SenSen Networks Ltd (ASX:SNS, OTCQB:SNNSF) has tabled record revenue in FY22’s first half, a result it believes demonstrates considerable growth momentum.
The sensor artificial intelligence (AI) software and solutions provider unveiled its interim financials on Monday, notching A$3 million in revenue in a 19% improvement on the previous corresponding period.
SenSen’s monthly recurring revenue was also a record figure, with roughly A$450,000 brought in each month over the period, leading to annual recurring revenue of around A$5.3 million.
Looking ahead, the tech stock is on track to achieve FY22 revenue of roughly A$11 million and grow monthly recurring revenue to around A$650,000, representing an annual recurring revenue of roughly A8 million, by the end of the financial year.
SenSen by the numbers
SNS posted an earnings before interest and taxes (EBIT) loss of A$6.9 million over FY22’s first half, up markedly from the A$500,000 loss recorded in the previous corresponding period.
SenSen says this result reflects a deeper investment in sales and research and development as it works to accelerate growth and expand into new market segments.
The company reported an underlying EBIT of A$4.8 million — excluding an non-cash share-based payments expense — which is in line with the previously reported net cash used in operations over the financial year’s first half.
Activities wise, the period shaped up as a busy one for the SenSen Networks team.
The tech stock raised a A$10 million war chest over November and December through two placements and a share purchase plan to fund its growth momentum.
SenSen also acquired Scancam Industries, a provider of AI anti-fuel-theft solutions, in July for A$6.5 million.
What’s more, the company has since nabbed eight new contract wins with a minimum value of A$4.782 million over the next two to three years in each of its key market segments – including the smart cities, casinos and smart retail brackets.
SenSen ended the half with A$8.2 million in the bank to see it through the rest of FY22 — up from the A$5.2 million in reserves at the end of FY21.
“Never been more excited”
Speaking to the company’s interim financials, SenSen CEO Dr Subhash Challa said: “Our solutions are gaining strong sales momentum in each of our key market segments … as evidenced by eight new contract wins in the second quarter of 2022.
“The sales pipeline is continuing to build and is expected to lead to further customer contracts in the near future.
“This is due to investments made in the new sales teams across the globe and the successful trials of our award-winning data fusion AI software that we have been developing over the past 15 years.
“The acquisition of Scancam, along with eight contract wins in the second quarter of FY22, 120% net customer retention rate and a strong pipeline of opportunities in existing and new market segments positions us well to achieve the growth needed to achieve FY22 revenue of roughly $11 million … by the end of FY22.
“The recent capital raisings will support our plans to grow market share in our target verticals and geographies with further investments planned in sales, marketing, product innovations and product delivery.
“We have never been more excited about the growth prospects for SenSen and look forward to providing updates on our progress.”