The Envirosuite share price has surged 9.52% today on the back of a company presentation for the Bell Potter Emerging Leaders conference.
The post Why the Envirosuite (ASX: EVS) share price is up 9% today appeared first on Motley Fool Australia. –
The Envirosuite Ltd (ASX: EVS) share price has surged 9.52% today to 23 cents at the time of writing. This came after the company released a presentation to be given at the Bell Potter emerging leaders conference.
Envirosuite is an SaaS company that offers solutions to help clients manage environmental outputs. These include noise, air and other types of waste and pollution. It has been listed on the ASX since 2008.
Earlier in September, Envirosuite was added to the S&P/ASX All Technology Index (ASX: XTX).
What was in the announcement?
Envirosuite reported it had pro-forma annual revenue of $58 million with 75% of revenues recurring. It also had an attrition rate of less than 2.5% of recurring revenue.
With a focus on industry sectors including airports, cities, water, mining, industry and construction, Envirosuite said its environmental intelligence enabled clients to expand operations, achieve capital savings and lower operational expenditure.
The company said it had strong fundamentals and was capable of scaling its Software as a Service (SaaS) business to a market worth up to $2.3 billion. Currently, Envirosuite has reached only $43 million of this addressable market. The company estimated that there were 38,000 addressable global waste and wastewater sites, which was 76x its current client base. In addition, there were 12,000 addressable mining, industrial and airport sites, or 24x its current client base.
Envirosuite’s medium term growth targets include $100 million revenue in financial year 2023 with an earnings before interest, tax, depreciation and amortisation (EBITDA) margin of 15-20%. The company aims for positive EBITDA by the third quarter of financial year 2021 and compound revenue growth of 20%. It also aims to diversify its revenue across 6 sectors.
The company is targeting $100 million in revenue by June 2023 through recent acquisitions and with the use of its technology to move from environmental compliance to value driven return on investment for clients.
Lead generation in August was around 1,190 leads, up around 395.83% from July. Envirosuite has a current pipeline of $30 million of recurring revenue opportunities.
About the Envirosuite share price
Envirosuite had revenue of $23,857 in the year to 30 June 2020, up from $7,701 in the year to 30 June 2019. It had adjusted EBITDA of -$12,093.
The Envirosuite share price is up 214.29% since its 52-week low of 7 cents, and slightly higher than the start of the year at 22 cents. The Envirosuite share price is down 21.43% since this time last year.
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Motley Fool contributor Chris Chitty has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.