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Envirosuite (ASX:EVS) adds new annual recurring revenue of AUD 1.1 million in Q2

  • January 14, 2021 09:20 AM AEDT
  • Kunal Sawhney
    CEO Kunal Sawhney
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    Kunal Sawhney is founder & CEO at Kalkine and is a richly experienced and accomplished financial professional with a wealth of knowledge in the Australian Equities Market. Kunal obtained a Master of Business Administration degree from University of T...

Envirosuite (ASX:EVS) adds new annual recurring revenue of AUD 1.1 million in Q2

Summary

  • Envirosuite (ASX:EVS) added A$1.1 million in new annual recurring revenue (ARR) in the second quarter of FY2021. 
  • Envirosuite added 19 new clients across all EVS’s major sectors of Mining, Industrial, Airports, and Water. 
  • A$3 million was awarded in new non-recurring revenue (hardware and services), of which nearly A$2 million was in the Airports sector. 
Gold MTF non-AMP

Envirosuite Ltd (ASX:EVS) on Thursday announced that it had added new annual recurring revenue (ARR) of A$1.1 million in the second quarter of FY2021, ended 31 December 2020. The global provider of environmental intelligence solutions also said that 19 new clients were added across all EVS's major sectors, including Mining, Industrial, Airports, and Water. The average ARR stood at A$60,000. 

Image Source: Shutterstock

The new non-recurring revenue of A$3 million awarded was A$1.8 million or 250 per cent higher than the previous quarter. Nearly A$2 million was awarded in the Airports sector, showing a positive sign that Airports customers are returning to investment in environmental solutions despite the coronavirus pandemic impact.

The company recorded healthy sales despite some new sales being pushed into the third quarter. The company said the robust sales supported its target of being EBITDA positive on a run-rate basis by the end of Q3FY2021.

Thirty-seven contracts were renewed, amounting A$2.7 million with a churn rate of less than 0.2 per cent. The company recorded healthy growth despite the coronavirus crisis. 

Image Source: EVS update, 14 January 2021

Global plans

EVS Water has made a strong start since its launch in November 2020, with the solution recently being shortlisted by the Singapore Public Utilities Board (PuB) for rollout as part of its global innovation challenge. The company is also eyeing opportunities amid China’s green airports push and low carbon and emissions transition. 

READ MORE: Buddy Technologies (ASX:BUD) Inks a Manufacturing deal with Innotech

What management says

Commenting on the results, EVS CEO, Peter White, said that EVS continued to build out its product portfolio across air, water, and noise, as it creates world-leading predictive solutions across wastewater and water, mining, airports, and industrial customers. With a solid Q3 pipeline of A$12 million, the company expects to push toward an even higher, normalised run rate of new ARR sales, White also said. 

Stock performance

Shares of Envirosuite (ASX:EVS) closed at A$0.17, down 0.0050 points, or 2.86 per cent on Wednesday, 14 January 2021, against the previous closing on Tuesday, 13 January 2021.

READ MORE: Glance at three tech stocks that started 2021 on a bright note

 


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