SenSen Networks sets targets to increase customer base and associated revenues after busy first half

SenSen Networks Ltd (ASX:SNS) (OCTMKTS:SNNSF) has set itself near, medium and long-term targets following its recent capital raising as it kicks off recruitment for senior international, marketing and sales, and project management executives to join its team to execute its expansion plan. The company 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.  During the period, the company listed on the US OTC markets, completed its first-ever acquisition and welcomed high-conviction global equities fund manager VGI Partners Asian Investments Limited Fund (ASX:VG8) as a shareholder following its fund-raising. Near term target In addition to investing into marketing and sales channel development, the smart cities and artificial intelligence solutions provider, plans to invest in the 'productization' of its products to be sales and distribution channel ready. In the near term, it is looking to accelerate customer growth in smart cities and casino market verticals. It also is targeting to achieve 100-plus customers generating annual recurring revenue (ARR). Medium-term target Under its medium-term plan, it plans to add adjacent market verticals like smart buildings, retail stores, shopping centres, airports and other facilities. It also targets to validate the proprietary platform and make it robust and scalable. Longer-term target Its longer-term target will see the company opening the platform to application developers and build the application developer ecosystem. This is expected to lead to the exponential increase of its customer base and associated revenues. Best ever half-yearly results The company saw its best-ever half-yearly results since listing on the ASX, with revenues growing by 33% year-on-year. Sensen Networks continued to see near zero-churn with, all its existing customers, including Calgary, Edmonton and Brisbane renewing their contracts during the half-year. Further, several existing customers ordered additional systems, software and services. Estimated ARR for 2022 financial year The company is estimating ARR for the financial year 2022 to be around A$4.4 million, up 40% year-on-year. It also expects additional orders to further accelerate ARR beyond these estimates. 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 the 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. Well-funded SenSen Networks is well-funded to pursue its growth acceleration strategy after successfully raising A$7.15 million via a placement in January 2021. As part of the capital raising, SenSen welcomed high-conviction global equities fund manager VGI Partners as a new substantial shareholder.  It will now kick-off recruitment for senior international, marketing and sales, and project management executives to join its team to execute its expansion plan. The company’s strategic business plan for 2021 is to accelerate revenue and enhance delivery capabilities to its global customers, especially in the US. Funds raised will allow SenSen to extend its cost of goods sold (COGS) inventory for rapid project deployment as well as provide additional funds for ongoing research & development and technology development to maintain and enhance a leading position in its business segments. OTCQB listing In September 2020, the company listed on the OTCQB venture market, enabling US investors to easily participate in the company’s growth story. The listing coincided with strong contract wins with the City of Las Vegas and emerging opportunities with the City of Chicago and others in the US. This is the first step towards its ultimate objective of listing on the NASDAQ. First-ever acquisition In November 2020,  the company made its first acquisition, buying Snap Network Surveillance, a world leader in AI-powered multi-camera tracking software, for A$1 million. By combining Snap’s AI-powered multi-camera networked tracking technology with SenSen’s automated multi-object tracking technology within individual camera views, SenSen plans to release a ground-breaking new product - SenTRACK - which will have the revolutionary new capability to automatically detect and track people throughout a large-scale video surveillance network. This is expected to deliver significant new business insights to SenSen’s current and prospective customers. SenTRACK will also deliver high accuracy people occupancy metrics within buildings, which is a key workplace health and safety requirement for all businesses in the post-COVID-19 world, simply by tapping into the existing CCTV networks.