Great interview with Ike, very focussed on opportunity and pathway to profitability by focussing on core competency

definitely on the watch list

Thanks @strawman for the very insightful interview this morning. Have held IKE previously on the basis that they were gaining scale at high gross margin and reaching that point where they would become profitable. A case of buying too early. With that gleaned this morning, diarised to take a first position ahead of their half year results. For others considering entry, liquidity on the ASX is an issue, but that may change if they progress through FY2023.

RobW

Many thanks to @shivrak and @Strawman for setting up the Glenn Milnes discussion. I wanted to post my key takeaways, being things I learned that I had not known from earlier investor calls and presentations.

• $IKE does not expect to have to raise further capital to support current operations. (Implication: not ruled out for acquisition)
• Confident of strong growth ("as good as FY22") in FY23
• Expect to see operating leverage emerge in FY23. (This has not been evident over the last three years.)
• Some of USA's largest utilities sit on the $IKE's "User Council" (Exelcon, Southern etc.)
• The 4 players in pole integrity software (i.e. PoleforemanOS) have currently penetrated about 45% of the market (unclear if by # customers or revenue). The race is for the 65% undecided and going deeper into existing customers.
• $IKE are laser-focused on utilities (poles and wires) and their focus is to innovate to get deeper into this. The size of the US market is so material that for the foreseeable future, they are not looking elsewhere (This is highly commendable.)
• $IKE expect GMs to expand over time. In balance to this, customers need support to ensure success, so more people come with more customers and it is not a pure SaaS margin. (We'll need to monitor this and it will be trackable through their unfolding operating leverage.)
• There is a lot of prviate equity sniffing around this space, so perhaps $IKE are most vulnerable in the current market conditions. Nothing we can do about that.(Unsurprising, given the $1.2 trillion infrastructure program.)

Overall, on balance, I came away from the meeting with my convictions somewhat strengthened.

Disc: Held on SM and IRL. Of my speculative holdings IRL, $IKE is my largest.

Unfortunately this mornings meeting with ikeGPS CEO has been postponed until Friday morning. Will send out a reminder on Thursday night.