DENVER, Colo., Aug. 11, 2022 — (PRNewswire) — Intermap Technologies (TSX: IMP) (OTCQX: ITMSF) ("Intermap" or the "Company"), a global leader in 3D geospatial data and intelligence solutions, today announced that second quarter and first half revenue rose more than 100% over 2021. For the quarter and six months ending June 30, 2022, the Company reported revenue of $2.4 million and $4.4 million, compared with $1.2 million and $2.1 million, respectively, for the same periods last year.

Government sales improved to $1.7 million compared with $0.2 million for the prior year. Growth came from domestic and foreign sources. Substantially all government sales during the period were programmatic. Intermap is pursuing government programs of record in North America, Europe, South America and Southeast Asia, which fall under multiyear award contracts that include requirements for large-scale 3D GEOINT to support strategic data infrastructure, which is suitable for Intermap's 3D elevation data.

Commercial sales recognized a 39% increase in subscription-based revenue compared with the second quarter of 2021. Intermap's recurring subscription sales now comprise 32% of total revenue. Unearned Revenue, a balance sheet item, increased to $2.2 million on June 30, 2022 from $1.7 million at December 31, 2021, resulting from an increase in prepaid software subscriptions, representing significant growth in high-margin, cash-generating accounts.

The number of unique software subscribers increased 23% as of June 30, 2022, compared with June 30, 2021, and the average subscription size increased 13% during the period. These contracts enable customers to outsource to Intermap the collection, production, quality control, refresh and delivery of 3D geospatial intelligence, avoiding the cost, uncertainty and infrastructure associated with large in-house GIS workflows.

More than 50% of value-added data revenue for the three- and six-month periods ending June 30, 2022 was derived from recurring customer licenses. Value-added data increased to $1.8 million for the six months ended June 30, 2022, compared with $0.8 million for 2021. The increase was due to recurring updates for refresh data, with similar annual updates expected to continue.

Revenue growth came from every product category, including collection, value-added data products and recurring software and solutions, advancing a strategic objective to help customers lead an upgrade to large-scale automated 3D GEOINT. Intermap took advantage of the COVID period to extend its direct-sales model, adding key personnel and accelerating its evolution towards recurring solution-driven revenue. All Intermap's cloud-based software and Elevation Data as a Service are sold directly to non-expert geospatial users. For the six months ended June 30, 2022, 77% of total revenue was derived by direct selling efforts; 23% was derived from channel partners and distributors. As a result, in the second quarter of 2022, 90% of Intermap's European customers and 100% of its North American customers utilized cloud-based solutions. There were no Intermap customers receiving their 3D data solutions from the cloud three years ago in Europe and five years ago in North America. Intermap expects to commence offering cloud-based solutions through direct sales in Asia before the end of 2023.

The increase in high-margin subscription and cloud-based revenue also drove a 56% increase in gross margin from 39% for the six months ended June 30, 2021, to 61% for the same period this year. As Intermap continues to grow recurring revenue, fixed overhead associated with data infrastructure and public company reporting obligations are better absorbed, and it expects further benefits from operating leverage, and the continued expansion of gross and operating margins.

At June 30, 2022, the working capital deficit (current assets less current liabilities) improved to negative $0.7 million. Adjusted for prior year incentive compensation tied to the Company's financial performance, the working capital deficit was $Nil as of the second quarter, an improvement from a prior year deficit of $3.6 million.

Intermap continues to invest significant capital to maintain and improve its one-of-a-kind airborne remote sensing platform and radar systems, including salaries and equipment. IFRS accounting does not permit the Company to capitalize this investment against depreciation, leading to a large difference between cost basis and book value. However, the Company believes its material ongoing investment in proprietary property and equipment maintains its critical competitive advantage over other providers in its markets, which is demonstrated through ongoing and expected new upcoming contract wins.

"During the second quarter, Intermap's products, software and solutions helped to inform and accelerate decision making in climate change assessment, financial and emergency risk mitigation, resource, food and energy security, as well as navigation and national defense," commented Patrick A. Blott, Chairman and CEO. "Intermap expects this growth to continue as the availability, variety, and cost-effectiveness of proliferating source data from space and drones make Intermap's integrated, source-agnostic, 3D GEOINT products more accessible to non-expert users and enable faster decision making through automated systems."

On July 29, 2022, Amazon Prime released Thirteen Lives, a new film depicting the extraordinary true story of the rescue of 12 boys and their soccer coach from the Tham Luang cave in Thailand in summer 2018. Intermap played an important role at the request of the Thai government in supporting the courageous rescue effort. For more about the Company's contribution, please visit here.

Intermap's consolidated financial statements for the quarter ended June 30, 2022, along with management's discussion and analysis for the corresponding period and related management certifications for second quarter financial results, are available on SEDAR at www.sedar.com.

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