REG - Seeing Machines Ltd - H1 FY2024 Trading Update & Quarterly KPIs

Seeing MachinesAnnouncement

08/02/2024 07:15

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RNS Number : 4100C  Seeing Machines Limited  08 February 2024

 

Seeing Machines Limited ("Seeing Machines" or the "Company")

 

 

8 February 2024

 

H1 FY2024 Trading Update & quarterly KPIs

 

Underlying revenue growth rate of 28%, with 116% increase YoY in cars on road
which now exceeds 1.5 million

 

No change to FY2024 revenue and cash expectations

 

 

Seeing Machines Limited (AIM: SEE, "Seeing Machines" or the "Company"), the
advanced computer vision technology company that designs AI-powered operator
monitoring systems to improve transport safety, provides a trading update for
the six months to 31 December 2023 ("H1 2024") and quarterly Key Performance
Indicators ("KPIs") for the quarter ended 31 December 2023.

 

Key Financial Highlights:

 

-     Underlying Revenue growth for H1 FY2024 of 28% to US$25.6m excluding
one-off Magna exclusivity payments (Reported Revenue growth of 5% including
these one-offs)

-     Annualised Recurring Revenues increased by 22% year on year to
US$14.5m

-    Cash at 31 December 2023 of US$22.2m with cash burn of US$13.9m,
receivables and inventory balance of US$31.1m with working capital unwind of
$5-6m expected in H2 FY2024

 

Key Operational Highlights:

 

-   Seeing Machines appointed by an existing European Tier 1 customer to
deliver its FOVIO Driver Monitoring System (DMS) technology for a new European
OEM, initially targeting enhanced regulatory focused DMS features, and
evolving into a generational opportunity featuring driver and occupant
monitoring system functionality, with an initial lifetime value of US$30m

-     Appointed by an existing Tier 1 customer to deliver FOVIO DMS
technology on an additional program for an existing European OEM, targeting
safety regulation expectations, with an initial lifetime value of US$15m

-    The Company has now been appointed to deliver 17 Automotive programs
with 11 individual OEM customers, building the cumulative initial lifetime
value of all OEM programs to US$366m

-     Collins Aerospace, exclusively working with Seeing Machines to
target the aviation sector, has begun joint development of the world's first
aviation fatigue detection solution, the first component of a potential
multi-modal Pilot Support System

-    Guardian Generation 3, the Company's Aftermarket DMS for the
commercial transport and logistics sector, was independently tested at
IDIADA's state of the art test and development facilities and assessed to meet
requirements for drowsiness detection in the European Commission's General
Safety Regulation, coming into effect in July 2024

 

Post Period Highlights

-   Seeing Machines launched Guardian Generation 3 at CES 2024, the world's
largest technology conference, held in Las Vegas, and announced the beginning
of regulatory driven sales with three European OEMs in anticipation of the
General Safety Regulation requirements

-   CES 2024 was a success for Seeing Machines with 35 meetings held over 3
days covering demonstrations of the Company's latest FOVIO driver and occupant
monitoring suite, delivered from the rear-view mirror location, as well as
showcasing more advanced R&D based technology. Meetings spanned technology
partners, regulators, Tier 1 and OEM customers, investors and media

-    Seeing Machines' Automotive team hosted meetings and technology
demonstrations at Automotive World 2024, the largest automotive conference in
Japan. Here the Company primarily met with Tier 1 and OEM customers, as well
as a range of partners and investors

 

Q2 FY2024 KPI highlights:

 

-     Cars on road increased by 116% over 12 months to 1,516,545 units (Q2
FY23: 701,049)

-   Monitored Guardian connections increased 24% during the last 12 months
to 56,896 units (Q2 FY2023: 46,018)

-     Guardian units sold, yet to be connected of 7,470 units

 

Paul McGlone, CEO of Seeing Machines, said: "During the half, we reported
underlying revenue growth of 28% across the business and as automotive
programs progress to production, we are seeing consistent 100%+ year-on-year
growth in the number of vehicles with our technology installed - now at over
1.5 million cars. I am confident that automotive production volumes, and our
high margin royalty revenue stream, will continue to grow significantly on an
annual basis, as ongoing programs build, and we approach the start of
production across a number of additional programs this year, including the
largest volume program won to date.

