REG - Seeing Machines Ltd - Half year trading update and quarterly KPIs

Seeing MachinesAnnouncement

22/02/2023 07:00

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RNS Number : 5933Q  Seeing Machines Limited  22 February 2023

 

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

 

 

22 February 2023

 

Half year trading update and quarterly KPIs

 

Regulatory tailwinds and industry momentum supports continued growth

 

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, publishes a trading update for
the six months to 31 December 2022 ("H1 2023") and quarterly Key Performance
Indicators ("KPIs") for the quarter ended 31 December 2022.

 

Trading Update

 

The Company expects to report revenue for H1 2023 of US$24.4m (H1 2022:
US$15.8m), representing a 54% increase year on year. Total connected Guardian
units at 31 December 2022 were 46,018, securing Annualised Recurring Revenue
of US$12.7m (H1 2022: US$11.9m). Cash position at 31 December 2022 of US$52.7m
(FY 2022: US$41.0m).

 

Seeing Machines achieved a record result for the six months to 31 December
2022. The positive progress across the business builds on the momentum of FY
2022 and is underpinned by the enhanced focus on safety by regulatory bodies
across all transport sectors, globally. These tailwinds continue to expand the
Company's addressable market, adding to the attractive structural growth
drivers in Automotive, Aftermarket and Aviation.

 

Company Highlights

 

Seeing Machines' balance sheet was significantly strengthened during the
period. The Company is now fully funded to deliver on its current business
plan, following the collaboration announced with Magna International to
exclusively pursue driver and occupant monitoring system (DMS/OMS) business
targeting the rear-view mirror and the additional investment of up to US$47.5m
(of which US$30m has been drawn down to date) provided via a Convertible Note,
with a conversion rate per ordinary share of 11 British pence.

 

Seeing Machines continues to grow as an automotive technology leader in driver
and occupant monitoring system technology, having now won a total of 15
automotive programs spanning 10 individual OEMs, covering more than 160
distinct vehicle models. The cumulative initial lifetime value of all OEM
programs that Seeing Machines has won to date now stands at US$321M.

 

Martin Ive, CFO, was appointed in November 2022. Well positioned to guide the
Company through the next phase of growth, Martin is a highly experienced
finance professional and chartered accountant, who was responsible for leading
the development of multinational software company Altium's business
intelligence capabilities to provide insights and information, guiding
operational and strategic decisions.

 

 

KPIs - Highlights:

 

Seeing Machines' quarterly non-financial KPIs for the quarter ended 31
December 2022 (Q2 FY2023) are published below:

 

-     Cars on road increased by 188% over 12 months to 701,049 units (Q2
FY2022: 243,722)

-     Guardian connections increased 25% over 12 months to 46,018 (Q2
FY2022: 36,933)

-     Guardian units sold, yet to be connected of 6,085 units.

 

Automotive:

 

                  Q2 FY2022  Q3 FY2022  Q4 FY2022  Q1 FY2023  Q2 FY2023
 Cars on road     243,722    341,835    447,225    559,302    701,049
 % Growth         33%        40%        31%        25%        25%

 (Qtr on Qtr)
 Qtr production   60,205     98,113     105,390    112,077    141,747
 % Growth         12%        63%        7%         6%         26%

 (Qtr on Qtr)
 % Growth                                                     135%

 (year on year)

 

Aftermarket (Guardian):

 

                                  Q2 FY2022  Q3 FY2022  Q4 FY2022  Q1 FY2023  Q2 FY2023
 Monitored connections            36,933     37,791     39,892     41,415     46,018
 % Growth                         6%         2%         6%         4%         11%

 (Qtr on Qtr)
 Units sold, yet to be connected  4,587      5,850      10,706     9,698      6,085

 

The growth in cars on road has been consistent over the past 5 quarters,
despite the expected seasonality which impacts quarterly car sales, and supply
chain challenges for automotive manufacturing, generally. Seeing Machines DMS
is now in early stages of production across 6 individual programs with 4 OEMs.
In Aftermarket, as outlined in FY2022 Results, hardware was considerably
constrained for H1 2023 with limited access to some components due to supply
chain issues across the manufacturing sector, globally.

 

Paul McGlone, CEO of Seeing Machines, said: "We are delighted with the
continued growth across the business. As the number of vehicles fitted with
our technology increases, Seeing Machines is now firmly established as an
industry leader in the interior sensing market where our driver and occupant
monitoring systems have become mission-critical technology in the quest for
greater transport safety. Driven by enhanced regulation, the long-term growth
drivers in our industry underpin increasing demand from customers across our
OEM and Aftermarket segments globally. As we advance our feature set and
launch the next generation of Guardian, our market leadership position, strong
balance sheet and scalable operating model means we are confident of
significant continued growth and meeting FY2023 expectations, despite the
abovementioned and well documented global supply chain challenges."

 

Notice of Results

 

Seeing Machines will publish its H1 FY2023 Results on Monday 6 March 2023.

 

The Company will host a presentation via the Investor Meet Company platform on
Tuesday 7 March 2023. To register for the Investor Meet Company presentation,
please visit www.investormeetcompany.com (http://www.investormeetcompany.com)
.

 

Capital Markets Event

 

Seeing Machines will hold a Capital Markets Event for institutional investors
and sell-side analysts on Wednesday 8 March 2023 in New York. Presentations
from Seeing Machines' executive leadership team will outline the Group's
strategy, competitive advantages, growth opportunities and -financial targets.

 

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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