The fast-rising company in question is EnviroSuite Ltd (ASX: EVS).

Shares in the environmental management technology platform provider closed on Friday trading for 7.1 cents. During the Monday lunch hour, shares are changing hands for 8.6 cents apiece, up 21.1%.

Here's what's sending the ASX stock flying higher today.

ASX stock soars on takeover deal

Investors are sending the EnviroSuite share price soaring today after the ASX stock announced that it's entered into a Scheme Implementation Deed with Ideagen Limited to acquire 100% of EnviroSuite's shares by way of a Scheme of Arrangement.

Investors first learned of Ideagen's acquisition interest on 25 February with the announcement of Ideagen's non-binding, conditional and indicative proposal. And the ASX stock closed up a blistering 83.4% on the day.

If you're not familiar with Ideagen, the United Kingdom-based global software company specialises in providing governance, health and safety, risk management, and compliance solutions to a range of industries.

Under the terms of the Scheme, Ideagen is offering 9.0 cents a share to EnviroSuite shareholders, or 4.6% above current levels.

Management noted that this implies a fully diluted equity valuation of $132.2 million for the ASX stock. And it represents a premium of 109.3% to the last closing price of 4.3 cents a share prior to the announcement of Ideagen's non-binding, conditional, and indicative proposal on 24 February.

The board said it unanimously recommends that EnviroSuite shareholders vote in favour of the Scheme, in the absence of a superior proposal. They added that the takeover offer remains subject to Foreign Investment Review Board approval and other customary conditions.

Shareholders were informed that they do not need to take any action at the present time.

What did management say?

Commenting on the takeover offer sending the ASX stock surging today, non-executive chairman of EnviroSuite, Colby Manwaring, said: "The EnviroSuite board has carefully considered the proposed scheme and evaluated a range of factors and potential alternatives in arriving at its unanimous recommendation to vote in favour of the scheme, subject to the customary qualifications."

Manwaring added:

While the EnviroSuite board is highly confident in the long-term fundamentals and growth prospects of the company, we believe the scheme offers a compelling opportunity for shareholders to realise the immediate value of their investment in EnviroSuite, for 100% cash at an attractive premium to where EnviroSuite has recently traded.

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So it might come as a surprise that there were many ASX tech shares that did very well over FY2022, outperforming both the All Ords and the All Tech index. Let's check them out.

The 5 best ASX All Ords tech shares of FY2022

Our first All Ords tech share to check out is Reckon Limited (ASX: RKN). This accounting software company started FY2022 off at 95.5 cents per share but finished up at $1.20. That's a rise worth a pleasing 25.65%. Shares of this company rocketed when it announced that it would be selling its Accountants Practice Management Group division back in May.

As we covered at the time, Reckon declared that it intended to sell this division to Access Group for $100 million, with the proceeds to be returned to shareholders. At the time, Reckon's share price soared by more than 50%, and it has kept its new highs ever since.

Something old, something new…

Next up we have a stalwart of the ASX tech sector in Computershare Limited (ASX: CPU). Computershare has been around since the late 1970s and operates one of the largest share registries in the world. Many ASX investors would have used its services to manage their own portfolios.

Over FY2022, Computershare shares went from $16.90 to $24.64. That's worth a gain of 45.8%. Investors can also add a couple of points there to account for this company's dividend, which is currently sitting on a yield of just under 2%. It appears investors have stayed bullish on Computershare over FY2022 thanks to its established business model and a perceived ability to handle rising inflation.

Let's now look at Brainchip Holdings Ltd (ASX: BRN). Artificial intelligence company Brainchip has been a popular share to watch in recent years, no doubt helped by its rather wild volatility. Over FY2022, Brainchip shares went as high as $2.34 and as low as 36 cents each.

However, its FY2022 numbers line up to give this company a gain of 63.27%, given it started July 2021 at 49 cents and finished on 30 June 2022 at 80 cents.

The tech share winners of FY2022 revealed

Our penultimate All Ords tech performer is none other than Envirosuit Ltd (ASX: EVS). Evirosuit is a company that provides environmental management solutions through its software platform. It started out in FY2022 trading at just 9 cents a share. But Envirosuit ended up finishing the year at 15.5 cents, resulting in a healthy 72.22% gain for investors.

In this case, a strategic partnership with international company Aeroqual, as well as another tie-up with the American space agency NASA, looks to have boosted investor confidence in this company over FY2022.

