Seeing Machines (SEE) , an AIM-listed technology company specialising in computer vision, released its audited financial results for FY23 ended June 30 2023.
Seeing Machines reported a revenue increase of 48% to US$57.8m, ahead of market expectations. Non-recurring engineering (NRE) revenue increased 53% to US$9.7m while annual recurring revenue was up 27% to US$13.6m. Total OEM revenue, including both Automotive and Aviation, jumped 153% to US$26.6m.
A further breakdown of revenue performance reveals a 91% increase in automotive royalty revenues to US$7.6m, an aftermarket revenue increase of 10% to US31.2m, and royalties from Guardian hardware sales of US$2.4m.
Gross profit likewise jumped 64% to US$28.9m and EBITDA loss narrowed significantly to US$9.3m from US$16.3m a year ago. The company ended the FY with a strong balance sheet, including cash at US$36.1m on June 30 2023.
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A very strong set of results from Seeing Machines, ahead of market expectations, as global demand for computer vision continues to grow. Non-recurring and recurring revenues both grew substantially, with the former a key indicator for future royalty revenues. Total OEM revenues more than doubled to US$26.6m from US$10.5m last year as the company's three businesses are now well established and moving closer to compliance deadlines in Europe that will require computer vision technology for vehicles to mitigate risks of driver fatigue.
Seeing Machines is working directly with vehicle OEMs to increase the installation of its Guardian technology as factory-fit, and with transport and logistics operators as retrofit (its more traditional application). Guardian is Seeing Machines' driver fatigue, distraction and accident prevention solution. In Automotive, the company partnered with Magna International to develop a monitoring technology integrated into rear-view mirrors, including a US$65m investment in Seeing Machines. In total, 6 OEM programmes have now started production with the company's automotive technology installed in over 1 million vehicles.
And in the growing Aviation business, Seeing Machines signed a US$10m agreement with Collins Aerospace to develop eye-tracking solutions for the aviation industry. All in all, management set a conservative expectation of no less than US$125m of revenues across all 3 businesses for FY26.
Momentum is on Seeing Machines' side as the regulatory environment in Europe and the US continues to favour computer vision safety measures for vehicles and aircraft, and compliance dates for Europe's General Safety Regulation draw near. The company finished FY23 with a comfortable cash position of US$36.1m and a halved loss of US$9.3m, putting it on a trajectory toward profitability in the near term.
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