Energy efficiency technology company, EP&T Global (ASX: EPX) has upped its annual recurring revenue (ARR) forecast to $9.8 million for FY 2022, which is 85% higher than $5.3 million at the end of FY 2021.
Driving this growth is new customer wins since EP&T listed on the ASX in May.
The value of these new customer contracts exceeds $3 million and covers 86 sites.
EP&T chief executive officer Trent Knox said the company continues to focus on converting annual contract value (ACV) to ARR, which he says is key to boosting revenue and cash flow.
Since its May ASX listing, EP&T has invested in growth initiatives that are expected to contribute further to ACV – and, as a result, ARR.
EP&T has grown its sales and account management teams from seven to 11, with this number expected to rise to 15 by the end of FY 2022.
Another initiative has been to improve awareness of the EP&T brand, which has led to a rise in inbound enquiries.
Additionally, initiatives have included enhancing customer knowledge of EP&T’s zero upfront capital expenditure cost and high return on investment under the subscription service. EP&T said this has “significantly” shortened its sales cycle.
The time-frame from signing the contract and installation to generating revenue has also been shortened.
EP&T has also continued to innovate its products to meet evolving customer requirements, including user experience improvements.
Post COVID re-opening
Mr Knox says the world’s re-opening and easing of travel restrictions will further enhance sales opportunities for the company.
“We have spent the past 12 months revitalising and boosting interest in all things EP&T, which was realised in our sales as we closed out FY 2021 with ACV of $10.9 million – an increase of $3.3 million (43%) on the previous year.
“We are well positioned to capitalise on future sales opportunities with an ever-expanding list of verticals including commercial officer, retail, hospitals, schools, hotels, clubs and industrial.”
Mr Knox added the company was “determined” to become “the world’s most trusted brand” in building energy efficiency.
Energy efficiency technology
EP&T has developed a proprietary technology that combines information from multiple sources with cloud-based data analytics to detect real-time energy inefficiencies in buildings.
The company describes its detection as “highly accurate” which allows the company to collaborate with building managers to optimise building operating systems.
EP&T has developed the EDGE Intelligent System which is a data repository that contains more than 20-years of building energy efficiency knowledge. It collects and analyses more than 5.6 billion points of data a year using proprietary algorithmic analysis and machine learning.