Seeing Machines reports 17% revenue rise to USD $67.6m

Seeing Machines has reported its financial results for the year ended 30 June 2024, showing significant growth driven by global regulatory trends in the transport sector.

Paul McGlone, Chief Executive Officer of Seeing Machines, stated, "Despite broader market dynamics in the Automotive sector, our business continues to gain momentum and meet expectations on both revenue and cash.

The Group's performance has been supported by favourable regulatory tailwinds as the global market for driver and occupant monitoring systems matures, further boosting demand across all our targeted transport sectors and driving our growth prospects."

He further noted the company's financial achievements, saying, "We have delivered double-digit revenue growth, supported by increased high-margin royalty revenue as cars on road with our technology increased 100% compared to the previous 12 months, and an ongoing ramp up of cars in production is anticipated. Coupled with the broader launch of Guardian Generation 3, expected to deliver significantly higher margins compared to its predecessor, this trend of higher margin growth is set to continue. Seeing Machines' ability to successfully deliver projects is also evident in our production volumes, with over 2.2 million cars equipped with our technology on the road as of June 2024—what we believe to be the highest market share in Automotive DMS today. This achievement directly supports our core mission of ensuring people get home safely, and I'm proud to see these statistics reflect that commitment."

The company reported a 17% increase in revenue to USD $67.6 million, with OEM royalties rising by 40% to USD $10.6 million and OEM Non-Recurring Engineering (NRE) increasing by 37% to USD $9.2 million.

Aftermarket monitoring revenue rose by 12% to USD $12.4 million, and aftermarket hardware and installation revenue grew by 30% to USD $18.9 million. Despite these gains, the company recorded an EBITDA loss of USD $17.9 million compared to a USD $9.7 million loss in the previous year, largely due to disciplined working capital management reducing operating and investing cash outflows by 76% to USD $11.9 million.

The cash position at the end of June 2024 was USD $23.4 million. The company maintained its focus on achieving cash flow break-even by FY2025, with Paul McGlone emphasising, "Our focus remains on reducing operating costs, as achieving cash flow break-even is our top priority and we are reaffirming our expectation to achieve a cash flow break-even run rate in FY2025. By delivering efficiencies and a disciplined approach to management, I'm confident that we will be able to successfully navigate increasing geopolitical complexity, to deliver strong medium- and long-term performance. The business has had a good start to FY2025, and revenue is on track within the consensus range."

Beyond finance, Seeing Machines announced operational highlights, including a collaboration with Valeo in the automotive sector and the integration of Asaphus Vision GmbH to enhance AI and machine learning capabilities.

Additionally, Stephane Vedie joined the board, bringing 25 years of automotive industry experience.

In the automotive segment, two additional OEM program awards raised the Automotive cumulative initial lifetime value of all programs to USD $392 million, with the majority of that revenue expected by 2028. The year's production also saw over 2.2 million cars fitted with the company's technology, a 104% increase over the previous year.

In aviation, the company reported collaboration with Collins Aerospace, confirming the beginning of a development of an aviation fatigue detection solution, with initial NRE payments now underway. Additionally, Seeing Machines expanded its work with Qantas Airways.

In the aftermarket sector, Seeing Machines signed a new five-year agreement with Caterpillar, allowing expanded opportunities for its Guardian solutions in the mining and heavy-equipment sector. This agreement included an upfront license fee payment of USD $16.5 million, contributing to the year-end cash position and USD $5 million being recognised as revenue.