IKE GPS banking on new products and AI for continued growth

• Subscription revenue exit run rate growth of 31% vs pcp
• FY27 Guidance maintained for 35% ARR growth
• New products expected to drive further ARR expansion
• AI continues to provide competitive advantage

IKE GPS Group (ASX:IKE) has three new products coming to market in 2H of this financial year that are expected to drive more annual recurring revenue (ARR) growth after reporting a strong three-month period to June 30, CY26.

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The platform technology company reported an annualised exit run rate (ERR) of subscription revenue of approximately $22 million, plus 31% vs prior calendar period (pcp)

The company unveiled platform subscription revenue for the quarter of NZ$5.3 million, +27% vs pcp and a gross margin up to 82%, from 75% vs pcp

Total revenue for the quarter ~NZ$6.4 million, which was flat vs pcp reflecting some interim softness in one-off and lower-margin services revenue to market with products.

The company’s CEO and MD, Glenn Milnes, said in CY25, IKE was funded to invest in new products and AI-first technology. Release timing of these products remains on track for 2H of this financial year.

“The first module of our next generation platform is focused on make-ready engineering which automates and improves how power utility distribution networks are designed for new capacity and attachments to networks,” Mr Milnes said.

“Our second new product takes IKE beyond structural analysis and engineering design into the management of the electrical delivery side of distribution grid management; we have built this with a customer council that includes the standards directors from many of the largest electric utilities in the U.S.

“Our third new product creates a solution for structural analysis tailored for communications companies that are deploying fibre.”

Mr Milnes said the company is investing in artificial intelligence (AI) for competitive advantage. “We have continued to actively invest and deploy AI across IKE both in our internal business processes and inside our products,” he explained.

“AI is an enabler that can accelerate our growth and gives IKE the capability to rapidly enhance our products and user experience, as evidenced by the recent PolePilot launch that enabled a 10% price increase within IKE Office Pro.

“In 1Q we launched a proprietary AI platform called IKE Vitruvius. This has been deployed internally across our software development, product, and sales & marketing teams, running customer specifications, field operations procedures, and software engineering delivery every day. This has now executed over 200 plans.

“The reason AI compounds advantage rather than eroding it comes down to three things: IKE’s proprietary data — more than 20 million real-world utility assets designed by engineers in our database — that we believe very few of our electric utility customers are going to build this software themselves, and the speed with which we can fold new AI capability into our own industry-specific workflows.”

IKE is steady at 95¢ with a cap of $184.4M prior to markets opening.

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