Seeen losses narrow despite fall in revenue

5th Jul 2024 12:38

(Sharecast News) - Media and technology platform operator Seeen, which specialises in AI-driven video engagement, reported a mixed set of full-year results on Friday, with recurring technology revenue more-than-doubling to $0.23m, from $0.08m in 2022.

The AIM-traded firm said total group revenues, however, fell to $2.1m for the 12 months ended 31 December from $3.3m a year earlier, primarily due to the elimination of unprofitable CSP channel partner revenues and the loss of all CSP advertising revenue in Russia following that country's invasion of Ukraine.

It reported an adjusted EBITDA loss of $0.6m - an improvement from the $0.8m loss in 2022, despite investing in additional sales staff.

There was also a non-core goodwill and intangible impairment of $2.6m, reflecting its strategic shift away from JetStream's standalone offerings.

Gross margin improved to 23.4% from 15.5% in the prior year.

Operationally, Seeen said it experienced a substantial increase in technology sales, driven by the release of CreatorSuite 2.0 during the third quarter.

That surge in sales reflected a growing demand for tools that capitalise on shorter viewer attention spans to enhance engagement and sales.

As a result, the company's gross margins improved significantly, rising by about 50% to 23.4%, due to a higher proportion of technology-led sales.

Seeen's YouTube Creator Service Partner (CSP) business remained profitable, attracting new strategic clients thanks to the introduction of the ShortsCut technology.

In the first half of 2024, Seeen said it had maintained strong sales momentum, particularly in the second quarter, securing over $0.6m in annualised new revenues.

The company achieved its first sales in the education and training market, with American Leak Detection service technicians as a key reference customer.

Seeen said it had a robust pipeline of over $5m in potential annualised revenue through direct sales and reseller channels.

Additionally, a fundraising effort in June raised £0.76m to support continued sales growth and further develop intellectual property in the training market.

"We continued to add momentum behind our technology products and sales during 2023 and the first half of 2024 and returned the CSP business to profitability and growth," said chief executive officer Adrian Hargrave.

"After our team's hard work, we are grateful to our investors for their ongoing support, including in our recent fundraise.

"We continue to add highly referenceable customers with strong case studies, which have resulted in our customers benefiting from increased sales and advertising revenues, as well as faster training times."

Hargrave said video was becoming increasingly important for all companies to communicate with stakeholders who had shorter attention spans - customers, viewers, employees and suppliers.

"With our AI-led Key Video Moments, we remain strongly positioned to deliver value for our growing customer base by exploiting these shorter attention spans.

"Building on the momentum across our business lines and the ever increasing move in the market towards exploiting shorter attention spans, our team looks forward to the remainder of 2024 and beyond and updating shareholders on continued progress with customer wins and reseller opportunities, as we execute against our significant pipeline."

At 0806 BST, shares in Seeen were down 0.17% at 3p.

Reporting by Josh White for Sharecast.com.