SenSen Networks lifts FY2021 revenue guidance to between $5.3 and $5.5 million

SenSen Networks Ltd (ASX:SNS) (OTCQB:SNNSF) has lifted its unaudited revenue guidance for the 2021 financial year to between $5.3 and $5.5 million as demand for its smart data and artificial intelligence (AI) solutions continues. 

Its outlook for FY2022 is even more positive – it is expecting $8.1 million in unaudited total revenue and $5.5 in unaudited annual recurring revenue. 

The company is targeting a net retention rate for customers of more than 120% for FY2022, with zero churn – all customers renewing their contracts for FY2022.  

The short term

In a new investor presentation, SenSen outlined the $5.3 million – $5.5 million unaudited revenue guidance, as well as an expected unaudited annual recurring revenue (ARR) of about $3 million, a 50% increase on 2020.

Following a capital raise in January, the company has now completed the appointment of key executives covering sales, marketing, account management, project management and other support resources in India, to establish the platform for accelerated revenue growth in FY2022 and beyond.

SenSen will not be cashflow breakeven or profitable in FY2021, as it made a strategic decision to conserve cash to invest for revenue after the capital raise.

“We plan to invest into marketing and sales channel development, productisation of our world leading products, accelerate growth in smart cities and casino markets and target 100+ customers generating ARR,” SenSen chief executive officer Dr Subhash Challa said.

Looking ahead to FY2022

The company expects $8.1 million in total unaudited revenue in FY2022, which excludes an estimated additional $3 million revenue from its recent Scancam acquisition.

Dr Challa said the company was also looking at its medium to longer-term growth strategy.

“We plan on investing into our technology platform to make it robust and scalable to multiple markets, adding adjacent market verticals like retail, intelligent surveillance and others, open our platform to 3rd party application developers and invest into building the application developer ecosystem to exponentially increase the customer base and associated revenues,” he said.

What is working so well

The company in late May acquired Scancam, which provides award-winning AI technology for service stations, to prevent people driving off and stealing fuel.

That acquisition followed the acquisition of SNAP Networks Surveillance with SenSen integrating SNAP technology into its platform – SenDISA – to develop a ground-breaking new product line called SenTRACK, which is the world’s first completely automated person-tracking solution across an entire surveillance network.

SenSen is working with Chicago Parking Meters to provide parking and traffic analytics in Chicago, the third-largest US city.

SenSen also received its first set of orders from Snap Network Surveillance customers since it acquired the company in December 2020.

And in Las Vegas, the city will use SenSen Smart City technology on roads, car parks and garages across the city as well as outfitting a range of council vehicles with smart sensors, including scooters and segways.

The attractiveness of SenSen’s products comes from three critical components – data fusion, AI algorithms, software – working 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. 

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Story by ProactiveInvestors