Envirosuite has reported strong Q1 FY23 results across key metrics as it establishes a strategic alliance with a global leader.

Environmental technology company Envirosuite (ASX:EVS)  has achieved quarterly sales of $3.4m in Q1 FY23.

EVS has shown strong growth with new Q1 annual recurring revenue (ARR) of $2.1m, up 23.5% on previous corresponding period (pcp) and project sales of $1.3m.

Other key results include:

  • Total ARR has grown to $55.2m up 13.6% PCP.
  • Churn remains low at 2.8% for Q1 FY23.
  • $55.2m total ARR, up 13.6% on pcp
  • 18 new sites added, of which eight are from existing customers, demonstrating continued success with EVS’s land, expand and scale strategy
  • Successful completion of the initial transition of the operations centre to the Philippines office.

Growth across product range

EVS kicked off the new financial year with growth across its three core platforms.

Omnis platform growth continued with $1.3m in new ARR and 13 new sites with EVS entering a strategic alliance with SGS, the world’s leading testing, inspection, and certification company.

Omnis users can manage environmental risk surrounding air quality, dust, water quality, odour, noise, and vibration.

Aviation platform saw strong performance in APAC, specifically Taiwan and Australia.

EVS’ global leadership in aviation was highlighted in Q4 FY22 with three new airports signing up and adoption of the carbon emissions technology by the Spanish Airports Authority.

Water – SA Water signed as a new customer with SeweX. EVS also achieved its first cross-sell from Water to Omnis with Water Corporation in Western Australia looking to manage its odour management requirements.

EVS water is divided into SaaS products with its Plant Optimiser assisting customers to materially reduce their risk and two highest costs in water treatment and delivery – electricity and chemicals.

The SeweX product is an advanced modelling tool that helps water utilities proactively manage and respond to safety, corrosion, and odour risks in their sewer networks.

Uptick in cross-selling

Cross-selling between products continues to grow, particularly in APAC with Water Corporation a good example.

EVS said the power of integrating EVS Water and EVS Omnis at customer sites is a significant opportunity for its customers as they address their ESG requirements by using Envirosuite technology.

New ARR growth by product suite is as follows:

Global Strategic Alliance with SGS

EVS has signed a global strategic alliance agreement with SGS S.A (SGS), the world’s leading testing, inspection, and certification company.

The agreement will see EVS and SGS work to promote, market, and sell bundled services combining SGS’s testing, inspection, and certification services with the EVS Omnis environmental intelligence platform.

The result will provide complete compliance and operational optimisation solutions for companies in a range of sectors globally, including mining, heavy industrial, oil and gas.

This partnership and resulting bundled services are expected to expand global market opportunities, accelerate revenue growth, and increase customer value for both companies.

Headquartered in Geneva, Switzerland, SGS employs 96,000 people across a network of 2,700 offices and laboratories globally.

Combining SGS’s services with the EVS Omnis platform will enable customers to manage their compliance requirements while monitoring, modelling, and predicting their site’s environmental impacts to make better-informed operating decisions and preserve critical community relationships.

The strategic alliance agreement between EVS and SGS aims to benefit both parties with greater market access, provision of better integrated customer solutions and leverages both parties’ technologies and respective expertise to achieve strategic growth objectives globally.

For EVS, SGS’s significant global footprint will accelerate access to additional geographic markets including Africa and the Middle East.

For SGS, the EVS Omnis platform will provide strong added value to both existing and prospective customers.

Partnership builds on SGS vision

SGS CEO Frankie Ng said the partnership with EVS is consistent with the SGS vision to enable a better, safer, and more interconnected world.

“To make better use of the data we generate every day in the field or in our laboratories, SGS is pursuing a data enablement strategy across its business lines,” he said.

“In this sense, the partnership with Envirosuite is an important milestone for environmental compliance at industrial sites and infrastructure projects.”

EVS CEO Jason Cooper said the company was excited to partner with SGS to expand and accelerate its opportunities especially in the mining, heavy industrial, oil and gas sectors.

He said the global strategic alliance with SGS is a highlight for Q1 FY23.

“As an established leader in countries throughout the world, the alliance can accelerate EVS Omnis’ penetration into significant new geographies and industry verticals,” he said.

“Following a successful initial trial at an EMEA client, we expect that this collaborative relationship will produce combined solutions that will deliver even greater value to our customers.

“We look forward to seeing this strategic alliance accelerate revenue growth for both companies.”

This article was developed in collaboration with Envirosuite, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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