Envirosuite ends June quarter with record revenue from new sales contracts

Envirosuite ASX EVS June quarter 2021 record revenue new sales contracts
uite’s annual recurring revenue for the financial year to 30 June 2021 was $46.5 million.

Environmental intelligence technology firm Envirosuite (ASX: EVS) had ended the June quarter with a record $2.3 million in new annual recurring revenue contracts.

New sales were generated across the company’s core focus industries including $1 million from the airports sector; $500,000 from waste and wastewater; $400,000 from mining; and $400,000 from what it terms as “other customer segments”.

Of these, $1.3 million came from existing customers and is believed to demonstrate Envirosuite’s execution of a strategy to grow deeper relationships with its blue-chip base.

Favourable foreign exchange movements of $800,000 and the continued unwinding of discounts contributed to an increase in total annual recurring revenue to $46.5 million at 30 June.

This represents an increase of $4 million (or 9%) on the previous quarter and $3.5 million (8%) on the previous corresponding period.

The company also received $2.4 million of orders for non-recurring project and hardware sales during the quarter, of which $1.5 million came from the airports sector and $400,000 came from mining, with the residual $500,000 generated from other customer segments

Envirosuite continues to maintain a strong revenue base with churn of approximately 2% for the trailing 12 months.

Consolidation of sectors

Chief executive officer Jason Cooper said a consolidation of sectors and regions had underpinned the success of the June quarter as the company continues to scale for growth.

“These foundations are setting the stage for continued strong growth while reducing [our] risk, cost and complexity,” he said.

“Current emphasis is being placed on development of the sales organisation and ramping up of resources to grow our US business where there is considerable upside based on the serviceable addressable market and the [government’s] investment in climate change and infrastructure.”

Environmental insights

Envirosuite’s proprietary software combines leading-edge science and innovative technology with industry expertise to produce predictable and actionable environmental insights.

The service offering allows customers to optimise their operations, while remaining compliant and managing their environmental impact.

Mr Cooper said harnessing the power of environmental intelligence allows Envirosuite to “assist industries to grow sustainably and communities to thrive”.

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