GeoJunxion NV (ticker: GOJXN.AS) Formerly called AND International
Publishers NV (AND.AS) Releases its Q1 2021 Interim Consolidated
Results and Trading Update
Capelle aan den Ijssel, The Netherlands
29 April 2021 - GeoJunxion shows modest Q1 YoY topline
growth, improves its bottom line, and significantly increases order
intake, which will convert into revenue in the remainder of
2021.
Covid-19 and the related measures taken over the
past 12 months, have proven to be a significant challenge for the
global economy. The GeoJunxion team and our underlying business
continues to show strong resilience: Revenue during the past
quarter has increased by a modest 4% compared to the same period in
2020. The bright spot is the order intake, which has increased by
38% thus far, versus last year. In addition, we are very encouraged
by the market response to our new products and the strength of our
pipeline of opportunities.
OPERATIONAL HIGHLIGHTS AND STRATEGY
UPDATE
Market DevelopmentsAmid the
COVID restrictions, companies are still very prudent and at times
very reluctant to invest. This is especially valid for businesses
in the travel, leisure, and events segment. In this environment and
without any precise timelines on when restriction will end, several
of our prospects and customer opportunities are waiting for clarity
to restart activities and invest in business improvements.
Business Development In the
first quarter of this year, we have focused on expanding our
interactions with the industry through our new High Alert Zones
family of products. We continue to receive positive feedback,
invitations for product demos and requests for test and evaluation
samples. Strongest traction is on our Eco Alert Zones, where we
have a unique value proposition with fully attributed, global, and
authoritative coverage of Low Emission Zones, Congestion areas and
Limited Traffic zones. Several prospects have confirmed the
quality, freshness, and completeness of our data. This has led to a
strong pipeline of opportunities, some of which we expect to close
in months to come.
We have also engaged with several prospects for
our Outdoor Venue Plan services. Many of these use cases are
related to travel, leisure, and tourism. However, these businesses
were hit severely by the current COVID measures hence they hesitate
to investe in better visitor experience.
Since the launch of our new brand and website in
October 2020, we have seen a growing number of relevant visitors to
our website. We are also receiving more and more interesting leads
for our key services and products: Location Intelligence Services
and High Alert Zones. Our monthly webinars are enjoying growing
traction and attention. Recordings of all webinars are available on
our website, in the resource section.
Product DevelopmentFor the
first few months of the year, we have made significant investments
in the improving and expanding our key future products: Safety,
Eco, and Health Alert Zones. In addition, we have invested in a
mobile app called GeoAlertsLive, planned to launch at the end of
April. The launch of this app is a significant development in three
ways: Firstly, it creates a new and direct channel into the market.
Secondly, it will help us demonstrate the great value of our High
Alert Zones suite of products. And thirdly it will enable us to get
direct customer feedback, to further tailor and improve our
products. The app will be available soon on the Google PlayStore
and Apple Store and will be offered with a freemium business
model.
Technology DevelopmentWith the
development of our own app, the team is also developing the
necessary underlying APIs to communicate between the mobile users
and GeoJunxion’s location enabled cloud-based data servers. This
suite of APIs, built for high volumes of requests, will demonstrate
our technological capabilities to other mobile application
builders, smart cities projects, as well as enable our own High
Alert Zones content platform.
At the end of last year, GeoJunxion was invited
by Esri to be one of their few partners to participate in the
Service on Demand (SoD) pilot program. Service on Demand is a new
way to sell our data to the ArcGIS users worldwide. Through the
Esri ArcGIS platform, GeoJunxion will be enabled to sell its
content directly to the complete user base. The SoD technology
allows GeoJunxion to keep the content safe, on its own
infrastructure, while giving access to it on demand. An interested
ArcGIS MarketPlace user can then purchase exactly the data that is
relevant to its application by indicating the region or location of
interest and pay accordingly via the platform. In the first quarter
of this year, we installed and tested the technology for our ZIP+4
content. In the coming months, we will perform further tests and
deploy additional content. A successful completion of this pilot
will enable GeoJunxion to offer a complete new and more flexible
business model, such as micro services.
