IKE - IKE GPS Group

[Minimoke]

Q1 revenue $6.8m Cash and receivables 27.7m. Payables unsure
Q2 revenue $8.6m. Cash and receivables $29.3m. Payables unsure
Q3 revenue $7.9m Cash and receivables $23.5 payables $1.8m
Q4 revenue $7.5m, Cash and receivables  $23.2m, payables $2.3m

Outlook for new Q1 to be less than $7.5m

So. I guess not a great result.

[Left Field]

Here's the update folks

https://www.nzx.com/announcements/410851

Highlights:
� FY24 revenue of ~$30.8m (+93% vs pcp).
� This result is ~$6m ahead of internal budgets set at the beginning of the financial year and above upgraded analyst consensus.
� FY23 gross margin approximately of ~$16.4m (+67% vs pcp), with a gross margin percentage of ~53%.
� Total cash and receivables as at 31 March 2023 of $23.2m, comprised of $18m cash and $5.2m receivables, with payables of $2.3m and no debt.

Commentary and outlook

IKE CEO Glenn Milnes commented, "The FY23 period saw continued strong momentum across IKE. We have achieved very significant revenue and gross margin growth and have closed the period materially ahead of all internal stretch targets.

Our balance sheet remains extremely strong, noting that the USD and AUD fx rates impact our reported NZD position each quarter. Operating leverage is evident via the scalability of our software products and our disciplined approach to managing operating expenses.

Our pipeline is strong, and Q4 sales highlights included winning about one new enterprise customer per week, including another of the largest tier-1 electric utilities operating on the East Coast of the US, who selected IKE's next-gen structural analysis product, called Next-Gen PoleForeman. This customer win means an initial 100 subscription licenses for distribution network design, for three-years, displacing the incumbent competitor who had served this account for more than 20 year

[winner (n)]

Q1 revenue $6.8m Cash and receivables 27.7m. Payables unsure
Q2 revenue $8.6m. Cash and receivables $29.3m. Payables unsure
Q3 revenue $7.9m Cash and receivables $23.5 payables $1.8m
Q4 revenue $7.5m, Cash and receivables  $23.2m, payables $2.3m

Outlook for new Q1 to be less than $7.5m

So. I guess not a great result.

When you put it like that mini not a great picture, especially when current report is full of huge % numbers v last year

[winner (n)]

Market loves the result

And more importantly thinks the story is great so future growth assured

Love the bit when they mentioned AI .... that'll turn on a few punters

Share price $1 next week and then heading back to $1.20

[Minimoke]

Market loves the result

And more importantly thinks the story is great so future growth assured

Love the bit when they mentioned AI .... that'll turn on a few punters

Share price $1 next week and then heading back to $1.20

Just four trades worth $27k. And 2 of those trades only accounted for 470 shares crossing.

Too early to get over excited!

[Left Field]

SP not going to do anything much until the market absorbs the analysts briefing about midday today.

Still a longer term hold for me as I like these tailwinds......

Macro-market tailwinds across North America remain highly supportive, driven
by the multi-year investment being made into building overhead fiber
networks, and additively, the forecasted $300B investment by electric
utilities into building & maintaining distribution network capacity and
associated network hardening. To meet carbon-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.

[Minimoke]

SP not going to do anything much until the market absorbs the analysts briefing about midday today.

Still a longer term hold for me as I like these tailwinds......

Macro-market tailwinds across North America remain highly supportive, driven
by the multi-year investment being made into building overhead fiber
networks, and additively, the forecasted $300B investment by electric
utilities into building & maintaining distribution network capacity and
associated network hardening. To meet carbon-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.

The bit I did like is them beating off a competitor who had been a supplier for 20 years.

[Left Field]

I get a bit nervous when CFO's choose to depart.... however the new appointment looks promising.... time will tell.

https://www.nzx.com/announcements/411377

Brian has a range of experiences relevant to IKE's industry and growth trajectory. Most recently he was CFO of Also Energy Inc., where he was part of the executive team that grew the business at more than 30% CAGR over six years and led its sale to NYSE-listed STEM Inc. for US$652m.

[Minimoke]

I get a bit nervous when CFO's choose to depart.... however the new appointment looks promising.... time will tell.

https://www.nzx.com/announcements/411377

Brian has a range of experiences relevant to IKE's industry and growth trajectory. Most recently he was CFO of Also Energy Inc., where he was part of the executive team that grew the business at more than 30% CAGR over six years and led its sale to NYSE-listed STEM Inc. for US$652m.

