SEEEN PLC on Monday said it expects 2022 revenue to rise and adjusted earnings before interest, tax, depreciation and amortisation loss to narrow, while it secured a contract with a new customer for its creator service partners services.
The London-based media and technology platform said it expects 2022 revenue to be around $3.3 million, down 61% from $8.5 million a year earlier.
It said its fall in expected revenue was due to four reasons: the elimination of unprofitable revenue from CSP channel partners with no technology upselling potential with annual views of 10.0 billion, down from 12.0 billion in 2021; the loss of all CSP advertising revenue in Russia since the start of the Ukrainian conflict; an unseasonably weak fourth-quarter exacerbated by adverse exchange rates; and shifting revenue mix to include technology-led sales.
Meanwhile, SEEEN expects 2022 adjusted Ebitda loss to be between $800,000 and $900,000, narrowing 40% to 47% from a loss of $1.5 million in 2021.
This reflects in an improved gross margin of 15%, up from 11% in 2021, arising from an increasing mix of technology sales and higher margin CSP channel partners, it said.
SEEEN on Monday also announced a new contract with another strategic customer, initially for its CSP services. It said the new customer’s core business is as a provider of channels to streaming and cable networks, focused on long and short form programmes delivering adventure and danger-related content.
The new customer is expected to become one of SEEEN’s biggest CSP channel partners, it said, as the contract is expected to deliver around $1 million in annual revenue to SEEN, generate from YouTube advertising.
‘SEEEN will enhance this channel’s significant presence by using its Key Video Moments technology to create Short Form highlights and re-mixed videos to drive increased views and revenue for the channel partner,’ the company said in a statement. ‘The board believes that this relationship could significantly grow in terms of both size and scope, reinforcing the group’s strategic growth plan.’
Chief Executive Officer Adrian Hargrave added: ‘2022 was a transformative year for the business, where we truly began to see sales wins and synergies between our YouTube CSP business and our [artificial intelligence]-led Key Video Moments technology.
‘I am grateful to our investors for their ongoing support, including the recent fundraising to accelerate sales in 2023 and beyond for both our AI technology and CSP products and services. I am confident that during 2023, we will execute against the plans set out as part of our recent fundraising.’
On December 30, SEEEN completed a £2.6 million fundraising, with the proceeds invested in accelerating sales traction, through targeted sales and marketing hires.
This was alongside ‘add[ing] functionality for CreatorSuite, especially more flexible end cards and advertising integration, to enable shorter sales cycles and faster implementation by both vertical and strategic customers’.
Shares in SEEEN were flat at 6.00 pence each in London on Monday morning.
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