Before we reflect on the past financial year, I would like to thank you for your ongoing support for Envirosuite. I know from many conversations with investors, that the past year has been challenging with investors constantly reassessing their portfolios, with a particular focus on technology-based growth stocks.
While many companies have seen their valuations significantly reduced, Envirosuite has mostly maintained its valuation through this volatile period. What has helped us is that we have been able to achieve strong revenue growth, while at the same time demonstrating fiscal responsibility with targeted investment focused on near-term revenue generating activities. As a result, we have a clear pathway towards Adjusted EBITDA profitability during FY23 and a strong cash balance. This put us in an strong position to pursue the well understood growth opportunity in front of us.
From a macro perspective, I believe that investors continue to understand the growing weight of Environmental, Social and Governance (ESG) considerations, how they shape the world we live in and why that is such a powerful tailwind for this business. Envirosuite’s technology gives our customers the ability to empirically measure their performance and then make data-driven decisions regarding their environmental and social responsibilities and future sustainability.
Our digital products and platforms take the measurement of ESG factors from a “point-in-time” basis to “real-time” data. This digitisation journey is a global phenomenon disrupting every sector of the economy and Envirosuite is leading the charge regarding digital environmental intelligence.
The Company has continued to make significant investments into its strategic mix of products, that are now beginning to gain traction in global markets with our Land, Expand and Scale strategy. The second half of FY22 was particularly strong and we finished the year in Q4 with record sales and a growing pipeline of potential customers.
EVS Omnis, our Industrial product, is our growth engine, where we are seeing existing customers expanding its use from initial project sites to deploy the technology at scale across multiple sites. At the same time Omnis continues to land new material customers and open significant new industry verticals. Omnis’ growth has exponential potential, and the team have the mandate to drive this growth aggressively.
Additionally, EVS Omnis provides Envirosuite with a strong cross-sell opportunity into EVS Water, our SaaS-based high-margin water solutions. In December 2021, the Company raised $10.5m to accelerate the commercialisation of EVS Water and I am pleased to say that the product has gained meaningful early traction. EVS Water is a high margin true SaaS offering, revenues do not need to match EVS Omnis or EVS Aviation in order to make a meaningful contribution towards Envirosuite’s overall profitability. With a natural cross-sell with EVS Omnis customers, the business is well placed to grow revenues and profitability across these two products.
EVS Aviation has been the surprise package of FY22, particularly in the second half of the year when planes returned to our skies and air traffic surged back towards pre-pandemic levels, although not quite there yet in some countries. As the long-recognised leader in aviation noise monitoring it is pleasing to see airports continue to commit to their ongoing noise monitoring and their need for continuous improvement through project work we are being asked to perform. We have also seen significant renewals from existing EVS Aviation customers. More pleasing yet, is that ongoing innovation by our team has created future growth opportunity in the sector with the release of ANOMSX, a cloud-based digital platform that brings together several Envirosuite products, including NoiseDesk and Carbon Emission Software.
The result of the strategic product mix is a business with high growth, strong cross and upsell opportunities and growing margins – add Envirosuite’s well established track record of product leadership and innovation, and we have a recipe for success. Another important development this year has been the enhanced diversification across products and regions. The America’s have provided particularly strong growth during the year and the appointment of Aaron Lapsley as Chief Operating Officer, based in Austin Texas, has brought a global perspective to our operations and the executive leadership team.
The executive leadership team also welcomed Justin Owen as Chief Financial Officer with interim CFO Michael Hamilton moving into the position of Head of Strategy. The strengthening of the executive team and enhanced global presence provide the Company with the necessary firepower to execute on its growth agenda.
The appointment of Stuart Bland and Tim Ebbeck as non-executive directors added significant additional expertise and experience to the board with their respective and complementary skills and backgrounds. The addition of CEO Jason Cooper as Managing Director completed the building out of the board and complements the key executive appointments mentioned above.
We remain committed to keeping the market well informed of the key value points in the business including across our platforms, commercial relationships, industry sectors and geographies. We have in the past year sought to further communicate and educate the market and we will continue to release business updates and information through both the ASX platform and our online channels as appropriate and I encourage all interested investors to subscribe and follow our progress on many fronts.
To every single one of our “Environauts”, a special thank you and shout out to you all, we ask a lot of you and you do deliver in spades. I might add, with passion and a strong belief in what we do, provides our customers with the data and tools to make fully informed and smart decisions, which make a real time impact to communities and the planet.
Thank you to all our shareholders for your continued support that we look forward to progressively rewarding as the company pursues its strategic growth agenda.
Access our full FY22 Annual Report on the ASX
Please click here to access the FY22 Annual Report on the ASX.