So happy I passed on the cash raise. Those that did must be thinking wth?
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So happy I passed on the cash raise. Those that did must be thinking wth?
Q3 performance update (to be released later this month or early next month) better be good, or else we could be back to 60c mark :eek2:
Timely update, let's hope Q3 report will be equally encouraging on 1st Feb.
Currently at A$ 75c on ASX...
That is a very substantial contract extension from $1.6 mil to over $4 mil,. 250%.
The share price has been drifting down on no news,so looking forward to 1st Feb update .
"Our broader in-market momentum gives us a high
degree of confidence for strong growth this and our next financial year.”
Just keep that momentum building.!!..
This client extended their initial contract for a year in October, then 3 months later almost tripled its value, albeit with some tags, but very impressive. I wonder if IKEs latest acquisition had something to do with it?
IKE signs $0.9m deal with tier-1 electric utility
IKE
21/01/2022 10:57
GENERAL
PRICE SENSITIVE
REL: 1057 HRS ikeGPS Group Limited
GENERAL: IKE: IKE signs $0.9m deal with tier-1 electric utility
IKE signs $0.9m deal with tier-1 electric utility
21 January 2022 (all numbers are NZ$ unless stated otherwise)
Deal follows a separate announcement earlier in the week of extending a U.S.
communications customer contract to >$4m.
ikeGPS Group Limited (ASX/NZX:IKE) or IKE, the company setting the standard
for collecting, managing and analysing pole and overhead asset information
for electric utilities, communications companies and their engineering
service providers, is pleased to announce:
? That it has received an approximately $0.9m contract from a new tier-1
North American electric utility customer.
? The approximately $0.9m revenue will be fully recognized over the coming 12
months.
? At this initial level of users and platform usage, the expected ongoing
software subscription revenue from this customer will be approximately $200k
per annum.
? This customer is utilizing the IKE platform to speed the assessment and
engineering of distribution pole assets for network hardening purposes.
IKE CEO Glenn Milnes commented, "We are pleased to add aother tier-1 electric
utility to our customer base and to be supporting their important multi-year
grid assessment & hardening work. We have performed well over the past few
months and have got off to a very fast sales start in 2022. With continuing
market tail winds we look forward to strong ongoing growth."
IKE will be releasing its Q3 performance update and commentary 1 February
2022.
ENDS
drip feed good news :)
Back to work after the new year slow down.
I'd love to know how the revenue streams from these contracts fits within this FY and next. I know it's somewhat out of their control as to timing but they must have a budget of some type
This is far better than the previous announcement, and with IKE's knack of extending contracts, could be the start of some real revenue momentum.
Total cash and receivables 31 December 2021 of approximately $29m, with no debt
Total cash and receivables 30 September 2021 of approximately $32m, with no debt
So still burning cash $1mil a month..
However extremely positive revenue and new contracts growth.
Will continue to hold,as I think they are in the right sector at the right time.
With the increasing revenue at a margin of over 60% the bottom line profit should come.
Just taking longer than I thought.
A very very good result and the the share closes up only 1 cent. Which is In my opinion crazy. Unfortunately I have reached my investment limit with this stock so I can not buy any more.
Burning cash until 2025?
https://www.marketscreener.com/quote...97/financials/
“Our balance sheet remains very strong with cash and receivables of ~$30m at the end of January, up from ~$29m the month prior. This balance consists of ~$26m cash and ~$4m receivables. Market tailwinds provide us with confidence around the potential for continued strong growth.”
Pleasing to see the $1 mil improvement in cash and receivables.And in just one month.
Lets hope it is a start of a new trend.
Excellent small cap. Tempting to add but I will watch and wait given market volatility right now.
Very positive their clients are "sticky",extending, and adding further services from IKE .
We have gone from a $1mil cash burn a month to a $1 mil increase in cash and receivables.
This is actually a $2mil turn around.
If IKE can continue the trend, we will be in the land of milk and honey.
Hang on we already live in the land of milk and honey...lol
Positive news followed by positive news and what happens? - the shares trade at 69c after a well supported capital raise at $1.00 not too long ago. The sharemarket is not and has never been rational.
Yes agree. I have posted a couple of times about this company going nowhere (aside from the number of shares on issue). However I thought the last couple of announcements were pretty good. Especially the cash increasing $1m announcement.
Guess this is just in a downtrend. Wonder where it will stop
I think the days of expecting investors to constantly bail out companies while they figure out how to turn a profit is at an end.
