Intermap's 2021 annual revenue totaled $5.8 million, an increase of 22% compared with 2020. Starting in the second quarter of 2021, the Company generated three straight quarters of sequential revenue growth, increasing from $1.2 million in the second quarter to $2.3 million in the fourth quarter. Intermap's fourth quarter revenue represented an increase of 69% compared with the third quarter, primarily due to the easing of COVID restrictions and significant growth from government contract awards.
"We are pleased to report strong sequential and year-over-year revenue growth for the fourth quarter and full year 2021," said Patrick A. Blott, Intermap Chairman and CEO. "Our commercial business continues to thrive, driven by recurring subscriptions to insurance, telecom and aviation solutions. 2021 marks an important milestone in both of Intermap's U.S. government and commercial businesses. We are now working with the U.S. Air Force, U.S. Geological Survey and U.S. National Geospatial-Intelligence Agency as we work to drive long-term sustainable growth and shareholder value creation."
The Company's fourth quarter commercial revenue grew to $1.14 million, up from $0.9 million in the fourth quarter of 2020 and $0.98 million in the third quarter of 2021. Insurance revenue in the fourth quarter increased by 25% compared with the fourth quarter of 2020 and 8% compared with the third quarter of 2021, marked by the addition of new "admitted carrier" subscriptions, an important addition to the customer base. Intermap continues to add insurance subscribers in the U.S., including its first new subscription in 2022, and has extended its penetration into the ratings market by offering pricing for flood premiums. In Europe, Intermap is expanding into new countries with its multinational client base. Renewals in both insurance markets remain strong, with churn remaining below 5%.
The Company's total value-added data revenue in 2021 was $1.7 million, an increase of 82% compared with 2020, reflecting the commencement of its new contract with the U.S. National Geospatial-Intelligence Agency – the world's largest and most and most sophisticated consumer of geospatial solutions – to develop low latency foundation data. A significant portion of value-added data revenue comes from recurring subscriptions, installed analytics and web services. Intermap's telecom revenue more than doubled in 2021 and is poised to continue growing in 2022.
Intermap received eight new government contracts in 2021, including a prime contract with the U.S. Air Force Research Laboratory. The Company is also on multiple teams for the U.S. Geological Survey Geospatial Products and Services contract.
Intermap's acquisition services revenue began to pick up at the end of 2021 after being heavily affected by COVID-19. This was driven by the redeployment of Intermap's one-of-a-kind sensors to Malaysia to collect and produce 25-centimeter resolution IFSAR imagery and 1-meter resolution Digital Elevation Models and feature products, including full triple canopy foliage penetration, for foundational base maps at better than 1:5,000 scale.
As of December 31, 2021, the Company had available liquidity, which includes cash, accounts receivables and unbilled revenue of $1.7 million.
Strengthening the Balance Sheet
When the Company operates its airborne acquisition assets to collect data, it causes a drawdown of available liquidity, as many deployment costs are front-end loaded, including upgrading the aircraft avionics and sensors, deploying personnel overseas during COVID, and arranging for fuel, visas, and permits under COVID protocols. In order to improve access to capital, manage liquidity fluctuations, finance and execute recent contract awards, and fund long-term opportunities, Intermap filed a preliminary Base Shelf Prospectus on November 17, 2021, which can be found here. To support its Base Shelf application, Intermap secured TSX approval to issue up to 6,900,000 Class A Common Shares (Common Shares) in a non-brokered Private Placement (the Offering). Intermap currently intends to use the net proceeds to expand and develop the Company's offerings, pursue new strategic contracts, and for other growth and general corporate purposes. In connection with the Offering, Intermap may pay a finder's fee.
Closing of the Offering is expected to occur upon satisfaction of customary closing conditions. The TSX has conditionally approved the Offering and the listing of the Shares. The Common Shares issued pursuant to the Offering will be subject to restrictions under the United States Securities Act and applicable Canadian securities laws, during which time trading in the securities by the investors is restricted.
The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.
Supporting Automated Aviation
Intermap today also announced a new contract for NEXTViewTM to provide highly accurate elevation information around U.S. airports in support of automated aircraft landing, representing a revolution in aviation.
The subscription marks the first sale of the fully certified version of Lido Surface Data NEXTView (NEXTView), a landmark accomplishment for the product co-developed by Intermap and Lufthansa Systems GmbH & Co KG. NEXTView has been integrated in several unmanned aircraft systems (UAS) since its market entry in 2019, but UAS does not currently require full certification. Today's contract is an exciting step forward. NEXTView is the only global elevation dataset certified for aviation, with a Type-1 certification from the European Union Aviation Safety Agency the European equivalent of the Federal Aviation Administration in the United States.
Commercial and cargo aircraft require certified data for their avionics systems, and NEXTView is uniquely positioned as the first-mover and the only provider of this certified data in the market. This data is especially critical in unmanned aircraft, the next generation of aviation. This fundamental transformation in aviation relies upon advanced cockpit automation and will make aircraft safer, more widely available and more affordable as people and goods are moved around the world.
Mr. Blott added, "We have won important milestone subscriptions recently: Our first admitted insurance carrier and our first NEXTView Aviation client. Now these capital raising initiatives will fortify our balance sheet and enable us to execute on and accelerate conversion of our growing pipeline."
The worldwide airline industry was heavily affected by the pandemic, with market size decreasing from $818 billion in 2019 to $359 billion in 2020. In 2021, the market began to normalize, with an increase in market size of approximately $112 billion, and is predicted to increase further to $591 billion in 2022 according to industry research firm IBISWorld. As the airline industry recovers from the pandemic and returns to regular operations, Intermap believes it will be even more valuable to offer solutions that reduce cost and boost efficiency, and that its products will continue to see demand.
The Company's ability to continue as a going concern is dependent on management's ability to successfully secure sales with upfront payments, and/or obtain additional financing. Failure to achieve one or more of these requirements could have a materially adverse effect on the Company's financial condition and/or results of operations. The Board of Directors and management continue to take actions to address these issues, including raising capital through a private placement, exploring options for additional capital and the announcement of contract wins.