Ikegps Group Ltd · NZX:IKE

Ikegps — Q3 FY25 Earnings Presentation

34 slides from Ikegps's earnings presentation, Jan 28, 2025

  1. Slide 1: IKE 3Q FY25 Performance Update

    IKE 3Q FY25 Performance Update We’re IKE, the Pole OS Company Glenn Milnes, CEO glenn.milnes@ikegps.com January 2025 CONFIDENTIAL

  2. Slide 2: Important Notice

    Important Notice Information in this Presentation: • Is for general information purposes only, and is not an offer or invitation for subscription, purchase, or recommendation of securities in ikeGPS Group Limited (IKE); • Should be read in conjunction with, and is subject to, IKE’s FY24 financial re

  3. Slide 3: Agenda

    Agenda 3Q Performance Headlines Outlook Addressable market and IKE’s value proposition Q&A ikeGPS 3

  4. Slide 4: 3Q FY25 performance takeaways

    3Q FY25 performance takeaways • Exit run rate of annual platform subscription revenue grew to NZ$15.7m (+43% vs pcp). • Record ~NZ$44m in contracts closed in the nine-month period • Total recognized revenue in the period of NZ$18.5m (+21% vs pcp), with recognized revenue in 3Q of NZ$6.3m. • Subscrip

  5. Slide 5: Exit Run Rate of annual platform subscription has grown to NZ$15.7m

    Exit Run Rate (ERR) of annual platform subscription has grown to NZ$15.7m at 31 December 2024 (+43% vs pcp) Takeaways: • +43% YoY growth in the exit run rate (ERR) of annual platform subscription revenue. • As stated, during the full FY25 period this metric is expected to continue to grow materially

  6. Slide 6: Subscription revenue growth has continued to be consistently strong

    Subscription revenue growth has continued to be consistently strong In period to 3Q, a total of ~$44M of contracts closed Takeaways: • Significant growth in underlying subscription revenue. • Three-year subscription revenue CAGR of +37%. • During FY25, this is expected to increase materially by ~+40

  7. Slide 7: 181% YoY increase in subscription seat licenses

    181% YoY increase in subscription seat licenses, evidencing the impact of new product introductions with very sticky customers Takeaways: • Subscription seat license growth of +181% over the past year. • Seat count growth has accelerated at a fast pace due to customer additions and upsells, as well

  8. Slide 8: Three-year transaction revenue CAGR of 14%, and improved margin profile

    Three-year transaction revenue CAGR of 14%, and improved margin profile Takeaways: • Three-year transaction revenue CAGR of +14%, noting that gross margin increased to 35% vs 14% pcp. • Based on contracts in place, IKE expects transaction volumes and associated revenue to continue to build through t

  9. Slide 9: Total revenue by segment summary

    Total revenue by segment summary Takeaways: • Recurring subscription and reoccurring transaction revenues (shown in the green and blue segments in this chart) dominate IKE’s revenue mix, at 86% for YTD FY25. • An expectation for healthy revenue growth in the full FY25 period, including ~+40% or grea

  10. Slide 10: Key metrics table

    Key metrics table Other Takeaways: • The cash and net receivables position increased NZ$4m in the quarter. • This is a result of continued overall growth, from winning numerous large subscription contracts in the prior quarters and the associated collection timing, and ongoing operating cost control

  11. Slide 11: What IKE does, and the large, long-term North American market opportunity

    What IKE does, and the large, long-term North American market opportunity being addressed Customer and Market re-cap

  12. Slide 12: Selling and Delivering Directly from Colorado, USA HQ

    Selling and Delivering Directly from Colorado, USA HQ Meet some of the IKE people representing the next generation CX of our industry Liz Etzel Sara Deere Product Manager: Knows virtually Systems Engineer: Current holder of every customer and is persnickety the world-record for running about exempla

  13. Slide 13: IKE has developed Software Products to Engineer a Network through its Lifecycle

    IKE has developed Software Products to Engineer a Network through its Lifecycle <Network Planning> <Assessment & Digitization> <Network Design> <Network Maintenance & Resilience> Business model upshot • A recurring Subscription to access any IKE Solution • Additive, reoccurring revenue based on usag

  14. Slide 14: Product Update

    © ike’ Product Update

  15. Slide 15: IKE PoleForeman as the Standard for Distribution Network Design

    IKE PoleForeman as the Standard for Distribution Network Design. New SaaS Product to Market https://ikegps.com/ike-poleforeman/ Takeaways: • The new IKE PoleForeman product has been in- market for ~12 months and to date has generated ~$16.5m in Total Contract Value. • In total, ~109 customers have i

  16. Slide 16: AI-based automation products in-market: Double-Wood Detective

    AI-based automation products in-market. Double-Wood Detective AI Product Detect Validate Change detection Locate undetected instances of Confirm instances of double wood from Capture changes to double wood records, double wood existing records. such as pole removal status. ikeGPS 16

  17. Slide 17: AI-based automation products in-market: Joint-Use Ticket Automation

    AI-based automation products in-market. Joint-Use Ticket Automation AI Product Violation reporting Make-ready construction Pole transfers Address common issues that arise during Prep poles for new attachments while Transfer attachments from an existing inspections and audits, such as NESC maintainin