A lot of companies use NZX announcements as marketing PR to build hype. But they struggle to match this on their financials.
IKE won’t excite me until I start seeing some real revenue growth in their financials and a path to profitability.
Accumulated losses over $66,000,000 now
Whatever 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 will fix that
I see Scobie Ward has a decent sized holding in IKE
Highly respected investor ..... decent holding in Plexure as well
The main reason I bought into IKE was the fact former Ebos chairman Rick Christie was IKE's chairman.
Although he has stood down as chairman I am very pleased he has decided to remain a director.https://www.nzx.com/announcements/389884
Agree. Consistency is the key.
Yes, I think the market was a little disappointed with the 1/2 yearly as the numbers hadn't followed the reported contract wins. Add a little outside world turmoil and you have a recipe to unnerve. More of a timing issue I believe as the revenue from those contract was not an overnight addition to the bottom line. Steady as she goes...
Surprised the FY22 Q4 performance report not out yet...
This is what they said about timing of release when the updated market back in Feb this year.
"IKE will be releasing its Q4 FY22 performance update and commentary around 27 April 2022."
Ah got that, it was part of the announcement re Rick Christie to continue as non-executive director released on 1st of Apr..
IKE’s financial year concluded 31 March 2022. IKE will provide a Q4 and FY22 performance update 3 May 2022, with full financial statements expected to be released 31 May 2022.
So Q4 report will be out on Tue next week.
All looking good at IKE
Nice charts
http://nzx-prod-s7fsd7f98s.s3-websit...351/369683.pdf
Neutral cash burn through Q4 and expect to recognise revenue of $15-17m in FY23 from contracts already signed vs FY22 revenue of $16m - not a bad base to grow from through the year
Are we starting to reach critical mass?
I know I am a lot more positive about the company since they have stopped burning cash.
Growing the company from retained earnings rather than coming back to shareholders for more capital,will see the market rerate IKE.
As you pointed out "scaling without significant increase in cost base" is extremely positive.
IKE's share price is already up 13.3% on today's announcement.
I love all the positives being reported about this company. But the one underlying concern I have is around the medium demand for such technology. Wires on poles and in the ground has a short shelf life in terms of data going from a to b. You've got 2 major players about to disrupt this industry globally with Amazon and Space X both delivering a global satellite network in the next 3-5 years that will change how internet is offered to the world. I guess, make hay while the sun shines and good on IKE for delivering on this. Keep up the good work IKE. I guess power production still needs to get from a to b
Some stupendous metrics in there, can’t believe it’s trading under the buck mark.
Super stoked I bought in last week.
Some great momentum with platform transaction revenue and hardware (surely a leading indicator) increasing 41% and 133% respectively over Q322.
Just watched Glenn's presentation at the NWR Conference. Worth a watch.
https://us02web.zoom.us/webinar/register/WN_NUz_SnwcREOH0QVFfh2w7Q
Big crossing over on ASX this morning...
70 1,200,000 11:04 SP
Ike continues to be unloved. I am currently underwater (snorkel not scuba). Ike seems to me to show so much promise and if I was not overweight in them I would buy more at these prices. Cash in the bank low market cap growing revenue.
Theres not much that I don’t like about Ike.
I do like Ike.
Ike is what I like.
Sorry about that - channeling Dr Seuss
Glenn says outstanding quarter for IKE and it sure was
http://nzx-prod-s7fsd7f98s.s3-websit...672/375047.pdf
well that some good news in a dismal market.
Winner(n) forcing us to actually pay attention to the numbers....
Nearly $7m quarter revenue , rapidly growing , market cap $108m. The markets valuation of Ike is totally insane in my view.
ANZ cloud companies median valuation is 3.3 times last 12 months revenue.
25th percentile is 1.6 times and 75th percentile is 6.3 times
Drivers of what to apply are Gross Margin % and Revenue Growth - IKE about the middle of pack re Gross Margin % and above average growth. But IKE is a relativity small outfit and this tends to 'discount' the valuation a bit.
So one could say that on what the market values cloud companies these days IKE is worth say 5 to 6 times last 12 months revenues - say $105m to $126m or 66 cents to 80 cents a share
But then multiples have fallen significantly over the last year or so - get back to the glory days maybe 2 bucks
Source my mates at Clare Capital
Hardly any decent volume on offer at current price level. Suspect profit taking will probably happen north of a buck...
