"It's an ill wind that blows no good."
Will the damage wrought by hurricane Ida help or hinder IKE's business expansion plans?
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"It's an ill wind that blows no good."
Will the damage wrought by hurricane Ida help or hinder IKE's business expansion plans?
If electricity companies have to repair/rebuild damaged sections of their transmission/distribution networks, I would see that as a huge opportunity for IKE. Especially in relation to existing customers, as they already have a mutual relationship, and stored data that could quickly be accessed to enable rebuilds to be started more quickly.
My Link a/c this morning tells me I've received all I applied for (max) ....... great!!
Same, very cool!
I love the SP action as I get aboard at 103c......
:)As a glass half full kind of investor I take heart from the fact that The SP remained above a $1 and if I cashed in my 15000 shares I would make $150 less brokerage less tax or about $80 which is still better than a term deposit.
After posting this I think it is more than likely the SP will drop below a $1 as this is the way the market seems to treat me when I try to predict short term movements. I am happy to report though that overall the market treats me well but I have to admit investing has been very easy over the last 10 years or so.
FYI for anyone who hasn't seen this:
We hereby invite you to join us for the annual shareholders meeting which will be held online at www.virtualmeeting.co.nz/ike21 on Thursday, 30 September 2021 commencing at 2pm (NZT).
I couldn't either, but everything is available on their website, under Investor Relations.
https://ikegps.com/investors/
Looking good to me. I am in this for the long haul. Huge potential.
Anybody actually watch the webinar/have any thoughts to share?
Another material contract win, lost count how many they won this year. Time for this to get rerated.
Yes with further extensions expected.
https://www.nzx.com/announcements/380416
Multiply this by the number of other existing and potential customers, and watch this company go places. As you once said, these customers are "sticky" - once they are in the IKE system and happy with the service, they will be there forever.
I need to buy more.
Quote:
“The expansion of this customer further demonstrates the value that the IKE platform provides to communications groups, and our ability to expand the use of our platform over time across targeted groups. This specific entity has been a customer for several years, growing from an initial annual account size of tens of thousands of dollars to a multi-million dollar account today. The long term revenue opportunity with this group is substantial.”
Once contracts are opened, they are closed in a very short time frame as power companies have a very standard process to go through.
CEO didn't give a revenue guidance for this fy.
IKE analyzer getting market tractions in Canada rather than US. CEO acknowledged US is a bigger market, but Canada is also a good market as well.
With English being my second language, pretty sure there were more than this but at least these were what I took away from Q&A sessions. CEO sounded quite confident about the market opportunities, but again with English not being my mother tongue, I might be wrong ;)
Agree there is an air of confidence. Happy to let the business prove itself rather than throw pies. If 'contract won' is cumulative then they should be near $20m contracted revenue + other add-ons. I'm hoping revenue graphs over the next few years will look exponential now that there seems to be confidence in their offerings.
I'm not totally convinced by the sticky argument. My understanding is that IKE produces an inspection data set that can be imported into an asset management system, such as IBM Maximo, TechOne, SAP. These systems use that data to drive programmed maintenance activities that link to budgets and network performance targets. If IKE simply provided a tool to inspect assets, I'd be out as this is not sticky, it's just a data set collected in the field.
However, with their recent acquisition, they are adding value to this data, and this is how they'll become sticky. It's this added value that will keep them ahead of the pack.
I believe a measurement of stickiness is the length of contract won. It's great to see extended annual contracts, but I would like to see longer term contracts, say for 5 + 3 + 3 years, with performance targets for the client. Once I start seeing these longer term contracts, stickiness will be confirmed.
I first noticed this company in the TIN 100 back in 2016 I think. They were part of a list that included Xero, Eroad, PEB, Pushpay, Enprise, Snakk, Serko, flossie, Vend. Been an investor for many years, and like the direction they are taking.
Here's to IKE becoming more sticky than toffee on a cat.
For those of you who hold/support IKE, take a look at their new website. Huge improvement and a lot of additional content.
Their case studies make for interesting and very positive reading:
Quote:
“Without question, IKE's deliverable is top shelf. They [CHR's customers] don't know how they lived without it.”
Bob Bartz
VP of OSP Engineering, CHR
Also lots of resources there for anyone who wants to get a better understanding of what they do and how their products/service work.
another good anouncement today. https://announcements.nzx.com/detail/380746
a slow burn, but its building.
the best confirmation of the investment thesis is this bit: "It is expected that this contract level will recur in subsequent years. It is also expected that further expansion contracts will follow with this entity in IKE’s FY22."
