Seeing Machines: Revenue accelerates but losses mount as transition drags
Driver monitoring technology company Seeing Machines has reported an expected revenue of $67.6m (£51.1m) for its financial year 2024, marking a 17 per cent jump from $57.8m (£43.7m) reported for 2023.
Annualised recurring revenue climbed 11 per cent year-on-year to $15.1m (£11.4m) from $13.6m (£10.3m) the previous year.
The company’s technology is now deployed in over 2.2m vehicles, more than double the figure of 1.1m reported just a year earlier – an increase of 104 per cent.
However, the firm has warned that it expects to post an earnings before interest, tax, deprecation and amortisation (EBITDA) loss of between $17m and $19m (£12.9m and £14.4m), larger than previously anticipated.
It said this is due to a slower-than-expected transition from its Guardian Generation 2 to Generation 3 products and unfavourable automotive royalty volumes and mix during the year.
“Despite this,” said chief executive Paul Mcglone, “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.”
Mcglone also said that global demand for Seeing Machines’ technology “remained strong” throughout 2024, although there was some quarterly volatility.
“Driven by new road safety regulations taking effect, we have seen continued growth across our Automative and Aftermarket segments, delivering cash and revenue in-line, supported by the new agreement with our long-term customer, Caterpillar Inc.
“With over 2.2m 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.
The AIM-listed company’s stock has fallen 13 per cent over the past year, continuing a bearish trend since its peak in 2021.