Envirosuite (ASX: EVS) has posted a strong start to FY 2022 revealing its annual recurring revenue (ARR) for the September 2021 quarter (Q1 FY 2022) had increased to $48.6 million, which was 42% higher than the previous corresponding period.
Total new sales for the period were $4.1 million, with $1.7 million of this coming from new ARR sales.
Envirosuite has attributed the strong growth to sales investment in North America, where the market offers “considerable upside” due to several factors including US President Joe Biden’s announced US$1 trillion investment in climate action and infrastructure.
Other drivers behind Envirosuite’s growth include continued customer expansion, increased media coverage and broader community awareness.
Envirosuite chief executive officer Jason Cooper said he was “pleased” with the company’s strong start to the new financial year despite COVID-19 challenges.
“It has been an important sales quarter where we signed contracts across our EVS Water portfolio, expanded our presence and brand awareness in the US with strong media coverage, which has translated to an increase in high quality inbound leads, advanced commercial partnership discussions, and continued to demonstrate value to our existing customers with anticipated expansions in Q2 FY 2022.”
Mr Cooper said the company was continuing to work on accelerating growth for the full FY 2022.
“We continue to scale up our sales, product, marketing and support capabilities to firmly establish Envirosuite as a leader in environmental intelligence and within the global environmental technology landscape,” he added.
Envirosuite has developed proprietary software as a service technology for providing environmental intelligence to a variety of sectors including aviation, mining, industry, waste and water.
The company’s software offers actionable insights which enables customers to optimise operations while remaining compliant with regulations and managing any environmental impacts.
During Q1 FY 2022, Envirosuite’s Omnis product generated the most ARR – accounting for 62% with $1.1 million.
Aviation generated the second highest ARR with $500,000 and Water booked $100,000.
Roll-out of Envirosuite’s technology is picking up in the Water space, with the company revealing it had inked an agreement with Western Australia’s principal water supplier the Water Corporation last month.
WA’s Water Corporation is one of Australia’s largest water utilities.
Envirosuite’s SeweX solution will be deployed for the corporation in a proof of concept project.
The software solution is an advanced mathematical modelling tool that can detail and predict the physical, chemical and biological processes in sewers.
“Our water solutions help companies to monitor and manage their essential infrastructure and networks, while reducing the emissions impact on the environment and surrounding communities,” Mr Cooper said.