And our best performing All Ords tech share goes to… Silex Systems Ltd (ASX: SLX). Silex is an ASX tech share that specialises in uranium enrichment technology.

We saw Silex rise from 90 cents a share in July last year to $2.10 by the end of June. That's a gain worth a whopping 133.33%. That put Silex Systems at an eight-year high by June.

In this case, Silex's fortunes seem to have been boosted by the energy crisis that has gripped the world in 2022. This has been largely brought on by the Russia-Ukraine war, giving renewed focus to alternative sources of energy.

So that's five of the best-performing ASX All Ords tech shares of FY2022. It just goes to show that even though most ASX tech shares had a disappointing year, diamonds can always be found in the rough.

The post Here's a look at the 5 best ASX All Ords tech shares in FY22 appeared first on The Motley Fool Australia.

At the close of trading for the week, Envirosuite shares were down 2.22%, swapping hands at 22 cents a piece.

Trading was paused while the environmental management solutions company conducted a capital raise to drive growth in its water treatment technology segment.

What's happening with Envirosuite?

The catalyst for the Envirosuite share price drop today may have been the capital raise, which dilutes the value of each share. A total of 52.3 million new shares were placed on the market at 20 cents a piece.

The shares were offered at a 15% discount on a share price high of 23.5 cents on 25 November.

As a result, Envirosuite achieved its goal of raising $10.5 million and hailed the capital raise a success.

Furthermore, the company will use proceeds of the capital raise to invest in growing the direct sales in its EVS Water product. This includes growing the sales team and forming new partnerships to achieve sales success.

EVS Water is a 3-product platform that links artificial intelligence with leading water modelling approaches. It helps companies reduce their operational risk and expenses while remaining compliant.

Management commentary

Envirosuite chief executive officer Jason Cooper said:

This capital raising is about growth. That we have been able to raise capital in a highly sought-after placement at a materially superior price than the previous tranche of growth funding is indicative of the trajectory of the business and investors' appreciation of the opportunity that lies before us.

Envirosuite share price snapshot

Envirosuite shares have grown around 17% in the past 12 months. To put this in perspective, the S&P/ASX 200 Index (ASX: XJO) has climbed around 9% in that time. The Envirosuite share price is down 6.4% over the past month.

The post Here's why the Envirosuite (ASX:EVS) share price fell today appeared first on The Motley Fool Australia.

Before the pause button was pressed, the Envirosuite share price was set to open the day at 22.5 cents, after gaining about 5% from its previous close in off-market trading.

The company requested a trading halt in preparation for an upcoming capital raise. Here are the main details.

What is Envirosuite up to?

Envirosuite wants to raise $10.5 million from the big end of town to drive growth in its water treatment technology segment.

The institutional placement is priced at 20 cents per share. This represents an 11% discount on Tuesday's closing Envirosuite share price. It is also a 15% discount on the recent share price high of 23.5 cents.

Bell Potter and Wilsons are the book-runners and joint lead managers on the offer, according to The Australian Financial Review. Investors can expect an announcement on the completion of the capital raise on or before 6 December.

Envirosuite is looking to the capital markets after advising it has signed 2 strategic agreements with consulting company GHD.

GHD will support the scaling of implementation of "Envirosuite's EVS Water for major water treatment facilities as well as refer prospective clients to Envirosuite", according to an update on 24 November.

EVS Water is a 3-product platform that links artificial intelligence with leading water modelling approaches. It helps companies reduce their operational risk and expenses whilst remaining compliant.

Today's announcement follows a previous capital raise in May. Envirosuite secured $14 million – $8 million of which was offered at a placement price of 8.5 cents per share.

That capital raising diluted Envirosuite's share count by almost 71 million shares. It is not yet clear how many shares Envirosuite will issue during this next equity round.

Envirosuite share price summary

In 2021, the Envirosuite share price has risen by 18.4%. It began marching northwards in July but has since levelled off. It has been trading sideways for the past 2 months.

The post Halt! Why is the Envirosuite (ASX:EVS) share price paused? appeared first on The Motley Fool Australia.

In afternoon trade, the environmental management software providers' shares are up 4.65% to 22.5 cents. The company's share price is now just shy of its 52-week high of 24.5 cents.

Why is the Envirosuite share price climbing higher today?

Market participants are bidding up the Envirosuite share price today following the release of a strategic agreement announcement.

