Seeing Machines full-year revenue rises, losses widen

28th Aug 2024 08:48

(Sharecast News) - Driver monitoring technology company Seeing Machines reported a robust performance for the 2024 financial year in an update on Wednesday, with significant growth in revenue, expansion of its automotive programs, and strategic partnerships.

The AIM-traded firm said it expected revenue of $67.6m for the 12 months ended 30 June, making for a 17% increase from $57.8m in 2023, aligning with market expectations.

Its annualised recurring revenue also grew, by 11% year-on-year to $15.1m.

As of the end of June, Seeing Machines had cash reserves of $23.5m, bolstered by a $16.5m licence fee from Caterpillar.

However, the company anticipated an EBITDA loss of between $17m and $19m, consistent with prior forecasts.

Operationally, Seeing Machines said it achieved notable milestones, with over 2.2 million vehicles now equipped with its technology, more than doubling the number from the prior year.

It secured two additional original equipment manufacturer (OEM) programme awards, bringing the cumulative initial lifetime value of all automotive programmes to $392m, with the bulk of revenue expected by the 2028 financial year.

Currently, Seeing Machines said it was engaged in 18 programmes with 11 OEM customers.

A new five-year master licence and marketing agreement with Caterpillar had opened new avenues for Seeing Machines, particularly in the heavy-equipment sector and on-highway vehicle market.

The agreement contributed $5m in revenue during 2024, and was expected to drive future growth.

It said it also made strides in the aviation sector through a collaboration with Collins Aerospace, aimed at developing fatigue detection solutions, following an exclusive licensing agreement.

Seeing Machines further strengthened its board with the appointment of Stephane Vedie, a seasoned automotive industry expert based in North America.

The company also received the Prince Michael of Kent Road Safety Award in 2023, recognising its contributions to transport safety.

Following the financial year's end, Seeing Machines successfully homologated its Guardian Generation 3 technology into two bus manufacturers, positioning the company to meet rising demand for vehicles compliant with new European GSR regulations.

Additionally, it launched a collaboration with Valeo, a global automotive leader, and acquired Asaphus Vision, enhancing its AI and machine learning capabilities with a new base in Berlin.

"Global demand for our technology has remained strong in FY2024, despite some quarter-on-quarter volatility," said chief executive officer Paul McGlone.

"Driven by new road safety regulations taking effect, we have seen continued growth across our automotive and aftermarket segments, delivering cash and revenue in-line, supported by the new agreement with our long-term customer, Caterpillar.

"With over 2.2 million vehicles on the road now featuring our class-leading driver monitoring technology, generating high-margin royalty revenue, we are making material progress on our vision of getting people home safely at the end of each day."

McGlone said that as reported in June, the company's cash EBITDA loss was larger than previously expected, largely due to aftermarket margin mix resulting from the slower-than-expected transition from Guardian Generation 2 to Generation 3 and the adverse automotive royalty volumes and mix during the year.

"Despite this, we are well placed going into the new financial year and reiterate our expectation to achieve a cash flow break-even run rate in the 2025 financial year."

At 0953 BST, shares in Seeing Machines were down 1.68% at 5.08p.

Reporting by Josh White for Sharecast.com.