Navigation software company What3words has once again narrowed losses as it continues to pursue its first profits a decade after launching.
What3words, which converts GPS coordinates into three-word addresses, posted a loss of £16.5m for the year ended 31 December 2023, a 48% reduction from 2022 and 60% less than in 2021.
Turnover for 2023 increased by just over a quarter, reaching £1m. Administrative expenses dropped significantly from £47m in 2022 to £22m.
The company said the shortage of semiconductors at the start of the decade had hit its development plans hard. However, as the shortage “continued to ease in 2023”, What3words said its revenue recovered.
What3words said the continued state of global financial instability will not likely clear up in the short term, forcing the firm to “adapt its strategy to enable continued progress”.
The company plans to build its user bases in the UK and internationally, with hopes of converting greater “consumer awareness into revenue-generating deals across a range of global industries”.
What3words also said it is continuing to invest in research and development, with plans to develop voice and optical character recognition systems and expand the group’s range of languages.
The group currently holds £17.5m in assets, predominantly cash off the back of successive funding rounds in 2022 and 2023. What3words’ most recent funding round was a £7m Crowdcube raise last July.
Other backers of the company include Channel 4, Sony and Ingka Group.
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