According to its announcement, Envirosuite has entered into two strategic agreements with the consulting group GHD. These agreements with the Australian consulting firm involve the use of Envirosuite's EVS Water software. Specifically, the agreements with GHD for the water software is to:

• Implement and scale the solution for water facilities
• Leverage GHD's global network to refer EVS Water to prospective clients

The development marks a new phase in the company's rollout of its water-focused environmental software solution.

This software allows clients to create a digital twin of water treatment plants, powered by machine learning and deterministic modelling.

Through partnering with a large company such as GHD, with 200 offices across five continents, Envirosuite aims to grab a large hold of the water market. The referral program will focus on drinking water, desalination, and industrial water treatment industries. This potential increased market reach appears to be aiding the Envirosuite share price today.

Currently, the consulting firm uses EVS Water for water treatment and desalination plants across the Asia-Pacific region. Following the agreements, GHD will provide technical support for EVS Water products and offer product improvements. Additionally, the consultant will assist in configuring digital twins for EVS Water projects.

What does it means for revenue?

Envirosuite expects that the revenue from these two agreements will not be material to the group FY22 revenue. However, it is anticipated to be material to the revenue of the EVS Water segment. This is possibly due to the relatively small base from which the water product is starting.

In Q1, the company recorded $0.1 million in annual recurring revenue (ARR) from the water product. For context, this made up only 7% of ARR for the group.

Finally, the Envirosuite share price is up 24% since the beginning of the year.

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The Sydney-based environmental tech company has announced a strategic partnership with Aeroqual, which is a global leader in air quality monitoring technology.

At the time of writing, the Envirosuite share price is up 4.44% to an intraday high of 24 cents.

Envirosuite sets eyes on growth opportunities

In a statement to the ASX, Envirosuite advised it has executed a Memorandum of Understanding (MoU) with Aeroqual.

The strategic partnership will see them pursue and develop joint market opportunities. This involves combining the two environmental technologies from both companies and packaging them together.

Aeroqual offers a global air quality monitoring platform based on smart sensing technology and advanced software algorithms.

Envirosuite's proprietary software monitors and manages all-weather impacts, which allows customers to optimise their operations. The company hones in on air quality and metrology consultancy using real-time and predictive technologies.

Under the MoU, Envirosuite and Aeroqual will focus on driving revenue and customer traction across a number of industries.

The industries at the top of the list are mining, waste, wastewater, and industrial sectors in North America.

It's worth noting that Aeroqual already has an established customer base in the United States. Clients include Anglogold Ashanti Ltd (ASX: AGG), the United States Environmental Protection Agency and New York City's Department of Environmental Protection.

Envirosuite and Aeroqual are already working on other projects together in Spain, Malaysia and the US.

What did management say?

Envirosuite CEO Jason Cooper said:

The Envirosuite team is excited to expand our opportunity potential with Aeroqual, a leader in air quality stations, monitors and technology, to complement our EVS Omnis platform, provide expertise and combined solutions for advanced air quality management and intelligence within our respective high-growth industries.

We believe this partnership has the potential to help industries to transform their environmental management practices and accelerate growth within Mining, Waste, Wastewater and Industrial facilities.

Envirosuite share price snapshot

The Envirosuite share price has risen by more than 20% over the past 12 months.

The company's shares hit a rough patch during the middle of this year. That changed late last month when the share price accelerated to a 52-week high of 24.5 cents.

Based on today's Envirosuite share price, the company commands a market capitalisation of $270.01 million. It has approximately 1.2 billion shares outstanding.

The post This deal just caused the Envirosuite (ASX:EVS) share price to pop appeared first on The Motley Fool Australia.

At the time of writing, Envirosuite shares are hurtling 9.09% higher to 18 cents.

What's driving the Envirosuite share price higher?

In today's statement, Envirosuite advised it has been contracted by NASA to participate in the X-59 Community Response Testing project.

Currently, NASA is designing and building the X-plane to bring back supersonic travel to the aviation market.

Almost two decades ago, the Concorde – a British and French supersonic passenger airliner– retired from the skies. The turbojet had a maximum speed of more than 2,100 kilometres per hour and could fly from New York to London in less than 3 hours.

However, noise became a big issue with the jet releasing a supersonic boom when passing the sound barrier. If this occurred over residential areas, it would leave windows broken in many homes. Hence, the Concorde only ever reached supersonic speed over the ocean before it retired in 2003.

