IKE Q3 FY25 Performance Update

Continued strong growth of annual subscription revenue exit run rate (+43% vs pcp). Record ~NZ$44m in contracts closed in the nine-month period. Total cash & net receivables growth of +NZ$4m in the quarter. Gross margin dollar growth of +42% vs pcp and gross margin percentage growth to 68% (pcp 58%). ikeGPS Group Limited (IKE) (NZX: IKE / ASX: IKE) is pleased to release a performance update for the recent quarter and the nine-month period to 31 December 2024. All figures are in NZD, rounded to the nearest decimal, unaudited and subject to minor change. Highlights for the nine-month period: Exit run rate of annual platform subscription revenue grew to NZ$15.7m (+43% vs pcp). Total recognized revenue in the period of NZ$18.5m (+21% vs pcp), with recognized revenue in 3Q of NZ$6.3m. Comprising the above was: + Subscription revenue of NZ$10.2m (+29% vs pcp). + Transaction revenue of NZ$5.8m (+14% vs pcp). + Hardware and other services revenue of NZ$2.5m (+9% vs pcp). Gross margin of NZ$12.6m (+42% vs pcp), with gross margin in 3Q of $4.5m. + Gross margin percentage of 68% (up from pcp of 58%), driven by revenue mix continuing to shift to high margin subscription products. Total cash and net receivables grew +NZ$4m in the quarter to NZ$13.6m. + Comprising NZ$9.2m in cash and NZ$4.4m in net receivables (NZ$5.9m receivables, with payables of NZ$1.5m) and no debt. This is a result of continued overall growth, from winning numerous large subscription contracts in the prior quarters and associated collection timing, and ongoing operating cost control. + The 31 December 2024 cash position is +NZ$1.2m on the same time in the year prior. Commenting on company progress through the recent quarter, IKE CEO Glenn Milnes said: "3Q25 was another strong quarter marked by significant subscription contracts closed with tier-1 North American customers, driving continued growth in ARR run rates. This resulted in the addition of 1,270 new subscription seat licenses during the quarter, bringing the total to over 7,000, a +181% increase compared to the prior year. Notable subscription customer wins in the quarter included with a 100+ year-old electric utility that delivers power to more than three million customers in the south of the U.S., an enterprise agreement with a national engineering group with 150 offices and 8,000 employees globally, and a U.S. communications company with >$50B revenue where IKE is initially supporting their overhead infrastructure operations across California. We have closed a record ~NZ$44m in total contracts over the past nine months, spanning approximately 640 deals. It is important to note that some of these subscription and transaction contracts will be recognized over a multi-year period, with the execution of certain transaction contracts dependent on IKE customers completing their associated engineering. Our balance sheet remains strong. The cash and net receivables position increased NZ$4m in the quarter. This is a result of continued overall growth, from winning numerous large subscription contracts in the prior quarters and the associated collection timing, and ongoing operating cost control. Our current cash position of NZ$9.2m exceeds the level reported at the same time last year. This has been achieved while investing significantly into building five new products and while we have continued our expansion in the market with new customer wins running at around one per week. The investment into product and market development is yielding returns. For example, since the launch of the IKE PoleForeman product 13 months ago, Total Contract Value (TCV) has surpassed NZ$16m, driven by adoption among tier-1 electric utilities in the U.S. market. This has significantly contributed to ARR growth. The highly sticky nature of these customers ensures substantial lifetime contract value. To date, 109 customers have subscribed to the platform, including 59 existing customers and 50 new ones. This growth has driven the issuance of over 7,000 subscription seat licenses, each representing a distribution network design engineer using IKE’s software. We expect more major customers to close in the near term and that by the end of FY25 IKE PoleForeman will be the Standard for structural analysis in eight of the ten largest electric utilities in North America. The Company will discuss the results on a webinar with CEO Glenn Milnes at 11:00am AEDT/1:00pm NZDT today – Tuesday, 28 January 2025. Registration for the investor webinar is available via the link below: https://us02web.zoom.us/webinar/register/WN_lckrWYsDRcC-yVDJYxiLTw Questions can be pre-submitted to simon@nwrcommunications.com.au or asked via the Q&A function during the webinar. After registering, you will receive a confirmation email containing information about joining the webinar. ENDS Contact: Glenn Milnes CEO +1 720-418-1936 glenn.milnes@ikegps.com Simon Hinsley Investor Relations +61-401-809-653 simon@nwrcommunications.com.au