SenSen Networks (SNS) H2 2024 earnings summary

Executive summary

• Revenue grew 12.5% year-over-year to $12.1M in FY24, despite exiting the gaming market and associated revenue loss.

• Achieved record quarterly cash receipts in Q4 FY24, surpassing $4M for the first time, and delivered the first ever cash flow positive quarter.

• Cost base reduced significantly, with annual costs down from $15.3M to $12.3M and headcount reduced from 136 to 79.

• Secured major contracts, including a significant win with the National Heavy Vehicle Regulator in Australia and a contract with Agence de mobilité durable de Montréal valued up to A$17.7M over five years.

• All IP infringement court cases in Australia and the Philippines were successfully dismissed.

Financial highlights

• Gross margin improved by 3 percentage points to 72.3% in FY24 compared to 69.3% in FY23.

• Operating expenses reduced by 14.1% year-over-year, and net profit before tax improved by 51.8%.

• EBITDA (excluding share-based payments) improved by 92.2% year-over-year.

• Operating cash flow improved by 73.9% year-over-year, with receipts from customers up 11% and payments to suppliers and employees down 13%.

• Net debt reduced by 42% to $1.3M, and total liabilities decreased by 41%.

Outlook and guidance

• North America identified as the most significant opportunity for future growth, with ongoing expansion in cities and new contracts.

• Rollout of the Montréal contract expected to be completed in Q3 FY25, with additional orders anticipated.