SenSen Networks (ASX:SNS) Q1 FY25 activities update

SenSen Networks Limited (ASX:SNS) has reported a second consecutive quarter of positive cash flow, with operating cash flow of $0.3M in Q1 FY25, marking a significant improvement over the prior corresponding period (PCP) which had an outflow of $1.1M. The company also achieved record Q1 collections of $3.4M, demonstrating continued revenue momentum across all market segments. Additionally, SenSen has successfully reduced its annualized operating expenses from $10.6M in Q4 FY 2024 to $9.2M in Q1 FY 2025, while also strengthening its balance sheet by reducing net debt by $0.2M to ($0.5M) since June 2024.

Executive commentary on Q1 FY25 performance

SenSen's positive operating cash flow in Q1 FY25 reflects the company's sustained sales growth, strong recurring revenue, and a focused effort on cost reduction. The successful tender wins in Canada, particularly from Toronto, Montreal, and Calgary, underscore our expanding footprint and growing market presence. We are pleased with the ongoing revenue momentum across all market segments and the stabilization of our headcount following cost reductions in the previous financial year. The reduction in net debt further strengthens our balance sheet, positioning us for continued growth and innovation.

Summary of Q1 FY25 activities and outlook

SenSen Networks Limited (ASX:SNS) has delivered a second consecutive cash flow positive quarter, reporting record Q1 collections and ongoing cost reductions. The company's focus on strengthening its balance sheet is evident through the reduction of net debt by $0.2M to ($0.5M) since June 2024. With successful tender wins in Canada and continued revenue momentum across all market segments, SenSen is poised for further growth. The company's innovative Live Awareness AI Platform continues to drive smart urban management solutions, contributing to traffic alleviation, enhanced road and personal safety, and substantial annual savings for major fuel retail brands. SenSen's strategic expansion in North America and Australia, along with the rebranding of Scancam to SenShield, reflects its commitment to driving efficiency and safety in urban environments. Looking ahead, SenSen remains focused on leveraging its AI technology to create a safer and more efficient global landscape, while continuing to explore opportunities for sustainable growth and market expansion.