Sensen Networks Ltd (ASX: SNS) share price chops yesterday’s gains down 10% today after the company held its annual general meeting (AGM).
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Sensen Networks Ltd (ASX: SNS) has seen yesterday’s share price gains sliced by more than 10% today after the company held its annual general meeting (AGM).
The Sensen share price rocketed up 27% yesterday on news that the artificial intelligence (AI) analytics company had acquired Snap Network Surveillance. Snap is an AI-powered multi-camera tracking software company based in Adelaide.
However, the Sensen share price is currently trading at 12.5 cents, paring back some of yesterday’s gains.
Highlights from today’s AGM
Sensen reported that internal initiatives made as a result of COVID-19 have led to a record year of financial metrics for the company.
The company says that as of November, contracted total revenue has grown to around $6 million for FY21, up from previous guidance of $5.6 million. Annual recurring revenue (ARR) makes up $3.3 million or 55% of its total revenue estimate.
Sensen says that it has 21 customers on its books generating this ARR, which has grown from 16 in FY20, and 8 in FY19. The average client contributes $160,000 per year to its ARR figures.
With two more quarters to go, the company is optimistic that it is well placed for a record year in both total revenue and ARR.
Growth despite COVID-19
Sensen’s global workforce has grown to 100 software engineers in FY21, despite market difficulties caused by the pandemic.
The company attributed the growth mainly to sales of its “Gemineye” smartphone-based smart city monitoring software, a disruptive price-based SaaS solution.
Growth for the year was also underpinned by high profile customer wins such as the City of Las Vegas, and orders from casino operators, despite slowdowns in that sector.
Acquisition of Snap
Just yesterday, Sensen announced its acquisition of Snap Network Surveillance.
Sensen notes that Snap, an AI-powered surveillance camera manufacturer, has been making inroads into the casino market, especially in the United States. This is an area Sensen is targeting for growth. The company told investors that it planned to integrate Snap’s technology into its SenDISA platform.
The takeover will involve Sensen acquiring all intellectual property including patents, trademarks and know-how from Snap, for a price of $1 million.
That news appears to have been the driving force behind yesterday’s 27% rise in the Sensen share price.
How has the Sensen share price performed in 2020
The Sensen share price has risen by around 20% in 2020, including today’s movements. The company currently commands a market value of $63 million.
Sensen is an AI (artificial intelligence) company focusing on video-IoT (Internet of Things) analytics, and AI-driven software solutions.
More specifically, the company calls itself a “world-leading, data-fusion enterprise” that applies “ingenuity to develop AI-powered products and solutions that address the needs of our increasingly urbanising society”.
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Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.