SenSen seizing a substantial market share in South-East Queensland
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SenSen Networks Ltd (ASX:SNS) has secured a deal to supply an automated parking enforcement solution to Tweed Shire Council, in conjunction with its distribution partner, Duncan Solutions, an Australian-owned company, providing integrated parking solutions.
Tweed Shire Council is a longstanding customer of Duncan Solutions.
Commencing in September 2019, the contract with Tweed Shire Council covers the city’s purchase of an initial SenFORCE mobile parking enforcement unit, with upfront revenue for the systems, software and commissioning of the unit.
SenSen will also earn annual recurring revenues and fees for the software licence, maintenance and support services, under the three-year term of the contract.
This is an important aspect of the contract as it provides predictability of income, as well as multiple ongoing revenue streams from services such as inspection, repair and maintenance.
Tweed Shire Council is the largest Council on the north coast of New South Wales, delivering more than 50 services to 94000 residents over an area of 1300 square kilometres.
The award of the Tweed Shire Council contract follows other recent deals with the City of Gold Coast, Brisbane City Council and Cairns Regional Council.
Outstanding growth in recurring revenue
As a backdrop, SenSen is focused principally on the development, commercialisation and supply of innovative, data-driven business process enhancement solutions, designed to assist customers in their business operations and significantly improve business efficiency and productivity.
SenSen provides video analytics and artificial intelligence data analytics software solutions to customers in the intelligent transportation systems and gaming sectors located in Australia, Canada, Singapore, Europe, India, and United Arab Emirates (UAE).
With a large number of qualified new opportunities in the pipeline across the smart city and retail and leisure (casino) verticals, SenSen maintains a positive outlook regarding its capacity to rapidly grow its customer footprint and base of recurring revenue.
It is worth noting that although 2019 revenue was down slightly year on year, recurring revenues grew more than 150% during the year to reach approximately $1.5 million.
It would appear that investors grasped the significance of the substantial increase in recurring revenue as the company’s shares increased approximately 50% in July/August.
While they have retraced slightly from the August high, this can be attributed to negative sentiment in broader equity markets, and may represent a buying opportunity.
As part of its Smart Cities division, SenSen's parking enforcement solution continues to gain favour, particularly with councils across Queensland.
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