Intermap Technologies Reports Strong Q1 2025 Growth

Intermap Technology ((TSE:IMP)) has held its Q1 earnings call. Read on for the main highlights of the call.

Intermap Technologies’ recent earnings call conveyed an overall positive sentiment, driven by significant revenue growth and strategic advancements in international markets and government contracts. Despite facing challenges such as currency risks and timing of contract awards, the company’s strong financial performance, positive net income, and successful equity financing were notable achievements that contributed to the optimistic outlook.

Record Revenue Growth

Intermap Technologies reported a remarkable 153% year-over-year increase in total revenue, reaching $4.3 million in Q1 2025 compared to $1.7 million in Q1 2024. This growth was attributed to all areas of the business, showcasing the company’s robust expansion and successful execution of its strategic initiatives.

Strong International Revenue

The company saw a substantial increase in international revenue, with approximately 86% of consolidated revenue generated outside the United States, up from 77% in 2024. This highlights Intermap’s successful penetration and strategic positioning in global markets.

Significant Increase in Acquisition Services Revenue

Acquisition Services revenue soared by 402% year-over-year to $2.4 million, driven by the execution of government contracts, notably in Indonesia. This underscores the company’s ability to capitalize on lucrative government projects and expand its service offerings.

Positive Net Income

Intermap reported a pro forma net income of $833,000, a significant turnaround from a net loss of $839,000 in Q1 2024. This positive net income reflects the company’s improved financial health and operational efficiency.

Successful Equity Financing

The company raised US$8.7 million through equity financing in Q1 2025, enhancing its liquidity profile and bringing total assets to over $19 million. This successful financing round provides Intermap with the financial flexibility to pursue further growth opportunities.

DARPA Program Selection

Intermap was down-selected for a new U.S. DARPA program, highlighting its capabilities and commercial expertise. This selection is a testament to the company’s innovative solutions and potential for future government collaborations.

Expansion in North American Markets

Following success in Europe, Intermap is introducing multi-perils analytics to North American accounts, with a notable 70% increase in pricing. This expansion signifies the company’s strategic efforts to diversify its market presence and leverage its analytical capabilities.

Currency and Hedging Risks

Despite the positive developments, Intermap faces challenges related to currency risks and hedging costs associated with overseas government contracts. These risks remain a significant concern for the company’s international operations.

Timing Risks for Indonesian Contracts

The primary risks include timing related to follow-on awards, particularly those with approved World Bank funding. These timing risks could impact the company’s ability to fully capitalize on its Indonesian government contracts.

Forward-Looking Guidance

Intermap Technologies reiterated its guidance for fiscal year 2025, projecting total revenue between $30 million and $35 million, with an adjusted EBITDA margin of approximately 28%. The company highlighted its strategic advancements, including securing a position in a new DARPA program and expanding its commercial operations globally, emphasizing strong growth potential and recurring revenue within its business model.

In summary, Intermap Technologies’ earnings call reflected a positive sentiment, underscored by significant revenue growth and strategic advancements in key markets. Despite challenges such as currency and timing risks, the company’s strong financial performance and successful equity financing position it well for future growth. With promising forward-looking guidance and strategic initiatives, Intermap is poised to continue its upward trajectory in the coming fiscal year.