ASX Earnings Wrap: Record quarter for Envirosuite; Fatfish sees 58pc growth

It’s the half yearly season again as the ASX market announcements page becomes increasingly flooded with earnings lodgements.

To save you the trouble of trudging through it all, we’ve wrapped up the highlights from some of the reports that caught our eye.

Envirosuite (ASX:EVS)

Highlights for Q2 FY23:

Record quarter for EVS Aviation
Total group ARR (annual recurring revenue) grows 16% on pcp to $56.9m
$3m added in new sales in the quarter

EVS achieved quarterly sales of $3m in Q2 FY23, with new annual recurring revenue of $2m, and project sales of $1m.

This takes total ARR to $56.9m which was an increase of 16% on pcp, with a churn rate remaining consistent with Q1 at 2.8%.

The company saw record growth in its EVS Aviation business in Q2, with new ARR of $1.4m, up 366% on pcp, as the global aviation industry continues to ramp up investment into airports.

EVS is in pole position here as air traffic returns to pre-pandemic levels, with governments and air authorities worldwide redesigning the way they use their air space, including with a view to reducing carbon emissions.

During the quarter, a national air navigation service provider appointed Envirosuite to work alongside its team in redesigning its air space across their national airports.

Using EVS Aviation’s existing noise and vibration tracking solutions and its new Carbon Emissions Modelling technology, the air navigation service provider can make changes to where and how planes fly, to decide what impact that has on carbon emissions and the associated carbon footprint, across the country.

This provides EVS with the opportunity to rapidly pursue the emerging market for carbon emission intelligence with its customers, said EVS CEO, Jason Cooper.

Elsewhere, EVS Omnis continues to feature strongly in the mining sector where 5 of the 10 largest deals signed during the quarter were with mining operations from both the Americas and APAC.

Revenues are expected to commence from these wins in H2 FY23.

In the Americas, and the US particularly, the landfill sector continues to be a key focus area, and EVS has successfully signed two new landfill waste facilities in the US during the quarter.

Envirosuite also released product updates to EVS Water that has increased the speed at which SeweX can be deployed for new customers by introducing new functionality for larger, more complex sewer networks.

“Notwithstanding the expected volatility of quarter-to-quarter movements, given our predominantly blue-chip customer base, and targets across our three product suites, we are undoubtably growing,” said Cooper.

“It is tremendous that for the first time since we acquired EVS Aviation in February 2021, that accounts for over 70% of our group revenues, we have real tailwinds both in the traditional solutions, as well as exciting new technologies in Carbon Emissions Modeling, that will continue to propel our earnings in the coming quarters,” he added.

Fatfish (ASX:FFG)

Q4 FY22 Cash Receipt up by 58% QoQ
Net cash used in operating activities down 30% to Q3 FY22
RightBridge Ventures listed on NASDAQ First North Growth Market

Tech specialist FFG has recorded strong quarterly results with cash receipt rising 58% from $974k to $1.541 million.

Meanwhile, net cash used in operating activities is ~$314k down 30% compared to Q3 FY22 of $447,000.

FFG has businesses in Southeast Asia and internationally with interests in building ventures across fintech, gaming and other tech-related entities.

FFG owns a majority stake in Abelco Investment Group AB (NGM:ABIG), which is traded on the Swedish exchange, Nordic Growth Market.

FFG and Abelco operate from innovation hubs located in Kuala Lumpur, Singapore and Stockholm.

During the quarter FFG announced that RightBridge Ventures AB had successfully listed on the Nasdaq First North Growth Market in Sweden under the ticker RIGHTB.

Following the successful listing of RightBridge, FFG now owns 38% of RightBridge through Abelco.

RightBridge is an esports venture firm that invests in and acquires companies in the esports and gaming industry, with a vision of creating an esports ecosystem.

FFG has also been active in its share buyback program. As at January 31, 2023, FFG has bought back 11,322,310 shares. In its quarterly update, FFG said the company board still perceives Fatfish as undervalued and remains committed to its buyback.

iCandy (ASX:ICI)

Lower cash receipt during quarter of ~$7.7 million, down from $9 million in previous quarter.
Lemon Sky Studio expands head count in quarter, invests in new property and equipment
iCandy to purchase an additional 32.7% equity stake in Digital Games

Games developer ICI said the recorded lower cash receipts during the quarter was mainly due to slower billings and collections during the period owing to the December holiday season.

Due to the strong demand for the jewel in ICI’s crown Lemon Sky Studios’ game development services, it expanded its headcount during the quarter.

Furthermore, $1 million was paid during the quarter to invest in new property, plant and equipment, mainly to expand the Lemon Sky Studios’ office space.

ICI completed the $44.5 million 100% acquisition of Lemon Sky in February 2022, establishing it at the summit of gaming across Southeast Asia.

AIS and SK Telecom have both exercised their options in November 2022 and December 2022 respectively, allowing iCandy to purchase an additional 32.7% equity stake in Digital Games, trading under the brand name Storms.

AIS and SK Telecom were each paid $2.61 million, both of which were settled via the issuance of 19,358,025 new ICI shares at 13.5 cents/share.

The new ICI shares issued to AIS and SK Telecom are subject to a 12-month voluntary escrow.

Following the completion of both transactions, iCandy holds a 100% equity stake in Storms.

Following the successful listing of RightBridge, ICI now owns 16.8% of RightBridge, which it says will have significant synergies with its gaming business, both traditional and Web 3.0.