Xplora published its annual report yesterday where it reiterated its 2021 full-year results, first announced on 17 Feb 22. The company grew its revenue 115% y/y realising full-year revenues of NOKm 431.4, of which NOKm 90.7 was from AAR (annual recurring revenue). Its ARR component is of growing importance for Xplora and is central to its long term strategy of not only selling hardware but also establishing a platform for value-added services which includes connectivity features, safety features, access to Xplora’s interactive Goplay platform, and more. Xplora’s ARR amounted to 21% of its total revenue FY 2021.
Xplora realised considerable top line growth but also realised its first positive full-year EBITDA in 2021 of NOKm 19.2. The company demonstrated its ability to generate positive earnings simultaneously with high growth; EBITDA for 2020 was NOKm (11.0).
The company also developed positively towards ensuring continued earnings strength by increasing its subscriber numbers by 61% to 123k. Subscriber growth contributes directly to the company’s ARR. For year 2022 Xplora expects revenue increases of at least 50%. The markets were unreactive to the news given the results had previously been announced.
Xplora has also announced its trading statement for Q1 22 (on 13 April 22) giving insight into its progress towards its 2022 targets, announcing 37% y/y revenue growth with revenues of NOKm 33.6. While 37% is below the company’s target of 50% Xplora had previously announced expectations for Q1 22 to be its weakest quarter. Deeper analysis of its Q1 22 results revealed increased revenue share from its higher-margin ARR which made up 45% of total revenue for the quarter. ARR amounted to NOKm 33.6, a growth of 66% y/y.
The annual report also outlines key developments thus far in 2022. Significant events include new partnerships in the UK and US, namely a Telco distribution partnership with EE and a connectivity partnership with IQ Mobile, in the UK, and entry into a reseller agreement with Walmart in the US. Positive development in the US market was one of Xplora’s key wins for 2022. The company has also announced the planned launch of three new watch models for release during 2022, the new X6 and X6 Pro, the next generation of Xplora’s premium smartwatch the X5 Play and the next generation of its entry-level model, the XG03.
To gain a deeper insight into Xplora you can watch our introduction to the share event which we hosted with Xplora CEO, Sten Kirkbak, and CFO, Mikael Clement. Watch here: https://lnkd.in/eAgmM5cn
You can also read the accounts here: https://lnkd.in/gXbUb4Ad
HC Andersen Capital receives payment from Xplora for a Digital IR/Corporate Visibility subscription agreement. / Philip Coombes 16:35 28.04.2022.