Environmental management technology company Envirosuite [ASX:EVS] provided an update declaring a record quarter for EVS Aviation (up 366%) and 16% growth in total group ARR (annual recurring revenue).
Group total ARR grew to $56.9 million, while project sales of $1 million were down on Q2 FY22.
It may take more to increase shareholder interest, however; with the stock tumbling more than 40% in the last full year to date and 4% down in the past week alone.
Source: TradingView
Envirosuite grows ARR and holds fast to aviation momentum
Envirosuite presented its second quarter results on Wednesday, declaring a new record has been hit for its EVS Aviation unit, as well as group ARR growth, backed by rising new project sales.
The tech firm’s key highlights were as follows:
- New ARR came to $2.0 million for Q2 FY23, up 11% on PCP (previous corresponding period)
- Project Sales of $1.0 million delivered a total of $3.0 million in new Sales for Q2 — excluding renewals
- Deals established in Q2 are anticipated to be signed in Q3, raising expectations for a strong quarter
- A new growth opportunity has arisen in the aviation sector with sales of EVS Aviation’s Carbon Emission technology
- For EVS Aviation new ARR was up 366% on Q2 FY22, bringing new ARR over last 12 months to $4.1 million
- EVS Omnis experienced growth and new investments from the mining sector
- EVS Water has discovered market opportunity and return on investment as several major client prospects approach final stages of due diligence, due to close H2 FY23
Source: EVS
Envirosuite’s CEO Jason Cooper said:
‘Envirosuite brings together two of the strongest macro themes driving today’s economy; technology and sustainability.
‘Q2 illuminates the diverse application of our product suite, with EVS Aviation rebounding strongly for its strongest quarter ever, while EVS Omnis (industrial and mining) and EVS Water (water treatment) continue to build in their respective markets.
‘With the growing awareness of the impact on the climate caused by aviation emissions, Envirosuite is leading the industry with its new capabilities in Carbon Emission Modelling. This new growth opportunity in aviation, leverages our entrenched market position as a leading technology provider, and deepens the relationship we have with our existing aviation customer base.’
Net zero and the future of flying
Envirosuite’s noted growth in Aviation shows mounting opportunity in the aviation industry as a ramp up of investments into airports really takes off thanks to governments and authorities redesigning air space strategies as traffic returns to pre-pandemic levels.
Of course, the big issue of reducing carbon emissions also comes into play.
Envirosuite says that its noise and vibration tracking solutions and carbon emission modelling tech can assist in making the necessary changes to how planes fly, and their impact on the environment.
EVS Aviation won a five-year public tender with Boca Raton Airport and Philadelphia International Airport in the quarter, as well as expansions on existing accounts at Dublin, Gatwick, and Heathrow airports.
The company finished the first half with a cash position of $11.9 million and expects bigger gains in coming quarters as new contracts are settled.
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Regards,
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For The Daily Reckoning Australia
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