GLTAH
This announcement seems almost identical to the one on 5th October. Almost word for word. Which seems a little odd, given that it is related to a different company (I assume)
Edit: never mind. I missed the bit where they comment on/explain this.
The good news keeps coming.
Getting a bit boring now with all these contract extensions :p, can this be reflected in sp performance. Wonder who's feeding the sell side despite all positive news.
SP moving this morning. $1.06 at last check.
Extensions are good, shows they are meeting the client’s expectations re: performance targets, training, reliability etc etc. When a provider repeatedly hits those metrics, costs become secondary to a client, Ike’s margins will grow and grow.
Not at all. More like "this customer is seriously satisfied with what we have provided, they are now committed to the IKE platform, and will continue to expand their business with us, for the foreseeable future."
This is "stickiness" at work, as predicted.
It puzzles me how some can still not see the potential this company has.
After all positive news sp under $1, go figure...someone not buying their story.
It's just not cool enough aye. Possibly its lack of hype attracts conservative investors (confirm the story 1st). Buyers know they can accumulate by being patient... Surprised to see it sub $1 this morning. It may well go under again with this mini downtrend. Business wise there's a fantastic foundation being set up. Eagerly awaiting more clarity on revenue.
Seems like there's growing impetus to get those cables underground.
https://www.washingtonpost.com/busin...power-outages/
To establish a resilient power grid, one needs to know the condition of the infrastructure. Power companies simply don't know the condition of their inherited assets, remember the surprise when all those power poles were found to be rotten - that didn't happen overnight, that's where Ike comes in.
If the poles need replacing, maybe they might put the lines underground, but atm its poles not moles.
Correct. IKE understands the huge scale of opportunity that is there for the taking right now. They know their stuff and understand the industries they are marketing their solutions to. They are sitting in the perfect position to take full advantage of those opportunities. Every announcement of an extension to a current contract, shows that they are right on the money in terms of meeting customer needs, and hooking those customers in, long term. Alongside that, they will be working hard to attract new customers. I see only good things for IKE and us as shareholders.
Oh, I completely agree that it's very unlikely to happen to every pole, but it's going to happen someplace, sometime, for some reason.
The question is the timeframe - which I think will turn out to be in the longer term - and the scale.
"In California, for example, Pacific Gas & Electric wants to bury 10,000 miles of power lines, both to make the grid more resilient and to reduce the risk of sparking wildfires. Its power equipment has contributed to multiple deadly wildfires in the past decade, including the 2018 Camp Fire that killed at least 85 people."
What will also be interesting is the fate of all those other, non-powe cables and other infrastructure which currently uses space on those poles.
Strong moves on ASX y'day, reached high of 1.04 A$ before closing down at 98.5c with at VWAP at 1.01
FYI I stumbled on this Motley Fool stock analysis of IKE from 6 weeks ago
https://www.youtube.com/watch?v=MxQMMuJ2KWQ
Bidens U.S infrastructure bill has passed. Wonder if it will help ike get some more contracts. Price has been hanging around $1 for a bit too long.
Hey is expecting 1/4ly results out by now. Have I missed something or does anyone know why they haven’t been published?
Sorry yea it’s the 1/4ly update I haven’t seen for awhile?
So look closer.
Last quarterly update was ... drum roll ... a quarter ago: https://announcements.nzx.com/detail/376230
Thanks, I just be missing something though. Quarter to June 21 was announced towards end of July. Doesn’t that mean September quarter should have come through end of October?
That question has already been answered. See post #756
as at 09:13:05, Monday 29 November, 2021 (NZDT)
ikeGPS FY22 Half-Year Results
IKE
29/11/2021 09:13
HALFYR
PRICE SENSITIVE
REL: 0913 HRS ikeGPS Group Limited
HALFYR: IKE: ikeGPS FY22 Half-Year Results
IKE 1H FY22 Result
ikeGPS Group Limited (IKE) (NZX: IKE / ASX: IKE) is pleased to release an
update for the half year to 30 September 2021 (all figures NZD).
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.
Highlights for the First Half to September 2021:
- Revenue of approximately $5.7m (approximately 30% higher than pcp and
approximately 40% higher than pcp on a constant currency basis).
- New contracts closed in 1H FY22 were approximately $10.9m (approximately
135% higher than pcp).
- Another very strong period for new contract wins. The majority of these
contracts are expected to be recognized over the next 12 months, reflecting
how U.S. markets have bounced forward from the impacts of COVID-19.
- Gross margin of approximately $3.6m (pcp of $2.9m), with a gross margin
percentage of approximately 63% (pcp of 67%).
