What was the driving force behind Envirosuite’s (ASX:EVS) record quarter? 

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Summary

  • Envirosuite has delivered soaring ARR sales of $2.1 million in Q3 FY21.
  • The record numbers have been achieved on the back of a recovery in the aviation sector.
  • To drive a clear focus on technology sales, EVS has invested in sales effectiveness.

On 8 April 2021, Envirosuite Limited (ASX:EVS), a global leader in environmental energy solutions has come out with record quarterly numbers for the period ended 31 March 2021. The company has delivered soaring ARR sales of $2.1 million which is an increase of approximately 180 per cent over the previously reported number of $1.15 million in the previous quarter. The ARR for FY21 stands at $42.5 million so far.

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The record numbers have been achieved on the back of a recovery in the aviation sector, which has started to come back to normal, especially in the North American market. New win at a major international airport in North America and expansion in revenue at Dublin Airport (DUB), Oakland (OAK) and San Francisco International Airport (SFO) were the key wins for the company in the aviation sector.

A strong performance in the growth markets of mining and industrial, waste and wastewater etc., has supported the strong numbers. The company has witnessed an expansion revenue at Pilbara Ports Authority. An additional site was added during the quarter with an expansion in contract with Tata Steel (now two sites in total).

The company has also won Singapore’s national water agency (PUB) global innovation challenge for digital twin solutions for water treatment.

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

Clearly defined strategy

To drive a clear focus on technology sales, Envirosuite has invested in sales effectiveness and is now more focused and disciplined, resulting in quality deals with strong SaaS margins.

Image Source: ID 84946026 © Convisum | Megapixl.com

To complement this focus, the company has consolidated its market segments into three aligned regions: APAC (including China), the Americas and EMEA. This would enable Envirosuite to significantly reduce overhead costs, simultaneously creating systematic, sustainable customer acquisition that drives growth in the focus sectors.

Market tailwinds expected

The recent US$111 billion water infrastructure proposal from the Biden administration will see water treatment facilities built and upgraded across the nation. This investment complements what Envirosuite believes is a massive shift in attitude and investment in ESG assets with a tipping point of US$100 trillion in ESG assets now under management.

This is now translating into a focus on how technology companies such as Envirosuite can bridge the gap between industry and the community.

 

 


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