SenSen Networks

AU: SNS

Market CapAU$52m

Last Close AU$0.08

Australia-based technology company SenSen Networks operates in the field of sensor artificial intelligence (AI). By applying its SenDISA AI platform to physical space monitoring, it extracts real-time insights for customers. It provides solutions to customers in the smart city, gaming, retail and surveillance verticals.

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Investment summary

SenSen continued its run of record quarterly cash receipts, which rose 128% y-o-y and 117% q-o-q to A$3.7m. Notably, the company secured contracts worth at least A$3.8m across all four business verticals and multiple geographies. These wins provide recurring, higher-margin revenues, boosting annualised recurring revenue (ARR) towards c $8m as it made solid progress in transitioning to a ‘pragmatic SaaS’ model. The results support our estimates and if SenSen continues this trend of growing ARR and winning contracts across multiple verticals and geographies, we believe it could reduce the valuation gap versus peers.

Y/E Jun
Revenue (A$m)
EBITDA (A$m)
PBT (A$m)
EPS (c)
P/E (x)
P/CF (x)
2020A 3.8 (2.8) (3.7) (0.85) N/A N/A
2021A 5.5 (2.2) (2.9) (0.61) N/A N/A
2022E 9.3 (8.1) (11.6) (1.99) N/A N/A
2023E 16.4 (3.3) (5.6) (0.85) N/A N/A
Industry outlook

SenSen operates in the fast-growing, global AI market, which is expected to expand at about a 43% CAGR and reach US$126bn by 2025 (source: Tractica). As it executes its ‘Land Grab’ strategy, SenSen should benefit as AI is increasingly used in verticals that involve monitoring physical spaces and as it expands its business across multiple geographies.

Last updated on 09/08/2022
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Share price graph
Balance sheet
Forecast net cash (A$m) 3.9
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 14.3 (19.2) (46.7)
Relative* 8.3 (16.9) (42.6)
52-week high/low A$0.2/A$0.1
*% relative to local index
Key management
Subhash Challa CEO
Jon Cook CFO
David Smith Executive director and COO