Despite economic uncertainties, the demand for road safety solutions continues to grow, contributing to Acusensus’s (ASX: ACE) revenue and earnings for FY24
Founded in 2018, Acusensus designs and develops artificial intelligence-enabled road safety solutions. The Company’s financial performance highlights its focus on strategic initiatives, with an 18% annual increase in revenue to $49.6 million.
The Company also reported a 22% increase in gross profit, totalling $22.6 million. The gross profit margin improved to 45.5% from 43.9% last year, reflecting effective cost management and operational scaling.
EBITDA declined by 12% to $4.5 million (FY23: $5.1 million), primarily due to investments in new projects and increased operational expenses and recorded a net loss of $1.5 million, compared to a net profit of $0.1 million in FY23.
Nonetheless, ACE maintained positive cash flow from operating activities, totalling $3.6 million, albeit marginally down on their $4.3 million in FY23. The Company’s cash reserves stood at $19.3 million as of June 30, 2024, providing financial flexibility for ongoing investments in innovation and market expansion.
This shift reflects the Company’s investments in future growth, with an emphasis on research and development and expanding market reach.
Acusensus’s AI-driven road safety solutions have been increasingly adopted by governments and municipalities worldwide, aiming to improve public safety through advanced monitoring and enforcement technologies. In July 2024, ACE expanded its footprint across Australia, now operating in half of the country’s states and territories. The recent deployment of its Heads-Up fixed site systems in South Australia has seen results. In the first week alone, just five of these cameras recorded 8,603 instances of illegal mobile phone usage.
Co-founder and Managing Director, Alexander Jannink said, “The successful deployment of Heads-Up fixed site systems in South Australia marked half of Australia’s states and territories actively using our solutions to suppress distracted driving.”
“We have expanded our international footprint, particularly in the key markets of the US and the UK with revenue contribution from outside of Australia increasing from 1% in FY23 to 4% in FY24.”
Looking ahead, Acusensus plans to utilise its cash position to explore additional market opportunities, particularly in regions where road safety is a priority. The Company intends to continue investing in research and development to introduce innovative products that can support future revenue growth and profitability.
“Our efforts were recognised by the LaunchVic Governor of Victoria Startup Awards, with Acusensus winning the title of 2024 Victorian Scaleup of the Year,” added Jannink.
“We are well-positioned to maintain momentum in our multi-year strategy to be a significant global influence in road safety.”
Sidra is a Business Writer with The Sentiment
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