Q1 sales of $3.4m comprised of $2.1m New ARR up 23.5% PCP and $1.3m in Projects Sales
$55.2m Total ARR up 13.6% PCP
18 new sites added, of which eight are from existing customers, demonstrating continued success with the “Land, Expand and Scale” strategy
A strategic alliance has been established with a global leader to accelerate penetration into the serviceable addressable market
Successfully completed the initial transition of the Operations Centre to the Philippines office
Omnis – continued growth with $1.3m in new ARR and 13 new sites. Signed a global strategic alliance with SGS providing clear validation of the platform’s technological advantage
Aviation – strong performance in APAC specifically Taiwan and Australia
Water – SA Water signed as new customer with SeweX. First cross sell from Water to Omnis with Water Corporation in Western Australia
Join Q1 investor briefing at 10.30am AEDT today via this link: Envirosuite Q1 FY23 Sales Update
We are pleased to announce that we have achieved quarterly sales of $3.4m in Q1 FY23. We have shown strong growth with new Q1 ARR of $2.1m up 23.5% PCP and Project sales of $1.3m. Total ARR has grown to $55.2m up 13.6% PCP. Churn remains low at 2.8% for Q1 FY23.
Cross selling between products continues to grow, particularly in APAC, where Water Corporation has subscribed to EVS Omnis to support its odour management requirements. The power of integrating EVS Water and EVS Omnis at customer sites is a significant opportunity for our customers as they address their ESG requirements by using Envirosuite technology.
We are delighted to announce the signing of a global strategic alliance agreement with SGS S.A. (‘SGS), the world’s leading testing, inspection, and certification company. The agreement accelerates the Company’s penetration of the serviceable addressable market, opens new industry verticals and geographies, and provides clear validation of EVS Omnis’ global technological capabilities.
New ARR growth by product suite is as follows:
Global strategic alliance with SGS
Envirosuite has entered into a global strategic alliance agreement with SGS, the world’s leading testing, inspection, and certification company.
The agreement sets out terms that will see Envirosuite and SGS work together collaboratively to promote, market, and sell bundled services that combine SGS’s testing, inspection, and certification services with the EVS Omnis environmental intelligence platform to provide complete compliance and operational optimisation solutions for companies in a range of sectors globally, including the mining, heavy industrial and oil & gas sectors.
This partnership and resulting bundled services are expected to expand global market opportunities, accelerate revenue growth, and increase customer value for both companies.
Headquartered in Geneva, Switzerland, SGS employs 96,000 people across a network of 2,700 offices and laboratories globally. Combining SGS’s services with the EVS Omnis platform will allow customers to manage their compliance requirements while monitoring, modelling, and predicting their site’s environmental impacts to make better-informed operating decisions and preserve critical community relationships.
The strategic alliance agreement between Envirosuite and SGS aims to benefit both parties with greater market access, provision of better integrated customer solutions and leverages both parties’ technologies and respective expertise to achieve strategic growth objectives globally.
For Envirosuite, SGS’s significant global footprint will accelerate access to additional geographic markets including Africa and the Middle East. For SGS, Envirosuite’s EVS Omnis platform will provide strong added value to both existing and prospective customers.
We are excited to partner with SGS, a leading and globally recognised organisation, to expand and accelerate our opportunities especially in the Mining, Heavy Industrial and Oil & Gas sectors. Following a successful initial trial at an EMEA client, we expect that this collaborative relationship will produce combined solutions that will deliver even greater value to our customers, and we look forward to seeing this strategic alliance accelerate revenue growth for both companies.
