IKE - IKE GPS Group

[Forrestdun]

Makes me feel better
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/IKE/425034/411221.pdf

[Hectorplains]

Makes me feel better
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/IKE/425034/411221.pdf

I'm pretty sure your tongue is firmly rammed into your cheek on this comment.  $3000 down as a his percentage of salary is... a pittance.  IKE was spruiked hard this time last year but it's share price has been all down hill since then. 

I'm surprised that the self proclaimed "value investors" who herald OCA and the opportunity to chase an ever lower share price have not hopped on board with this one too.  I took a small speccy stake but sold out for a loss pronto when the growth story slowed and the trend became obvious.   

[Untamed]

I get the feeling that some of you actually do not really understand what this company does. In order to fully appreciate the long term potential of this company, you need to have some level of understanding of who their customers are, and what those customers do. Particularly so for the electricity distribution sector. If you have even a small understanding of that, and the monumental number of (pole) assets in North America alone, you cannot fail to see the long term potential of this company. Even I sometimes feel a little impatient, but I remind myself of why I bought into the company in the first place. Those reasons have not changed. This is not an investment for the impatient.

I'm pretty sure your tongue is firmly rammed into your cheek on this comment.  $3000 down as a his percentage of salary is... a pittance.  IKE was spruiked hard this time last year but it's share price has been all down hill since then. 

I'm surprised that the self proclaimed "value investors" who herald OCA and the opportunity to chase an ever lower share price have not hopped on board with this one too.  I took a small speccy stake but sold out for a loss pronto when the growth story slowed and the trend became obvious.   

[Forrestdun]

I'm pretty sure your tongue is firmly rammed into your cheek on this comment.  $3000 down as a his percentage of salary is... a pittance.  IKE was spruiked hard this time last year but it's share price has been all down hill since then. 

I'm surprised that the self proclaimed "value investors" who herald OCA and the opportunity to chase an ever lower share price have not hopped on board with this one too.  I took a small speccy stake but sold out for a loss pronto when the growth story slowed and the trend became obvious.   

I'm a holder and underwater. Does make me feel better that CEO is purchasing with cash even if it is only a small amount. I do think there is solid potential in the company if they can pull it off....

[Untamed]

They already are pulling it off. Investors who fully understand the mammoth goal IKE has set themselves, and the sheer size of the potential market available to them, know that patience will be a virtue with this company.

I am also underwater, but I can live with that, because the story has not changed. The reasons I bought in, still apply. As the Mainland Cheese dudes used to say - "good things take time."

I'm a holder and underwater. Does make me feel better that CEO is purchasing with cash even if it is only a small amount. I do think there is solid potential in the company if they can pull it off....

[winner (n)]

Story remains good

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/IKE/425847/412184.pdf

[Left Field]

Story remains good
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/IKE/425847/412184.pdf

Holders sure  got to be patient as IKE switches to subscription and reoccurring revenue streams........ should we trust IKE's expectations?

• Four-year revenue CAGR of 35%
• Recurring subscription and reoccurring
transaction revenues (shown by the green and
blue segments in this chart) dominate IKE's
revenue mix, at 85% YTD.
• An expectation for healthy contract growth in
the FY25 period and beyond.

[Untamed]

Another positive announcement today.

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/IKE/427467/414303.pdf

This upsell signifies a more the fivefold increase in annual recurring revenue from this customer.

New customer wins have included flipping one of the ten largest utilities in North America from a competitor

[Untamed]

And another announcement this morning:

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/IKE/427727/414624.pdf

Over the coming period, this commitment means over 650 engineers at this electric
utility will use IKE Poleforeman's advanced capabilities for structural analysis and the
design of distribution assets, to meet grid resiliency and network capacity targets
over the coming decades.
+ This upsell signifies a more then ten-fold increase in annual recurring revenue from
this customer.
+ An expected consequence of this Standards decision at the utility is that additional
engineering companies and communications groups, working across this utility's
network, will also adopt IKE PoleForeman.

These are not pie in the sky little companies. IKE is targeting, and winning, the big players. Sure, it is taking time, but they are doing what they said they would do.

[Dolcile]

Do we know what their current cash position is and the likelihood of needing to raise capital? They had  $10m at the end of September 2023, so I'm assuming they burned through half of that by now.   

[Left Field]

Do we know what their current cash position is and the likelihood of needing to raise capital? They had  $10m at the end of September 2023, so I'm assuming they burned through half of that by now.   

Their last update for Q3 FY 24 stated...

"As of 31 January 2023,(sic??) cash increased to NZ$11.0m and receivables decreased to
NZ$3.5m."

The above implied cash burn halted/reduced but holders clearly due for an update.

[Minimoke]

Their last update for Q3 FY 24 stated...

"As of 31 January 2023,(sic??) cash increased to NZ$11.0m and receivables decreased to
NZ$3.5m."

The above implied cash burn halted/reduced but holders clearly due for an update.

At 30 Sept they had $10.233 cash on hand and $6.08m in receivables.

On the other side they had $2.43 in receivables and employee benefits due.

[Dolcile]

Thanks, I hadn't seen that update.  It is certainly positive if they've managed to halt the cash burn. 

[Untamed]

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/IKE/429527/416703.pdf

[Left Field]

Not a good update........ but follows guidance....... all will be well in FY25. Ho hum.

https://www.nzx.com/announcements/429741

FY24 Highlights:
+ Revenue of ~NZ$21.1m (-31% pcp).
+ Subscription revenue of ~NZ$10.7m (+22% vs pcp).
+ Transaction revenue of ~NZ$7.3m (-61% vs pcp).
+ Gross margin of ~NZ$12.7m (-23% vs pcp), with a gross margin percentage of ~60% (up from pcp of ~53%)
+ Total cash and receivables as of 31 March 2024 of NZ$15.4m comprised of NZ$10.2m cash and NZ$5.2m receivables, with payables of NZ$1.2m and no debt (up from the position 31 December 2023 of NZ$8.0m cash and NZ$7.2m receivables, and flat against the cash position 30 September 2023).

IKE pinning their hopes on a better 2025! Crikey.

FY25 Outlook
Subscription revenue in FY25 is expected to grow strongly, at 50% or greater vs pcp to ~$16m per annum or greater. This outlook is based on the ongoing growth of our core IKE Office Pro subscription product, which has seen >30% CAGR over the past three years and with ~95% customer retention. It is also based on the the success of the launch of our new IKE PoleForeman product with more than NZ$8m of TCV closed since its Q3 launch.

Transaction revenue in FY25 is expected to grow, but with a wide range of potential growth profiles and as such represents higher risk – both upside and downside. Transaction revenue at IKE over the past three years has grown at a ~45% CAGR, although FY24 levels were down against FY23 due to FY23 seeing outsized customer activity. Based on guidance from long-term customers we expect transaction volumes and associated revenue to build into FY25.

Overall, we closed ~NZ$27m of contracts in the FY24 period, against approximately NZ$21m of recognized revenue. Our customer retention rate is excellent, at approximately 95% and our sales pipeline for new business is strong and is growing. We won 59 new subscription customers in the U.S. market over the past year, continuing a win rate of approximately one new customer per week.