SenSen Networks Ltd (ASX:SNS, OTCQB:SNNSF) picked up lucrative contracts across a range of clients looking to increase data collection and automate compliance activities in 2021 – and this promoted strong growth in the December quarter.
The company reported cash and cash equivalents of A$8.1 million and unused finance facilities totalling A$1.8 million on the last day of the year.
Sales drove growth
The uptake of AI in a range of applications across all sectors is no doubt part of the story behind SenSen’s success. The company offers targeted data-gleaning technology including compliance, surveillance and GPS services for councils and bet-tracking for casinos.
Some of the heavy-hitting names on its client list include the National Heavy Vehicle Regulator, Transport for NSW, Chicago Parking meters, Sunshine Coast Regional Council, Queensland Revenue Office, Brisbane City Council, Crown Casino and the Hippodrome Casino in London.
Strong financials
The company delivered a record monthly recurring revenue (MRR) in the vicinity of A$0.45 million, an annual figure of around A$5.3 million, and is on track to growing its MRR to A$0.65 million (around A$8.0 million annual recurring revenue) by the end of this year on the back of new contract wins.
SenSen absorbed net cash expenditure of A$3 million on its operation during the quarter as it continued to target growth, investing in sales and marketing initiatives to promote its AI services.
At the same time, it drove down its debt with repayments of $1.3 million during the quarter to consolidate its balance sheet and give it the fire power for aggressive future revenue growth.
Growth won’t stop here
In its report the company said it expected to start seeing higher and growing cash receipts in 2022.
This was a period of strong growth in the company’s customer base, with eight new commercial contracts announced at a combined value of more than $4.8 million.
These included five smart cities, two casinos and one retail business with a stable of more than 50 service stations.
The company expects this momentum to accelerate in the coming months, as its aggressive sales strategy continues to bear fruit.