SGS CEO Frankie Ng on partnering with Envirosuite
"The partnership with Envirosuite is consistent with SGS’ vision to enable a better, safer and more interconnected world. To make better use of the data we generate every day in the field or in our laboratories, SGS is pursuing a data enablement strategy across its business lines. In this sense, the partnership with Envirosuite is an important milestone for environmental compliance at industrial sites and infrastructure projects. "
This quarter EVS Omnis continued to deliver across multiple sectors including mining, industrial, cities, waste-to-energy, waste and wastewater with new ARR in Q1 of $1.3m. Omnis’ rapid growth has resulted in it contributing 62% of the Company’s new ARR for Q1FY23. The cross-sell potential between Omnis and Water has been further validated during the quarter with Water Corporation becoming an Omnis customer. This is the first example of an EVS Water customer being cross sold into EVS Omnis.
Following the launch of the enhanced EVS Omnis platform last quarter, which combines EVS’s air quality, noise and vibration solutions into a single ‘pane of glass’ for industrial customers, we have seen an exceptionally positive reaction from the market, as evidenced by the signing of the SGS partnership.
The platform allows customers to monitor, analyse and operate effectively through their most pressing emissions and community concerns. The platform builds on significant IP from decades of experience, combining science and technology to enable powerful decision making for our customers.
The global strategic alliance with SGS S.A. is validation of the highest order that EVS Omnis provides the global industrial community with a distinct point of difference in bringing useful and actionable environmental intelligence that add tremendous value to operational decision making. The most exciting aspect of EVS Omnis is its broad versatility as is demonstrated by the varied nature of new clients. With the Operation Centre in the Philippines providing additional resources and support we expect to add material scale to the EVS Omnis platform in the coming year.
The ongoing recovery in the global aviation industry continues to support growth across the sector with several renewals in the quarter, and further investment being made by airports with instrumentation replacement.
Strong performance in APAC during Q1 where Envirosuite enjoyed continued success in the military and civilian airport sector in Taiwan with the signing of a new airport. Additional success was achieved with Melbourne Airport, where Envirosuite is working with the authority to collate base data as part of the planning for the third runway.
A significant instrument sale for Beijing International Airport where existing monitors were replaced with new instrumentation is further evidence that airports are increasingly comfortable initiating infrastructure investment projects in the post pandemic environment.
The growing adoption of EVS Water continues with the signing of the first sewer network with SA Water. The signing of SA Water represents a significant opportunity for Envirosuite to assist the utility with its sewer management. The geographic structure and environmental conditions within South Australia are an ideal environment for SeweX to demonstrate its value and support the SA Water management with operational decisions relating to this sewer network.
The Company has successfully completed the transition of the Operations Centre for level 1 customer support and transactional finance processes to our new Philippines office in Clark Global City. The success of this initiative provides an excellent base to support the planned growth across all regions, in particular to support the global growth of Omnis.
The appointment of Didrik Moe as Regional General Manager (RGM) for EMEA brings a broad depth of experience across sales, operations, engineering and product management. Didrik’s experience across various business roles makes him uniquely qualified to lead EMEA into the next phase of growth.
Outlook on Q1 and beyond
The global strategic alliance with SGS is a highlight for this quarter. As an established leader in countries throughout the world, the alliance can accelerate EVS Omnis’ penetration into significant new geographies and industry verticals. The wide and varied nature of customers subscribing to EVS Omnis continues to demonstrate why this product will drive our future growth and has the potential to deliver significant value to shareholders.
Similarly, the establishment of the support office in the Philippines, provides the Company with the ability to scale its services in the years to come. The Operation Centre will introduce efficiencies and standards of service that will allow expanded client relationships and ongoing new sales.
Finally, the EVS Omnis and EVS Water cross sell opportunity continues to build. I’m particularly pleased that an EVS Water to EVS Omnis cross sell has occurred, which significantly validates EVS Water’s Land, Expand and Scale potential.
Join our investor call today
The company is hosting an investor briefing at 10.30am Tuesday, 18 October 2022. This call will be hosted by CEO, Jason Cooper and CFO, Justin Owen.
Register to join the webcast via this link: Envirosuite Q1 FY23 Sales Update
Authorised for release by the Board of Envirosuite Limited For further information contact: Warrick Lace, firstname.lastname@example.org +61 404 656 408 email@example.com