Bayanat Drives Growth with Q1 2024 Financial Outcomes

Bayanat, a prominent provider of AI-driven geospatial solutions listed on ADX, disclosed its performance for Q1 2024 today. Bayanat's Q1 2024 revenue soared to AED 113 million, marking a noteworthy 12% surge compared to the previous year. This growth stemmed from an expanded market presence, robust product range, and service offerings. The company remains steadfast in its commitment to delivering top-tier AI solutions and enhanced geospatial services. Gross Profit for Q1 2024 stood at AED 32 million, reflecting a gross margin of 28%. This profit surge was primarily fuelled by Bayanat's focus on key segments such as Smart Operations Solutions (SOPS), Smart Mobility Solutions (SMOS), and Smart Geospatial Solutions (SGS). Innovations like the HAPS technology by Mira Aerospace, a joint venture with UAVOS, and the company’s AI- and geospatial solutions played significant roles in driving this quarter's results. EBITDA hit AED 8 million, equating to a 7% margin. Despite short-term impacts on EBITDA due to substantial investments in R&D and talent acquisition, Bayanat anticipates long-term benefits in expanding its product portfolio and driving future revenue growth, aligning with its IPO strategy. Net Profit after tax reached AED 10 million, with a net margin of 9%. In addition to EBITDA performance, the company continued to derive significant financial income from responsible investments. Bayanat has initiated provisions for Corporate Tax on its 2024 taxable income in compliance with relevant UAE Federal Decree-Laws. Bayanat maintains a debt-free status while utilizing its cash reserves to enhance capabilities and operational efficiency. With a robust cash balance of AED 648 million, the company is well-positioned for both organic and inorganic expansion.

Focus on Technological Advancements and Partnerships

Bayanat has made substantial progress toward its strategic objectives, characterized by the establishment of expansive agreements and partnerships. Notably, the company inked multiple Memoranda of Understanding at DRIFTx, a global summit dedicated to smart and autonomous mobility, where it showcased its latest technological advancements within the SMOS segment, emphasizing its commitment to innovation and leadership in mobility. Furthermore, Bayanat continued its support for the Abu Dhabi Smart Mobility project, reinforcing its dedication to advancing smart infrastructure solutions.

In Q1, Bayanat intensified its R&D endeavours to optimize and diversify its product offerings, including the AI-enabled disaster management platform, AID. This platform played a crucial role during heavy rainstorms in the UAE by furnishing pertinent data and analytics to relevant authorities and leveraging space data and AI technologies to tackle global climate and environmental challenges. A pivotal highlight of the quarter was Microsoft's strategic AED 5.5 billion (US$ 1.5 billion) investment in G42, Bayanat’s majority shareholder and an AI technology holding company based in Abu Dhabi. This investment bolsters Bayanat’s position, granting it direct access to Microsoft’s advanced AI services and positioning it at the forefront of the geospatial intelligence sector with next-generation AI solutions, setting new standards for innovation and operational efficiency.

Hasan Al Hosani, Managing Director of Bayanat, said, “Our ability to not only sustain but significantly build upon last year’s exceptional financial milestone—surpassing AED 1 billion in revenues for the first time in our history — is a clear indication of our team’s strength and our forward-thinking strategic vision. The significant growth in our revenue highlights our solid market positioning. Importantly, we have continued to achieve robust profitability while strategically amplifying our investments in R&D. This focus is pivotal as it enhances our product offerings and operational excellence, fully aligning with our steadfast commitments to innovation and the investor community.”

“As we continue to realize our ambitions to become a leader in the burgeoning global SpaceTech industry, we remain firmly focused on driving growth and enhancing shareholder value. I am confident that we will continue our positive momentum and deliver even greater success for the remainder of 2024 and beyond,” he concluded.

Merger with Yahsat

Bayanat and Yahsat continue to progress towards their merger to form SPACE42. This merger, approved by both companies' General Annual Meetings on April 25, 2024, will amalgamate Yahsat's advanced satellite communication capabilities with Bayanat’s geospatial data analytics expertise, creating an AI-powered MENA space technology leader with global reach. The merger is anticipated to take effect in the second half of 2024. For detailed financial disclosures and definitions of capitalized terms, refer to the investor relations section of Bayanat’s website.