- Operating cash flow of approximately ($2.8m) (pcp of ($1.4m))
- Net loss of approximately $6.2m (pcp of $2.6m), in line with IKE's growth,
investment, and customer acquisition strategy.
- Total cash and receivables 30 September 2021 of approximately $32m, with no
debt.
IKE CEO, Glenn Milnes, said: "The first half was the strongest ever period
for our business. The level of new contracts won in calendar 2021 to date
total more than $21m, 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. This level of won 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 and FY23, notwithstanding timing risks around some customer projects
as above.
"We continue to be pleased with progress and the integration of the recently
acquired IKE Insight solution, with numerous customers progressing
positively. We are optimistic that this additive Artificial Intelligence
(AI) solution specific for poles can become another important growth driver
for the IKE business and open some new pole-related market segments for the
electric utility and communications market."
Outlook
- The record level of new contracts won year-to-date points to a strong
forward revenue growth profile.
- IKE's sales opportunity pipeline has also developed robustly over the past
two quarters.
- IKE's focus for 2H 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 the recently acquired
AI-software business, IKE Insight.
Customer and market commentary
- IKE targets sales into North America's approximately 200 communications
companies, approximately 3,000 electric utilities, and their approximately
1,000 engineering service providers (ESP). Once a customer, IKE then aims to
embed and expand the use of IKE solutions inside of these accounts.
- Several customer wins and subsequent expansion examples, where both
electric utility and communications accounts have grown from tens to hundreds
of thousands and then to millions of dollars, help point to the potential
network effects from operating across these related customer groups, and the
larger future revenue opportunities that can arise over time.
- 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
challenges of network strengthening and maintenance,
- IKE solutions deliver network construction and maintenance processes that
are faster, safer, and to a higher quality data standard.
ENDS
I'm no analyst, but this looks like a damned good result to me. These guys are well on the way to achieving their goal ....
"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."
Great results!
Winning contracts and increasing transaction revenue. All looks good
The last capital raise was poorly supported,which should be a wake up call to the company.The share price does confirm this.
If they want further growth they need to start earning a profit to pay for it.
I did not support the last capital raise,and I doubt I will support any further raises,Each issue means more shares on issue.
Yet I am impressed with what they are achieving,and at this stage will continue to hold.
Couldn’t agree more. Id like to see a fixing of overheads from here and an increase in strong rev growth but I’m unsure the current growth rate justifies the added costs in overheads. Crack on team.
trust q2 will be a cracker but certainly won’t be adding to my position. Save that money for the next inevitable cap raise?
"490% higher transaction volume & 110% higher transaction revenue"
Transaction volume rose from 27k to 160k with margin rising from 27% to 43% while revenue only doubled... Are these platform transactions like for like? Or has the value of each transaction dropped?... or have singular transactions been split into multiples?
Cash and receivables was 14m at full year, now at $32m after a 24.6m raise, so my assumption is "transaction revenue" includes receivables.
Clearly I'm missing something here...
yeap that's in line with cash and receivables. I was pondering the make up of the revenue; if transaction revenue of $2.3m related directly to 160k transactions...
I'm curious as to why transaction revenue hasn't increased more in line with volume? If smaller value transactions, where is the tangible gain?
I am just guessing here but ... I think "transactions" probably encompasses a variety of different types of platform usages. I don't think all transactions are equal. So while the volume of transactions has increased from 27k to 160k, the total transaction revenue will be dependent on the types of transactions completed. Some might be a higher cost to the customer, than others. So no, I don't think they are "like for like."
Or I could be completely wrong ;)
Oh dear, looking very fragile here. Wonder if Omicron in US is causing this.
Not a good day for IKE share price. Closed at $0.87. Wish I had spare cash to buy more.
Why the sell off? Been eyeing them since the 0.65 days and thought I missed the boat. Will be looking to jump in very soon, just wondering any ideas as to why the drop?
I commented awhile ago that over the last 5 financial years we have seen:
Revenue go from $9m to $9m
EBIT go from -$9m to $-7m
Profit go from -$9m to $-7m
I.e. going no where.
Book value decreased from $0.26 to $0.16 per share.
But worse of all.. number of shares on issue 50m to 121m. No doubt shareholders will be asked to top the company up one last time. Issue another 20m shares. But no worries this time will be different :t_down:
Someone's putting a dagger through the throat on this one.
Few reasons imho.
Tech is getting pumped across the board due to inflation. Secondly the latest update was very underwhelming. They have been selling a growth story but the growth isn’t as fast or as much as what people were envisaging.
The only surprising thing is why it took this long to get pumped following the announcement.
However, this is a solid business and will perform in my view. Just not as fast as many expected.
