Seeing Machines Ltd (AIM:SEE, OTC:SEEMF) said revenues for the year increased by a better-than-expected 48% to US$57.8 million as its eye-tracking technology gained significant commercial traction, particularly in the automotive market.
In a progress report alongside full-year results, investors were also told the business would be cash break-even during full-year 2025, while revenues are expected to have more than doubled to US$125 million by 2026.
Non-recurring engineering revenue, a key indicator for future royalty income, rose by 53% to US$9.7 million in the 12 months ended 30 June 2023, while annual recurring revenue (ARR) increased by 27% to US$13.6 million.
The underlying loss narrowed to US$9.6 million for the period (from US$16.3 million), while the company had US$30.6 million in cash as of the end of last month.
Seeing Machines' technology is a key component in new wave vehicles, particularly EVs, as it helps monitor driver distraction. It is also seeing significant interest from the aviation industry.
Regulatory momentum is on the rise, especially in Europe and the United States, where new safety legislation is being introduced requiring technology to reduce risks associated with distracted and impaired driving.
"The global demand for our technology has delivered strong growth, despite some challenges and delays," said chief executive Paul McGlone.
"Our three business units are now well established, and we are expecting to see continued growth from each of them as we move closer to compliance deadlines in Europe, where every vehicle on European roads will require technology to mitigate risks associated with fatigue and distraction."
Operationally, the company's automotive sector saw a world-first collaboration with Magna International (TSX:MG), which included a US$65 million investment in Seeing Machines.
The tie-up develops driver and occupant monitoring system (DMS/OMS) technology integrated into the rear-view mirror.
Additionally, six original equipment manufacturer (OEM) programmes have started production, and Seeing Machines' technology is now installed in over one million vehicles globally.
An exclusive licence agreement was signed with Collins Aerospace in the aviation sector, generating licence revenue over three years of US$10 million. This collaboration aims to develop pioneering eye-tracking solutions for the aviation industry.