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.
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.