ikeGPS Q1 FY 25 Performance Update

FOR IMMEDIATE RELEASE, 15 July 2024

Exit Run Rate of annual platform subscription revenue of ~NZ$12.9m (+40% vs pcp)
~3,900 additional subscription seat licences added over the past year (+207% vs pcp)
~NZ$9m in contracts won in the Q1 period across ~180 deals
AI products coming to market from Q2

ikeGPS Group Limited (IKE) (NZX: IKE / ASX: IKE) is pleased to release an update for its Q1
period to 30 June 2024 (all figures in NZD). IKE will host a webinar on 15 July 2024 at 11am
AEDT/1pm NZDT to discuss performance and outlook. To register, please click:

https://us02web.zoom.us/webinar/register/WN_d9UEjq7kTOew1LOSYu5mjw

Q1 FY25 Performance Highlights:
 Exit Run Rate of annual platform subscription revenue grew to ~NZ$12.9m ( +40% vs
pcp)
 Total recognized revenue in the quarter of ~NZ$5.8m (+4% vs pcp).
 Recognized subscription revenue of ~NZ$3.2m (+29% vs pcp).
 Recognized transaction revenue of ~NZ$1.8m (-16% vs pcp but noting margin
increased ~NZ$0.2m).
 Gross margin of ~NZ$4.0m (+18% vs pcp), with a gross margin percentage of ~70% (up
from pcp of ~61%)
 Total cash and receivables as at 30 June 2024 of ~NZ$14.0m, comprised of ~NZ$10.0m
cash and ~NZ$4.0m receivables, with payables of NZ$1.1m and no debt.
 This cash position is flat against the cash position at 31 March 2024 and up from 31
December 2023 (NZ$8.0m).
Performance across the business is set out in the following charts and table:


Takeaways (NZ$000)
Significant growth in underlying
subscription revenue.
Three-year subscription revenue
CAGR of 41%.
During FY25, this is expected to
increase materially (by
approximately 50% vs pcp).

2

Takeaways
Two-year CAGR of 35% in the exit
run rate of annual platform
subscription revenue.
As stated, during the FY25 period
this metrics is expected to
continue to grow materially (by
approximately 50% vs pcp) driven
by continued growth of IKE Office
Pro subscription sales and by the
successful sell-through of IKE’s
next-generation IKE PoleForeman
subscription product, with TCV of
~NZ$12m already closed.



Takeaways
Subscription seat license growth
of 207% over the past year.
Seat count growth has
accelerated at this fast pace
partially as a result of selling
customers onto a new per-seat
subscription model when
adopting the new IKE
PoleForman product (released
late 2024).



Takeaways
Three-year transaction revenue
CAGR of 23%, but slightly lower in
Q1 FY25 vs pcp due to the prior
period seeing strong activity, but
noting that gross margin
increased vs pcp.
Based on guidance from long-
term customers IKE expects
transaction volumes and
associated revenue to build into
FY25.

3

Takeaways (NZ$000)
Three-year revenue CAGR of 31%
Recurring subscription and
reoccurring transaction revenues
(shown by the green and blue
segments in this chart) dominate
IKE’s revenue mix, at 87% for
FY25.
An expectation for healthy growth
in the FY25 period, including
~50% growth in subscription
revenue.



Customer Number Reconciliation:
Since 31 December 2023, IKE has changed its reporting of customer numbers from ‘All
Enterprise Customers’ to ‘Subscription Customers’, reflecting only customers with recurring
subscription revenue. The reconciliation between these two metrics will be reported for the next
4 periods to 31 December 2024. Reconciliation is as follows:


Commentary
IKE CEO Glenn Milnes commented, "Q1 FY25 represented a very strong start to the new financial
year with more significant subscription contracts closed with tier-1 North American customers
that will continue to grow our subscription revenue run rates.
Q1 FY25 Q1 FY24 % Change
Total Revenue$5.8m$5.6m+4%
Total # of Customers420394+7%
Platform Subscriptions
Total # of Subscription Customers400370+8%
Total Number of Seat Licenses5,8471,905+207%
Platform Subscription Revenue$3.2m$2.5m+29%
Gross Margin$2.8m$2.1m+34%
Gross Margin %88%85%
Platform Transactions
# of Billable Transactions72k77k-7%
Platform Transaction Revenue$1.8m$2.1m-16%
Gross Margin$0.7m$0.5m+50%
Gross Margin %41%24%
Hardware & Other
Hardware & Services Revenue$0.8m$1.0m-21%
Gross Margin$0.5m$0.8m-41%
Gross Margin %59%82%
Customer ReconQ1 FY25 Q1 FY24
Total # of Enterprise Customers420 394 +7%
Less: Non-Subscription Customers(20)(24)-17%
Total # of Subscription Customers400 370 +8%

4
With respect to this core subscription revenue, since the late 2024 launch of our new IKE
PoleForeman product Total Contract Value (TCV) closed has exceeded $12m from mostly tier-1
electric utilities in the U.S. market. The extremely sticky nature of these customers means that
the life-time value of these contracts is significant. In total ~58 customers have now subscribed
to this new platform, of which 34 were existing customers and 24 are new. This has translated to
several thousands of new seat licenses, each representing a distribution network design
engineer utilizing the product. We do expect more major customers to close in the near term
and that IKE PoleForeman will ultimately be the standard for structural analysis in eight of the
ten largest electric utilities in North America.
Subscription revenue in FY25 is expected to grow strongly at ~50% vs pcp to ~$16m per annum
or greater. This outlook is based on the ongoing growth of our core IKE Office Pro subscription
product and on the success of the launch of our new IKE PoleForeman product.
As previously stated, transaction revenue in FY25 is expected to grow against pcp but with a
wider range of potential profiles and as such represents higher risk – both upside and downside.
As a reminder of our business model, IKE generates additive transaction revenue, on top of base
subscription revenue, from some customers as they engineer more network assets in our
system.
Overall, we closed ~NZ$9m of contracts in Q1 FY25 across ~ 180 deals. Our customer retention
rate is excellent at approximately 95% and our sales pipeline for new business is strong and
growing.
Our margin profile also continued to grow this quarter to ~70% due to a continued shift in the
product mix toward this higher margin subscription revenue. We expect this trend to continue.
Q2 and 2H FY25 are also an exciting period for IKE in terms product innovation with the expected
introduction of new AI-based automation capabilities into existing and new IKE products. We
have invested significantly into building automation specific to driving productivity outcomes for
our customers for the assessment & design of their distribution networks and associated
workflows, and we look forward to putting these capabilities into customers’ hands.





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
329 Interlocken Parkway, Suite 329, Broomfield CO 80021, USA
Office: +1 303 222 3218
www.ikegps.com