Perth's icetana AI reports strong growth in FY24 results

ASX-listed artificial intelligence video analytics firm icetana AI has posted robust financial results for the 2024 fiscal year, marking its most successful year to date both financially and operationally.

The company, which develops AI software to assist security and IT teams in managing large-scale surveillance networks, reported a 16 per cent year-on-year increase in annualised recurring revenue (ARR) to $1.9 million as of June 2024.

This growth rate was the strongest the company had seen in three years.

Revenue for FY24 meanwhile surged by 112 per cent to $3.7 million, bolstered by increased recurring revenue and a significant $1.5 million sale of AI hardware to the company's main customer in the Middle East.

"FY24 marks our most successful year financially and operationally, underpinned by record ARR growth, a testament to our focus on innovative product development and custome engagement," Kevin Brown, chief executive officer of icetana AI, said.

The company reported cash receipts from customers of $3.6 million, an 87 per cent increase from the previous year.

However, the substantial hardware sale negatively impacted the company's gross margin, which decreased to 58 per cent from 87 per cent in FY23.

Despite the increased revenue, icetana AI reported a net operating cash outflow of $1.54 million for the year, slightly higher than the $1.39 million reported in FY23.

The company attributed this increase to higher expenditure, particularly in sales and marketing.

Icetana AI ended the fiscal year with $1.5 million in cash, up $0.5 million from 30 June 2023, indicating a strong financial position.

The company also highlighted its operational achievements, including the upgrade of most customers to its second-generation software, substantial hardware sales, renewal of significant contracts, and expansion into new markets.

Brown pointed to the company's advancements in machine learning and algorithm accuracy, which he said had enhanced product offerings and opened new opportunities in analytics and security management.

Looking ahead, icetana AI aims to capitalise on its FY24 performance to expand into new and existing markets.

The company plans to focus on key regions, drive new orders, and strengthen renewals and deployments, with Brown saying the company has a strong pipeline of new work and engagements from existing customers for the coming financial year.