AITX's RAD January SaaS Revenue Up 383%; Contracts In-Hand Break $500K Recurring Monthly Revenue Milestone as Strong Growth Continues
Detroit, Michigan, Feb. 12, 2024 (GLOBE NEWSWIRE) -- Artificial Intelligence Technology Solutions, Inc., (the “Company”) (OTCPK:AITX), a global leader in AI-driven security and productivity solutions along with its wholly owned subsidiary, Robotic Assistance Devices, Inc. (RAD), is pleased to announce a significant milestone achievement. Specifically, contracted (including deployed and contracted to-be-deployed) revenue derived from device rental (SaaS revenue) now surpasses $500,000 a month. For clarification, this milestone excludes revenue generated from installations, training, and remote monitoring services.
Furthermore, the Company reports that January 2024 invoiced SaaS revenue was 383% greater than January 2023 invoiced revenue, coming in (unaudited) at $226K for the month. On January 29, 2024, the Company announced that booked recurring monthly revenue (RMR) was up 476% over the previous year. The Company expects to add $50K in RMR of deployments in February 2024 as the Company’s final day of its fiscal year is February 29, 2024.
The distinction between booked revenue and invoiced revenue resides in their respective timing: booked revenue signifies orders currently in progress and being produced, while invoiced revenue denotes revenue recognized upon deployment and subsequent customer acceptance.
Steve Reinharz, CEO of AITX and RAD, remarked, “Breaking the $500K RMR milestone keeps us on track to hit the immediate big target of $700K RMR, which should bring SaaS revenues within the range of operationally positive cash flow, which is a huge milestone for us and any company for that matter.”
Mark Folmer, CPP, PSP, FSyI, President of RAD, expressed enthusiasm, stating, “We continue to get better and faster at producing and deploying units. We appear to be on track to have double production capacity in place by the end of March as we work hard to get to the point of being able to deploy $100K RMR. This is critical to our high growth goals.”
Troy McCanna, RAD's Sr. Vice President of Revenue Operations, commented, “We have a strong and growing sales funnel with some incredibly large opportunities. However, conservatively continuing at roughly the current rate of monthly sales we could hit $700K in booked RMR in May 2024. This, if it happens, and if we can get these devices deployed, puts us in a good position in July to achieve the $700K invoiced RMR.”
RMR is money earned from customers who pay for a subscription to a service or product. RAD’s solutions are generally offered as a recurring monthly subscription, typically with a minimum 12-month subscription contract.
AITX, through its subsidiary, Robotic Assistance Devices, Inc. (RAD), is redefining the $25 billion (US) security and guarding services industry through its broad lineup of innovative, AI-driven Solutions-as-a-Service business model. RAD solutions are specifically designed to provide cost savings to businesses of between 35%-80% when compared to the industry’s existing and costly manned security guarding and monitoring model. RAD delivers these tremendous cost savings via a 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.
RAD has a prospective sales pipeline of over 35 Fortune 500 companies and numerous other client opportunities. RAD expects to continue to attract new business as it converts its existing sales opportunities into deployed clients generating a recurring revenue stream. Each Fortune 500 client has the potential of making numerous reorders over time.
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