SenSen Networks Ltd (ASX:SNS, OTCQB:SNNSF) has maintained a 60-70% revenue growth forecast for the 2022 financial year despite flooding impacts causing delays to project implementation and reducing revenue guidance for the 2022 financial year, revised to A$9-$9.5 million from the predicted A$11 million in revenue.
Flooding in Queensland and New South Wales impacted revenue from existing smart parking and curbside management customers in affected areas, while also delaying project implementation – and some anticipated contracts - in both the Smart Cities and Retail verticals.
There have also been delays in the rollout of anti-fuel theft technologies in petrol stations due to the combined impact of flooding and added cautiousness in customers introduced by global oil supply and price uncertainty.
Revised revenue guidance
As stated, the revised revenue guidance for the 2022 financial year has been revised to A$9-$9.5 million, representing a 60-70% increase from the previous years’ A$5.5 million in revenue.
Monthly recurring revenue (MRR) also continue to grow, and has now been upgraded to A$650,000-$700,000 per month, translating to annual recurring revenue (ARR) of A$8-$8.4 million as customers recognise more revenue on a software-as-a-service (SaaS) basis.
SenSen says its order pipeline remains robust, with no expected order or contracts lost. Instead, the company is confident the timing of revenue items is likely to shift into the next financial year rather than being lost altogether.
About SenSen Networks
SenSen Network is focused primarily on the development, commercialisation and supply of innovative, data-driven business process enhancement solutions.
The company’s software combines enterprise video and sensor data acquisition, data fusion, Internet of Things (IoT) and Big Data analytics into a highly scalable and configurable platform that allows customers to improve the speed and accuracy of their decisions.
SenSen’s R&D and sales teams in Melbourne are supported by an Indian team providing administrative and back-end support and services, including, software testing, quality assurance and customer support.