NASA's revolutionary X-59 program aims to bring back supersonic flight, specifically for the United States travel market. It believes it has found a solution with its X-59 prototype which will reduce the sound to a "gentle thump".

If successful, this could open the door to domestic supersonic travel worldwide.

As such, Envirosuite has been awarded a contract to focus on addressing and managing noise for the X-59 program. The agreement is based on an 8-year period of performance.

Under the deal, Envirosuite will provide NASA with a software platform to capture, process and visualise data from low-sonic boom flight tests. This will enable NASA and members of the testing team to review the low-sonic booms produced in real-time.

The contract is estimated to generate a minimum revenue of around $750,000 to Envirosuite.

The first phase of the project is expected to run until the end of 2023.

Management commentary

Envirosuite CEO Jason Cooper said:

We're privileged to have been selected as part of the consortium for this exciting and cutting-edge project with HMMH [consortium leader Harris Miller Miller & Hanson Inc.] and NASA. This project represents new opportunities in the innovative area of aerospace, along with the future of Aviation. Our experienced team look forward to being part of this and bringing the X-59 Quiet Supersonic Technology aircraft to the skies.

Despite today's gain, the Envirosuite share price has lost roughly 6.5% in value over the past 12 months.

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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.

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At the time of writing, the EnviroSuite share price is trading at 13 cents, up 4.17%. 

Why is the EnviroSuite share price moving?

Shares in the Aussie company have climbed higher in early trade after unveiling a new member in its leadership team. EnviroSuite has welcomed Mr Alberto Calderon, former CEO of Orica Ltd (ASX: ORI) as an advisor to the CEO.

Today's release said Mr Calderon is "highly regarded in the broader business industry as an innovator within large corporates, particularly around the adoption of technology-led improvements".

EnviroSuite said his addition to the team in an advisory capacity provides "strong validation" to the company's environmental intelligence offering. Mr Calderon will provide active introductions to accelerate sales and provide feedback on messaging and refinement in its future product roadmap.

The appointment has also helped push the EnviroSuite share price higher this morning. The company said Mr Calderon's experience at Orica and BHP Group Ltd (ASX: BHP) will be "invaluable". He will focus on driving sales in several key segments such as mining, water, and airports.

That news has been well-received this morning with the EnviroSuite share price jumped more than 4% at the market open.

Mr Calderon will work closely with EnviroSuite CEO Jason Cooper to provide a range of high-level executive and project support. That includes strategic advice, preparing briefings, and also implementing strategic changes to support the achievement of the organisation's operational objectives.

Furthermore, EnviroSuite has granted Mr Calderon 10,000,000 unlisted options as part of his remuneration package. 5,000,000 of those are exercisable immediately. However, 2,500,000 will vest in 12 months and the final 2,500,000 will vest in 18 months. The options have an exercise price of 20 cents per option and an exercise period of 4 years.

The news has sent the EnviroSuite share price surging in early trade. Shares in the Aussie company's rose 4% to start the day on the back of the appointment.

Foolish takeaway

The EnviroSuite share price has climbed higher this morning after announcing its latest Advisor to the CEO. Mr Calderon brings deep industry expertise and an innovative mindset to the environmental intelligence solutions group.

The post Why the Envirosuite (ASX: EVS) share price is climbing appeared first on The Motley Fool Australia.

Why is the EnviroSuite share price surging?

EnviroSuite reported a strong third quarter highlighted by $2.1 million in new annual recurring revenue (ARR). The quarterly ARR added during the quarter was 180% on the previous quarter, or $1.15 million.

EnviroSuite's total ARR is now $42.5 million with one-off revenue of $1.7 million. This figure was reported for hardware and services reported during the period. The Aussie company also added 13 new customers during the period with "key expansion revenue" across existing customers.

Furthermore, the continued recovery in the aviation sector was a big part of the strong quarterly result. EnviroSuite posted a new contract win at a major international airport in North America. In addition to expansion revenue across Dublin, Oakland, and San Francisco International Airport.

In Mining & Industrial, EnviroSuite posted expansion revenue at Pilbara Ports Authority amongst other wins.

Strong results in the group's remaining Waste & Wastewater and Water segments helped to round out a strong quarter. The company added one additional site with Welsh Water and won Singapore's national water agency global innovation challenge for "digital twin solutions for water treatment".