  18. Slide 18: Market Overview

    © ike’ Market Overview

  19. Slide 19: More than 3,000 electric utilities and 200M distribution assets across the U.S.

    Communications Market Macro More than 3,000 electric utilities and 200M distribution assets across the U.S. Investing in decades-long grid resiliency and grid capacity programs Facing common challenges • Grid resiliency requirements • Regulatory and Engineering code compliance • Grid capacity requir

  20. Slide 20: 25-year Macro-Market Tail Wind for Grid Resiliency & Expansion

    25-year Macro-Market Tail Wind for Grid Resiliency & Expansion ($B’s) An Electric Utility Industry, Spending 100’s of Billions, in Need for Productivity Solutions, such as IKE $NZD in B U.S. AND CANADIAN ELECTRIC DISTRIBUTION CAPITAL EXPENDITURES ACTUAL Canadian Muni Co-ops US IOU FORECASTED $110.1

  21. Slide 21: Where IKE sells: U.S. Market-Map of Investor-Owned Utilities

    Where IKE sells: U.S. Market-Map of Investor-Owned Utilities (multi-$B companies) A huge expansion opportunity…… ikeGPS 21

  22. Slide 22: Plus >2,800 Municipalities and Co-Operatives

    Plus >2,800 Municipalities and Co-Operatives All of which represent sales opportunities for IKE products Takeaways • Market timing is everything • IKE is in the right place, at the right time, and with the right technology, team and execution capability • Today, IKE has a presence in approximately 6

  23. Slide 23: 8 of the 10 largest Investor-Owned Utilities have standardized on IKE

    8 of the 10 largest Investor-Owned Utilities have standardized on IKE IKE Lands-then-Expands Communications Takeaways • 8 of the 10 largest Investor-Owned Utilities (“IOUs”) in North America, all multi-billion dollar businesses • >400 customers in North America, Electric Utilities with 59 new logos

  24. Slide 24: IKE solutions make fiber and 5G network deployments faster

    IKE solutions make fiber and 5G network deployments faster • >$300B expected investment into fiber network development in the U.S over next 5+ years • >$50B expected investment into 5G network development in the U.S. over the next 5+ years • An additional >$60B expected investment into rural broadba

  25. Slide 25: Fiber and 5G Investment Super-Cycle in North America Still In Its Early Stages

    Fiber and 5G Investment Super-Cycle in North America Still In Its Early Stages PROJECTED INVESTMENTS INTO 5G & FIBER OPTIC INFRASTRUCTURE $NZD $72B $43B $39B 2010 2018 2025 ikeGPS 25 Source: Bell Potter Initiation of Coverage Report, GSMA, American Tower Note: Labeled Capex F igures reflect Houlihan

  26. Slide 26: Some of the largest U.S. Communication groups have Standardized on IKE

    Some of the largest U.S. Communication groups have Standardized on IKE And a growing footprint of tier-2 fiber businesses Communications Takeaways • Several of the largest comms group in North America: AT&T ($107B), Crown Castle ($39B), Bell Canada ($47B) Electric Utilities • A growing footprint of

  27. Slide 27: Overall.. a Large Addressable Market Opportunity That is Expected to Grow

    Overall.. a Large Addressable Market Opportunity That is Expected to Grow Utilities 5G and Fibre $NZD $NZD Estimated 5G Small Cell Fibre Connections $113 Cost of Antenna New Build per Pole 25M Poles Used for Other Services2 Estimated 40M Poles $50 Cost of Needed for Audit per Audit per Pole annum >2

  28. Slide 28: Market Tailwinds Over the Coming Decades

    Market Tailwinds Over the Coming Decades Requirement for harder and higher >3,200 capacity distribution power networks Electric Utilities in North America with long-term, recurring across all of North America distribution network hardening, joint use, and capacity needs for electrical distribution 7

  29. Slide 29: A Map-View of Usage: Crown Castle in Florida

    A Map-View of Usage, and how IKE customers deploy our software Crown Castle in Florida ikeGPS 29

  30. Slide 30: A map-view of Usage: AT&T in 7 example States

    A map-view of Usage, and how IKE customers deploy our software AT&T in 7 example States ikeGPS 30

  31. Slide 31: A strengthened team of North American industry experts

    A strengthened team of North American industry experts Key directors and senior leaders appointed through this past year Roz Buick Non-executive Director Roz brings more than 25 years’ experience from executive leadership positions across global utility, engineering, construction, real estate and ag

  32. Slide 32: Multiple Avenues Supporting Future Growth Potential

    Multiple Avenues Supporting Future Growth Potential Sales Team Cross Sell & Platform for International 1 Expansion / 2 Upsell 3 Inorganic Growth 4 Expansion New Logos 4 3 2 1 $43mm Sales Team Revenue Expansion / New Cross Sell & Upsell into Inorganic International Revenue “Today” Customers Existing

  33. Slide 33: Thanks

    Thanks Manaakitanga: We Rise By Lifting Others ikeGPS 33

  34. Slide 34: Q&A We're IKE, The PoleOS Company

    Q&A We’re IKE, The PoleOS Company IKE seeks to be the standard for collecting, analyzing and managing pole and outside plant (“OSP”) information for electric utilities, communications companies, and their engineering service providers The IKE platform allows its customers to increase speed, improve

ikeGPS Group — Q3 FY25 Earnings Presentation on 6ix