Envirosuite (EVS) H2 2024 earnings summary

Executive summary

• Annual recurring revenue (ARR) grew 2.8% year-on-year to AUD 61.1 million, with strong performance in core sectors and the Americas, and a focus on high-value, long-term customers.

• Gross profit margin improved to 52.5%, reflecting cost discipline and a scalable business model, with a midterm target of 60%+.

• Adjusted EBITDA reached AUD 1.1 million, up 123% year-on-year, supported by margin expansion and cost control.

• Strategic shift away from low-margin, non-core contracts led to a slight reduction in customer count but higher average revenue per site.

• Consolidation of EVS Water into EVS Industrial and continued investment in product innovation and Net Zero initiatives.

Financial highlights

• Statutory revenue was AUD 59.4 million for FY24, up 2.6% year-on-year; recurring revenue grew 6.7% to AUD 52.8 million.

• New ARR sales totaled AUD 7.9 million, with 24.8% growth in industrial ARR and consistent quarterly performance.

• Americas region contributed more than half of ARR growth, with ARR rising from AUD 15 million to AUD 25.7 million.

• Non-recurring revenue declined by AUD 1.8 million year-on-year due to project deferrals.

• Net loss after tax was AUD 32.2 million, impacted by a non-cash goodwill impairment of AUD 18.3 million.

Outlook and guidance

• Focus remains on growing the industrial sector, supporting aviation for cash generation, and expanding in the Americas, EMEA, and APAC, with India as a key future market.

• Operating costs are expected to remain flat, leveraging a scalable business model for profitability.

• Strong revenue pipeline for FY25 with AUD 6.6 million of contracts in implementation phase.

• No formal NPAT guidance published, but a multi-year strategy is in place to achieve profitability in the short to midterm.