The EnviroSuite share price has jumped at the market open this morning on the back of the news. 

EnviroSuite boasts a low churn rate of ~2% across its product suite. In addition, the diversified offerings from the group have helped to grow margins in its Software as a Service (SaaS) offering.

Foolish takeaway

The EnviroSuite share price will be one to watch throughout the day as investors take in the latest quarterly result. Shares in the Aussie environmental technology group surged as it posted a 180% increase in quarterly ARR today.

The post Why the EnviroSuite (ASX:EVS) share price rocketed 20% today appeared first on The Motley Fool Australia.

Since, then the shares have obviously cooled somewhat, meaning that this company has been bumped 16.67%, and fallen 10.7%, all in one day. That kind of volatility is enough to give anyone watching whiplash.

Despite the (fleeting) move upwards this morning, Envirosuite is a company that has not had a good run over the past few months. Back in September last year, Envirosuite shares were trading as high as 26 cents a share. That means this company has fallen more than 50% in value over the past six months. 

So who is this company? And what on earth has been going on with its share price?

Enviro-Who?

Envirosuite is a tech company that specialises in technological solutions to environmental problems. The company was founded back in the 1990s, but today has offices across the Americas, Europe, Asia and Australia.

Envirosuite's software can help monitor and manage all kinds of pollution. This includes air quality, water quality and water waste, noise pollution, vibration (such as from construction), odour, dust, and waste management.

The company's software offers solutions in all of these fields, and is available on the cloud as a software-as-a-service (SaaS) platform.

Why is the EnviroSuite share price bouncing around today?

It's hard to say at first glance. There has been no official major news or announcements out of Envirosuite since 26 February, when the company reported its half-year earnings to the markets. That was a pleasing result in itself though.

For the six months ending 31 December 2020, the company reported revenue growth of 17% (85% of which was recurring) against the previous half-year. It also reported that gross profits were up 49% and that earnings before interest, tax, depreciation and amortisation (EBITDA) had improved from a loss of $6.9 million in the previous half to a loss of $3.56 million in the most recent half.

But that was all reported a couple of weeks ago. So what gives?

It's possible that the Envirosuite share price has benefitted from the rebound in ASX tech shares that we have seen across the markets today. As a small-cap tech share itself, it's conceivable that some investors have found Envirosuite appealing under the current market conditions. It's also possible that a large institutional investor has decided to buy a stake in this company.

As its market capitalisation is sitting at $133.4 million at the current share price, any major buying pressure does have the potential to add some havoc to the Envirosuite share price.

Whatever the reason for Envirosuite's performance today, I'm sure its investors are feeling thankful!

The post ASX stock of the day: Why Envirosuite (ASX:EVS) shares are bouncing appeared first on The Motley Fool Australia.

Despite gaining more than 13% over the past six months, the Envirosuite share price has dropped roughly 37% in the 12 months since January 2020.

Why the Envirosuite share price is lifting today

Envirosuite, which develops environmental management technology solutions, listed four key highlights in its quarterly sales update. The company reported $1.1 million in new annual recurring revenue (AAR) during the quarter, having hooked 19 new clients. Envirosuite renewed 37 contracts totalling $2.7 million.

The company earned $3 million in new non-recurring revenue and claims to have $12 million of new APR in unweighted pipeline looking ahead to quarter three. According to Envirosuite, this works out to more than 150 opportunities being pursued.

Other quarterly highlights include a three-year construction deal in the UK, two new airport wins in Europe and a new contract with one of Australia's largest container ports.  

One billion shares outstanding

With one billion shares outstanding, the Institutional Brokers Estimates System (IBES) rates Envirosuite a buy. Curiously, the same Envirosuite share price report scored the company as a 2 out of 10 with a negative outlook. 

This score is calculated by evaluating a company's earnings, fundamentals, relative valuation, risk and price momentum.

The major difference between these two perspectives is that the first one is from a human analyst, the second born out of artificial intelligence (AI).

The Envirosuite market cap presently sits at 174.4 million.

What did the CEO say?

Commenting on the quarterly performance, Envirosuite CEO Peter White said:

EVS continues to build out its product portfolio across air, water and noise as it creates world-leading predictive solutions across wastewater and water, mining, airports and industrial customers.

Envirosuite's focus for 2021 continues to be on transforming our business model to produce higher gross margins through incorporating an ever increasing level of software and automation in our solutions and developing higher value products and outcomes for our customers as we cement our leadership in the environmental intelligence market.