In response to the increasing demand for hyper
local content, we have created a unique suite of algorithms and
methods, that enables us to automate the generation of boundaries
or polygons. Based on this technology, we are creating a new
Built-Up Areas product with worldwide coverage. A build up area, is
an area that has a dense concentration of residential or industrial
buildings and is typically a subset of a city area. Knowing the
exact location of the built-up area is a very critical piece of
information for any location solution. It could enable, for
example, more advanced routing or display functions.
Partner & Alliances
Our partnership with Esri continues to develop
well. Esri is the global market leading solution provider for
Geographic Information System (GIS), with over 350,000 customers
and more than 45% market share (1). On 15 March, we participated,
as guest speaker, to Esri’s worldwide partner conference (EPC). Due
to the current pandemic situation, this conference took place
online with several hundreds of ESRI global partners. The topic of
our session was “Delivering Content with Esri Technology” and 120
participants attended. Esri is an important alliance partner for
GeoJunxion, both in terms of its market leading technology platform
and market reach around the world.
Our Alliance with NavInfo is making great
progress, several Smart City projects were identified as we
continue to develop our value proposition to the market. NavInfo’s
deep know how in Machine Learning, Computer Vision, and the
automotive industry, paired with our focus on location enabled
content to foster road safety and sustainability is a unique
combination. This collaboration is expected to lead to interesting
Smart City projects in the next few months and years to come.
On 4 March, we announced the successful
agreement of a collaboration with the Innovative Province of North
Brabant in the Netherlands. The aim of the partnership is to
consolidate and improve asset management as well road safety.
The Province of North Brabant has always aimed
to be among the leading European regions in terms of knowledge and
innovation, to provide safety and sustainability to all
inhabitants. Building on decades of mapping experience, GeoJunxion
focuses on high value, dynamic content that enrich environmentally
conscious applications and safety in everyday life. This new
agreement paves the way for GeoJunxion to offer to the province its
Data as a Service (DaaS).
Order Intake / Bookings
developments
Towards the end of Q1 and in April we have seen
strong order intake for Location Intelligence Services. We see a
growing interest for bespoke and hyperlocal data creation and
aggregation. An ever-increasing consumer expectation in location
enabled applications drives the need for specific and relevant
local information, such as the non-official names of a
neighborhoods or districts. In this domain we announced in March
the closing of a substantial contract with a global tech
company.
Our 2021 order intake to date, has grown with
38% compared to the same period in 2020. Orders for location
Intelligence Services booked will convert to revenue primarily in
Q2 and Q3.
We like to thank our employees, customers,
shareholders, and contractors for their ongoing contribution to the
turnaround of the company.
FINANCIAL SUMMARY Q1 2021 RESULTS VERSUS
Q1 2020
- Revenue for Q1 2021 is growing modestly by 4% compared to Q1
2020.
- Increased Operational expenses reflect investment in products,
sales and marketing spend.
- Operating result improved slightly by 1% to a loss of €439 K,
compared to a loss of €444 K in Q1 2020.
- Net result after tax improved by 40% to a net loss of €305 K
versus €507 K in Q1 2020.
- Net cash-flow from operating and investing activities equals an
outflow of €41 K Euro, a significant improvement versus a cash
outflow of €311 K versus Q1 2020.
- Consolidated 31 March 2021 cash-position equals €1.072 K.
KEY FIGURES
OUTLOOK FOR THE FULL CALENDER YEAR
2021 Covid-19 and the related measures to contain its
spread, have continued to hamper our business development during
the past quarter. This was particularly the case for our products
directed towards the travel, leisure, and events industry, which
were severely impacted by lockdowns. Despite this, we are
experiencing strong market interest in our new product portfolio,
resulting in a strong and growing pipeline of opportunities. Some
of these are expected to close in the weeks and months to come.
