ikeGPS Group (IKE) investor relations material

Executive summary

• Annualized subscription revenue exit run rate reached NZD 22 million, up 31%-32% year-over-year, with platform subscription revenue for the quarter at $5.3M, up 27% year-over-year.

• Three new products are in development for the electrical grid and fiber industries, with launches expected in the second half of FY27, aimed at driving further ARR growth.

• Proprietary AI platform, Vitruvius (IKE Vitruvius™), is now operational and embedded in products and business processes, executing over 200 plans.

• Subscription enterprise customers increased to 476 from 441 year-over-year.

• Gross margin improved to 82% from 75% year-over-year, while total revenue remained flat at ~$6.4M due to softness in lower-margin services.

Financial highlights

• Annualized recurring revenue (ARR) at June 30 reached NZD 22 million, up from NZD 17 million last year and NZD 13 million the year before, reflecting a 31% year-over-year growth rate.

• Platform subscription revenue for Q1 FY27 was $5.3M, up 27% year-over-year.

• Gross margin improved by 7% year-over-year, reaching 82%.

• Platform transaction revenue declined 64% year-over-year to $0.5M, with billable transactions down 89%.

• Cash and net receivable position stood at ~$33.8M.

Outlook and guidance

• Guidance for subscription revenue and ARR growth remains high, with FY27 guidance for approximately 35% ARR growth, consistent with the previous year.

• New product launches are expected to contribute to revenue growth primarily in the fourth quarter, with a more significant impact anticipated in FY 2028.

• Continued price increases are planned as new capabilities are added to software.

• Cautious optimism for a rebound in transaction revenue in the second half as funding for broadband projects is expected to free up.

• Anticipates continued headwinds in technology-enabled services, but this remains an additive revenue line.