The post Why the Envirosuite (ASX: EVS) share price bumped up 6% today appeared first on The Motley Fool Australia.

The environment monitoring platform's share price has been on a steady rise this year, lifting by an enormous 214% since hitting its lows in March.

What Envirosuite does

Envirosuite is an environmental management technology company that provides services through its software-as-a-service (SaaS) platform. The Envirosuite platform offers environmental monitoring, management and investigative capabilities. It is incorporated into a number of diverse operations from waste water treatment to large scale construction, open cut mines and port operations.

The company hosts more than 500 customers worldwide. Envirosuite's clients include organisations in China, airports, and companies such as Rio Tinto Limited (ASX: RIO).

Why did the Envirosuite share price fly today?

The Envirosuite share price soared by 12% today as the company held its 2020 AGM.

Management was pleased with how the company has shown resilience by growing throughout the pandemic, saying:

Our business has continued to grow through this challenging period with our recurring revenues expanding across almost every sector. It is only some unavoidable universal delays in new capital spend by some of our airport clients that has impacted our project or one-off revenue.

It was also highlighted that there were a number of notable sales in recent months, with most new contracts being 5 years long. The contracts bring the company's new annual recurring revenue funnel to a total of $26 million.

What now

The company also stated some of its goals for the coming year. Management outlined how the company aims to increase gross margin by increasing software sales and reducing focus on lower margin hardware sales.

Furthermore, Envirosuite is aiming to transfer to the "more scalable and agile tech environment." To this end, the company will be consolidating onto the cloud service AWS. It will also migrate its airport customers to a new cloud environment.

Investors were clearly pleased with the news, sending the Environment share price up to 22 cents.

The post Envirosuite (ASX:EVS) share price soars 12% after AGM appeared first on The Motley Fool Australia.

Here is what the team have come up with…

Chris Chitty: Envirosuite Ltd (ASX: EVS)

My tech share for October is Envirosuite Ltd. Envirosuite is an environmental consulting company that helps its clients to manage their effect on the environment. This company provides software as a service (SaaS) which assists companies to measure and control their environmental outputs.

Motley Fool Contributor Chris Chitty does not own shares of Envirosuite Ltd.

Glenn Leese: ELMO Software Ltd (ASX: ELO)

The post Top ASX tech shares to buy in October 2020 appeared first on The Motley Fool Australia.

The Envirosuite share price rocketed up 11.1% to 20 cents in earlier trade before dropping to 19 cents, up 5.56% at the time of writing. This compares to the All Ordinaries Index (ASX: XAO) which is down 0.1% at 6,130 points.

Let's take a look at how Envirosuite is tracking for the quarter.

Strong start to Q2

The global leader in environmental intelligence announced three contract sales of more than $1 million in the first week of Q2.

The new contracts include Envirosuite's first ever sale of its new Smart Water software product suit with GHD Group Australia. The software is designed to assist GHD engineers in the modelling, design, calibration and validation of water, wastewater treatment and desalination plants. Envirosuite advised of potential for further software licence sales to GHD customers.

Envirosuite said that its Water Designer suite was the first of several new software solutions being rolled out globally. It is estimated that there are around 25,000 water treatment sites that could benefit from Envirosuite's Smart Water products.

In addition, the company signed a new minimum 6-year odour management contract with Veolia France. The agreement is the sixth Veolia site to become an Envirosuite customer across 4 countries. The new deal will see Envirosuite's product be used by the plant's operators to help manage the detection and prediction of odour.

Lastly, Istanbul Airport committed to a 5-year arrangement for a noise management solution. Turkey's newest airport which accommodates more than 200 million passenger per year, stated that Envirosuite's best in class products was a deciding factor.

What did management say

Envirosuite CEO Peter White was excited about the new contracts. He said:

EVS's Water solutions have demonstrated they can make a positive environmental and cost impact in the global water sector, while the new contract with Istanbul Airport underscores the value of EVS's noise and vibration monitoring technology to airports as flight volumes begin to increase around the world.

Istanbul is a new airport customer in a new country for EVS. It has ambitions to become the biggest airport in the world. The initial term is for five years and we look forward to a long association.

