Abu Dhabi: ADX-listed Bayanat posted revenue growth of Dh113 million in the first quarter of this year, a 12 per cent increase year over year.
The company, a provider of AI-powered geospatial solutions, announced today its results for Q1 2024. It attributed the rise in revenue to the expansion of its market presence and its “strong product range and service offerings.” Net profit after tax reached Dh10 million, representing a net margin of 9 per cent.
Gross profit reached Dh32 million in Q1 2024, representing a gross margin of 28 per cent. “Profits were largely driven by Bayanat’s continued focus on key segments, namely its Smart Operations Solutions (SOPS), Smart Mobility Solutions (SMOS), and Smart Geospatial Solutions (SGS),” it said. The company said that Mira Aerospace’s HAPS technology, developed through a partnership between Bayanat and UAVOS, along with their AI and geospatial solutions, played a significant role in driving this quarter’s results.
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 Dh1 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.”
EBITDA reached Dh8 million, representing a 7 per cent margin. Bayanat also said it deployed significant efforts in research and development and talent acquisition. While these strategic initiatives have a short-term negative impact on EBITDA, they will contribute to expanding the company’s product portfolio and future revenue growth, which aligns with its IPO strategy.
Besides its EBITDA performance, the company said it has continued to receive financial income from investing its excess cash into responsibly managed financial instruments. Bayanat also said it remains debt-free while deploying its money to build capabilities and improve operational efficiency. Dh648 million, the cash balance remains robust, ensuring the company is in a good position for further organic and inorganic expansion.
Bayanat has also made significant strides with agreements and partnerships, including signing several MoUs at DRIFTx, an international summit dedicated to the future of smart and autonomous mobility.
In the first quarter, Bayanat also bolstered its R&D efforts to optimize its product offering, including its AI-enabled disaster management platform, AID. The platform has proven vital during heavy rainstorms in the UAE by providing valuable data and analytics to the relevant authorities. It said the platform was developed to leverage space data and AI technologies to address global climate and environmental challenges.
An additional key highlight of the quarter was Microsoft’s strategic Dh5.5 billion investment in G42, the Abu Dhabi-based AI technology holding company and Bayanat’s majority shareholder. This investment significantly bolsters Bayanat’s position, granting it direct access to Microsoft’s advanced AI services and putting it at the forefront of the geospatial intelligence sector with next-generation AI solutions.
Both Bayanat and Yahsat will continue to work on the merger to create SPACE42- the newly formed company that will combine Yahsat’s advanced Satellite communication capabilities and Bayanat’s Geospatial data analytics. The merger was approved by each company’s General Annual Meetings on April 25, 2024, and is expected to be effective in the second half of 2024.
