- SenSen Networks Limited (ASX:SNS) delivered a solid operational and financial performance in the September 2020 quarter.
- SenSen was able to expand the business despite over 90 per cent of staff working remotely.
- The Company’s robust sales momentum and marketing push coupled with significant investments into R&D acted as key catalysts for the strong quarterly performance.
- The Company closed the September quarter with a strong cash position of ~A$2.3 million as on 30 September 2020.
- The Company anticipates remaining cashflow positive and profitable in FY 2021.
Leading Smart Cities and AI software solutions provider SenSen Networks Limited (ASX:SNS, OTCQB:SNNSF) has released its quarterly report for the 3-month period ended September 2020. The report discusses the solid operational and financial performance delivered by SenSen in the previous quarter.
During the period, SenSen continued to successfully deliver on its customer projects worldwide, including the City of Las Vegas. The Company was able to expand the business despite over 90 per cent of staff working remotely. SenSen’s robust sales momentum and marketing push coupled with significant investments into R&D acted as key catalysts for the strong quarterly performance.
Let us quickly scroll through the key accomplishments that shaped the September 2020 Quarter for the Company.
Sales Continued to Strengthen
SenSen acquired additional contracts and orders from existing customers, new customers, and POCs during the quarter. These orders and contracts amounted to A$650K in upfront and ~A$177K in Annual Recurring Revenues, locked in through multi-year contracts.
Significantly, five new Smart City customers were acquired through distribution partners, which comprise:
- Port Stephens Council (NSW) - through Duncan Solutions
- National Capital Authority (ACT) – through Duncan Solutions
- Nelson City Council (NZ) – through ITS Global Parking Solutions
- Hills Shire Council (NSW) – acquired in collaboration with SCS
- Lumley Centre (NZ) - through Imperium IQ
Beginning in FY 2021, the Company is supplying these new customers a wide range of services, including SenSIGN audit solution, SenFORCE mobile parking enforcement, as well as Gemineye fixed and mobile deployments.
Moreover, several existing clients continue to grow their services through additional orders for improved SenSen technology functionality, which include:
- City of Brisbane, City of Gold Coast and others
- Transport for NSW (TfNSW)
- National Parks of NSW
- Existing Casino Customers
- Singapore Land Transport Authority
It is imperative to note that the Company’s existing casino clients continue to launch SenSen solutions on additional tables with novel and improved features.
During the quarter, SenSen also continued to establish a robust sales pipeline and growth strategy. The Company is participating in multiple paid POCs and trials with clients across the globe, as demonstrated in the below figure:
Many of these POC trials are anticipated to transform into long-term commercial contracts over the coming months. SenSen currently has over 20 sales distribution channels worldwide and expects new customer take-up over FY 2021.
Strong Focus on Marketing
To entice new investors from the US and Australia, SenSen formulated an overarching strategy for corporate communications with customised messages to different shareholders. Moreover, the Company bolstered its PR profile, which enabled it to gain coverage from mainstream media, including Financial Review, Channel 9 News, AusBizTV and others.
On top of that, the Company updated positioning statements and website, comprising the following details:
- the SenDISA platform,
- the Company’s core IP, and
- ability to deliver disruptive innovations across multiple and diversified market segment.
Substantial Investments in R&D
During the quarter, SenSen also signed an MOU with Australia-based ACE Electric Vehicles Group for developing autonomous driving capabilities for their electric vehicles (EVs). The MOU aimed at progressing the Company’s extensive AI and sensor analytics R&D program into autonomous driving technology for commercial adoption in the EV market.
SenSen also got listed on the OTCQB venture market during the September quarter with the ticker symbol “SNNSF” as part of its US market push after customer gains in the region.
Firm Financial Footing
SenSen closed the September quarter with a strong cash position of ~A$2.3 million as on 30 September 2020. The Company reported robust cash inflows of ~A$1.455 million from operations, which comprised Customer cash receipts of ~A$1.1 million and R&D tax credits of A$355K.
Continuing positive momentum, the Company observed the third consecutive quarter of over A$1 million revenue in the last 12 months.
Despite some COVID-driven delays to the initiation of the recurring revenue component of existing contracts, SenSen maintains confirmed contracted revenues of more than A$5.6 million in FY 2021, with fresh customers being included in the September quarter.
SenSen has already developed plans to boost its direct product marketing and distribution network over the coming months to further fast-track its sales momentum. The Company anticipates to remain profitable and cashflow positive in FY 2021.
SenSen shares traded at A$0.094 on 29 October 2020.