Mr White said the company was also excited to have commercialised the first of its new Smart Water products with GHD Australia and to extend its global relationship with Veolia, adding:

These new contract wins so early in Q2 FY21 highlight both the attractiveness of Envirosuite's solutions to global operators in water and airports and also the strength of our sales pipeline across all the sectors in which we operate.

Envirosuite share price summary

The Envirosuite share price has made strong comeback since falling to a 52-week low of 7 cents in March. With a market capitalisation of $199 million, the positive start for Q2 FY21 may push the Envirosuite share price close to its multi-year high of 39 cents.

The post Why the Envirosuite (ASX:EVS) share price has rocketed up today appeared first on The Motley Fool Australia.

What does Envirosuite do? 

Envirosuite is a global leader in environmental solutions, monitoring and managing weather impacts. The company uses its combination of air quality and metrology consultancy thoughreal-time and predictive technologies to reduce risk and improve efficiency and safety among industry and communities throughout the world.

The company operates in various sectors including construction, industrial, mining, wastewater, airports and cities.

First quarter update

Envirosuite reported total sales of $14.7 million in the three-month period ending September 30. This is despite the global impact of COVID-19 resulting in some deferral of spending by customers.

The company achieved strong contract renewals and new sales volumes for Q1 FY21 which was reflected by $12.2 million from ongoing business and $1.2 million in new targeted recurring sales. An additional $1.2 million was generated in one-off sales of equipment and services.

Customers remained active across all geographical regions and industry sectors. Most notably, Envirosuite secured an airport contract renewal by the AENA group, which manages 46 airports in Spain.

In the mining sector, the company carried out additional work for Vale Brazil and BHP Chile. Waste sector highlights included an odour monitoring project with the City of Denver, Colorado, and an outdoor management system for Verde South America in Chile.

Envirosuite signed water contracts with Welsh Water UK, and with the City of Garland Water Utilities Texas for odour monitoring and sewage treatment plants.

Envirosuite advised that its forward sales pipeline remains strong and currently stands at $28 million for FY21.

What did management say

Envirosuite CEO Peter White was happy with the result given the current climate, and upbeat about the company's future growth. He said:

Contract renewals and new sales growth were spread across all the regions and industry sectors in which we operate. Q1 marks the commencement of the sales and marketing efforts post-integration which are steadily gathering momentum as noted in our latest release with a 300% increase in new sales leads from July to September. Coupled with the strong forward pipeline, this augers well for our sales growth to accelerate in coming quarters

Mr White highlighted the importance in Envirosuite' presence to communities, saying:

One of the effects of COVID-19 for Envirosuite has been that the world is more aware than ever of the importance of not only ensuring environmental compliance, but of going beyond compliance and actively managing outcomes for the benefit of communities.

Envirosuite's ability to help our customers maintain and enhance their social licence to operate will be a major focus of our sales growth strategy in the years ahead.

Foolish takeaway

Envirosuite has thrived throughout the COVID-19 pandemic, achieving robust sales so far this year. With the company looking to accelerate its growing revenue in FY21, I think Envirosuite is worth keeping an eye on for future investment.

The post Why the Envirosuite (ASX:EVS) share price is zooming up 26% today appeared first on The Motley Fool Australia.

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.

The post Why the Envirosuite (ASX: EVS) share price is up 9% today appeared first on The Motley Fool Australia.

Designed to give a more direct exposure to the tech shares on the ASX over the previously-used S&P/ASX 200 Information Technology Index (INDEXASX: XIJ), the All Technology Index has been buoyed by the massive outperformance of its top shares like Afterpay Ltd (ASX: APT) and Xero Limited (ASX: XRO) over the past few months.

But according to reporting in today's Australian Financial Review (AFR), this index is about to get another boost. Today heralds this index's quarterly rebalancing (a process that all indices undergo periodically). And according to the AFR, the XTX is about to get 8 new members. This process will swell the index to a total market capitalisation of more than $143 billion, up from $110 billion at the last rebalancing.

None of the index's current top 10 holdings are set to change. These include Afterpay as well as Xero, Seek Limited (ASX: SEK), Computershare Limited (ASX: CPU) and REA Group Limited (ASX: REA).

Joining the index will be Dicker Data Ltd (ASX: DDR), Brainchip Holdings Ltd (ASX: BRN), Envirosuit Ltd (ASX: EVS), Mach7 Technologies Ltd (ASX: M7T), Novonix Ltd (ASX: NVX), Splitit Ltd (ASX: SPT), Sezzle Inc (ASX: SZL) and Whispir Ltd (ASX: WSP).

