In this Research Note, we examine MapsPeople, a Danish public company providing indoor mapping and navigation software. This analysis, covering their latest financial results, channel and vertical market focus, PointInside acquisition, and 2024 outlook, updating our previous Research Note in May 2023.

Founded in 1997, MapsPeople is a subscription-based SaaS company based in Nørresundby, Denmark with global reach and customers in more than 50 countries.

Specializing in developing and implementing the MapsIndoors dynamic mapping platform, MapsPeople provides a solution for handling both basic wayfinding and navigation in large building complexes, as well as optimizing the utilization of indoor spaces through smart integrations. MapsIndoors consists of software development kits (SDKs) for any platform, APIs, and a content management system (CMS).

MapsPeople 2023 Financial Highlights

• ARR grew 63% through 2023 from mDKK 31.8 at the end of 2022 to mDKK 52.0 by the end of 2023.
• The main growth product MapsIndoors ARR grew 103% from mDKK 18.7 at the end of 2022 to mDKK 38.0 by the end of 2023.
• Revenue grew 39% from mDKK 29.1 in 2022 to mDKK 40.5.
• EBITDA for 2023 ended at negative mDKK 59.7 compared to mDKK negative 56.9 in 2022 in line with guidance.

Channel Focus

Over the past years MapsPeople has invested heavily in building up a Partner based go to market strategy. In 2023 the company started seeing some of the growth capabilities the partner first strategy is bringing in terms of ARR growth.

Every time they onboard a new partner, the partner will have its own salesforce selling the partner's smart building solutions to end customers thereby providing an addition to the overall market reach of their MapsIndoors platform.

Smart Building Market

The Smart Building Market continued to see high growth during 2023 with many new entrants into existing verticals and solutions while also seeing new innovative smart building solutions enter the marketplace, where most can benefit from embedding an indoor map in their application.

In 2023 the company saw particular traction in the Workplace Management segment (desk booking, meeting room booking), as well as in the conference vertical, Sports Venues, Healthcare sector, and Public safety sector. A focus on adding many additional smart building partners in these verticals will continue through 2024.

PointInside Acquisition

In May 2023, two further vertical markets, the retail and airport sectors, were addressed through the acquisition of US-based Point Inside's customer contracts and indoor mapping assets.

These include indoor maps of more than 1,800 shopping malls in the US and more than 200 airports globally, which will help accelerate the growth opportunities for MapsPeople’s partners that provide solutions to these strategic verticals. Furthermore, the transaction strengthens MapsPeople’s presence in the retail sector that increasingly depends on new technology to attract and engage consumers by enhancing their shopping experience.

Through the acquisition MapsPeople gains more than 170 large retail stores for MapsIndoors, mainly in the UK. The company also adds new products to the MapsIndoors current portfolio by providing accurate Point of Interests (POI) data for location-based services and last mile delivery services.

2024 Outlook

While management believes the company has become more efficient and more competitive during 2023 and the overall market trends continue to be healthy, the expectations for 2024 are in line with the 2023 performance resulting in guidance of:

• End of 2024 ARR in the range of mDKK 72 - 80 corresponding to a growth in the range of 39% - 54%.
• 2024 recognized revenues of mDKK 58-63 corresponding to 43% - 55% growth, resulting in
• EBITDA outlook for 2024 in the range of mDKK negative 20 - negative 25, constituting an improvement of 58% to 67% over 2023 results.

The growth in 2024 is expected to be evenly distributed between EMEA and North America.

This article was written by Daphne Tomlinson, Senior Research Associate at Memoori.