Emergent environmental management company Envirosuite (ASX: EVS) has continued its blistering performance this week with more uplifting news relating to its company performance.
The stock was up around 57% today and 75% this week after signing a subscription deal with Chilean agricultural giant Agrosuper for the use of its software-as-a-service (SaaS) platform
The deal was signed for an initial six months at A$27,000 per month and equates to an annualised revenue of A$324,000 – representing the largest ever SaaS subscription in Envirosuite’s history, thereby building on the company’s entry into the Latin American market.
In a market update published today, the company said it has enjoyed a strong June quarter and has delivered a 100% increase in annual run rate since June last year.
Shedding further light on its performance, Envirosuite said its monthly subscription churn rate during the past financial year was less than 1.5%. Furthermore, monthly subscriptions for its platform have increased from around A$1.5 million to over A$3 million in the past 12 months.
Some of the sectors that have turned to Envirosuite’s technology have been wastewater, regulatory, agriculture and mining. In terms of clients, the company serves the likes of Irving Oil, the City of Montreal and Yorkshire Water.
According to Envirosuite chief executive officer Peter White, the June quarter has seen a substantial increase in new subscriptions as the company starts to move from a year of re-establishing itself as a pure technology company, to its “next growth phase”.
During the June quarter, Envirosuite also steadily migrated Odowatch platform clients as part of its Odotech acquisition late last year.
This is in addition to working with the National Aeronautics and Space Administration (NASA) over the last nine months.
Envirosuite’s global sales team increased from three to twelve people between November 2017 and March 2018, thereby adding further momentum to its commercial performance. The company said that its annual run rate would likely benefit from the increased sales resources and market focus from this point onwards.
“We have doubled the annual run rate in the 2018 financial year and we will target to do the same in the 2019 financial year and then again in the 2020 financial year,” said Mr White.
“Confidence in achieving the 100% growth rate is underpinned by the size and breadth of the market across our five targeted sectors with salespeople established in six countries,” he added.
In tandem with NASA
With respect to its work with NASA, Envirosuite said that its relationship with the organisation has “progressively deepened across two specific project areas.”
One of the projects is researching the feasibility of improved near real-time tracking and prediction of smoke from wildfires and prescribed burning.
The aim is to better anticipate unhealthy smoke levels that are predicted to affect human populations, to more effectively prepare authorities and communities to handle warnings and evacuations.
The other project is to incorporate satellite data into the Envirosuite platform to enhance real-time and predictive management of air quality over large regions affected by multiple sources of pollution.
Working within Africa and the US as two specific regions, Envirosuite would act as a platform for delivering the NASA data, enhanced by various analytics and models.
By mid-afternoon trade, Envirosuite’s share price remained 50% higher at A$0.087.