single IQGeo geospatial dashboard for office based and mobile field crews. The solution enables public service authorities to effectively monitor and manage their disaster response activities during Japan's frequently severe typhoon, earthquake and tsunami incidents.

In April came the announcement that the OSPInsight fibre network management software has been selected by a rapidly growing large tier 1 telecom operator in the US to replace a competitor's solution. This is a significant contract for IQGeo's SMB software division (having a subscription value of US$500k over three years plus over $2.0m in professional services to be recognised in the Dec 2023 financial year), reflecting the success of this team in securing larger customers.

Operating in multiple markets across southern states, the operator has grown significantly through organic expansion and acquisition. With their existing ESRI-based mapping software unable to meet their increasingly complex requirements, they turned to IQGeo for an optimised fibre network management and workflow solution. The first phase of this project employs IQGeo's fibre industry experts to migrate network data from disparate systems into a single shared System of Record. This initial deployment has significant future expansion potential as the customer rolls out software to field teams and expands applications into planning, construction, and maintenance operations.

Most recent in July came news that an existing top 5 Japanese utility customer had signed a new subscription agreement to significantly expand its use of the IQGeo software for emergency response. The total software Annual Contracted Value for this customer will grow by approximately 100% to more than £1.1 million. IQG subsequently announced news of significant contracts with a tier 1 US telecom provider and one of Germany's leading broadband operators. The German customer contract has a total minimum Annual Contract Value of more than €2m over a 3-year period while the US customer signed a 3-year contract with a value of more than $2m.

Why is at a Stonking Small Cap
IQGeo addresses a very large and rapidly changing market, and more significantly one that would appear to be in dire need of its software.

Through a combination of organic growth, supported by niche acquisitions, the Group is growing very fast, with revenues up over 180% since 2020 and double-digit growth set to continue.

Once embedded in a client’s systems the ability to upsell other parts of the software suite seems clear, reflected in recent contract news.

While the rating, based on earnings, looks full in the current climate and IQG is only just moving into profitability, the excellent client retention rates and growing amount of recurring revenue provides plenty of visibility and assurance.

The contract with NESIC in Japan covered above, highlights its innovative nature and opportunity for growth into new adjacent markets.

The shares have nearly doubled over the past 12 months, on the back of plenty of positive contract news and upgrades. While a degree of profit taking might be expected in the short term, this one is proving hard to ignore.

[p1nkfish] 14/7/2023 18:45

W13, it's good that no herd have turned up here. Nearly every pbb is currently quieter than usual but there have only ever been a very few posters on IQG at any time. Tightly held and under the radar is good.