Envirosuite (ASX: EVS) share price jumps 10% on record-breaking result

Envirosuite's quarter has been epic, despite its share price slipping 30% since 31 March

| More on:
A happy person clenching fists in celebration sitting at computer.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Shares in Envirosuite Ltd (ASX: EVS) soared almost 10% this morning after the company released record-breaking quarterly results. The Envirosuite share price gained 9.52% to trade at 12 cents in morning trade, before partially retreating.

At the time of writing, the shares are swapping hands for 11 cents, still up 4.76% on the previous close.

The creator of environmental management software released its results for the fourth quarter of the 2021 financial year earlier this morning.

Let's take a look at what's got the market so excited about Envirosuite.

Record-breaking results

The Envirosuite share price is gaining after the company reported it received $2.3 million worth of new annual recurring revenue sales over the final quarter of FY21.

Of those sales, $1.3 million was from existing customers. The company said that shows it's able to grow strong relationships with "blue-chip" customers.

Airports were Envirosuite's largest customer base – bringing in $1 million. Some $500,000 came from waste and water management, $400,000 from mining, while its other customer segments brought in $400,000.

That brings Envirosuite's total annual recurring revenue up to $46.5 million. It also recorded $2.4 million worth of non-recurring sales over the quarter.

The company said the results set the stage for it to continue its growth while minimising risk, cost, and complexity.

Unfortunately, despite the business performing well over the quarter, the Envirosuite share price fell 30% in the 3-month period.

Commentary from management

Envirosuite's CEO Jason Cooper said of the results:

These results reflect our focus to build a culture of high performance. The increasing emphasis surrounding environmental, social and governance (ESG) criteria highlights the critical role Envirosuite plays in safeguarding the environment and communities. As we enter FY22, (Envirosuite) is well positioned to capitalise on these macro themes with renewed focus and discipline to continue delivering on our customer acquisition strategy to land, expand and scale accounts across all sectors.

Envirosuite share price snapshot

The Envirosuite share price has been struggling lately.

It's currently 42% lower than it was at the beginning of 2021. It has also fallen 26% since this time last year.

The company has a market capitalisation of around $125 million, with approximately 1.1 billion shares outstanding.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. 

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Technology Shares

two computer geeks sit across from each other with their laptop computers touching as they look confused and confounded by what they are seeing on their screens.
Technology Shares

What's happening with ASX 200 tech shares following the Nasdaq rout?

Aussie tech investors will be eyeing the big retrace in the Nasdaq overnight.

Read more »

Lithium ion batteries
Earnings Results

Needs a recharge: Novonix share price sees red after Q3 earnings

Investors were likely expecting a tad more.

Read more »

Two boys in business suits holding handfuls of money
International Stock News

Here are the US stocks that just delivered James Packer a $590 million profit

US tech continues to dominate.

Read more »

Man pointing at a blue rising share price graph.
Technology Shares

Guess which ASX tech stock just leapt 26% on accelerating growth

Here’s what’s grabbing investor interest.

Read more »

A woman screams and holds her hands up in frustration.
Technology Shares

Cettire shares crash 17% on sinking profits

This online retailer has had a tough start to FY 2025. Here's what you need to know.

Read more »

Excited group of friends sitting on sofa watching sports on TV and celebrating.
Technology Shares

Why this top broker just upgraded DroneShield shares

Bell Potter sees recent share price weakness as a buying opportunity for investors.

Read more »

A woman holds a soldering tool as she sits in front of a computer screen while working on the manufacturing of technology equipment in a laboratory environment.
Technology Shares

Big Tech could make or break ASX shares this week. Here's why

This week will be huge from an earnings perspective.

Read more »

Focused man entrepreneur with glasses working, looking at laptop screen thinking about something intently while sitting in the office.
AI Stocks

Down 12% in a week. Why are Appen shares sinking again?

The tech stock continues its slide today.

Read more »