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SenSen Networks set to exceed $4 million recurring revenue

SenSen has provided both an operations update and details on measures it has implemented during this early period of the COVID-19 pandemic.

SenSen Networks Ltd - SenSen Networks set to exceed $4 million recurring revenue
Positively, SenSen has established a blue-chip client base and has cut ~35% of costs

SenSen Networks Ltd (ASX:SNS) is set to exceed $4 million in annual recurring revenue (ARR) from FY21.

Importantly, this revenue comes from government and blue-chip corporate clients providing a sound financial platform during an anticipated sustained period of business disruption and uncertainty.

With these revenues and prudent financial management which includes a ~35%  reduction in costs, the company has positioned itself to be cash flow neutral for the period ahead.

Defensive client base

SenSen’s CEO Dr Subhash Challa said: “We are fortunate to work with incredibly sound organisations – city councils, road authorities and other Government clients who have signed up to multi-year contracts.

“We are also fortunate that our global appeal and reach to the governments internationally has an inherent diversification of risk.

“Clearly during this challenging period, it’s never been more important for cities and communities to function efficiently and deploy assets equitably, and SenSen is continually finding new ways to do this.

“Our clients have stable budgets and longterm strategic outlooks.

“We are confident that they will emerge from the pandemic at some stage and we are managing our resources to be with them side by side when they do.”

Costs have been cut by ~35% to be cash flow neutral

Furthermore, actions have been taken to lower costs to sustainable levels during this period of economic uncertainty for the foreseeable future.

SenSen has cut costs by ~35% across its operations, including redundancies and pay reductions for staff.

The reduced costs structure will effectively make SenSen cash-flow neutral and assumes cash receipts from SenSen’s recurring revenue base and the company’s annual R&D grant only.

SenSen's management have positioned the company to be one of the few emerging companies on the ASX with a defensive base of clients and sustainable business strategy. 

Quick facts: SenSen Networks Ltd

Price: 0.09 AUD

ASX:SNS
Market: ASX
Market Cap: $40.55 m
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