SenSen Networks tables best cash receipts on record since ASX listing

SenSen Networks Ltd (ASX:SNS, OTCQB:SNNSF) ended the June quarter with A$1.6 million in cash receipts, marking the best result since the company listed on the ASX. The technology company, which operates the SenDISA software platform, acquired artificial intelligence (AI) solutions provider ScanCam Industries Pty Ltd during the June quarter, adding a suite of new clients to the SenSen portfolio. On the back of the key acquisition, SenSen has updated its overall revenue and annual recurring revenue (ARR) guidance for the current financial year. SenSen ended the 2021 financial year with A$5.2 million in the bank to support its future operations. “Continued and sustained growth” Commenting on the quarter SenSen CEO Dr Subhash Challa said: “We remain focused on our vision to positively transform people’s lives with Sensor AI, as we develop solutions to unsolved problems through the analysis and fusion of data from multiple sensors and position SenSen as a world leader.” “Overall this quarter has been one of continued and sustained growth as we delivered on our strategy to expand the commercialisation of our business verticals – smart cities, retail, casinos and surveillance – and provide the operational support to grow. “Our major achievements include record cash receipts from customers since listing, the acquisition of the fuel theft retail monitoring business ScanCam (approved by shareholders at our EGM), and our expansion into the US through our Las Vegas headquarters, and presenting an updated ARR guidance to the market for FY22. “We look forward to updating the market as we continue growth throughout FY22.” Financial performance The June quarter’s A$1.6 million in cash receipts is A$200,000 higher than SenSen’s previous record, which was tabled in the previous corresponding period. The ASX-lister’s unaudited revenue for the full financial year is expected to land between A$5.3 million and A$5.5 million, marking as much as a 40% uptake on the FY20 result. Looking ahead, SenSen has also updated its revenue guidance for FY22. The technology stock now expects to bring in more than A$11 million over the current financial year — potentially doubling the FY21 result. The ScanCam acquisition is poised to be a major contributor to this uptake, with the provider expected to bring in around A$3 million in revenue over the next 11 months. ARR is also piqued to rise, with guidance upgraded to roughly A$6.5 million for FY22 and beyond. During the June quarter, SenSen also managed to reduce the cash it used in operating activities by 33% to A$1.2 million — down from the A$1.8 million recorded at the end of March. SenSen’s cash and cash equivalents came in at A$5.2 million at quarter-end, while unused finance facilities total A$1.8 million. June quarter highlights Throughout FY21’s final quarter, SenSen focused on the company’s core strategy: delivering growth by expanding its customer base across key business verticals — the smart cities, casinos, retail and smart surveillance sectors. SenSen's key markets. The quarter’s cornerstone operation was the ScanCam acquisition, through which SenSen took control of Australia’s leading provider of AI anti-theft solutions to fuel retailers. To complete the acquisition, the ASX-lister offered an upfront cash and scrip consideration valued at A$6.5 million. In addition, if the AI solutions provider’s audited ARR reaches A$3 million within two years, SenSen will pay up to A$4.1 million in cash or shares as deferred consideration. In the US market, the technology stock set up a Las Vegas office and deployed its GeminEye solution, which converts smartphones into smart AI-powered devices. SenSen is also working to bring its smart cities parking offering to governments, with the company’s technology used by more than 20 City of Las Vegas parking officers. This technology is also at play on home soil: the Australia-headquartered public company is rolling out the parking tech in Brisbane and trialling the solution in New Zealand, Singapore. SenSen is also exploring opportunities with councils in the Mornington Peninsula, Adelaide and Melbourne. Owing to its varied North American portfolio, spread out across Las Vegas, Chicago, Calgary and Edmonton, SenSen’s revenue base now completely funds its operations across the continent. In other acquisition news, SenSen has also fully integrated the staff and technology it absorbed during its SNAP Surveillance takeover in November 2020.