REG - SEEEN PLC - Trading Update, Contract Win and Presentation

SEEENAnnouncement

18/02/2025 07:15

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RNS Number : 4354X  SEEEN PLC  18 February 2025

 

Prior to publication, the information contained within this announcement was
deemed by the Company to constitute inside information for the purposes of
Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310.
With the publication of this announcement, this information is now considered
to be in the public domain.

 

18 February 2025

SEEEN plc

("SEEEN", the "Group" or the "Company")

Trading and Operational Update

Contract Win

Investor Presentation

SEEEN plc (AIM: SEEN), the global media and technology platform that delivers
Key Video Moments to drive Video Commerce and transform its clients' video
profitability, is pleased to provide an operational and trading update for the
year ended 31 December 2024 ("FY2024") together with its 2025 outlook. The
Company has turned an important corner and the Board expects to have a strong
2025 and beyond with scalable growth.

During December 2024, the Group crossed over into operating cash flow
breakeven on a monthly basis, and accelerated the Group's revenue run rate(*)
to $5.0 million. This growth and the yield on such growth was driven by both
technology sales and a return to scalable growth in the Group's Creator
Service Partner ("CSP") business.

As detailed in the numbers below, SEEEN's technology delivers on its promise
to "transform its clients' video profitability".  SEEEN has increased
monetisation for key customers by driving an average clickthrough rate within
videos of 9 per cent. (against industry averages of 1 to 5 per cent.), driving
direct product sales for these key customers leading to a 100% return on
investment (ROI).  SEEEN's technology, by enabling its CSP customers to
re-mix and re-publish video content more easily than other technologies, has
delivered increases of up to 25 per cent. in revenue for key customers.

In addition, the Group has launched another offering based on Key Video
Moments that also transforms video assets.  The Company sees strong demand in
the market from customers to use Key Video Moments to deliver better training
results for staff by breaking down complex tasks, including sales efforts,
into smaller "bites" that staff can remember more readily.  The Group expects
to be delivering customers for this use case during H1 2025.  Again, this use
of Key Video Moments transforms customers' digital assets with a direct ROI
benefit.

FY2024 Highlights and 2025 Outlook

Financial Highlights

·    Annualised run rate revenue(*) accelerated to approximately $5.0
million in December 2024, resulting in crossing over to operating cash flow
breakeven in December 2024 through a combination of revenue growth and cost
management

·    Total Group revenues for the year ended 31 December 2024 expected to
increase approximately 50% to approximately $3.2 million (FY2023: $2.1
million)

o  CSP revenue increased 47% to $2.8 million (FY2023: $1.9 million)

o  Technology revenue increased approximately 85% to $0.4 million (FY2023:
$0.2 million)

·    Adjusted Group EBITDA(**) loss expected to reduce by approximately
33% to $0.4 million (FY2023: loss of $0.6 million)

·    Cash position of $1.1 million as at 31 December 2024

o  A further $0.1 million equity subscription was completed post the balance
sheet date in January 2025

Customer Highlights

·    New contract signed with publishing house to manage their video and
asset content library on YouTube, utilising both the Group's Creator Service
Partner and technology offerings

o  Initial annual revenue expected to be approximately $0.5 million with
significant potential to increase to $3.5 million annually as full video and
asset contract library taken on

·    Continued progress with selling the Group's technology products
across different verticals with significant continued traction in the sports
vertical to supply video-led website and commerce

o  Average 9% clickthrough rates, linked to sales, within customer videos is
driving 100%+ ROI for key customers

o  In excess of 50 customers using the Group's technology products, including
sports clubs and leagues in the UK and the US, publishers and e-commerce
businesses

·    Technology sales included various sports, services and e-commerce
organisations

o  American Leak Detection for video commerce, training and digital marketing

o  London Broncos full video-led website

o  A7FL and US Club Lacrosse interactive video websites

o  Video commerce

·    CSP returned to growth, while maintaining increased profitability

o  Established reseller partnerships to grow CSP business, resulting in
significant acceleration in CSP revenue and profitability in H2 2024

·    Upsells of technology services to CSP customers for re-mixing of
historic video libraries, which has driven up to 25% increases in the social
video revenues of key customers

Other 2024 Highlights

·    Equity fundraising of £0.8 million and additional convertible loan
note of £0.3 million, principally for investing in sales and marketing and
developing training and skills features for its products

o  Currently being used by American Leak Detection

o  Pipeline of large corporate customers to drive efficiencies in employee
training and customer instruction

·    Appointment of Michael Zigman to the Board

·    Release of interactive reels gallery, providing an additional product
suitable for customers across all of SEEEN's target markets

2025 Outlook

·    Increasing evidence that the market for AI tools for video
monetisation is accelerating

·    In November 2024, SEEEN was Named in Fast Company's Fourth Annual
List of the 'Next Big Things in Tech' reinforcing the Board's view that SEEEN
is already recognised as a leader in this rapidly growing space

·    Strong customer and reseller sales pipeline, driven by new technology
products and leveraging successful case studies and successful implementations

o  Includes Cross-selling opportunities for existing customers through both
CSP and technology offerings

·    Engaged in reseller partnership discussions to further accelerate
group sales, leveraging successful partnerships in CSP space

Investor Presentation

·    SEEEN will be holding a meeting for current and potential investors
through ShareSoc and InvestorHub - please register here to attend:
https://www.sharesoc.org/events/discovery-company-webinar-25-february-25/

 

Adrian Hargrave, CEO of the Group, stated: "We are pleased with our progress
across several dimensions:  cross over into monthly operating cash flow
breakeven; demonstrable ROI for customers that is differentiable in the
marketplace; and traction from investors.  We will reinforce these positive
attributes throughout 2025 within the marketplace and communicate the great
opportunity for shareholders regarding the Group's journey and growth ahead."

Notes

* Annualised revenues assumes a run rate of revenues combining (i) technology
based SaaS sales and (ii) December 2024 levels of YouTube advertising income
from channel partners, which can be volatile

** EBITDA adjusted for share-based payments and one-time costs

 

For further information please contact:

 SEEEN plc                                                         Tel: +44 (0)7775 701 838
 Adrian Hargrave, Chief Executive Officer

 Dowgate Capital Limited - Joint Broker                            Tel: +44 (0)20 3903 7715
 Stephen Norcross

 Capital Plus Partners Limited - Joint Broker                      Tel: +44 (0)20 3821 6167
 Jonathan Critchley

 Allenby Capital Limited - Nominated Adviser                       Tel: +44 (0)20 3328 5656
 Alex Brearley / George Payne / Lauren Wright (Corporate Finance)

 focusIR - Investor Relations                                      Tel: +44 (0)20 4570 2234
 Paul Cornelius / Kat Perez                                        email: seeen@focusir.com

 

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