Disc. An investor not a trader and so unconcerned by the short term. Hold
With Biden's huge infrastructure spend approved,IKE are in the right sector at the right time.
They are in a very strong cash position to take advantage of the opportunity to make their IKE system "the norm" for the utility companies using telegraph poles.This is the company's driving ambition.
With so many of the "big boys" already using IKE's system, I am not sure whether they are over half way there or not.I guess we will know in the next 18 months or so.
Should the IKE system become "the norm" shareholders will be well rewarded for years to come,as every utility company,every local council etc will be IKE customers.Exciting..
In the meantime further patience is required.
This is why I am holding, and still optimistic. While the share price is currently disappointing, I still feel confident that IKE can pull this off. They were smart enough to know this huge infrastructure spend was coming, and hopefully they are now perfectly positioned to take full advantage of it. As you say, they have some major US clients onboard already, which can only work in their favour, when marketing/working to attract new clients. From what I can tell (with my limited report reading skills), pretty much every client who signed up for an initial contract, has come back for more. Very happy to see that, as that shows that IKE is meeting client expectations (maybe even surpassing them). Demonstrating current client satisfaction and trust, has to be the best way to attract new clients one would think. Word of mouth is a powerful marketing tool too.
I'm more than happy to sit back and be patient with this one, as I am with OCA.
They should also communicate bit better with investors, not that they're doing bad job now. There's room for further improvement.
I agree. I messaged them a while back with a question, but they never bothered to reply. If you make a messaging channel available on your website, it is considered good etiquette to respond. Clients may be their bread and butter, but investors are also important - at least we should be.
You could be right. I think Biden’s ‘infrastructure bill’ is code word for Democrat social spending program. So I’m unsure how much is going into what we would think of as infrastructure. That’s said I think (without going through the bill line by line), you may be right about some flow through effects for IKE
The first thing to identify in any asset renewal programme, is what needs to be renewed first, low hanging fruit, critical assets, etc, and condition surveys will therefore be the first spend up. This will feed into business cases, works programmes etc etc, then Rep get elected, programmes gets slashed, nothing is built but it doesn’t matter because IKE have secured their contracts in the first spend up.
That’s the theory, let’s see if it’s a reality.
As per ASX release, MA (Moelis Australia) Financial Group is a new SSH in IKE.
Looks like a delay in Bidens Build Back Better Bill, I wonder if this has already been baked into the IKE SP, or if a further fall may be on the cards. Either way, BBBBB should have given some companies a wake up call to get on with their asset inspections, still good tail winds for IKE.
I note Australian broker Bell Potter has selected them for 2022.
Target price is in au.
ikeGPS (IKE)
ikeGPS (IKE) is a specialist technology
company that delivers a platform
used in the collection, analysis, and
data management of power pole
infrastructure assets. The company
services the North American
Communications and Utilities markets
and is leveraged to the US 5G & fibre
investment cycle, which is projected
to see Communication infrastructure
providers invest ~US$300bn to upgrade
existing networks and deploy new 5G
capabilities across the U.S over the
next 3-5 years.
CYTD IKE has signed ~NZ$21m of new
contract wins (~$6.9m since Jun’21)
laying a strong foundation for 2H22 &
FY23 (March Y/E). With ~308 enterprise
customers utilising IKEs Platform,
we believe there remains significant
opportunity for IKE to expand its
share of wallet with some of the
largest utilities and communication
customers in North America. The
company remains in the early stages of
commercialisation of the IKE insight AI
product, which will provide incremental
revenue and cross sell opportunities
which we believe will support further
contract and revenue growth over the
medium term.
Buy (Speculative), Valuation $1.25
Thanks Percy. Just sit back and enjoy the holiday season - it will be alright:).
Has there been any indication from IKE (e.g. prospectus, media releases, investor presentation etc.) as to when they expect to be profitable? And did they disclose projected top line sales in their prospectus?
Thanks
Nearly there 2024?
https://www.marketscreener.com/quote...97/financials/
I found their original prospectus which only gave a forecast for FY15 and FY16.
FY16 was forecast to have revenues of $14m. FY21 was $9.3m, FY22 forecast is $10-$11m (per Yahoo - is that right? Market Screener has FY22 at $15m). If they can get to $14m in FY22, that puts them 6 years behind schedule in topline revenues. They were meant to be cash flow positive in FY17. Even at $14m revenue it was not forecast to be profitable. This seems like a long slow burn. I don't fancy the prospect of future rights issues.
Cash issue looks like it would get them through until CF positive in 2025?
https://stocknessmonster.com/announc...ke.nzx-377061/