IKE Q1 FY23 performance update

FOR IMMEDIATE RELEASE, 21 July 2022

Q1 FY23 Update
Revenue of $6.8m (+162% vs pcp)
New signed contracts of ~$8m
Continued demonstration of operating leverage
Strong balance sheet

IKE performance update for Q1 FY23
ikeGPS Group Limited (IKE) (NZX: IKE / ASX: IKE) is pleased to release an update for Q1 of FY23
to 30 June 2022 (all figures in NZD). IKE will host a webinar Friday 22 July 2022 at 9am AEST /
11am NZT to discuss this performance. Please click here to register.
Highlights for the quarter:
+ Revenue in Q1 FY23 of ~$6.8m (+162% vs pcp). Within this, recurring Subscription and
reoccurring Transaction revenue was ~$5.7.m (+167% vs pcp).
+ Gross margin in Q1 FY23 of ~$3.9m (+116% vs pcp) representing a Q1 FY23 gross
margin percentage of ~57%.
+ Signed contracts in Q1 FY23 of ~$8m (+31% vs pcp). The signed contract backlog has
continued to grow and it is estimated that $13-15m of this backlog will be delivered and
recognized as revenue in the FY23 period.
+ Cash and receivables as at 30 June 2022 was ~$27.7m, comprised of $23.3m cash and
$4.4m receivables, with no debt. This position is just ~$1.2m lower than six months prior
(at 31 December 2021) evidencing the operating leverage in the business.
Commentary and outlook
IKE CEO Glenn Milnes commented, "The past quarter was another outstanding period of growth
at IKE. It included the material expansion of various existing customers and saw several new and
important tier-1 enterprise groups onboarded, including one the five largest engineering
companies serving the electric utility market across the U.S. The first phase of this contract
includes supporting a 10-year network hardening program for a electric utility in the South-West.
Market development acivity also featured training 325 engineers on IKE products and workflows
at a major investor-owned utility in the southern U.S.
Operating leverage is in place via the scalability of our software and our disciplined approach to
operating expenses. Management and the Board remain cognisant of the importance to
maintain a fortress balance sheet position, and driving this operational leverage to get to positive
cash flow is front of mind.
The outlook remains robust. Following 71% revenue growth in FY22, we expect FY23 to be
another significant period of growth. This is driven by the estimate that $13-15m of our signed
contract backlog will be delivered and recognised as revenue in the next three quarters of FY23
(noting that the ultimate timing of these contracts is subject to the execution speed of our
customers). In addition, our sales opportunity funnel is strong and we anticipate a healthy run
rate of new contracts will also close and be recognised in the FY23 period.”

2

Momentum across the business is set out in the following table and charts:
Q1 FY23
PCP (Q1 FY22) % Change
Total revenue $6.8m
$2.6m +162%
Platform Transactions

# of billable transactions 109k
58k +87%
Platform transaction revenue $3.8m
$1.0m +299%
Gross Margin $1.6m
$0.5m +225%
FY22 Gross Margin % 41%
52%
Platform Subscriptions

# of enterprise customers 349
299 +17%
Platform subscription revenue $1.8m
$1.2m +59%
Gross Margin $1.6m
$1.1m +53%
FY22 Gross Margin % 89%
92%
Hardware & Other

Hardware & Services revenue $1.1m
$0.5m +138%
Gross Margin $0.7m
$0.2m +219%
Gross Margin % 61%
45%




Takeaways
Chart shows the
approximate nine-month
correlation between the
timing of signed
contracts and
subsequent timing to
recognized revenue.
This timing lag reflects
that subscription and
transaction contracts are
delivered over time
(normally 12 months),
based on usage rates of
IKE products by
customers.

3


Takeaways
Recurring subscription
and reoccurring
transaction revenues
(shown by the Green and
Blue segments in this
chart) dominate IKE’s
revenue mix.
This revenue element
continues grow positively
because of the
investment into extending
software products.
This is an important trend
in terms of increased
revenue quality that
underpins predictable
growth as IKE continues
to execute on its solution,
and Pole OS™, strategy.



Takeaways
Significant growth in
transaction revenue has
continued.
This is one of the primary
indicators of platform
usage by IKE customers,
and is expected to remain
a growth driver for the
business.


As above, IKE will host a webinar Friday 22 July 2022 at 9am AEST / 11am NZT where CEO,
Glenn Milnes, will discuss the highlights of the quarter. Please click here to register.

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.
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 core 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 IKE’s
software.


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