ikeGPS expands IKE PoleForeman footprint in the US with new utility clients
Platform technology company ikeGPS Group (ASX: IKE) has secured $3.63 million in new contracts for its next-generation subscription software product IKE PoleForeman.
Launched in October, this structural analysis product enables utility engineers to efficiently design distribution power and communication networks.
Since its launch, it has accumulated more than $10.88m in total contract value, representing approximately $4m in annual recurring revenue.
New clients include the largest parent electric utility group in the US by revenue – which delivers power to 10m customers – and a Fortune 500 group serving 7m customers across the northern part of the US.
PoleForeman’s total addressable market in the region includes more than 3,000 electric utilities and their engineering partners, as well as over 200 tier-1 communications groups.
‘Sticky footprint’
ikeGPS Group’s contracts to date will enable 3,700 engineers across 47 utility groups to use PoleForeman on a subscription basis.
This includes 28 existing customers who have been upsold and 19 new customers.
Within the next 12 months, the company expects eight of the ten largest investor-owned utilities in the US to standardise on IKE PoleForeman for their distribution network design.
The company also anticipates that dozens of additional utility and engineering customers will transition to the platform in the short and medium term, given the market acceptance of IKE PoleForeman as an industry standard.
“These customers represent a highly sticky footprint for us,” the company said.
“PoleForeman is core to the network design process within these businesses, often with hundreds of engineers using the product every day.”
“It is a difficult solution to replace and long-term retention rates exceed 95%.”
“We have an expectation for a significant lifetime value multiple beyond the total contract value levels currently being closed.”
Product suite
ikeGPS offers a suite of products for the collection, analysis, management and digitisation of pole and overhead asset information for electric utilities, communications companies and their engineering service providers in North America.
The company currently serves more than 395 customers with subscription products and expects total subscription revenue growth of more than 50% by March 2025.