Seeing Machines Ltd on Wednesday said it expects to post double-digit revenue growth for financial 2024 alongside weaker earnings stemming from a slow transition to its latest generation driver solution.

The Canberra-based company designs operator monitoring systems, powered by artificial intelligence, to improve transport safety.

Seeing Machines expects to report a 17% increase in revenue to $67.6 million for the year that ended June 30 from $57.8 million a year prior.

Annualised recurring revenue rose 11% to $15.1 million from $13.6 million.

Loss before interest, tax, depreciation, and amortisation is anticipated to be within a range of $17 million to $19 million, worsening from $9.3 million previously.

Seeing Machines attributed this larger-than-expected loss to a slower transition to the latest generation of the company’s Guardian driver fatigue, distraction and accident prevention solution.

Chief Executive Officer Paul McGlone said: ‘Global demand for our technology has remained strong in FY2024, despite some quarter-on-quarter volatility. Driven by new road safety regulations taking effect, we have seen continued growth across our Automative and Aftermarket segments...With over 2.2 million vehicles on the road now featuring our class-leading driver monitoring technology, generating high-margin royalty revenue, we are making material progress on our vision’.

The total cumulative initial lifetime value of 18 Automotive programmes won to date with 11 original equipment manufacturers stood at $392 million, up 22% from $321 million in financial 2023, with the majority of revenue expected by financial 2028.

In Aftermarket, monitored connections have risen by 19% to 62,000 from 51,000 vehicles globally.

‘[A] new five-year master license and marketing agreement signed with global mining company Caterpillar Inc has created additional opportunities for Seeing Machines to sell its Guardian solution for on-highway vehicles while supplying smarter and more competitive products to the heavy-equipment sector,’ Seeing Machines added.

Looking ahead, Seeing Machines is aiming for a cashflow break-even rate in financial 2025.

Seeing Machines shares were down 1.2% at 5.11 pence each in London on Wednesday morning.

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