SenSen Networks focused on scaling rapidly as it develops new applications and targets new markets

SenSen Networks Ltd (ASX:SNS) (OTCQB:SNNSF) has set its focus on scaling its operations rapidly as it develops new applications and targets new markets above and beyond its current portfolio.  The world-leading artificial intelligence (AI) solutions provider, which saw strong growth in the financial year 2021 despite the COVID-19-related global economic meltdowns, has outlined its five-year growth plan.  The plan, which is set in three stages, will see the company significantly expand its customers' numbers, as well as move into new industries as it invests in its technology platform to make it scalable to multiple adjacent markets. It will be also seeking to open up its platform to third-party application developers to formulate new applications. The company’s target markets  - smart cities, casinos, smart surveillance and the retail industry – are very large and growing. Its solutions are having transformational impacts on multiple industries including city councils, casinos, fuel retail and large-scale surveillance facilities. Scaling rapidly SenSen outlined its five-year plan in its investor update in July, outlining the three stages its scaling operations will take place. The plan is outlined as follows: ➢ Near-term – 1 to 2 years Invest into marketing and sales channel development Invest into productization of world-leading products Accelerate growth in smart cities and casino markets Target and achieve 100+ customers generating annual recurring revenue (ARR) ➢ Medium-term – 2 to 4 years Invest into technology platform to make it robust and scalable to multiple adjacent markets ➢ Longer-term – 3 to 5 years Open platform to third-party application developers to develop new applications and open new markets above and beyond our target markets Invest into building the application developer ecosystem to exponentially increase the customer base and associated revenues. Smart Cities The company is operating in more than 35 cities globally, with key customers in Brisbane, Singapore, Las Vegas, Chicago, Calgary and Edmonton. It is targeting to grow this operation to more than 100 plus cities within the next two to three years. Smart cities covers: Smart Curb Management; Smart Parking; Road Safety; Traffic & Tolling; and Infrastructure Audits Casinos Its two key customers are the Crown in Melbourne and Solaire in the Philippines. It is focusing on growing from the two current casinos to more than 30 in two to three years. There are more than 9,284 casinos globally. Its casino offerings include: Live table game data; Ratings and loyalty; KYC – Know Your Customer; and Data Insights. Retailers SenSen’s current fuel retailers customers include BP, Chevron and Caltex in Australia. The initial focus is to grow from 250 plus to 1,000 plus stores in two to three years by cracking into the broader retail market. Its retail offering includes: Theft reduction; Occupancy; Path to purchase; and Other analytics. Smart surveillance The company has more than 10,000 surveillance cameras globally, including Changi International Airport in Singapore, SNAP Inc and Swinburne University. Its focus is to grow from its analytics active to more than 100,000 cameras in two to three years. Its smart surveillance covers: Multi-Camera Person of Interest Tracking; Surveillance Camera Audit; Accurate Occupancy Work, Healthy Safety; and Fast & Simple Video Export Acquisitions The company has completed the SNAP Networks Surveillance acquisition and both the teams and technologies have been integrated. This acquisition furthers SenSen’s ambition to grow in the US, following the City of Las Vegas contract win in 2020 and other US customers engaged in POCs, as well as SenSen being admitted to the OTCQB market, headquartered in the US. 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. Potential applications of the integrated technology include anti-money laundering applications within casinos, path-to-purchase of customers within retail stores and COVID-19 related tag and trace applications within facilities. 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. Additionally, SenSen has already identified new international customers seeking the integrated SenSen/Snap solution and anticipates that the combined offering will allow SenSen to become a market leader in the large-scale video surveillance industry. SenSen also bought Scancam Industries Pty Ltd, Australia’s leading provider of AI anti-theft solutions to fuel retailers, which provides a strong foundation to grow into the retail industry. The Scancam buy has also been completed, with the teams and technology integration process initiated. Scancam’s award-winning AI technology prevents drive-offs at service stations, addressing a major problem for fuel retailers in Australia. Although Scancam developed this solution to address a serious problem that is costing the fuel retail industry approximately A$59 million per annum across Australia alone, SenSen’s grand vision is to use this as a springboard to launch product enhancements and variants to solve broader retail theft problems. Retail crime in Australia is a A$9 billion problem, according to the National Retail Association (NRA) and globally is estimated to cost the industry about US$60 billion annually. SenSen is particularly excited about this large market and how solutions powered by the companies’ combined technologies could help offer a highly effective solution to prevent retail theft globally. SenSen chief executive officer Dr Subhash Challa said: “Our scalable digital AI architecture is a SaaS solution. “Our ingenuity provides new and existing customers with a zero-capex solution – removing what was a barrier to entry for some retailers – and solving a problem that was once thought technically impossible. “As we acquire more service stations across the country on our network, this will enhance margins for SenSen, further increasing revenue growth. “We are excited about the potential this integration holds to further accelerate annual recurring revenues whilst enhancing the margins of our solutions.” FY 2021 in review The financial year 2021 laid strong foundations for the company’s growth in the coming years. During the period, it completed an around $7.15 million capital fundraise to support its growth and established its Las Vegas office. It also completed the hire of key sales and account management, ready to scale its sales operations globally. It has also established multiple sales channel partners to accelerate sales as well as completed the hiring and training of key staff to support its product marketing initiatives and pre-sales globally. Going forward for FY2022 Having established strong foundations in the previous financial year, it is now set to double revenues for the FY2022, with an estimated target of more than $11 million, which includes around $3 million in Scancam revenues. It is also targeting a strong year-on-year ARR growth profile, with $6.5 million representing more than 115% year-on-year ARR growth for FY2022, including $1 million ARR from Scancam. 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.   Conserve cash Following a capital raise in January, the company also 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,” Dr Challa added.