Record quarter for Envirosuite

ASX Earnings Wrap: Record quarter for Envirosuite
It’s the half yearly season again as the ASX market announcements page becomes increasingly flooded with earnings lodgements.
To save you the trouble of trudging through it all, we’ve wrapped up the highlights from some of the reports that caught our eye.
Envirosuite (ASX:EVS)
Highlights for Q2 FY23:

Record quarter for EVS Aviation
Total group ARR (annual recurring revenue) grows 16% on pcp to $56.9m
$3m added in new sales in the quarter

EVS achieved quarterly sales of $3m in Q2 FY23, with new annual recurring revenue of $2m, and project sales of $1m.
This takes total ARR to $56.9m which was an increase of 16% on pcp, with a churn rate remaining consistent with Q1 at 2.8%.

The company saw record growth in its EVS Aviation business in Q2, with new ARR of $1.4m, up 366% on pcp, as the global aviation industry continues to ramp up investment into airports.

EVS is in pole position here as air traffic returns to pre-pandemic levels, with governments and air authorities worldwide redesigning the way they use their air space, including with a view to reducing carbon emissions.
During the quarter, a national air navigation service provider appointed Envirosuite to work alongside its team in redesigning its air space across their national airports.

Using EVS Aviation’s existing noise and vibration tracking solutions and its new Carbon Emissions Modelling technology, the air navigation service provider can make changes to where and how planes fly, to decide what impact that has on carbon emissions and the associated carbon footprint, across the country.

This provides EVS with the opportunity to rapidly pursue the emerging market for carbon emission intelligence with its customers, said EVS CEO, Jason Cooper.

Elsewhere, EVS Omnis continues to feature strongly in the mining sector where 5 of the 10 largest deals signed during the quarter were with mining operations from both the Americas and APAC.

Revenues are expected to commence from these wins in H2 FY23.

In the Americas, and the US particularly, the landfill sector continues to be a key focus area, and EVS has successfully signed two new landfill waste facilities in the US during the quarter.

Envirosuite also released product updates to EVS Water that has increased the speed at which SeweX can be deployed for new customers by introducing new functionality for larger, more complex sewer networks.

“Notwithstanding the expected volatility of quarter-to-quarter movements, given our predominantly blue-chip customer base, and targets across our three product suites, we are undoubtably growing,” said Cooper.

“It is tremendous that for the first time since we acquired EVS Aviation in February 2021, that accounts for over 70% of our group revenues, we have real tailwinds both in the traditional solutions, as well as exciting new technologies in Carbon Emissions Modeling, that will continue to propel our earnings in the coming quarters,” he added.