Booked orders to date have increased by 38%, compared to the same
period as last year, primarily driven by the Location Intelligence
Services segment. Based on the orders in hand, and the strength of
the pipeline of opportunities, we confirm our expectation to
generate a revenue growth for the calendar year 2021, in the range
of 40 to 50% compared to calendar year 2020.
FINANCIAL POSITIONGeoJunxion
continues to make significant progress in turning its business
around from a digital map supplier focused on one-off large deals,
to a premium location content and location intelligent service
provider with a subscription based, recurring “data as a service”
revenue model. During the past quarter GeoJunxion has continued to
invest in product development and in sales and marketing. The
private placement completed in December 2020 is expected to provide
the funding needed to enable GeoJunxion to grow its new business
model towards a cash generating and profitable organization. The
cash currently available on hand is estimated to be sufficient to
cover our operational requirements for at least the next 12
months.
REPLACEMENT OF EXTERNAL
AUDITORWe continue to explore all possible options to
replace our previous OOB-licensed auditor, Grant Thornton.
Partially to allow time in resolving this issue and move outside of
the auditing peak season, GeoJunxion has extended the current
accounting year to 30 June 2021. During the past months we have
engaged with all available OOB licensed Auditors in the
Netherlands, requesting a quote for the Audit of our accounts per
30 June 2021. Mazars is not available to us as they are still in
the cool down period as our 2017 auditor. To date we have received
3 rejections for the same reasons as last year and are still
waiting for the reply from one of the firms. We do have ongoing
talks with one auditing firm. There is however no guarantee that
these efforts will conclude in an agreement.
RISK MANAGEMENT Risk management
is an integral managerial task. Our risk management and control
procedures take into consideration the size of the company and the
character of the business to identify the most significant risks
which the company is exposed to. The risks identified are discussed
on a periodical basis and mitigated where possible. Such a system
cannot provide absolute certainty that objectives will be realized.
Neither can it guarantee prevention of potential cases of material
mistakes, damage, fraud, or breaches of statutory laws.
The 2019 annual report describes the principal
strategic, operational, and financial risks. The risks and
uncertainties described in the annual report are still relevant and
are deemed incorporated and repeated by reference in this report.
There were no cases of material damage, fraud or breaches of law
detected in 2020 and Q1 2021. However, the Covid-19 outbreak and
the associated and prolonged pandemic control measures have had a
disruptive effect on the economy and an adverse effect on our
business, most noticeably in our data sales business and our last
mile mapping service directed to travel, leisure and events
business and the associated revenues. Although we have taken
mitigating actions and the expectation that lockdown measures will
be gradually lifted with the progress in the vaccination campaigns,
there is no guarantee that the pandemic and its associated control
measures will not have a further negative impact in 2021 on our
business, financial position, and results.
BOARD OF MANAGEMENT
STATEMENTThe Board of Management hereby declares that, to
the best of its knowledge, the summarized Q1 2021 consolidated
financial statements, drawn up in accordance with IAS 34 “Interim
financial reporting”, represents a faithful rendering of the
assets, liabilities, financial position, profit and cash flow of
GeoJunxion NV and its subsidiaries as stated in the consolidated
financial report, and that the Board report as included in this Q1
2021 Interim Financial report represents a faithful rendering of
the information required in relation to item 5:25d subs 8 and 9 of
the Dutch Financial Supervision Act.
GROUP STRUCTURE SIMPLIFICATION
The voluntary liquidation of AND Data India Pvt,
LTD, continues to progress well: Early January 2021 we completed
the repatriation of approximately 50% of the funds available in the
company. Expectation is that the remaining funds will be
repatriated in Q2 2021. Soon after that, we target to complete the
liquidation of the Indian legal entity.
Capelle aan den IJssel, 29 April 2021,
Thierry Jaccoud – Chief Executive OfficerIvo
Vleeschouwers – Chief Finance Officer
- 2021-04-29 2021 Q1 Interim Reporting_Geojunxion NV
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