ikeGPS FY22 Half-Year Results

IKE 1H FY22 Result ikeGPS Group Limited (IKE) (NZX: IKE / ASX: IKE) is pleased to release an update for the half year to 30 September 2021 (all figures NZD). 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 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 the IKE software. Highlights for the First Half to September 2021: - Revenue of approximately $5.7m (approximately 30% higher than pcp and approximately 40% higher than pcp on a constant currency basis). - New contracts closed in 1H FY22 were approximately $10.9m (approximately 135% higher than pcp). - Another very strong period for new contract wins. The majority of these contracts are expected to be recognized over the next 12 months, reflecting how U.S. markets have bounced forward from the impacts of COVID-19. - Gross margin of approximately $3.6m (pcp of $2.9m), with a gross margin percentage of approximately 63% (pcp of 67%). - Operating cash flow of approximately ($2.8m) (pcp of ($1.4m)) - Net loss of approximately $6.2m (pcp of $2.6m), in line with IKE's growth, investment, and customer acquisition strategy. - Total cash and receivables 30 September 2021 of approximately $32m, with no debt. IKE CEO, Glenn Milnes, said: "The first half was the strongest ever period for our business. The level of new contracts won in calendar 2021 to date total more than $21m, noting that these contracts are based on our customers entering into network projects and that the timing and delivery of this revenue is dependent on customer execution. This level of won business is against FY21 full year revenue (to March 2021) of $9.3m, and as such provides us with a high level of confidence for the potential for substantial growth in FY22 and FY23, notwithstanding timing risks around some customer projects as above. "We continue to be pleased with progress and the integration of the recently acquired IKE Insight solution, with numerous customers progressing positively. We are optimistic that this additive Artificial Intelligence (AI) solution specific for poles can become another important growth driver for the IKE business and open some new pole-related market segments for the electric utility and communications market." Outlook - The record level of new contracts won year-to-date points to a strong forward revenue growth profile. - IKE's sales opportunity pipeline has also developed robustly over the past two quarters. - IKE's focus for 2H FY22 (period to March 2022) continues on three core themes: - The delivery of contracts to recognize revenue from contracts in place, - The extension of revenue opportunities from existing customers, and - Building further market proof points behind the recently acquired AI-software business, IKE Insight. Customer and market commentary - IKE targets sales into North America's approximately 200 communications companies, approximately 3,000 electric utilities, and their approximately 1,000 engineering service providers (ESP). Once a customer, IKE then aims to embed and expand the use of IKE solutions inside of these accounts. - Several customer wins and subsequent expansion examples, where both electric utility and communications accounts have grown from tens to hundreds of thousands and then to millions of dollars, help point to the potential network effects from operating across these related customer groups, and the larger future revenue opportunities that can arise over time. - Market tailwinds continue to support the growth potential of the IKE business in North America. - An additional US$60b of investment into broadband network development, as part of the Biden administration's $1 trillion Infrastructure bill, is additive to more than US$350b forecasted to be invested into fibre and 5G infrastructure over the next five plus years as a baseline. - Additionally, more than 3,000 electric utilities are needing to address the challenges of network strengthening and maintenance, - IKE solutions deliver network construction and maintenance processes that are faster, safer, and to a higher quality data standard. ENDS ikeGPS Group Limited 350 Interlocken Blvd, Suite 390, Broomfield CO 80021, USA Office: +1 303 222 3218 www.ikegps.com About ikeGPS We're IKE, the PoleOS(TM) 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. Contact: Simon Hinsley Investor Relations +61-401-809-653 simon@nwrcommunications.com.au Glenn Milnes CEO +1 720-418-1936 glenn.milnes@ikegps.com End CA:00383717 For:IKE Type:HALFYR Time:2021-11-29 09:13:06