ikeGPS Q1 FY22 performance update

FOR IMMEDIATE RELEASE
27 July 2021




Q1 FY22 Performance Update
Another strong period for new contracts



ikeGPS (IKE) is pleased to release an update for the quarter to 30 June 2021 (all
figures NZD).
The IKE platform allows electric utilities, communications companies, and their
engineering service providers to increase speed, quality, and safety for the
construction and maintenance of distribution assets.
The revenue engine for IKE is driven by the number of enterprise customers
subscribing to the IKE platform and the volume of assets (called Transactions) being
processed through the IKE software.

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Highlights for the June 2021 quarter:
+ Revenue in the quarter of approximately $2.6m (approximately 12% higher than pcp and
30% higher than pcp on a constant currency basis).
+ New contracts closed in Q1 FY22 were for approximately $6.1m (greater than 300%
higher than pcp).
+ This is another very strong quarter for new contract wins and approximately $11.5m
in new contracts have been closed in the past six months as U.S. markets have
bounced forward from the impacts of COVID-19 in calendar 2020. The majority of
these contracts are expected to be recognized over the next 12 months.
+ Gross margin of approximately $1.8m (pcp of $1.7m), with a gross margin percentage of
approximately 68% (pcp of 71%).
+ Total cash and receivables 30 June 2021 of approximately $11.2m, with no debt.

The momentum across the business is set out in the charts and tables below:

Q1 FY22
PCP (Q1 FY21) % Change
Platform Transactions

# of billable transactions 58k
20k +190%
Platform transaction revenue $0.95m
$0.77m +23%
Gross Margin $0.50m
$0.37m +35%
Gross Margin % 52%
48%
Platform Subscriptions

# of enterprise customers 299
270 +11%
Platform subscription revenue $1.2m
$1.1m +9%
Gross Margin $1.1m
$1.0m +9%
Gross Margin % 92%
92%
Hardware & Other

Hardware & Other revenue $0.47m
$0.40m +18%
Gross Margin $0.22m
$0.14m +57%
Gross Margin % 45%
35%

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Takeaways
• >300% growth in new
contracts won against
pcp provides confidence
around the potential for
strong revenue growth in
the year ahead.



Takeaways
• Recurring subscription
and transaction revenues
have continued to grow in
absolute and relative
terms (shown by the
Green and Blue segments
in this chart).

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Takeaways
• Transaction revenue is
expected to be the major
growth engine for IKE.
• Approximately 190%
higher transaction
volume and 23% higher
transaction revenue
reflects success in
transitioning to the
‘subscription plus
additive transaction’
business model.

Takeaways
• Growth in overall number
of subsription customers.
• Subscription customers
provide the foundation to
expand inside existing
accounts with other IKE
Solutions.

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Takeaways
• IKE’s revenue mix has shifted
materially with greater than
78% of revenue expected
from transaction &
subscription sources in FY22
(shown by the blue bar in the
chart).
• This is an important
continuing trend in terms of
increased revenue quality
and predictability to underpin
growth as IKE continues to
execute on its solution and
Pole OS strategy.

Commentary
IKE CEO, Glenn Milnes, commented “Q1 FY22 was another strong period for our business.
The level of new contracts won these past two quarters, totaling approximately $11.5m
against FY21 full year revenue of $9.3m, provides us with confidence around the potential for
substantial revenue growth in the year ahead. We have also been pleased with progress
across the recently acquired IKE Insight solution, with numerous prospect customers
progressing positively. We are optimistic that this additive AI-based solution specific for
poles can become another important growth driver for the IKE business in some new pole-
related segments for the electric utility and communications market.”
Outlook
+ The record level of new contracts won the past two quarters points to a strong forward
revenue growth profile.
+ IKE’s opportunity pipeline has also increased significantly over the past six months.
+ IKE’s focus for Q2 FY22 continues on three core themes: The delivery of contract
backlogs so to recognize revenue from contracts won, the extension of revenue
opportunities from existing customers, and building revenue and further market proof
points behind the recently acquired AI-software business, called IKE Insight.
Update with respect to IKE’s Artificial Intelligence acquisition, called IKE Insight
+ A focus in Q4 FY21 was the acquisition and integration of certain assets of Visual Globe
LLC, a US-based Artificial Intelligence (AI) and low code software company that
specializes in the automated analysis of power poles from very large data sets,
irrespective of the data source.
+ In Q1 FY22 IKE entered into a three-year Master Services Agreement to provide IKE
Insight capability into one of the largest communications groups in the U.S. The level of
revenue expected from this contract is not yet quantified.

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+ The pipeline for additional potential IKE Insight customers has developed robustly, across
a range of new pole-related market applications.
Customer, brand and market commentary
+ IKE targets sales into North America’s approximately 200 communications companies,
approximately 3,000 electric utilities, and their approximately 1,000 engineering service
providers (ESP). Once a customer, IKE then aims to embed and expand the use of IKE
solutions inside of these accounts.
+ Several recent customer wins and expansion examples help to point to the potential
network effects from operating across these related customer groups, and the larger
future revenue opportunities that can arise over time. Examples of wins in the quarter to
June 2021:
+ IKE signed an extension to an important agreement with an engineering company
supporting communications infrastructure development. This follow-on contract is
expected to generate approximately $1.2m of transaction revenue in IKE’s FY22 (the
period ending 31 March 2022). This engineering customer will utilise the IKE
platform to assess approximately 40,000 assets on behalf of two communications
companies. This follow-on agreement follows successful phase one and two
programmes, and goes live immediately. This customer has the potential to expand
considerably in IKE’s FY23.
+ Separately in May 2021, IKE signed a customer contract with an AT&T-focused ESP.
AT&T is an IKE customer and previously standardized on the IKE platform for certain
pole work. This ESP has initially contracted to use the IKE platform to support pole
project delivery in two states for AT&T, in California and Arizona. It is expected that
this will initially generate over $300k of transaction and subscription revenue for IKE
over the coming 12 months. This ESP has more broadly won multi-year contracts to
deliver projects into AT&T across 13 states.
+ Brand development: in Q1 FY22 IKE re-launched its website (at www.ikegps.com) and
related digital assets clearly setting out the expansion of its products for new market
applications achieved via the now four IKE Solutions. Also, IKE’s ‘Pole OS Company’ strap
line aligns with its strategy to build and deliver the end-to-end pole platform for the North
American market.
+ Market tailwinds continue to support the growth potential of the IKE business in North
America, with more than $350b forecast to be invested into fiber and 5G infrastructure
over the next five plus years and with more than 3,000 electric utilities needing to address
the challenges of network build, strengthening, and maintenance, The IKE solutions
deliver network construction and maintenance processes that are faster, safer, and to a
higher quality data standard.

ENDS

About ikeGPS
We’re IKE, the PoleOS Company. IKE seeks to be the standard for collecting, analysing and
managing pole and overhead asset information for electric utilities, communications
companies, and their engineering service providers.

Contact:
Simon Hinsley
Investor Relations
+61-401-809-653
simon@nwrcommunications.com.au

Glenn Milnes
CEO
+1 720-418-1936
glenn.milnes@ikegps.com
ikeGPS Group Limited
350 Interlocken Blvd, Suite 390, Broomfield CO 80021, USA
Office: +1 303 222 3218
www.ikegps.com