ikeGPS Group Limited

Good morning and welcome to iGPS quarterly update where we have the CFO, Paul Cardosi, on the line. We'll have Glenn Milnes, the CEO, join shortly. Just a reminder that if you did want to ask a question, please submit it through the Q&A button down at the bottom of your screen or for analysts, you can raise your hand and I'll allow you to talk. But Glenn is going to run us through most of the financials as a part of the quarterly first and then we expect Glenn to join shortly. Thanks very much, Paul.

Thanks, Simon, and good morning and good afternoon to everyone. Thank you for joining our third quarter performance update. We published our results earlier today, so hopefully you'll get a chance to look at the document. We're not presenting slides today. I was actually going to talk you through the handout that's been published on our website as well as the NZX and ASX. Overall, we've had a very strong third quarter, continuing on from the strength that you saw in the second quarter. At a very high level, our subscription revenues continue to grow at a 35% growth pace. You'll see that in some of the slides that we have. We're also seeing continued improvement in gross margins, which creates operating leverage for us as a business. And we do that with a healthy balance sheet that we're investing into new products which are on track for release later in their calendar year. I'm going to jump to the financial part of the presentation. and it's the section that's titled Performance Summary. I'm going to start with what we call our exit run rate or annual recurring revenue trend. You can see that through the nine months year to date, we finished at 21.1 million New Zealand dollars. That's an increase, 35%. It's actually 36% in constant currency. We had a little bit of a impact from the U.S. dollar, New Zealand exchange rate. That represents about a 39% three-year annual, compound annual growth rate. So subscriptions is where the business is predominantly focused, and you can see that as we continue on that growth trend. One thing of note, we launched a product called Ike Pull Foreman, and literally two years ago, and that product exceeded 10 million of that exit run rate ARR. So really pleased to see the strength of Paul Foreman and our numbers continue as we report today. If I go to the next chart, we look at subscription revenues. So this is our recognized subscription revenues, again, nine months year-to-date. We finished year-to-date at 14.1 million. That's a 38% growth rate over the year-to-date period from the prior year. What's not on the slide is we actually did about 5.3 million in subscription revenue in our third quarter, which is actually a 43% year-over-year growth rate. So you can see from those two slides, subscription revenues continue to grow and the pace is picking up. In the third quarter, we added about 2 million of ARR. A lot of that comes from new logos. We continue to win engineering and utility new logos. We're also expanding significantly the portfolio into our existing customers. So that trend and that business model continues for us. If I go to the third slide, which is the seat license trend, the majority of our sales are sold on an annual per seat basis, an annual per user basis. Seats grew at 30% year over year. We're also seeing an increase in our average revenue per unit. And a lot of that has been helped by a recent release of our AI-based pull pilot that sells as part of our Ike Office Pro product line. So seat growth continues well. The pricing continues well underlying those seats. So continued growth there. If I go to the next slide, it's our transaction or services business. And you can see that we had some weakness there in our services revenue. If you remember from prior calls, a lot of our services customers are broadband communication companies. The U.S. government had a reset on funding for some of those companies. So a lot of the funding is there, but it's being delayed just through legislation changes. And we're seeing that in some of our service business. So you can see that in a year-to-date numbers, you know, we're down 50%. year over year, both on the number of polls that we count in our transactions, as well as the services revenue. We have made moves to restructure the team that supports this business. We've offshored a lot of the work, so we are seeing improved gross margins and services, which adds to operating leverage across the company. I'll jump next to the segment revenue, so you can see The $19.8 million New Zealand dollars of revenue that we're at year to date and how that is broken out. The recurring piece, which is our subscriptions. and a reoccurring piece which is the transaction revenue sits around 90 of our total revenue today um and you can see that um for the for the year today we grew revenues around uh seven percent and a year over a year for the quarter revenues were up around 11 so continued growth across the revenue but clearly the mix is the subscription piece of the business um I'm going to, before we get into questions or if Glenn joins, I'll just finish with the metrics chart and just make some comments on it. This is the table at the back. Gross margins continue to improve. You can see 79% versus 68%. The subscription mix helps that. The restructuring we've done in the transaction services business helps that. That creates leverage, leverage that we're using to invest in some new products, as well as on our path to EBITDA positive. So that table gives you a sense of not just the overall margin of the business, but how the margins of our product line stack up. You can also get a sense of our customer counts, as well as revenue margin by segment. I'm going to close there with just comments that it's a solid quarter. We see a similar, you know, early signs in our fourth quarter, which started in January. And we continue to book business and we're off to a relatively strong start as we embark on the fourth quarter and the final quarter of our FY2026. And with that, Simon, I'll hand it back to you.

Perfect. Our first question is from James Lindsay at Forsyth Bar. James, please go ahead.