 

"We are closely supporting our customers to meet fast-approaching regulatory
requirements across both Automotive and Aftermarket and are looking forward to
our official, customer-facing Guardian Generation 3 launch at Geotab Connect
in the USA this month.

 

Looking ahead, the growing industry demand for fatigue and distraction
solutions to support enhanced transport safety, combined with our market
leadership position, production pipeline, proprietary AI technology and
balance sheet strength, leave us well positioned to meet FY2024 expectations
and cash break even run rate during FY2025."

 

 

Quarterly Key Performance Indicators (KPI's) for Q4 FY2023

 

Automotive Production Volumes (production of new vehicles using Seeing
Machines' DMS technology):

 

                         Q2 FY2023  Q3 FY2023  Q4 FY2023  Q1 FY2024  Q2 FY2024
 Production FY2023 - 24  141,747    173,802    211,325    222,138    208,231
 % Growth Qtr on Qtr     26%        23%        22%        5%         -6%
                         Q2 FY2022  Q3 FY2022  Q4 FY2022  Q1 FY2023  Q2 FY2023
 Production FY2022-23    60,205     98,113     105,390    112,077    141,747
 % Growth Comparative    135%       77%        101%       98%        47%

 

Aftermarket (Guardian) (installed technology for commercial transport fleets
and logistics organisations):

 

                                  Q2 FY2023  Q3 FY2023  Q4 FY2023  Q1 FY2024  Q2 FY2024
 Monitored connections            46,018     49,046     51,975     54,140     56,896
 % Growth Qtr on Qtr              11%        7%         6%         4%         5%
 Units sold, yet to be connected  6,085      4,913      7,630      7,189      7,470

 

Seeing Machines delivered a strong year on year increase of over 100% in
Automotive production volumes with the Group's technology now installed in
over 1.5 million vehicles. While the quarter-on-quarter volume was slightly
down, this is expected to increase during Q3 FY2024 as more programs start
production and regulatory deadlines approach.

 

In Aftermarket, monitored Guardian connections have increased by 24% during
the last 12 months. Monitored connections at the end of December 2023 of
56,896 exclude Guardian units sold to customers that upgrade from Generation 1
to Generation 2, as Australia continues to phase out its 3G network in favour
of 4G. Upgrade sales represented 1,260 units during H1 FY2024.

 

The Company expects to publish its half year results on 18 March 2024.

 

 

Enquiries:

 

 Seeing Machines Limited                             +61 2 6103 4700
 Paul McGlone - CEO

 Sophie Nicoll - Corporate Communications

 Stifel Nicolaus Europe Limited (Nominated Adviser and Broker)                        +44 20 7710 7600
 Alex Price

 Fred Walsh

 Nick Adams

 Ben Burnett

 Dentons Global Advisors (Media Enquiries)           +44 20 7664 5095

 James Styles

Jonathon Brill

 seeingmachines@dentonsglobaladvisors.com
 (mailto:seeingmachines@dentonsglobaladvisors.com)

 

About Seeing Machines (AIM: SEE), a global company founded in 2000 and
headquartered in Australia, is an industry leader in vision-based monitoring
technology that enable machines to see, understand and assist people. Seeing
Machines is revolutionizing global transport safety. Its technology portfolio
of AI algorithms, embedded processing and optics, power products that need to
deliver reliable real-time understanding of vehicle operators. The technology
spans the critical measurement of where a driver is looking, through to
classification of their cognitive state as it applies to accident risk.
Reliable "driver state" measurement is the end-goal of Driver Monitoring
Systems (DMS) technology. Seeing Machines develops DMS technology to drive
safety for Automotive, Commercial Fleet, Off-road and Aviation. The company
has offices in Australia, USA, Europe and Asia, and supplies technology
solutions and services to industry leaders in each market vertical.

www.seeingmachines.com (http://www.seeingmachines.com)

 

 

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