Interesting chain of events. They announce the hire of Brian Musfeldt - that must have taken some time.

And then they announce Stephen Fairbrother, is leaving to pursue other opportunities.

New bloke looks interesting.  A bit of detail there at face value. I'll have to dig into the companies in more detail later on.

[Left Field]

Crikey, they kept us waiting till 5pm....

https://www.nzx.com/announcements/412288

Highlights to March 2023:

� FY23 revenue of ~$30.8m (+93% vs pcp).
� FY23 Subscription and Transaction revenue of ~$27.m (+93% vs pcp). ~90% of IKE's revenue in FY23 came from theses recurring and re-occurring sources.
� FY23 gross margin of ~$16.3m (pcp of $9.9m), with FY23 gross margin percentage 53% (pcp of 62%).
� FY23 EBITDA loss of ~$2.1m (pcp -$5.3m).
� FY23 Net Loss of ~$6.6m (pcp -$7.9m).
� Total cash and receivables 31 March 2022 of $23.2m, comprised of $18m cash and $5.2m receivables, with payables of $2.3m and no debt.

Our pipeline is strong and as noted Q4 sales highlights included winning about one new enterprise customer per week, including another of the very largest tier-1 electric utilities operating on the East Coast of the US, who selected IKE's next-gen structural analysis product called Next-Gen PoleForeman. This customer win means an initial 100 subscription licenses for distribution network design, for three-years, displacing an incumbent competitor who had served this account for the prior 20 years.
Another business development milestone in Q4 included advancing a pole-specific integration and AI automation project, at scale via IKE Insight, with one of the largest digital data collection businesses for global infrastructure.
Macro-market tailwinds across North America remain supportive, with IKE's product suite driving productivity outcomes for these large scale network engineering and capacity activities.
We are executing on sizable sales opportunities and expect healthy growth in the FY24 period and beyond.


Pretty good I reckon.

[Minimoke]

Crikey, they kept us waiting till 5pm....

https://www.nzx.com/announcements/412288

Highlights to March 2023:

� FY23 revenue of ~$30.8m (+93% vs pcp).
� FY23 Subscription and Transaction revenue of ~$27.m (+93% vs pcp). ~90% of IKE's revenue in FY23 came from theses recurring and re-occurring sources.
� FY23 gross margin of ~$16.3m (pcp of $9.9m), with FY23 gross margin percentage 53% (pcp of 62%).
� FY23 EBITDA loss of ~$2.1m (pcp -$5.3m).
� FY23 Net Loss of ~$6.6m (pcp -$7.9m).
� Total cash and receivables 31 March 2022 of $23.2m, comprised of $18m cash and $5.2m receivables, with payables of $2.3m and no debt.

Our pipeline is strong and as noted Q4 sales highlights included winning about one new enterprise customer per week, including another of the very largest tier-1 electric utilities operating on the East Coast of the US, who selected IKE's next-gen structural analysis product called Next-Gen PoleForeman. This customer win means an initial 100 subscription licenses for distribution network design, for three-years, displacing an incumbent competitor who had served this account for the prior 20 years.
Another business development milestone in Q4 included advancing a pole-specific integration and AI automation project, at scale via IKE Insight, with one of the largest digital data collection businesses for global infrastructure.
Macro-market tailwinds across North America remain supportive, with IKE's product suite driving productivity outcomes for these large scale network engineering and capacity activities.
We are executing on sizable sales opportunities and expect healthy growth in the FY24 period and beyond.


Pretty good I reckon.

Pretty much what they announced on 4 May

[Untamed]

Q4 - picked up 1 new enterprise customer a week.

They now have 6 of the 10 largest investor owned utilities - which reflects their sales strategy of starting at the top (aiming for the largest companies first). They have created 40 new staff roles in the last 12-18 months - I assume a fair whack of these are sales staff, as they now have three dedicated sales teams for electricity networks, communications networks, and engineering companies that support those networks.

Not too shabby!

[Left Field]

IKE hopefully 'well positioned' to benefit from this infrastructure spending boost.

https://www.washingtonpost.com/business/2023/06/26/high-speed-internet-white-house-announcement/

[Left Field]

Annual Report out

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/IKE/414039/397703.pdf

If they stick to their 45% pa targeted growth in CAPEX, holders should be happy. (Page 7.)

Re-occurring transaction and subscription revenue now represents over 80% of revenue (P 8.)

[Untamed]

Q1 results tomorrow:

https://www.nzx.com/announcements/415228