AITX Forecasts 2x to 4x Annual Recurring Revenue Sales Growth in 2024
Robotic Assistance Devices parent company expects at least $5.5 million in annual recurring revenue will be added to its current tally.
Image courtesy of AITX
DETROIT — AI-driven security and productivity solutions provider Artificial Intelligence Technology Solutions, Inc. is projecting substantial growth in annual recurring revenue in its 2024 sales forecast.
The forecast is based on calendar year 2023 results and is reliant on all orders being fully deployed and having client acceptance, according to the company announcement.
AITX, through its subsidiary Robotic Assistance Devices (RAD), anticipates that, on the conservative side, an additional $5.5 million in annual recurring revenue will be added to its current tally of approximately $5 million in annual recurring revenue throughout 2024.
This projection is based on the utilization of existing sales resources as of Jan. 2, 2024. This would effectively double the revenue run rate in 2024. Although the company forecasts twice the revenue run rate as the conservative estimate, the company sees an up to four-times increase in run rate as the aggressive forecast.
“We feel that we’ll land somewhere between the conservative estimate, which is doubling the revenue run rate, and up to 4x the revenue run rate, which would quadruple it,” says Troy McCanna, senior vice president of revenue operations at RAD, in the company announcement.
“We have many tools to help get us there,” he says. “Whether dealers ramp up their sales efforts, we onboard more clients like the $3 million per year client we mentioned in late November, RAD Light My Way becomes standard across healthcare, firearm detection grows adoption, or RIO continues to grow at its current rate, we have many paths and avenues towards more significant sales growth.”
That’s without mentioning AVA, the company’s most profitable solution, growing its user base throughout the logistics industry.
“We’ve got many solutions, a worthwhile stretch goal, and you can bet we’ve got the motivation to get there,” says McCanna.
More About 2024 Recurring Revenue Growth
“Our sales team, despite facing challenges in 2023, including staffing fluctuations and various leaves of absence, has grown into a tight team fully connected to our operations team members that are critical to successful implementations,” says Mark Folmer, president of RAD, in the announcement.
“With our plans to strengthen the sales force throughout 2024, we are optimistic about achieving and potentially surpassing our revenue targets,” he says.
The sales team that begins 2024 is as follows: one member primarily managing the dealer channel, another hunts large enterprise accounts, there is an open position focused on healthcare and higher education, plus McCanna will continue driving demand and managing the team.
Continued contributions are also anticipated from Folmer, and Steve Reinharz, CEO of AITX and RAD, along with continued expansion of business from existing clients. Dependent on revenue growth and potential, the Company seeks to add as many as 3 additional business development personnel in 2024.
“Our focus remains on sustainable growth. The projected increase in our annual recurring revenue is a step towards not just closing our profitability gap but also establishing RAD as a dominant player in the AI security market,” says Reinharz in the company announcement.
AITX, through its subsidiary, Robotic Assistance Devices, Inc. (RAD), offers an AI-driven Solutions-as-a-Service business model, with its solutions designed to provide cost savings to businesses of between 35% to 80% compared to using the security guards and monitoring model.
RAD offers suite of stationary and mobile robotic solutions that complement, and at times, directly replace the need for human personnel in environments better suited for machines. All RAD technologies, AI-based analytics and software platforms are developed in-house.
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