Half year trading update and quarterly KPIs

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 (Qtr on Qtr)	33%	40%	31%	25%	25%
Qtr production	60,205	98,113	105,390	112,077	141,747
% Growth (Qtr on Qtr)	12%	63%	7%	6%	26%
% Growth (year on year)					135%

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 (Qtr on Qtr)	6%	2%	6%	4%	11%
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 .

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	[phone]
Paul McGlone - CEO Sophie Nicoll - Corporate Communications
Stifel Nicolaus Europe Limited (Nominated Adviser and Broker)		[phone]
Alex Price Fred Walsh Nick Adams Ben Burnett
Dentons Global Advisors (Media Enquiries) James Styles Jonathon Brill [e-mail]	[phone]

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

 

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