1Spatial - SaaS progress and pipeline support prospects

1Spatial’s AGM statement provides further support for our view that the company is establishing a good platform for scalable recurring revenue growth. 1Spatial has secured its first customer for its Next Generation 911 (NG 911) solution in the US and three customers for its SaaS 1Streetworks product (including an additional one since 19 June). The opportunity for both products is significant, in our view. Sales cycles continue to be somewhat protracted within the current macro-economic environment. However, with a strong order book, pipeline and feedback for new products, management remains confident it can deliver FY24e results in line with expectations. Our estimates are unchanged but further progress with the SaaS products would potentially make the recurring revenue growth and margin expansion opportunity more apparent.