IKE 1H FY23 Performance Update

FOR IMMEDIATE RELEASE, 18 October 2022

1H FY23 Performance Update
Positive cash flow of $2.2m in Q2 FY23, positive cash flow of $1.1m in 1H FY23
Revenue of ~$15.4m in 1H FY23 (+170% vs pcp)
Continued demonstration of operating leverage and balance sheet strength

IKE performance update for 1H FY23
ikeGPS Group Limited (IKE) (NZX: IKE / ASX: IKE) is pleased to release an update for 1H FY23 to
30 September 2022 (all figures in NZD).
Highlights for the quarter:
+ Positive cash flow was ~$2.2m in the Q2 FY23 period, and was ~$1.1m positive in the 1H
FY23 period, evidencing the operating leverage in the business.
+ Cash and receivables as at 30 September 2022 grew to ~$29.3m, comprised of $25.5m
cash and $3.8m receivables, with no debt.
+ Revenue 1H FY23 of ~$15.4m (+170% vs pcp).
+ This outturn is ~$0.4m above the top end of the range forecast.
+ Within this, recurring Subscription and reoccurring Transaction revenue was
~$13.6m (+183% vs pcp).
+ Gross margin in 1H FY23 of ~$8.2m (+128% vs pcp) representing a 1H FY23 gross
margin percentage of ~53%.
IKE notes that the full financial statements for the six-month period to 30 September 2022 are
expected to be released at the end of November 2022.

Commentary and outlook
IKE CEO Glenn Milnes commented, "Q2 FY23 was another very positive period at IKE. It included
a strongly cash positive Q2 FY23 period (with $2.2m positive cash flow) and a cash positive 1H
FY23 period.
We have seen continued expansion of various existing customers. Several new and important
tier-1 enterprise groups have been onboarded in the 1H period and we expect more to follow in
2H. Operating leverage is in place via the scalability of our software and our disciplined
approach to operating expenses. As signaled last quarter, management and the Board remain
cognizant of the importance to maintain a fortress balance sheet position, and we have executed
against this in driving to positive cash flow over the past six plus months.
The revenue and growth outlook remains robust based on a strong sales opportunity funnel and
a significant signed contract backlog. We anticipate a healthy run rate of new contracts will
close and be recognized in the FY23 period. In addition, we expect $8-11m of our signed contract
backlog will be delivered and recognized as revenue over the next two quarters of FY23 (noting
that the ultimate timing of these contracts is subject to the execution speed of our customers).

2

Momentum across the business is set out in the following table and charts:
1H FY23
PCP (1H FY22) % Change
Total revenue $15.4m
$5.7m +170%
Platform Transactions

# of billable transactions 259k
160k +62%
Platform transaction revenue $9.4m
$2.3m +309%
Gross Margin $3.6m
$1.0m +260%
Gross Margin % 38%
43%
Platform Subscriptions

# of enterprise customers 361
308 +17%
Platform subscription revenue $4.2m
$2.5m +68%
Gross Margin $3.7m
$2.1m +76%
FY22 Gross Margin % 88%
84%
Hardware & Other

Hardware & Services revenue $1.9m
$1.0m +90%
Gross Margin $0.9m
$0.5m +80%
Gross Margin % 47%
50%




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
170% total revenue
growth against PCP.
Recurring subscription
and reoccurring
transaction revenues
(shown by the Green and
Blue segments in this
chart) dominate IKE’s
revenue mix.
This element continues
grow positively because
of the investment into
extending software
products, underpinning
more predictable growth
with higher quality
revenue.




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.




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:
Glenn Milnes
CEO
+1 720-418-1936
glenn.milnes@ikegps.com

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

ikeGPS Group Limited
350 Interlocken Blvd, Suite 390, Broomfield CO 80021, USA
Office: +1 303 222 3218
www.ikegps.com