Increased incidence of extreme weather whips up sales for climate tech Aeeris

Aeeris reports highest customer receipts number on record
Company reports cashflow and customer receipts 40% higher than that of Q2 FY23
Confirms a solid sales pipeline to see upward trajectory continue into Q3

Special Report: New services and products combined with sales and marketing traction are fueling Aeeris‘ (ASX:AER) momentum, with the leading weather and climate intelligence company reporting robust results for the second quarter of FY24.

Regulatory reporting requirements and increased risk sensitivity is driving business and government to seek effective solutions to mitigate exposure to foreseen (natural) perils.

Aeeris’ wholly-owned subsidiary, the Early Warning Network, operates a cutting-edge early warning and notification system, supported by proprietary technology that analyses data from numerous data sources. This system is designed to detect and issue alerts on natural severe weather threats including extreme heat, rainfall, hail and flooding.

The company has the most granular ‘real world’ climate modelling tech in the country and counts local councils and big insurers among its customers.

In Q2 FY24, Aeeris achieved its highest performing quarter on record, a 40% increase in cashflow and customer receipts compared to the same period last year.

Customer receipts rose to $931,581. The company saw a surge in new customer engagements and heightened receipts from existing accounts.

Founder and CEO Kerry Plowright said strategic growth objectives set by the company last year were delivering.

“Aeeris is now reaping the rewards of the robust sales, marketing, and product platforms established in 2023,” he said.

Aeeris’ ‘secret sauce’ is its Geographic Notification Information System along with a 24/7 operations team, which allows for the creation of highly accurate polygons to identify areas where impending events may occur. These warnings cover various hazards with an astonishing accuracy down to within a metre of the likely location.

In its quarterly report, Aeeris highlighted the company’s Hail product suite, which contributed nearly 50% of total new revenue. An early hail season and significant hail events in December (a record month for hail alerts) boosted demand for the company’s hail services particularly from the insurance and solar farm sectors. Severe weather alerting and customer forecasting services also continued to perform strongly.

The company’s Climatics division underwent a strategic transformation during Q2 to further align with user demands. The seamlessly integrated features will bolster scalability and adaptability and position Aeeris for an expansion into Southeast Asia and New Zealand.

The company also developed an automated system to process Fire Weather Warnings during the quarter, enhancing efficiency and productivity for the Operations team during periods of high bushfire activity.

Heading into Q3, Aeeris said it remains on an upward trajectory with a focus on converting substantial deals in the sales pipeline. The company will also be ramping up sales and marketing activities around its Climatics division and will launch a Business-to-Consumer (B2C) Climatics product.

This article was developed in collaboration with Aeeris, 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.