SENSEN NETWORKS LTD (ASX:SNS) - How Councils Use Cameras And Sensors To Automate Street Work

Now, before we touch on your recent results, can you give our listeners a quick overview of your company? Sure.

Senson is a physical AI company which focuses on providing solutions to city councils and government agencies where physical observations are needed, usually done by humans before But now cameras and sensors can collect a lot more data, a lot more accurately.

So we have developed a software platform that can ingest data from multiple cameras and sensors to automate manual intensive processes that dominate city council operations.

And if we look at your latest quarterly result, you kicked off FY27 with some impressive figures, including record Q1 cash receipts of $5.3 million, up 23% on the prior corresponding period.

Can you walk us through the momentum you're seeing?

The City Council business and this whole marketplace that we operate in is a very sticky long-term customer base.

So there is an underlying ARR that is powering the company's growth.

and stickiness shows up in the net retention rate and net revenue retention figures that we also published.

They're all about 100%.

They're basically powering the company's growth.

Any new orders that we get, new cities that we add, just adds on top of it.

Because churn is zero or near zero, we don't lose any customers that easily and we haven't lost historically as well and we didn't lose in this quarter too.

That means that whatever we are acquired as ARR keeps chugging along and whatever additional revenue we're adding keeps adding to the top.

So that creates this growing momentum.

We now found that the customers are really demanding automation.

They are under pressure, less human resources, more work to be done.

Cities are demanding more better outcomes for the citizens on a shrinking revenue base.

So our solutions are timely and the adoption rate is increased.

That's what's behind the momentum.

And on your results, the positive cash flow is a great milestone, especially considering some of the operational headwinds with payroll legislation.

So how did you manage that?

We have been cash flow positive largely in the last, if you look at last two years, except one quarter or so in the eight odd quarters, we have been cash flow positive on a quarterly basis.

And we're continuing to keep that thing.

So there's a discipline on costs.

the discipline on speed at which we spend money in proportion to what we are earning.