SenSen Networks market recognition bolsters strategic vision to become globally recognised AI company.
SenSen Networks Ltd (ASX:SNS) (OTCMKTS:SNNSF) recorded its best-ever half-yearly result since listing on the ASX, reporting revenues of A$2.5 million for the six months to December 31, 2020. Record revenue represents 33% year-on-year (YoY) growth compared to A$1.88 million reported for the December 2019 period. The company’s strong financial performance and support from shareholders have been reflected in the positive performance of its stock with a more than 300% increase on the price since the start of FY21. This period also saw the company list on the US OTC markets, complete its first-ever acquisition and complete a capital raise with high-profile institution and high-conviction global equities fund manager VGI Partners. SenDISA platform The company’s SenDISA platform gathers data from multiple live camera feeds as well as data from disparate sensors such as GPS, Lidar and other IoT devices in real-time, then analyses the data to find patterns and trends hidden within the data. Three critical components - data fusion, AI algorithms, software - work together to produce results that improve the productivity and safety of our customers’ operations and deliver business insights that are otherwise impossible to obtain from traditional data sources. The company is currently focused on two market segments: Roads and Parking with customers in city councils, transport agencies, tolling companies and parking management operators; and Buildings and Spaces with customers in casinos, airports, retail stores and shopping centres. Scalability of the platform While these two market segments are both large and offer significant growth opportunities for the company in coming years, SenSen’s long-term vision is to launch more products and services into new market verticals to truly realise the full potential of the platform. The company has proven the accuracy and scalability of the platform and introduced products in diverse use cases such as parking enforcement in Smart Cities; security and safety in some of the world’s busiest airports; and live customer activity tracking at casino gaming tables. These disparate markets and use cases, while delivering growing annual recurring revenue to SenSen, are also funding further development of the platform to support the company’s vision to be the software platform of choice to solve multiple industry problems vital to real-time monitoring of business operations, staff and customers. New customers and contract renewals Several new customers were added since July 2020 contributing to both upfront revenues and ARR to the company, including: New ARR-generating customers added this half-year include multiple city councils in Australia and New Zealand, multiple private car park monitoring operators, and two new customers from Singapore in the intelligent security vertical; and All existing customer contracts that were due for renewal were renewed including Brisbane City Council, City of Calgary and Changi International Airport (via our partner Beacon) continuing our record of near-zero churn. The multi-camera, multi-sensor data fusion software platform can be reconfigured on demand to meet a multitude of customer use case requirements. Successful technology trials The company has recently successfully completed several high-profile technology trials and is working with the customers and partners involved to explore ways to take them into production. The trials include: Queensland Department of Transport and Main Roads (TMR) distracted driver detection – trials for detecting people using smartphones while driving; Canterbury-Bankstown Trial 1 – School zone safety; Canterbury- Bankstown Trial 2 – Off-street parking monitoring & management; Transport for NSW - Powering a better citizen parking experience with UbiPark; Brisbane City Council – Environmental Mapping Technology to further enhance the city’s operations; and Chicago Parking Meters – Environmental Mapping Technology for Chicago’s city applications. New technology trials underway Some of the new trials initiated in this financial year and still under progress are: Multiple paid trials with a city council in Victoria; Bus lane enforcement in Singapore; New technology trials in City of Las Vegas and other cities in partnership with a leading US telco operator; New technology trials are in progress with existing casino customers, as it rolls out additional modules and features to the existing SenGAME product; and New technology trials for a casino gaming solutions at a prestige UK casino: Hippodrome. The company notes that 70% of its technology trials are paid trials with around 90% of them converting to multi-year ARR contracts. Accelerating growth going forward Post the reporting period, SenSen completed a capital raise of A$7.15 million to accelerate its sales, marketing and product delivery capabilities. Looking into the second half of FY21 – based on new clients, contract renewals and additional orders from existing customers – the company estimates the accounting rate of return (ARR) in FY2022 could be around A$4.1 million (a 24% increase YoY). Additional orders are expected to further accelerate ARR beyond these estimates. The company continues to invest strongly in new product innovation to lower the cost of adoption by customers and offered new high-value features to increase its margins, including: Distributed AI processing to further reduce the cost of solutions; Adding new features to help address anti-money laundering problems within casinos; An all-in-one ‘vision zero’ product line to cost-effectively reduce accidents and save lives on roads and highways; Integrating SNAP surveillance and SenSen software for a fully autonomous multi-camera person tracking solution for large-scale surveillance networks; Environmental mapping technology to determine the exact location of moving objects when GPS accuracy is poor using image analytic solutions; and Working with University of Melbourne on a joint ARC research grant for digitization and asset audit applications. In addition, several new patent applications are being pursued to protect ground-breaking new innovations under development.Full Article