IKE - IKE GPS Group

[Left Field]

Good talent acquisition

https://www.nzx.com/announcements/416075

IKE CEO Glenn Milnes commented, "We have known and admired Brett and SPIDA, who our PoleForeman product competes with directly, for many years. As such we are very excited to welcome his deep domain expertise into our company where he will work alongside myself and our US-centred leadership team. As noted, Brett's experiences are uniquely matched to IKE's product suite, our industry, and our growth goals."

[Left Field]

A little bit of joy for IKE holders......

https://www.nzx.com/announcements/417154

ikeGPS Group Limited (ASX/NZX:IKE) or IKE, today announces That it has signed a new subscription contract with a large U.S.-wide infrastructure customer, in this instance supporting a network assessment in California.
This customer contract is expected to generate approximately $1.5m or greater of subscription revenue in the coming 18 to 24 months.

onwards and upwards

[Minimoke]

A little bit of joy for IKE holders......

https://www.nzx.com/announcements/417154

ikeGPS Group Limited (ASX/NZX:IKE) or IKE, today announces That it has signed a new subscription contract with a large U.S.-wide infrastructure customer, in this instance supporting a network assessment in California.
This customer contract is expected to generate approximately $1.5m or greater of subscription revenue in the coming 18 to 24 months.

onwards and upwards

Worth a couple of extra % of revenue. Will take that.

But I like this bit "This customer also represents the new and large market opportunity for IKE in California, with recent regulatory requirements requiring all pole owners to perform a
full engineering assessment of their networks."

[Left Field]

Worth a couple of extra % of revenue. Will take that.

But I like this bit "This customer also represents the new and large market opportunity for IKE in California, with recent regulatory requirements requiring all pole owners to perform a
full engineering assessment of their networks."

In FY 23 IKE added >350 customers in North America; ie over 1 per week. Most of these customers didn't warrant a 'price sensitive notice' such as this.

I reckon this client win is a bigger deal than many appreciate;
1.) California is a hugely influential US state, and gaining a key client here will open many doors. California's economy is the largest in USA at $3.5 Trillion and about fifth in the world in terms of GDP.
2.) This notice only mentions subscription revenue. Transaction revenues, based on client usage are likely to add significant additional revenues to the $1.5m subscription income.

[Left Field]

As SP languishes this looks to be a good appointment...... results due 29th Nov.

https://www.nzx.com/announcements/421996

[Untamed]

I still believe in this company, but I have to admit, when I saw yesterday's share price ... I felt really, really disillusioned. I really need to see some light at the end of this tunnel now.

But yes, looks like a valuable appointment.

As SP languishes this looks to be a good appointment...... results due 29th Nov.

https://www.nzx.com/announcements/421996

[Left Field]

YIKES for IKE holders.

https://www.nzx.com/announcements/422572

� Revenue 1H FY24 of ~$10.5m (-32% vs pcp).
� Subscription revenue was ~$5.1m (+24% vs pcp).
� Transaction revenue was ~$3.7m (-60% vs pcp).
� Gross margin 1H FY24 of ~$6.2m (-24% vs pcp), reflected in the revenue mix above.
� Gross margin percentage 1H FY24 of ~59% (up from pcp of 53%).
� Net loss was ~ -$6.9m (pcp $1.1m profit). This change was primarily due to:
� Gross margin of $6.2M (-~$2m vs pcp)
� Foreign exchange and asset fair value movements of $0.3m (-~$4.7M vs pcp).
� Cash and receivables at 30 September 2023 of ~$16.3m, comprised of $10.2m cash and $6.1m receivables, with payables of $1.2m and no debt.



   

[Untamed]

Pretty much all of the above we were already aware of, but does anyone else find this a little concerning?

Cost-down program: In Q3, we reduced IKE's cost base to maintain the timeframe towards both EBITDA and cash positive operations. Regrettably this included releasing team members representing approximately 19% of total employee numbers. Most of the impacted roles are U.S. based back-office and service positions.

Back office/service staff admittedly, but 19% of the workforce is pretty significant. I hope customers don't see any reduction in behind the scenes customer service as a result.

[winner (n)]

Pretty much all of the above we were already aware of, but does anyone else find this a little concerning?

Cost-down program: In Q3, we reduced IKE's cost base to maintain the timeframe towards both EBITDA and cash positive operations. Regrettably this included releasing team members representing approximately 19% of total employee numbers. Most of the impacted roles are U.S. based back-office and service positions.

Back office/service staff admittedly, but 19% of the workforce is pretty significant. I hope customers don't see any reduction in behind the scenes customer service as a result.

Sounds like they weren't really needed in first place ...surplus to requirements ....waste of money

[Untamed]

It does. Which is what surprises/concerns me (just a little). I would have thought IKE would have had their finger on the pulse with regard to any "surplus to requirements" positions (long before now).

Sounds like they weren't really needed in first place ...surplus to requirements ....waste of money

[Minimoke]

Pretty much all of the above we were already aware of, but does anyone else find this a little concerning?

Cost-down program: In Q3, we reduced IKE's cost base to maintain the timeframe towards both EBITDA and cash positive operations. Regrettably this included releasing team members representing approximately 19% of total employee numbers. Most of the impacted roles are U.S. based back-office and service positions.

Back office/service staff admittedly, but 19% of the workforce is pretty significant. I hope customers don't see any reduction in behind the scenes customer service as a result.

It could be a worry.

But I like the decisiveness. If you have fat that aren't adding to your bottom line cut them out. And cut them out quick.

[Untamed]

Yeah, that's true. Just not something I would ever have anticipated.

But I like the decisiveness. If you have fat that aren't adding to your bottom line cut them out. And cut them out quick.

[Minimoke]

A think I like about IKE is they seem to regularly report to market. Some are updates and some are the formal quarterly updates. So as holders we are pretty well informed and often not to omany surprises. It would be great if other companies were similarly transparent.

[Minimoke]

Nice bit of positive news to end the year. A NZ$3.7m contract agreed for the next five years. I still see it as the thin end of the wedge in terms of future revenue. But appears to me the wedge is getting hammered harder into the market.

IKE feeling pretty bullish "Looking ahead, we're poised for significant growth from this new product. We have in place strategic sales initiatives tied to IKE PoleForeman that targets adding an additional NZ$6-7m in annual subscription revenue in the next 12 to 18 months. This is just the tip of the iceberg in terms of growth potential considering our extensive customer base and a largely untapped market of more than 3,000 North American electric utilities, with many of these utilities yet to standardize on a structural analysis solution."

[Left Field]

Nice bit of positive news to end the year. A NZ$3.7m contract agreed for the next five years. I still see it as the thin end of the wedge in terms of future revenue. But appears to me the wedge is getting hammered harder into the market.

IKE feeling pretty bullish "Looking ahead, we're poised for significant growth from this new product. We have in place strategic sales initiatives tied to IKE PoleForeman that targets adding an additional NZ$6-7m in annual subscription revenue in the next 12 to 18 months. This is just the tip of the iceberg in terms of growth potential considering our extensive customer base and a largely untapped market of more than 3,000 North American electric utilities, with many of these utilities yet to standardize on a structural analysis solution."

https://www.nzx.com/announcements/423990

Naaaiice  Christmas present for holders!

 The upsell of IKE's new platform signifies a more the tenfold increase in annual recurring revenue from this customer versus IKE's legacy product (~NZ$70k p a to ~NZ$700k p a subscription revenue), demonstrating the value of the product to the customer.