IKE Q3 FY22 Performance Update

FOR IMMEDIATE RELEASE
1 February 2022

Over 50% revenue growth and 180% growth in new contracts won
against PCP
IKE Q3 FY22 Performance Update
ikeGPS Group Limited (IKE) (NZX: IKE / ASX: IKE) is pleased to release an update for the nine-
month period to 31 December 2021 (all figures NZD).
Highlights to December 2021:
+ YTD revenue of approximately $9.9m (approximately 53% higher than prior calendar
period (pcp)).
+ Q3 FY22 revenue of approximately $4.2m (approximately 100% higher than pcp).
+ Q3 FY22 subscription and transaction revenue of approximately $3.3m (approximately
95% higher than pcp).
+ New contracts closed in Q3 FY22 were >$7m (approximately 180% higher than pcp).
+ YTD gross margin of approximately $6.3m (pcp of $4.3m), with a Q3 FY22 gross margin
percentage of approximately 63% (pcp of 67%).
+ Total cash and receivables 31 December 2021 of approximately $29m, with no debt.

IKE CEO, Glenn Milnes, said: “The Q3 FY22 period was the strongest yet for our business. The
level of new contracts won in calendar 2021 total more than $23m, 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. However this level of demand and closed
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 (to March 2022)
and FY23, notwithstanding timing risks around some customer projects as above.

2

The momentum across the IKE business is set out in the charts and tables below:
YTD Q3 FY22
PCP (YTD Q3
FY21)
% Change
Platform Transactions

# of billable transactions 234k
44k +430%
Platform transaction revenue $4.0m
$1.7m +135%
Gross Margin $1.9m
$0.5m +280%
Q3 Gross Margin % 48%
30%
Platform Subscriptions

# of enterprise customers 319
278 +15%
Platform subscription revenue $4.0m
$3.5m +14%
Gross Margin $3.5m
$3.3m +6%
Q3 Gross Margin % 88%
94%
Hardware & Other

Hardware & Services revenue $1.9m
$1.4m +36%
Gross Margin $0.8m
$0.5m +60%
Gross Margin % 44%
37%





Takeaways
• Approximately 180% growth in
new contracts won against pcp
provides confidence around the
potential for strong revenue
growth in the FY22 and FY23
periods ahead.
• Approximately $23m in new
contracts won in calendar 2021,
across several hundred
enterprise customers, reducing
concentration risk.

3



Takeaways
• Recurring subscription and
transaction revenues have
continued to grow (shown by
the Green and Blue segments in
this chart).
• IKE’s revenue mix has continued
to shift materially over the past
three years with greater than
80% of revenue expected from
subscription and transaction
sources in FY22.
• This is an important continuing
trend in terms of increased
revenue quality and
predictability to underpin growth
as IKE continues to execute on
its solution and Pole OS™
strategy.



Takeaways
• Annualized revenue run rate
from Q3 FY22 of c $17m.
• Growth in overall number of
enterprise subscription
customers and subscription
revenue. This provides the
foundation to
expand inside these existing
accounts with other IKE
Solutions and build
transaction/usage-based
revenues.

4



Takeaways
• Approximately 300% higher
transaction revenue in Q3 FY22
vs pcp.
• Approximately 135% higher
transaction revenue in the nine-
month period to 31 December
2022 vs pcp.
Outlook
+ The substantial increase of new contracts won year-to-date points to a strong potential
forward revenue growth profile. IKE’s sales opportunity pipeline has continued to develop
robustly quarter over quarter.
+ The month of January 2022 has also been positive in terms of demand and continued
momentum. This has included announcements of:
+ Signing an extension to a contract with an existing communications customer
supporting fibre infrastructure deployment in the U.S. This customer is expected to
now generate >$4m of transaction revenue for IKE in the coming 12-18 months.
+ Receiving an approximately $0.9m contract from a new tier-1 North American
electric utility customer. This revenue will be fully recognized over the coming 12
months and at this initial level of platform usage, the expected ongoing software
subscription revenue from this customer will be approximately $200k per annum.
+ In addition to the product deals closed above, in January 2022 IKE was also awarded a
$0.6m co-investment cash grant from NZ Trade & Enterprise to support the go-to-market
program for IKE’s AI Software solution, called IKE Insight.
+ IKE’s focus for Q4 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 IKE’s AI-software business segment,
called IKE Insight. Certain pilot projects in process, if proven out, have the potential to
disrupt the way that the electric utility sector completes network-wide structural
analysis programs.
Customer and market commentary
+ IKE targets sales into North America’s approximately 200 communications companies,
approximately 3,000 electric utilities, and their engineering service providers. Once a
customer, IKE then aims to embed and expand the use of its three IKE solutions inside of
these accounts.

5
+ As above, Q4 FY22 has started positively in terms of demand and revenue momentum.
+ 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 urgent
challenges of network strengthening and maintenance over the next five to ten years.
+ IKE solutions deliver network construction and maintenance processes that are faster,
safer, and to a higher quality data standard.



ENDS

About ikeGPS
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 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.


Contact:
Simon Hinsley
Investor Relations
+61-401-809-653
simon@nwrcommunications.com.au

Glenn Milnes
CEO
+1 720-418-1936
glenn.milnes@ikegps.com
ikeGPS Group Limited
350 Interlocken Blvd, Suite 390, Broomfield CO 80021, USA
Office: +1 303 222 3218
www.ikegps.com