New signed contracts of ~$8m
Continued demonstration of operating leverage
Strong balance sheet
IKE performance update for Q1 FY23
ikeGPS Group Limited (IKE) (NZX: IKE / ASX: IKE) is pleased to release an update for Q1 of FY23
to 30 June 2022 (all figures in NZD). IKE will host a webinar Friday 22 July 2022 at 9am AEST /
11am NZT to discuss this performance. Please click here to register.
Highlights for the quarter:
+ Revenue in Q1 FY23 of ~$6.8m (+162% vs pcp). Within this, recurring Subscription and
reoccurring Transaction revenue was ~$5.7.m (+167% vs pcp).
+ Gross margin in Q1 FY23 of ~$3.9m (+116% vs pcp) representing a Q1 FY23 gross
margin percentage of ~57%.
+ Signed contracts in Q1 FY23 of ~$8m (+31% vs pcp). The signed contract backlog has
continued to grow and it is estimated that $13-15m of this backlog will be delivered and
recognized as revenue in the FY23 period.
+ Cash and receivables as at 30 June 2022 was ~$27.7m, comprised of $23.3m cash and
$4.4m receivables, with no debt. This position is just ~$1.2m lower than six months prior
(at 31 December 2021) evidencing the operating leverage in the business.
Commentary and outlook
IKE CEO Glenn Milnes commented, “The past quarter was another outstanding period of growth
at IKE. It included the material expansion of various existing customers and saw several new and
important tier-1 enterprise groups onboarded, including one the five largest engineering
companies serving the electric utility market across the U.S. The first phase of this contract
includes supporting a 10-year network hardening program for a electric utility in the South-West.
Market development acivity also featured training 325 engineers on IKE products and workflows
at a major investor-owned utility in the southern U.S.
Operating leverage is in place via the scalability of our software and our disciplined approach to
operating expenses. Management and the Board remain cognisant of the importance to
maintain a fortress balance sheet position, and driving this operational leverage to get to positive
cash flow is front of mind.
The outlook remains robust. Following 71% revenue growth in FY22, we expect FY23 to be
another significant period of growth. This is driven by the estimate that $13-15m of our signed
contract backlog will be delivered and recognised as revenue in the next three quarters of FY23
(noting that the ultimate timing of these contracts is subject to the execution speed of our
customers). In addition, our sales opportunity funnel is strong and we anticipate a healthy run
rate of new contracts will also close and be recognised in the FY23 period.”
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DYOR
i do not hold this share ( but it has caught my eye a couple of times )
first i might have rushed reading this , but i didn’t see the word ‘profit ‘ ( after or before tax )
now i know this is a NZ company and they almost speak a different language ( and at least two dialects ) but the occurrence of ‘ leverage ‘ but NOT ‘profit ‘ makes me a little cautious
PS my father was a Kiwi , so know them fairly well
i was almost tempted to tip this in the August Comp. but suspect it will spike too early ( just like my tip for this month did )
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