Lift-off! Envirosuite achieves record quarter with $6 million sales
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Envirosuite is becoming a dominant player globally with its three core products assisting corporations deliver against ESG credentials, achieving a record Q4 2022 of growth.
Environmental technology company Envirosuite (ASX:EVS) has announced record quarterly sales of $6.0m in Q4 FY22 up 27.7% on the previous corresponding period (pcp).
EVS has shown strong growth across all three product suites with new Q4 annual recurring revenue (ARR) of $3.1m up 34.8% pcp, and project sales of $2.9m up 20.8% pcp. Total ARR has grown to $53.0m up 14.0% on pcp, with new ARR for FY22 of $8.6m.
Project sales for FY22 of $9.8m is up 20.9% pcp. Project sales remain an important yardstick for future new ARR, as customers purchase hardware on a project basis, serviced through longer term contracts.
Churn remains exceptionally low at ~2.5% for FY22.
New ARR growth by product suite
Total ARR by product suite
Q4 has seen recovery from the aviation sector which has translated into an 85.7% quarter on quarter (QoQ) increase in new ARR, demonstrating that airports are regaining the confidence to make investment decisions.
EVS’ global leadership in Aviation was highlighted this quarter by the addition of three new airports and adoption of the Carbon Emissions technology by the Spanish Airports Authority.
Its powerful, easy to use SaaS platform for noise management, NoiseDesk was launched on the ANOMS X platform for over 30 customers.
Among customers was Korean Airport Corporation’s Gimhae Airport and Istanbul’s new airport, one of the largest airports worldwide where EVS now has a strategic path to grow in the future.
Envirosuite CEO Jason Cooper said it is fantastic to see airports returning to pre-pandemic activity levels and the immediate priority the industry has placed on ESG factors as they plan sustainable post-pandemic recoveries.
“EVS Aviation has been our anchor product suite for many years, and I’m particularly proud of our ongoing innovation in this space, with new modules such as the Carbon Emission and NoiseDesk products providing scope for continued growth,” Cooper said.
EVS Water is a high margin growth portfolio for the company with two main products sold on a SaaS basis.
The Plant Optimiser product assists 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 supports water utilities proactively manage and respond to safety, corrosion, and odour risks in their sewer networks.
EVS Water continued its growth in Q4, contributing $0.4m towards New ARR and achieving $1.0m in total ARR.
The quarter was particularly notable as the product achieved adoption in significant new markets outside APAC, including the Americas and AMEA, demonstrating the global scale potential of EVS Water.
Water also proved its cross-sell potential during the quarter, combining with Omnis to deliver a holistic solution to Depuracion de Aguas del Meditettaneo, a large water organisation in Spain and with the City of Kalamazoo in Michigan, USA.
“It’s rewarding to see this Australian-grown technology being adopted and deployed into global markets,” Cooper said.
“Importantly, after investing in Water’s development and deployment, EVS Water has demonstrated and proven its commercial value to large water utilities.”
EVS Omnis continues to deliver across multiple sectors including mining, industrial, cities, waste, and wastewater with new ARR in Q4 of $1.4m.
Omnis users can manage environmental risk surrounding air quality, dust, water quality, odour, noise, and vibration.
Omnis’ rapid growth has resulted in it contributing over 50% of the group’s new ARR for FY22.
This quarter the EVS Omnis platform launched, bringing to market a leading combined air quality, noise, and vibration solution.
Providing a single ‘pane of glass’ for industrial customers to monitor, analyse and operate effectively through their most pressing emissions and community concerns.
Mining continued to be a significant contributor to the success of EVS Omnis. In Europe, EVS has signed the world’s most efficient open-pit copper mine.
Using EVS Omnis’ real-time monitoring and science-based forecasting, EVS will support the Teck Resource’s operation team to plan and act before dust events occur and mitigate impact to nearby communities.
Teck Resources has added a seventh site to its deployment and is listed on the Responsible Mining Index as one of the top five global mining companies when it comes to environmental responsibility.
EVS has also signed a major Taiwanese manufacturing company to EVS Omnis that is showing positive indications of becoming a land, expand and scale account.
“Omnis showed its strengths across all metrics this quarter,” Cooper said.
Cooper said its customers are reporting that ESG considerations are increasingly driving buying decisions, where institutional investors, regulators, and governments are demanding accurate and quantifiable measurement and monitoring of key ESG metrics.
“Our customers only see this trend continuing with our strategic positioning as a global provider of these services, there is evidence that our product suites will continue to grow group revenues and earnings,” he said.
“It is now clear that Omnis is a highly scalable environmental intelligence platform that serves customers in many different segments.”
Cooper said with the aviation industry showing strong signs of getting back to pre-pandemic levels EVS was well positioned to continue to support its customers through the transformative time.
He said by leveraging the reference sites of EVS Water in North America and Europe, the company now has early validation support its strong product market fit.
“Our land, expand and scale strategy has been highly effective in Q4 with rapid take up of our products in all regions with highly scalable customers,” he said.
“This will be a continuing focus of our sales and marketing team, supporting some of the most significant industrial organisations on the planet.
“We are highly confident that the momentum that we have built in FY22 will continue into FY23 and beyond.”
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 decision.