Envirosuite shares rise on half-year results, as recurring revenues take off across global markets
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With established traction in three verticals, the company is in prime position to benefit from broader environmental, social and governance (ESG) tailwinds.
Environmental intelligence company Envirosuite (ASX:EVS) has been building strong momentum with a multi-channel product suite and a large addressable global market.
And that growth was backed up by the numbers this morning, as the company’s half-year trading showed EVS booked its third straight half of growth in annual recurring revenues (ARR), which rose to $49m.
That marked a 15.1% gain on the prior year period, and notably included growth of 36.8% in the Americas region where EVS is building a strong on-ground presence.
And after successfully commercialising its EVS Water division, the company continues to execute on a global scale-up strategy across three key verticals.
Within its product suite, EVS is a market leader for noise pollution monitoring tools in the aviation industry, where it provides services at 219 client sites globally.
The EVS Aviation division is the group’s largest channel which contributed $32.5m in ARR for the December half-year, up 6.5% on the prior year period.
Among its client base is Dublin Airport in Ireland – a major European traffic hub where EVS provides noise monitoring sensors and reports on key performance indicators outlined in its noise management plan.
During the December half, EVS also landed a long-term agreement with NASA, in connection with the development of the X-59 – a supersonic aircraft equipped with technology to reduce the sound of a sonic boom.
The EVS Omnis platform is a cloud-based environmental management software designed for users to manage environmental risk for issues such as air quality, dust, water quality, odour, noise and vibration.
In line with the broader business momentum, the EVS Omnis division booked $16.5m of ARR in the December half-year – a gain of 33.5%.
Statutory revenues came in at $9.3m, a gain of 12.2%.
Late last year, the EVS Omnis product suite scored a major distribution boost when it announced a Memorandum of Understanding (MoU) for a key strategic partnership with Aeroqual.
Founded in 2001 and heaquartered in New Zealand, Aeroqual is a global air-quality monitoring platform that’s based on smart sensing technology and advanced software algorithms.
Under the terms of the MoU, the two sides will integrate their respective technology suites to create a combined value proposition serving major customers across the mining, general waste, wastewater and industrial sectors.
Rounding out the group’s product suite, its early traction with the launch of EVS Water gives the company another opportunity to scale into a fast-growing global market, as business demand for efficient water solutions becomes more critical.
After successfully commercialising its monitoring solutions for wastewater and clean water management, the EVS Water division is already building out a strong client base which includes the likes of Water Corporation — Western Australia’s water utility.
On that project, EVS Water’s SaaS product SeweX will be used “to support the proactive management of corrosion, odour and safety in sewer networks related to sulphide and methane”, the company said.
In line with the market opportunity for water management, EVS completed a $10.5m share placement in December which had strong support from institutional investors.
Some of those funds were allocated to the expansion of headcount across technical and sales roles, to match demand from the company’s expanded product base.
Along with SeweX, the sales team will also be focused on distribution for Plant Optimiser, which provides analytics and forecasting tools for clean water compliance.
EVS Water services will also be delivered at a desalination and drinking water plant in Asia, and the recently-announced strategic partnership with multinational engineering services firm GHD.
The strong momentum across each of EVS’ divisions gives it a strong platform for more growth in the years ahead.
Commensurate with its global opportunity, the company has recently hired a US-based Chief Operating Officer and a new CFO, while also bolstering the strength of its board with three new appointments this week.
With that in mind, the leadership team is looking to execute on a ‘land, expand and scale’ strategy.
“Envirosuite is focused on developing long-term customer relationships, growing from single site to multi-site, expanding our value with customers, and ultimately shifting to enterprise agreements,” the company said.
“This strategy will reduce our cost of acquisition and focus the team on creating and communicating long-term value to our customers.
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.