Envirosuite is pleased to report its financial results for the year ending June 30, 2022. They demonstrate solid year on year revenue growth across all our product lines and geographies as well as improving profitability. The results also highlight the Company’s accelerating growth which, on the current trajectory, should see the business become EBITDA (Adj) profitable during FY23.
In FY22 Envirosuite delivered Annual Recurring Revenue (ARR) of $53m, up 14.1% with every part of the business contributing. The Company ended the FY22 particularly strongly with ARR growth in Q4 FY22 of 34.8% thanks to a dramatic improvement in industry activity in aviation and an outstanding performance by EVS Omnis as it penetrated new industry verticals. The EVS Water business added 10 new client sites during the period, and its continued growth can be expected to further improve Gross Margins due its SaaS revenue model.
Performance Highlights
- FY22 Annual Recurring Revenue (ARR) up 14.1% to $53.0m with ARR growth in our EVS Aviation business accelerating and the Americas region, now our largest, delivering one of its best results on record, up 31.3%
- Spectacular performance from EVS Omnis which grew ARR 23.9% for the period and contributed 56% of the Company’s new ARR for FY2022
- EVS Water deployed across 13 sites at year end with the addition of marquee customers such as PUB Singapore
- Gross Margin continued to improve and increased 550bp to 47.9%, driven by improving cash flow from operating activities and high levels of Recurring Revenue
- Adjusted EBITDA of $(4.0)m, an 11.8% improvement vs FY21
- Envirosuite solutions deployed in 46 countries across 416 client sites at year end, up 11.5% vs pcp as cross selling success begins to positively impact, particularly in EVS Omnis and EVS Water
Jason Cooper CEO stated:
"FY22 was a year in which the underlying strength of the Envirosuite business emerged. These results show not only the marketplace’s expanding appetite for our products but a pathway to profitability for our shareholders as operating cash flow improved, Gross Margins expanded and EBITDA (Adj) tracks towards the positive during FY23.
"We saw our growth engine, EVS Omnis, record outstanding growth as the product line penetrated new verticals; our core EVS Aviation business benefited from a rebound in activity towards pre-COVID levels; and EVS Water signed marquee customers, was resourced for future growth and began to deliver ultra-high margin revenue. Cross-selling opportunities particularly between EVS Omnis and EVS Water began to emerge and we expect this trend to accelerate in FY23.
"In our conversations with customers, existing and potential, there is a noticeable uptick in the importance assigned to ESG solutions that can provide a tangible benefit to their business. EVS is very well placed to meet this demand. This is particularly evident in the Americas, now our largest geographical revenue segment, but this is a global phenomenon that seems unstoppable."
“If you would like to submit a question, please email them to http://investors@envirosuite.com with the subject line: ‘FY22 Results Q&A’.