If and it is a medium to small size if (in my opinion not a big if) Ike have doubled their revenue in a years time then by the same reasoning you would value them between 132 and 160 cents per share if this was being discussed in July 2023. People claim that markets are forward looking and the market is sometimes and sometimes isn’t . I am forward looking so I view the current price as a bargain.
But as SB9 points out there are essentially no sellers so really I have no clue what the current price is now.
The share market is great. To me it’s a bit like going to the mad hatters tea party with Alice.
Good to apply some wonky logic to this...
Revenue $16m March 2022.
Replace Q1 2022 of $2.6m with Q1 2023 of $6.8m gives us rev for last 12 months of $20.2m
Growth figures below from the Annual Report, take into account $13-15m of signed contract backlog which will be realised at their clients discretion.
Av 5yr revenue growth from 2023
CGU - Cash Generating Units
CGU1 Core platform 31%
CGU2. Spike. 5%
CGU3 Structural. 10% ($1.1m revenue FY22)
CGU4 Insight, acquisition Jan 21 75% ($285k revenue FY22)
Tricky to nail overall annual projected growth for next 5 years, but got to be high 30's looking at the above numbers.
75c SP = MC $120 which is 6 times last 12 mths revenue, puts it on the 75th percentile.
Interesting to apply this to other "SAAS" companies.
ERD $115m rev, MC $220m = 2 times 2022 revenue.
PX1 $33m rev, MC $63m = 2 times 2022 revenue.
Valuing a SAAS company is a piece of cake. Tui.
Closed on ASX at 78c AU on Fri which is 86c NZ.
Overshooting?
https://www.marketscreener.com/quote...ITED-20707997/
From an NBR article - what they heard in the investor call post announcement:
Asked on today’s call whether the potential incidence of a recession in the US and elsewhere would adversely affect the business, Milnes said it would not. “We’re fortunate because of the industry that we’re in; it’s very defensive to those types of recessionary headwinds.
“I think the exception to that may be how [fast] the communications companies ... keep building their next-generation networks if they’re fearful of underlying consumer behaviour. But the customers we’re supporting and the projects we’re supporting are generally multi-year capex and opex projects that are very well committed-to already.”
Milnes said the outlook looks “robust” and he expected FY23 to be “another significant period of growth”, given the contract backlog will be delivered in the period.
I can't find an audio recording, but the presentation is here: https://ikegps.com/wp-content/upload.../07/375141.pdf
I have been unimpressed with IKE in the past and shared my views that the only thing that ever goes up is the share count…
However right now I believe is the best time to start buying. That update the other day was very impressive. On the call they said they have 5% of potential customers.. so a lot of room to grow in terms of customers and then you will see more revenue per customer as they build new products.
Being on the verge of cash flow positive takes a lot of risk off the table.
Looking forward to the coming updates and watching the huge double digit revenue growth.
Someone's happy to accumulate at current levels and someone happy to offload....who'll be right in the end?
86 100,000 12:54 SP
Seem to be on course for a break out into $1 range soon...
Some insto is in accumulate mode here...
90 399,730 10:35 SP
2022 Annual Meeting (https://www.nzx.com/announcements/399694)
Chair Address
http://nzx-prod-s7fsd7f98s.s3-websit...694/380141.pdf
CEO presentation
http://nzx-prod-s7fsd7f98s.s3-websit...694/380138.pdf
Kicking into gear now
FY 22 +71% pcp
Q1 23 +162% pcp
1H 23 forecast ~ +160% pcp
Signed contracts suggests they'll be pushing toward 30m revenue FY23
Won't be long till this company starts bearing fruit
The revenue growth + strong balance sheet makes this an exciting hold.
Looking at the photos of leadership team + profile of the young guns featured as 'emerging superstars'.. it feels like a cool internet start-up type company. Work place culture must be awesome. No doubt a few worn out ping pong paddles(?) lying about head office. good on em. the brilliant minds of my generation dont do boring companies.
anyways, Q1 looks outstanding. probably see this taken over one day. another sad story of a nzx listed entity being swallowed up by some large tech co.
Continued substantial growth.
I do like Ike
Until we can see the the peak of the inflation. UK is currently doing something crazy.....
IKE up 12% today, off the back of the preso’s. What’s it trading at? 4x FY23 sales? And growing 70% wow back in the glory days of late 2020 this would be worth double!
Unbelievable this is trading under a buck, should be 1.50 at least based on the performance update this morning..
Great update. One may even say its fantastic.
So they will do about $37.5m in revenue FY23 with upside of $39.5m. 134% UP on FY22 on the lower end. During a recession/ downturn thingy.
