- Envirosuite (EVS) shares are up this morning after the company released its sales progress for the second quarter of the 2021 financial year
- The environmental intelligence solutions company added $1.1 million in annual recurring revenue (ARR) in the quarter, with 19 new clients across all major sectors
- In new non-recurring revenue, $3 million was awarded, around $2 million of which was in the airport's sectors
- The growth in the airport sector shows customers are returning to invest in environmental solutions despite the impacts of COVID-19
- Importantly, there are potential opportunities in China airports, after the country released its five-year plan
- On the market this morning, Envirosuite is up 5.88 per cent and is trading at 18 cents per share
Envirosuite (EVS) has updated the market on its sales progress for the second quarter of the 2021 financial year.
The environmental intelligence solutions company added $1.1 million in annual recurring revenue (ARR) during the quarter, with 19 new clients across all Envirosuite's major sectors of mining, industrial, airports and water.
In new non-recurring revenue, $3 million was awarded, which around $2 million of that was in the airport's sectors. The growth in the airport sectors show customers are returning to invest in environmental solutions despite the impacts of COVID-19.
Envirosuite saw 37 contracts renewed, totalling $2.7 million, with a churn rate of less than 0.2 per cents.
In November, the company launched its EVS Water and the solution has already been shortlisted by the Singapore Public Utilities Board (PuB) for rollout as part of its global innovation challenge.
The company has also been encouraged by developments in China as the country releases its 14th five-year plan. The plan highlights a number of opportunities for Enivrosuite across China's green airports push and low carbon and emission transition.
CEO Peter White continues to build its product portfolio across air, water and noise as it creates world-leading predictive solutions across wastewater and water, mining, airports and industrial customers.
"Our ARR is building and, with a solid third-quarter pipeline of $12 million, we expect to push toward an even higher, normalised run rate of new ARR sales," he said.
"Our success in adding 19 new customer sites during the quarter demonstrates our excellent product-market fit and the exciting potential that Envirosuite has to address the $2.3 billion market identified by the company," he added.
Envirosuite's aim for 2021 is to continue transforming its business model to produce higher gross margins through its solutions.
"We are also focusing on driving down the cost of customer acquisition and generating leads by complementing the direct sales force through significantly expanded use of online and digital marketing tools and activities," Peter concluded.
On the market this morning, Envirosuite is up 5.88 per cent and is trading at 18 cents per share at 10:29 am AEDT.