Seeing Machines has released a trading update for the financial year ending 30 June 2024 (FY2024), revealing key financial metrics and operational highlights. According to the unaudited figures, the company's revenue for the period is forecasted to be USD $67.6 million, a 17% increase over the USD $57.8 million reported in FY2023, in line with market expectations.
The company also reported an increase in annualised recurring revenues, which grew by 11% year-on-year to USD $15.1 million from USD $13.6 million in FY2023. Cash at 30 June 2024 was reported at USD $23.5 million, bolstered by a USD $16.5 million licence fee received from Caterpillar. Receivables and accrued income at the end of the financial year stood at USD $31.5 million. The EBITDA loss for FY2024 is expected to be in the range of USD $17-19 million, as previously announced on 26 June 2024.
On the operational front, Seeing Machines secured two additional original equipment manufacturer (OEM) program awards, increasing the total cumulative initial lifetime value of all automotive programs won to date to USD $392 million, compared to USD $321 million in FY2023. The majority of this revenue is expected to materialise by FY2028. Moreover, the company is now engaged in 18 expanding programs for 11 distinct OEM customers.
The adoption of Seeing Machines' technology saw significant growth, with the total number of cars on the road featuring its AI-powered driver monitoring systems reaching 2,211,422 as of 30 June 2024. This represents an impressive increase of 104% compared to the previous year's figure of 1,086,176 cars. The company also signed a new five-year Master Licence and Marketing Agreement with Caterpillar, opening additional market opportunities for its Guardian solution for on-highway vehicles alongside enhancing product offerings for the heavy-equipment sector. The agreement included an upfront licence fee payment of USD $16.5 million, contributing significantly to the FY2024 cash position, and USD $5 million of it has been recognised as revenue for the year.
Further accomplishment includes the joint development of aviation fatigue detection solutions with Collins Aerospace, one of the largest suppliers of aerospace and defence products. This follows an exclusive licence agreement to develop and market eye-tracking solutions for the aviation industry. The board of Seeing Machines was strengthened with the appointment of Stephane Vedie, a seasoned automotive industry professional with 25 years of experience. Additionally, the company received the 2023 Prince Michael of Kent Road Safety Award, a notable accolade in the field of transport safety.
Post the reporting period, Guardian Generation 3 achieved successful homologation in two bus manufacturers, strategically positioning the company to capitalise on the growing demand for vehicles compliant with the new European General Safety Regulations (GSR). The company also launched a collaboration with Valeo and acquired Asaphus Vision GmbH, which significantly enhances its AI and Machine Learning capabilities while establishing a Berlin office.
CEO Paul McGlone commented, "Global demand for our technology has remained strong in FY2024, despite some quarter-on-quarter volatility. Driven by new road safety regulations taking effect, we have seen continued growth across our Automotive and Aftermarket segments, delivering cash and revenue in-line, supported by the new agreement with our long-term customer, Caterpillar Inc. With over 2.2 million vehicles on the road now featuring our class-leading driver monitoring technology, generating high-margin royalty revenue, we are making material progress on our vision of getting people home safely at the end of each day." He added, "As reported in June, the Cash EBITDA loss is larger than previously expected largely due to Aftermarket margin mix resulting from the slower than expected transition from Guardian Generation 2 to Generation 3 and the adverse Automotive royalty volumes and mix during the year. Despite this, we are well placed going into the new financial year and reiterate our expectation to achieve a cash flow break-even run rate in FY2025."
Looking forward, Seeing Machines is well positioned across key transport sectors. The company continues to gain traction in the automotive industry, having secured 18 programs with 11 OEM customers that cumulatively bring a lifetime revenue total of USD $392 million to date. In the aftermarket segment, the company has seen a 19% increase in monitored connections, with Guardian now connected to over 62,000 vehicles globally.
The company's aviation business is also progressing as the USD $10 million collaboration with Collins Aerospace develops further. Seeing Machines plans to publish its audited year-end results before the end of October 2024.
