ikeGPS Group (IKE) H2 2024 earnings summary

Executive summary

• FY24 revenue was NZ$21.1m, down 31% YoY, with subscription growth offset by a sharp decline in platform transaction revenue.

• Recurring subscriptions and transactions represented 86% of FY24 revenue; the FY24 net loss was NZ$15.0m as investment continued in products, sales, marketing and customer acquisition.

• FY25 outlook points to subscription revenue growth of 50% or greater, supported by IKE PoleForeman sell-through and continued growth in core subscriptions.

Financial highlights

• Revenue NZ$21.104m vs NZ$30.789m in FY23; gross profit NZ$12.680m vs NZ$16.345m.

• Operating loss NZ$15.244m vs NZ$7.763m; net loss NZ$15.045m vs NZ$7.879m; basic and diluted loss per share NZ$0.09 vs NZ$0.05.

• Total other income, gains and losses were NZ$0.776m vs NZ$3.878m, including fair-value movements of NZ$0.023m vs NZ$2.574m and FX gains of NZ$0.326m vs NZ$1.017m.

• At 31 March 2024, cash was NZ$10.2m and receivables NZ$5.1m; payables were NZ$1.2m, with no debt.

Outlook and guidance

• FY25 subscription revenue expected to grow 50% or more YoY to NZ$16m per annum or greater.

• Transaction revenue expected to grow in FY25, but with a wide range of potential outcomes and higher upside and downside risk.

• FY24 contract closures totaled ~NZ$27m against ~NZ$21m of recognized revenue; PoleForeman contracts closed in Q4 are expected to lift FY25 revenue materially.

• New design and AI products expected in-market during 1H FY25; new-business pipeline described as strong and growing.