• Annual Recurring Revenue (ARR): $61.1 million, representing a 2.8% year-on-year growth.

• Customer Count: 435, with a slight decrease due to strategic focus on long-term contracts.

• Gross Profit Margin: Improved to 52.5% from 30%, with a target of 60% in the midterm.

• Statutory Revenue: $59.4 million.

• Adjusted EBITDA: Positive $1.1 million, representing 123% growth year-on-year.

• New ARR Sales: $7.9 million, with consistent quarterly additions.

• Industrial ARR Growth: 24.8% increase, with $24.5 million in revenue.

• Aviation ARR: $34.6 million, with a 4.6% growth excluding abnormal churn.

• Americas ARR: Increased to $25.7 million from $15 million.

• Nonrecurring Revenue: $1.8 million lower than the previous year.

• Operating Expenses: $0.7 billion, with a focus on cost management and restructuring.

• Average Revenue Per Site (Industrial): Increased to $99,000, a 10% jump.

• Cash and Debt Facility: Increased facility from $7.5 million to $12.5 million, with potential extension to $15.5 million.

• Impairment of Goodwill: $18.3 million across Americas and APAC.

• Warning! GuruFocus has detected 7 Warning Signs with ASX:EVS.

Release Date: August 20, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• EnviroSuite Ltd (ASX:EVS) reported a 25.5% improvement in EBITDA over the previous year, indicating strong financial performance.

• The company achieved a 2.8% year-on-year growth in annual recurring revenue, reaching $61.1 million.

• EnviroSuite Ltd (ASX:EVS) has a global footprint, supporting customers in over 40 countries, which allows for the addition of new sites without significant increases in operating expenses.

• The company has a scalable business model, which is expected to transition it to profitability with controlled operating costs.

• EnviroSuite Ltd (ASX:EVS) is recognized as a leader in environmental intelligence technology, with strong validation from hundreds of sites worldwide using its technology.

Negative Points

• The company experienced a slight decrease in customer size, attributed to the end of fixed-term contracts and a strategic focus on long-term, high-value customers.

• Nonrecurring revenue dropped compared to the previous year, with some significant projects deferred to FY25.

• EnviroSuite Ltd (ASX:EVS) faced an impairment of goodwill amounting to $18.3 million, reflecting conservative growth rates.

• There was a slight increase in sales and marketing expenses, partly due to events like FORUM23, impacting overall costs.

• The company acknowledged that its share price does not reflect its valuation, which is disheartening for management and shareholders.