Is ASX tech a buy today?

Since the XTX is an index, you can't buy shares in it directly. But luckily, you can buy shares in an exchange-traded fund (ETF) that tracks this index. The BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC) does just that, holding all 50 companies (soon to be 58). Thus, if you are interested in getting a slice of the action from the ASX tech space, this ETF is a great place to start.

I do think the 'tech sector' has run a bit in recent months, especially since ATEC units have appreciated 27.7% since first listing back in March. But I'm also bullish on the Aussie tech sector in general, and so I think this ETF would make a great long-term investment, especially for a passive investor. As the index rebalances, it prunes out the losers and adds to the winners, which I think is a great advantage for the tech space in particular. ATEC does charge a management fee of 0.48% per annum, something to keep in mind.

The post ASX All Technology Index swells with new additions appeared first on The Motley Fool Australia.

Envirosuite provides solutions for the monitoring and management of environmental challenges. It has been listed on the ASX since 2008.

What were investors told?

Envirosuite CEO Peter White and CFO Matthew Patterson answered questions from shareholders and analysts about the company.

Investors were told Envirosuite had a steadily growing sales pipeline of more than $30 million. This did not include China which is on track for $10 million in sales by December 2020 as previously announced.

Envirosuite's plans to move toward profitability over the next 9 months were outlined in the briefing notes. These include a cost reduction of $8 million and plans to realise operating synergies with the EMS business worth $3 million. Profitability also had been affected by one-off non cash costs incurred in the previous year, the executives noted.

When asked if the company's proposals and conversions were increasing, they said: "With positive feedback loops we're continually evaluating our pipeline and the effectiveness of our sales activities to increase conversion along the entire sales cycle."

The executives said the company's growth target was based on a business as usual compound growth rate of 20% per year with new acquisitions potentially adding to that growth.

Despite 65% of the company's revenue being from airports, the company portfolio has been resilient through COVID-19 with a churn rate of 1.5%.

Investors were told the company had an addressable market in the tens of billions per year. In addition, the company had clearly identified potential revenue of $2.3 billion.

The company reported a gross margin of 31% but management was working to reduce operating costs through automation.

The executives said they did not anticipate a need for further capital raisings.

About the Envirosuite share price

In the 2020 financial year, Envirosuite had revenue of $24 million, 75% of which was recurring. Envirosuite had earnings before interest, tax, depreciation and amortisation (EBITDA) of -$15,136 in FY20 compared to -$10,313 in FY19.

In August, Envirosuite announced it had acquired technology that could reduce water treatment plant costs by up to 35%. It paid total consideration of $1.35 million for the acquisition.

The Envirosuite share price is up 185.71% from its 52-week low of 7 cents. It has fallen 9.09% since the beginning of the year. The Envirosuite share price is up 53.85% since this time last year.

The post The Envirosuite share price dropped 5% today. Here's why appeared first on The Motley Fool Australia.

Envirosuite FY 2020 results

The Envirosuite share price tumbled 27% from its early highs in FY20. Despite this, the company achieved a number of business objectives in FY20.

Envirosuite posted $24 million of revenue of which 75% is recurring. This is an increase of 210% in the company's revenue. However, the cost of revenue grew an even greater amount, increasing by 229%. This lead to an $18 million operating loss for the company.

It's not necessarily bad news as the operating loss was a result of the company establishing operations with China, a huge potential market for Envirosuite. The loss was also driven by increased investment in people and operation and integration costs of EMS business. As a result, the company announced negative adjusted EBITDA of $12 million.

However, the SaaS company said it would remove $8 million in costs due to duplicate and redundant roles. An additional $3 million will be cut as a result of operational synergies. The cuts are expected to be made in early FY21.

The company has $24.4 million in cash and cash equivalents. However, $4.2 million is earmarked for the remaining settlement for EMS and another $1.3 million for the AqMB acquisition.

Outlook for the Envirosuite share price

Looking ahead, Envirosuite shareholders have plenty to be excited about. The company has a 3-stage expansion plan with a target of $100 million in revenue by June 2023. Envirosuite is currently achieving annual recurring revenue of $43 million.

While the company has not disclosed a revenue target for FY21, it expects to be EBITDA-positive by March next year.

The post Envirosuite share price flat after FY20 results appeared first on The Motley Fool Australia.