SenSen Networks Ltd (ASX:SNS, OTCQB:SNNSF) has achieved a record monthly sales cash inflow – in the vicinity of A$1.1 million – in the month of May, and predicts that these strong sales cash inflows will continue in June.
The AI software and solution provider has won multiple new Smart Cities customers globally over the last few months, generating roughly A$850,000 in consolidated upfront revenues and around A$125,000 per annum in recurring revenues.
“Land and expand” strategy
Several of the company's existing customers have also ordered additional systems, demonstrating continued strong momentum in the sales pipeline, and validating the “land and expand” strategy.
The company says it is also seeing strong customer retention and demand, with existing customers ordering new systems and solutions with significant future upsell potential.
Recent new customer contracts and purchase orders currently being implemented include:
- North America – Concord Parking – SenSCAN and Gemineye solutions for parking stations – around A$60,000;
- Singapore – Port of Singapore projects with combined revenue from two orders of more than A$500,000;
- Melbourne, Victoria – VicRoads – paid traffic monitoring trials earning around A$200,000; and
- Other new customers amounting to around A$90,000.
SenSen CEO Dr Subhash Challa said: “As we execute new contracts and continue to upsell to our customer base with our world-leading sensor AI solutions, SenSen is laying the groundwork to continue the company’s strong growth momentum.
“In response to difficult global market conditions, we are reducing the company’s expenses while remaining confident in our ability to execute on the ‘land and expand’ strategy.
“Our executive leadership is firmly focused on the goal of delivering a cash-flow positive future for the company.”
Revenue generation model
SenSen’s revenue generation model includes software as a service (SaaS) and upfront revenue from new customers.
The company has been focused on growing its recurring revenue from existing customers as well as targeting new customers through its land-and-expand strategy, focused on Australia, Singapore and the North American markets.
The company’s board has decided to reduce organisational expenses given recent volatility in global financial markets and ongoing supply chain constraints, while delivering operational efficiencies across the company.
Additional cost-cutting measures are being implemented to help the company reach cash-flow positivity.