SenSen Networks

ASX: SNS

Market CapAU$50m

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 Networks (SNS) started its new fiscal year with robust cash receipts of A$2.6m, climbing 39% y-o-y. Boosted by multiple contract wins across the globe, management reported annual recurring revenues (ARR) of A$7.6m. Furthermore, management expects to approach an ARR of about A$10m by the end of FY23, and the A$600k from recently announced North American contracts should support that effort. SNS will also be implementing A$1.1m in annual savings starting in the current quarter to improve cash flows. These factors support our forecasts, and if SenSen continues driving ARR growth across multiple geographies and improves liquidity, we believe it could narrow the valuation gap versus its peers.

Y/E Jun
Revenue (A$m)
EBITDA (A$m)
PBT (A$m)
EPS (c)
P/E (x)
P/CF (x)
2021A 5.5 (2.2) (3.0) (0.62) N/A N/A
2022A 9.1 (7.8) (12.3) (2.02) N/A N/A
2023E 15.5 (2.8) (5.6) (0.83) N/A N/A
2024E 23.5 3.2 0.4 0.05 150.0 27.9
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 30/11/2022
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Share price graph
Balance sheet
Forecast net cash (A$m) 2.9
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 7.1 (11.8) (31.8)
Relative* 0.4 (14.7) (30.7)
52-week high/low A$0.2/A$0.1
*% relative to local index
Key management
Subhash Challa CEO
Christian Stevens CFO
David Smith Executive director and COO