Results for the year ended 31 December 2022-SEEEN PLC

Results for the year ended 31 December 2022-SEEEN PLC

Audited results for the year ended 31 December 2022

Update on 1H 2023

Notice of AGM

 

SEEEN plc, the media and technology platform that delivers AI-led Key Video Moments to drive increased views and revenues across all video content, is pleased to present its audited results for the year ended 31 December 2022 and an update on 1H 2023.

Overview

2022:

·      Significant traction from proprietary technology sales

·      Focus on profitability for Creator Service Provider (CSP) business

·      Shift in revenue mix from CSP to higher value technology sales

·      Successful fundraise in December 2022 to accelerate technology sales and selected customer-led product development in 2023

1H 2023:

·      Sales wins have accelerated, including 2 strategic partners sales worth more than $1 million in annual revenues and $250,000 in gross profit

·      Added further 12 vertical and e-commerce customers with latter doubling in one-half year

·      Expected release of CreatorSuite 2.0 in July 2023 with additional features including advertising and flexible in-video shoppable Calls To Action to accelerate sales further

 

Accelerating Technology Customer Numbers

 

2021

2022

1H 2023

Strategic

1

3

4

Vertical

4

14

22

eCommerce-led

2

4

8

 

Note: This table represents the cumulative number of technology customers

Full Year 2022 highlights:  

●     Global market demand in SEEEN's key markets is growing, especially video commerce which, globally, is expected to grow at a CAGR of 32% to $2.8 trillion by 2028 (source: Reportlinker)

●     Successful fundraising of £2.6 million (gross) to accelerate sales through an enhanced sales and marketing team and selected technology upgrades

●     Product Sales. At year end, the Group has:

 4 strategic customers (large publishers)

 14 vertical market customers (sports, retail, services, financial publishing)

 4 e-commerce led customers

●     Revenues

 Changing mix of revenue, reflecting higher margin technology commercialisation

 Revenues from customers using CreatorSuite, the Group's primary technology product, of approximately $1.0 million (2021: $0.1 million)

 Recurring technology revenues of approximately $0.1 million (2021: $0.1 million, of which approximately half was professional services fees)

 Total Group revenues of $3.3 million (2021: $8.5 million), reflecting: (i) elimination of unprofitable revenue from CSP channel partners with no technology upselling potential; (ii) loss of all CSP advertising revenue in Russia since the start of the Ukrainian conflict

●     Profitability

 Adjusted EBITDA* loss of ($0.8) million, in line with current market expectations, significantly reduced from ($1.5) million in 2021 as the Group continued to focus on product sales, which has accelerated further since year end

▪      Non-core one-off goodwill impairment of $7.5 million relating to termination of Video Experience Platform, which targeted "experience-based" market segments

 Improved gross margin of 15.2% (2021: 10.6%), reflecting increasing mix of technology sales and higher margin CSP channel partners

* Adjusted EBITDA is defined as Earnings before Depreciation and Amortisation, adding back Share Based Payments, One-Off Termination Costs and Goodwill Impairment

1H 2023 Update:

●     Two strategic customer wins combined worth in excess of $1 million in revenues and $250,000 in gross profit annually

 Cross-selling already being achieved across CSP and technology

●     12 vertical customers added across sports, ecommerce and financial publishing

 Implementations showing strong results, including doubling sales on product pages and 20% Click Through Rates on our new in-video commerce Calls To Action

●     Cash position at 29 June of $2.2 million enables the Group to continue executing on sales pipeline and achieve cash flow breakeven

●     1H 2023 CSP revenues consistent with 4Q 2022, whilst undergoing YouTube business plan review and now positioned to grow in 2H 2023, particularly with brands, publishers and sports clubs

●     CreatorSuite 2.0 expected to be released in July with advertising and flexible Calls To Action built in; success already achieved in 2Q 2023 with trial version and strong pipeline to execute against as updated product is delivered

●     Appointment of sales focused Non-Executive Director, Mark Williams, and experienced AIM CFO, Carmel Warren

Notice of AGM: Copies of the Annual Report and Notice of Annual General Meeting are today being posted to shareholders and will shortly be made available on the Company's website at seeen.com. The Company's AGM will be held at the offices of Allenby Capital Limited, 5th Floor, 5 St Helen's Place, London EC3A 6AB at 12 noon on 26 July 2023.

Dr. Patrick DeSouza, Chairman of SEEEN, commented:

"The board is appreciative of the team and pleased with the dramatic commercial progress achieved during the trailing twelve months - both for our number of technology sales and improved profitability at the CSP. We now look forward during 2H to communicating our revenue-enhancing value proposition for customers. We will also be demonstrating our unique technology at various fora."

Adrian Hargrave, CEO of SEEEN, commented: "2022 was a transformational year for the business, as we achieved commercial traction for our high margin technology products. This has only accelerated in 2023, having completed our fundraising in late 2022. We are well positioned to accelerate our technology sales in a fast-growing market with the release of CreatorSuite 2.0. The reaction from customers has been positive and our case study data reinforces that in-video commerce is gaining importance. We are ahead of the competition in providing a solution that allows both advertising and bespoke Calls To Action. This allows publishers, sports clubs and brands to "double dip" on video revenue streams from advertising and video commerce. When combined with our Key Video Moments to determine the most actionable parts of a video, we can significantly boost our customers' revenues. This is essential for our customer base who want to gain a greater ROI from their video assets. Our AI is also helping our CSP, as we are able to identify and curate Key Video Moments. These can be published as YouTube Shorts, TikToks and Instagram Reels easily without creating new content. This is increasingly important as companies seek to publish across multiple platforms, without having to create new content for each platform.

We are grateful for the support of our shareholders and all of our employees as we look forward to delivering a profitable and valuable company in a fast-growing marketplace."

No Comments

Post a Comment