(Sharecast News) - Driver monitoring technology company Seeing Machines reported an underlying revenue growth rate of 28% for the first half on Thursday, amounting to $25.6m, excluding one-off Magna exclusivity payments.
The AIM-traded firm said the growth represented a significant increase in reported revenue by 5%, including the aforementioned one-offs.
Additionally, annualised recurring revenue saw an uptick of 22% year-on-year, reaching
$14.5m by the end of December.
Despite the positive figures, cash burn amounted to $13.9m, with cash reserves standing at $22.2m as of 31 December.
However, with receivables and inventory balances totalling $31.1m, the company said it expected a working capital unwind of $5m to $6m in the second half of the 2024 financial year.
Operationally, Seeing Machines said it achieved a number of milestones during the period, having secured appointments from both existing and new tier-1 customers to deliver its 'FOVIO' driver monitoring system (DMS) technology for various European original equipment manufacturers (OEMs).
The board said the appointments entailed initial lifetime values of $30m and $15m, respectively, showcasing the company's growing presence in the automotive sector.
Furthermore, Seeing Machines said it expanded its reach in the aviation sector through a collaboration with Collins Aerospace, aimed at developing the world's first aviation fatigue detection solution.
Additionally, 'Guardian Generation 3', the company's aftermarket DMS for the commercial transport and logistics sector, received independent validation for meeting the European Commission's general safety regulation requirements, set to come into effect in July.
Since the period ended, Seeing Machines launched Guardian Generation 3 at the CES 2024 electronics trade show, garnering attention from stakeholders including OEMs, investors and media.
The event also saw successful demonstrations of its latest FOVIO driver and occupant monitoring suite.
Its automotive team had also actively engaged with stakeholders at Automotive World 2024 in Japan.
Looking at its key performance indicators for the second quarter, Seeing Machines reported a 116% increase in cars on the road over the last 12 months, reaching 1,516,545 units.
Monitored 'Guardian' connections also saw a notable uptick, rising 24% year-on-year to 56,896 units.
Moreover, Guardian units sold and yet to be connected amounted to 7,470 units, highlighting the potential for future growth and expansion.
"During the half, we reported underlying revenue growth of 28% across the business and as automotive programmes progress to production, we are seeing consistent 100%+ year-on-year growth in the number of vehicles with our technology installed - now at over 1.5 million cars," said chief executive officer Paul McGlone.
"I am confident that automotive production volumes, and our high margin royalty revenue stream, will continue to grow significantly on an annual basis, as ongoing programmes build, and we approach the start of production across a number of additional programs this year, including the largest volume program won to date."
McGlone said the company was supporting customers to meet "fast-approaching" regulatory requirements across both automotive and aftermarket, and was looking forward to its official, customer-facing launch of 'Guardian Generation 3' at Geotab Connect in the US this month.
"Looking ahead, the growing industry demand for fatigue and distraction solutions to support enhanced transport safety, combined with our market leadership position, production pipeline, proprietary AI technology and balance sheet strength, leave us well positioned to meet 2024 expectations and cash break even run rate during 2025."
At 1132 GMT, shares in Seeing Machines were down 2.48% at 5.12p.
Reporting by Josh White for Sharecast.com.
Seeing Machines (SEE)