SaaS environmental compliance, risk management, and incident intelligence solutions company Envirosuite [ASX:EVS] says it has increased its sales by 14% on PCP, with a total of $4.2 million earned in the third quarter of FY 23.
The group also said it has managed to grow its annual recurring revenue (ARR) by 15% over the same period last year to a total of $56.2 million. However, EVS was not quick to admit this was down by $700k from last quarter as its services concluded at three of five sites.
Even so, EVS is confident it is on the right track to achieve its target of transition to adjusted EBITDA profitability during FY23.
Investors were downvoting the EVS share price by the early afternoon, the share price dropping 4.5% to 10 cents a share and taking it 28% below the wider market average:
Source: tradingview.com
Envirosuite posts sales and ARR for its latest quarter
Australian environmental intelligence technology company Envirosuite reported from its headquarters in New South Wales earlier on Tuesday morning.
EVS posted quarterly sales of $4.2 million in the third quarter, with a new ARR of $2 million and project sales of $2.2 million. All up, the group managed a total ARR of $56.2 million.
Envirosuite described the third quarter as one ‘marked by significant new wins and renewals as well as several notable strategic wins’ and claimed that ARR growth was consistent and project sales had rebounded with some strength in the quarter.
However, EVS’ new ARR was the same as last quarter, 100k lower than the first quarter and $1.1 million lower than the last quarter of FY22. Total ARR was also down $700k from last quarter.
Source: EVS
The company was on an upward trend for the fourth quarter — particularly as it has seen demand growing for all its products.
Having said that, there may be some differences represented in upcoming reporting periods, as Envirosuite has also recently stopped continual monitoring services at three of five sites currently contracted with the Australian Department of Defence.
EVS says the revenue from these services has now been churned, and only two sites will count going forward, at least until the current contracts last, which is currently slated to end in 2025.
EVS Aviation revenue was considerably down on the previous quarter, yet the group remains optimistic it can achieve its target of transitioning to adjusted EBITDA profitability during FY23.
Jason Cooper, CEO of Envirosuite, commented:
‘Overall, it was an encouraging quarter with some notable regional wins and several key customers taking up additional offerings or scaling existing solutions to additional sites. The nature of the abnormal churn for the quarter associated with the cessation of services to the Australian Department of Defence is disappointing however it is isolated and factored into our full-year forecasts. Our position and outlook remain strong, and we go into Q4 with a significant pipeline including several deals that progressed to the final stages of negotiation in Q3, which we expect to close in FY23 Q4 and FY24 Q1.’
Source: EVS
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