SenSen Networks boosts annual recurring revenue guidance to A$4.5 million for FY22 on increasing North American demand

SenSen Networks Ltd (ASX:SNS) (OTCQB:SNNSF) has boosted its outlook for the 2022 financial year off the back of continued growth in North America. The company has lifted FY22 annual recurring revenue (ARR) guidance to A$4.5 million, as ARR from its North American operations is set to exceed A$1.5 million off the back of new orders and contract extensions. It follows a successful half-year for SenSen, which recorded its best-ever result on the ASX, reporting revenues of A$2.5 million for the six months to December 31, 2020. North America booming SenSen CEO Dr Subhash Challa said the business was firing on all cylinders. “In a post-pandemic world, we see significant potential to expand revenues in the US and other geographies,” he said. “These newly announced contracts will significantly add to our previously announced revenues for FY2021, but even more importantly, will add to our growing ARR profile from FY2022. “I am delighted to hit the ground running by hiring new staff and setting up our new US headquarters to help execute our expansion plans in North America. “While our Smart Cities deals in Chicago and Las Vegas are built around our core strength in Intelligent Transport Solutions, we have multiple pipeline opportunities across all our verticals to pursue.” Shares are up more than 9% to A$0.17 while the market cap of the company, which has offices in Las Vegas, Melbourne and Sydney, is approximately A$80.3 million. The deals The increased North American ARR consists of revenue from new orders from Chicago Parking Meters, contract renewals and extensions from Calgary and Edmonton in Canada, contract renewals from customers of the recently acquired Snap Network Surveillance’s multi-camera people tracking software and a new, locked-in contract with the City of Las Vegas for parking management and enforcement. SenSen is working with Chicago Parking Meters to provide parking and traffic analytics in Chicago, the third-largest US city. Chicago Parking Meters has ordered multiple systems from SenSen to improve the efficiency of its on-street parking management operations, following a successful trial for SenSen’s software. 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. As part of the roll-out of SenSen systems under the contract with the city, multiple SenSen systems to improve the efficiency of on-street and off-street parking management have gone into production within Las Vegas. Three components 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. SenSen has completed the hiring of key marketing and sales executives to accelerate growth in the region with additional staff hired to increase key account management and customer support. North American headquarters North American headquarters have been opened in Las Vegas, Nevada, fitted with a range of SenSen solutions for demonstrations and customer sales. The company will also participate and present at multiple vertical-focused industry trade shows and conferences in the region in the next six months to support marketing efforts and promote SenSen solutions. - Daniel Paproth