Half Year 2025 Ikegps Group Ltd Earnings Call Transcript
Key Points
- Platform subscription revenue showed strong growth with a three-year CAGR of 38%, reaching $6.5 million in the first half of fiscal year 2025.
- The company's exit run rate for annualized platform subscription revenue grew by 34% year over year, with expectations of 40% or greater growth by the end of fiscal year 2025.
- Seat licenses have grown over 179% in the last year, with approximately 6,000 active licenses, indicating strong customer adoption.
- Blended gross margin improved to 67% in the first half of fiscal year 2025, up from 59% in the previous year, driven by higher margin subscription revenue.
- The company has a strong balance sheet with $11.1 million in total cash and receivables, and no debt, allowing for continued investment in product development.
- Cash reduced by $3 million over the last 12 months due to substantial investment in new product development.
- Platform transaction revenue growth was modest at 6% over the prior year, indicating potential challenges in this segment.
- The company's growth is heavily dependent on customer adoption and timing, which can be variable and customer-dependent.
- Despite strong growth, the company faces constraints in scaling delivery to large utility customers due to its size.
- The process of converting large utility customers to new products like IKE PoleForman can be slow due to established operational practices.
Good morning and welcome to Ikegps' first half of financial year, 2025 performance update as released on the NZX and ASX. This morning in the company today, we have the CEO Glenn Milnes and the Co Brian Muel before I hand it over to Glenn and Brian to pulse through the presentation up on your screen. I'll just remind you that you can submit questions through the Q&A button at the bottom of your zoom screen. Or alternatively for analysts, you can raise your hand and ask a question verbally, Glen, I'll hand it over to you. Thanks very much.
Great, thanks Simon and thanks everyone for taking the time to meet. We had our annual shareholders meeting about a month ago. We're keen to talk you through the second quarter of the year in particular. It's been a really strong quarter for the business. So there's a bunch of exciting things happening and you know, continued good momentum. So what I'd like to do is have Brian, our CFO Brian
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