JSE-listed technology holding company 4Sight has posted R542 million revenue, spurred by increased demand for artificial intelligence (AI)-based solutions.
The company yesterday announced its financial results for the six-month period ended 31 August.
According to a statement on the JSE Stock Exchange News Service, 4Sight reported a robust performance for the period and achieved growth across various financial metrics, reflecting its strategic focus on digital AI transformation and technological innovation.
This, as South African organisations increasingly leverage AI-based technologies to unlock business value and gain competitive advantage.
Yesterday, internet giant Naspers announced it is adopting an “AI everywhere” strategy in a bid to increase revenue.
According to Satista, South Africa’s AI market is projected to reach R15 billion in 2024.
It adds that the market is expected to show an annual growth rate (CAGR 2024-2030) of 28.22%, resulting in a market volume of R70 billion by 2030.
In global comparison, the largest market will be in the US at $50.16 billion (R877 billion) in 2024, says Statista.
4Sight says it has experienced a significant rise in demand for its AI solutions. The company notes this increase highlights a broader trend among customers and partners, which are re-evaluating their business strategies to prioritise technological AI integration and innovation.
Notably, there has been an uptick in demand for AI and machine learning applications. It explains that this surge underscores the growing recognition among businesses of the transformative impact these technologies have in enhancing operational efficiency and securing a competitive-edge in the market.
According to the firm, the board approved a substantial investment in AI and Copilot technology product development and innovation for the 2024/25 financial year.
4Sight CEO Tertius Zitzke is leading this expansion into business solutions driven by AI integration and innovation.
“Industry 4.0 gave us interconnectivity, automation, data analytics, cyber physical systems, IOT, augmented reality and cloud computing,” says Zitzke.
“We are now in Industry 5.0, with the focus on human-centric, automation of processes around hybrid people, integration and data, cyber and security, hybrid and cloud, modern worker and people and cognitive systems.
“As we continue to navigate an evolving digital landscape, 4Sight remains committed to driving technological AI advancements and delivering cutting-edge solutions that meet the dynamic needs of our customers.”
The firm points out that revenue maintained its upward trend, rising by 20.1% to R541.9 million, up from R451.3 million in the first half of the previous reporting period.
4Sight realised growth in operating profit, increasing by 32.9% to R35.6 million, compared to R26.8 million in the first half of the previous reporting period.
Gross profit increased by 19.4% from R184.6 million to R220.4 million and the gross profit margin decreased to 40.7% in August 2024, compared to 40.9% in June 2023.
4Sight says it is optimistic about the growth opportunities presented by the increasing demand for digitalisation in AI initiatives and the desire of businesses to increasingly leverage AI for automation, predictive analytics and operational efficiency.
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