IKE performance update for Q1 FY24

FOR IMMEDIATE RELEASE, 26 July 2023

IKE performance update for Q1 FY24

ikeGPS Group Limited (IKE) (NZX: IKE / ASX: IKE) is pleased to release an update for the three-
month period to 30 June 2023 (all figures in NZD).
IKE will host a webinar 26 July 2023 at noon AEDT/ 2pm NZT to discuss performance and outlook.
To register, please click
https://us02web.zoom.us/webinar/register/WN__WsAwv62TQKsOi_2X_uEbg
Highlights:
 Q1 FY24 revenue of ~$5.6m (-18% vs pcp).
 Subscription revenue of $2.5m (+36% vs pcp)
 Transaction revenue of $2.1m (-45% vs pcp)
 Q1 FY24 gross margin approximately of ~$3.4m (-12% vs pcp), with a gross margin
percentage of ~61%. (up from pcp of ~56%)
 Total cash and receivables as at 30 June 2023 of $18.1m, comprised of $13.7m cash
and $4.4m receivables, with payables of $1.1m and no debt.

Commentary and outlook
IKE CEO Glenn Milnes commented, "The Q1 period saw strong continued momentum in
underlying software subscription revenue growth, but as signaled in prior updates &
communications we had a temporary and well signaled slow-down in transaction revenue. This
was primarily due to the engineering practices of an underlying utility where two larger IKE
customers are building fiber networks. This specific situation has been addressed, and based on
guidance from these and other long-term customers we expect transaction volumes to build
strongly throughout FY24. We have not changed our growth outlook from a broader FY24
perspective.
Our sales pipeline is strong and Q1 sales highlights included winning 15 new enterprise
customers in the U.S. market, continuing a win rate of approximately one new customer per
week.
An exciting near-term milestone includes the soft-launch of our next-generation structural
analysis software product, PoleForeman, into several of the largest electric utilities in the U.S.
These lead groups are existing customers, using our legacy product, and have sat on our product
council such that this solution has been built to meet the needs of the North American industry.
This next-gen product delivers significant and unique additional value to our customers. It is also
expected to enable IKE to generate more than five times the level of subscription revenue per
annum per customer under the new per seat pricing model vs the legacy solution.
Our balance sheet remains strong, noting that the USD and AUD fx rates impact our reported
NZD position each quarter.
Macro-market tailwinds across North America remain highly supportive, driven by the multi-year
investment being made into building overhead fiber and 5G networks, and additively, the
forecasted $300B investment by electric utilities into building & maintaining distribution network

2
capacity and associated network hardening. To meet caron-zero targets in the U.S. by 2050,
analysts forecast that the approximately 50% of the energy in the U.S. needs to be on the
electrical grid, from a position of just 20% today. IKE’s product suite drives productivity in support
of these network engineering and capacity activities.
We are executing on sizable sales opportunities and expect healthy growth in the FY24 period
and beyond.”
Performance across the business is set out in the following table and charts






Takeaways
Recurring subscription
and reoccurring
transaction revenues
(shown by the Green
and Blue segments in
this chart) dominate
IKE’s revenue mix, at
82% YTD.
An expectation for
healthy growth in the
FY24 period and
beyond.
Q1 FY24
PCP
(Q1 FY23)
% Change
Total Revenue$5.6m$6.8m-18%
Platform Transactions
# of billable transactions77k109k-30%
Platform transaction revenue$2.1m$3.8m-45%
Gross Margin$0.5m$1.6m-68%
Gross Margin %24%41%
Platform Subscriptions
# of enterprise customers39434913%
Platform subscription revenue$2.5m$1.8m36%
Gross Margin$2.1m$1.6m34%
Gross Margin %84%85%
Hardware & Other
Hardware & Services revenue$1.0m$1.1m-14%
Gross Margin$0.8m$0.7m20%
Gross Margin %82%61%

3



Takeaways
Significant growth in
underlying
subscription revenue.
This is expected to
increase materially as
IKE’s next generation
PoleForeman, being
released in FY24, is
adopted by the
footprint of customers
currently using the
legacy version.



Takeaways
Significant long term
growth trend in
transaction revenue.
There was a well
signalled, temporary
slow-down in
transaction volume in
Q1 FY24.
Based on guidance
from its long-term
customers IKE
expects transaction
volumes and
associated revenue to
build strongly through
FY24.


ENDS

About IKE
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