And that is while management are focused on costs and maintaining the 'fortress balance sheet'.
I would be happy to pay 5x revenue for this given the amazing growth.
FY23 Rev
$37.5m= Target SP $1.18
$39.5m= Target SP $1.24
Knocking on the $1 door...
Anything under $1 is cheap as chips! Im really excited to see the next update. the revenue growth is incredible and the balance sheet is strong. SP trading above 50, 100, 200 ma.
50 ma passed through the 200ma recently. Someone with more knowledge on TA might want to confirm but it looks good to me :)
The SP momentum looking really good. and the business momentum even better!
The chart is looking very gooooood. So nice holding IKE. Looking forward to the next update. the company has such momentum. good stuff
Someone bought a few today ........ when's the next update due?
When investing during a recession it’s good to find companies that can grow through a recession and have a strong balance sheet
Tick tick for IKE!
Well done IKE, profit of $1.1m and revenue of $15.4m for 1H.
This company is going places. Ramping up for a great future in my humble opinion.
https://www.nzx.com/announcements/403197
I agree. Great momentum and now that the company is NPAT positive a lot of investors will now be able to look (and invest) in this company. Great micro cap investors like Ian Cassell say stay away from the companies not making a profit. so IKE will now pop up on a few radars.
Stats say buying in at the quarter before a micro cap turns positive is when you make a killing. So will be interesting to see what happens to the SP over the coming weeks now the confirmation has come in that its npat positive.
Percy will be happy.
Webinar on Thursday:
Quote:
ikeGPS 1H FY23 Investor Webinar
29/11/2022, 11:45 am MEETINGikeGPS 1H FY23 Investor Webinar
ikeGPS Group Limited (IKE) (NZX: IKE / ASX: IKE) is pleased to announce, following the release of its 1H FY23 Interim Financial Statements this morning, the Company’s CEO Glenn Milnes will host an investor webinar on Thursday 1 December at 9.30am AEDT, 11.30am NZT.
Investors and interested parties can register for the presentation via the following link:
https://us02web.zoom.us/webinar/regi...SL-rhidpGbWcTA
Investors are invited to submit questions prior to the event to:
simon@nwrcommunications.com.au
In Bell Potter's 2023 picks
ikeGPS Group (IKE)
IKE delivers operational efficiencies
within Utilities and Communications
companies and related Engineering
firms by replacing legacy processes
with hardware and software solutions.
In addition to posting 1H23 revenue
growth of 169.8% vs. pcp to $15.4m,
which was roughly equal to its full
year FY22 revenue of $16m, IKE also
delivered a maiden interim positive
operating cash flow and statutory net
profit. The result was driven largely
by increasing transaction volumes as
use of its software and services grows
within IKE’s enterprise clients. IKE’s
business activity is underpinned by
the $310 billion fibre and 5G rollout
in North America, which offers IKE
the opportunity to embed its solutions
within clients.
Buy (Speculative), Valuation $1.21 [Note au]
Ramping up the share count at a hell of a rate of knots.
Extremely expensive funding for existing owners.
Wouldn't read too much into a small accounting 'profit'. When you're hovering up that much capital and in this type of industry there are a lot of moving balls. Doesn't look madly expensive but this stuff is bloody difficult.
The real question is will they make a decent return on all the equity capital they are hoovering up.
I don't know anything about the company but JAK said it was her biggest position alongside OCA.
Just be damn careful, very very speculative. I see The mighty Cathie Woods on the register too.
Can also produce very high returns if successful. But very difficult to analyse.
If you wan to see a business with exploding revenues then start a company offering $100 notes for $50.
My "biggest position" equates to only 5000 shares, so nowhere near as many as you probably imagined ;)
I have allowed myself one speculative holding - and IKE is it. I have looked into IKE very closely, to get an understanding of exactly what they do. My ex husband was an electric line mechanic, which gave me a basic introduction to the electricity distribution industry, and an awareness of some of what is involved with network construction and pole maintenance/monitoring. I am no expert by any means, but the knowledge I gained while we were together, has definitely helped me understand and appreciate what IKE does, their business ambitions, and the potentially huge market the US electricity and telecommunications sector presents.
I went into it knowing this was a calculated risk, and I am more than happy to be invested. If IKE continues as they currently are, stays focused, and ensures they continue to meet (exceed) the needs of their "sticky" customers, I have no doubt this company will be a success, and a smart long term investment.