MapsPeople

Today, MapsPeople announced that the company’s private placement has been successfully subscribed. The company raises approx. DKK 8.5 million (gross proceeds) in new capital.

Today, MapsPeople announces an issuance of new shares in a private placement, which is expected to result in gross proceeds of DKK 7-9m. This is a part of MapsPeople’s total capital requirement of DKK 15-20m to achieve a point of cash flow breakeven in 2024.

We have updated our investment case one-pager on MapsPeople after the company updated on its ARR guidance and capital situation in connection with the Q3 2023 report earlier this week. Following an ARR downgrade for 2023, the company has an expected total capital requirement, before reaching positive cash flow, in the range of DKK 15-20m.

Today, we hosted a virtual live event with MapsPeople's CEO Morten Brøgger and CFO Jesper Lund Tidemand. The management went through the results and achievements of the quarter and gave some nuances to the difficulties that led to the downgrade of this year's ARR guidance.

MapsPeople has released its Q3 2023 results following its recent ARR downgrade of the 2023 guidance and today's announcement of a capital requirement.

This afternoon before the market closed, MapsPeople downgraded its ARR expectations to DKK 58-64m (before DKK 77-87m) by the end of 2023. Revenue guidance is maintained in the range of DKK 38-45m, and EBITDA is also kept unchanged between DKK -62m and -52m in 2023.

In October, a few Danish-listed SaaS companies reported Q3 2023 results, while the cloud giants as well as some global SaaS companies also delivered fresh results and new expectations to the market recently. This has led to large volatility across the sector, where small negative or positive guidance surprises have led to big share price reactions.

September was tough for the stock markets, especially for SaaS and other interest-rate-sensitive growth companies. We now observe a relatively large valuation gap between the US and Danish-listed SaaS stocks (6.7x ARR in the US vs. 3.3x ARR in Denmark).

In this month’s SaaS newsletter, we cover the Danish SaaS Q2/H1 earnings season combined with global perspectives from the US SaaS earnings season and news from the IPO market. As always, we also update on the Danish and US median ARR multiple across the sector.

Earlier today, MapsPeople was represented by CEO Morten Brøgger and CFO Jesper Lund Tidemand in a virtual live event. The management presented the recent results for Q2 2023 and answered questions from the audience.