SenSen Networks Ltd (ASX:SNS) (OTCQB:SNNSF) continued its operational expansion in North America during the March quarter in line with accelerated growth plans that see projected FY21 revenue set to increase by more than 40% year-on year.
In the company’s March quarterly report, SenSen highlighted its strong performance through COVID-19 with expectations that the positive momentum will continue for FY22 and beyond.
After raising A$7.1 million early in the quarter with strong support from institutional and professional investors, the company continued its growth momentum and received customer receipts of around A$820,000 in the March quarter - a 9% increase over the previous corresponding period.
Strong growth initiatives combined with disciplined expense management has led to an expected FY21 year-on-year revenue increase of more than 40% while keeping expense growth to less than 11%.
SenSen also continued to establish a strong sales pipeline through the quarter by establishing new channel partners globally, responding to multiple global tenders and participating in proof-of-concept trials across the globe.
Pipeline established with recurring revenue
Chief executive officer Dr Subhash Chall said: “Our pipeline is now reinforced with significant recurring revenue contracts because of our strong third quarter performance.
“In a post-pandemic world, we see significant potential to expand revenues in the US and other geographies.”
After the quarter’s closure, the company released its North American operations and expansion update, where SenSen noted a strong positive upswing in recurring customer revenue.
Currently, SenSen’s ARR flowing in from American and Canadian operations exceeds A$1.5 million per annum from FY22 and is likely to fund all its marketing, sales and operational expenses for North America.
The company believes this is a great result as it lays strong foundations for growth into the future.
Strong revenue growth predicted
All clients have renewed their contracts including City of Brisbane, City of Calgary, City of Edmonton, Changi International Airport and multiple smart surveillance analytics customers of recently acquired SNAP Network Surveillance continuing SenSen’s track record of zero churn and strong annual recurring revenues.
Post reporting period, new orders were received from City of Brisbane and Chicago Parking Meters for additional systems and services driving strong revenue growth in FY22 and beyond.
Three components
The attractiveness of SenSen’s products comes from three critical components - data fusion, AI algorithms and software - working together to produce results that improve the productivity and safety of customers’ operations and deliver business insights that are otherwise impossible to obtain from traditional data sources.
SenSen has completed the hiring of key marketing and sales executives to accelerate growth in the region with additional staff hired to increase key account management and customer support.
North American headquarters
North American headquarters have been opened in Las Vegas, Nevada, fitted with a range of SenSen solutions for demonstrations and customer sales.
The company will also participate and present at multiple vertical-focused industry trade shows and conferences in the region in the next six months to support marketing efforts and promote SenSen solutions.