Aeeris Limited - Quarterly Activities Report for Q4 FY24

Quarterly Commentary

Aeeris Limited (ASX:AER) has provided an overview of its activities for the fourth quarter of the financial year 2024 (Q4 FY24). The company has seen multiple service agreements renewed, including consolidating several agreements with its largest customer into a single, five-year (3+2) contract. This shift from previous invoicing schedules, which varied from monthly to half-yearly, impacted the timing of cash flows. Additionally, a late payment from another major customer reduced expected cash receipts for the quarter.

Annual CPI increases have now been applied to customer contracts as the company rolls into the new financial year. With a customer retention rate of better than ninety-eight percent and an increase in ARR of nearly twelve percent in this quarter (Q4), Aeeris enters the new financial year with considerable momentum.

Strategic Partnerships

During the quarter, Aeeris announced a strategic partnership with Tomorrow.io, a global leader in resilience solutions. This partnership strengthens Aeeris’ alerting and risk mitigation capabilities, further empowering Australian businesses to proactively manage weather risks with unprecedented precision. The Tomorrow.io partnership has delivered multiple new customer acquisitions during the period, and the marketing team is now focused on leveraging the increased capabilities to generate new leads and expand the company’s pipeline of opportunities.

Aeeris also extended its service agreement with trusted partner, Weatherwatch, during the quarter. Weatherwatch provides specialized weather technologies, working closely with Aeeris to deliver accurate forecasts and warnings. Weatherwatch has collaborated with the company for over fourteen years.

Major Contract Renewals for EWN and Climatics

During the period, both subsidiary companies, Early Warning Network (EWN) and Climatics, achieved major contract renewals. One of Australia’s largest three insurance providers renewed its contract with EWN for a five-year term (3-year fixed + 2-year option). This is in addition to other large insurers entering multi-year contracts with CPI increases, demonstrating the confidence insurers have in Aeeris’ platform.

The Climatics division also enjoyed success, entering a 12-month contract during the quarter with an environmental consulting firm who had previous experience using the platform. It also renewed a major 12-month contract with one of Australia’s largest supermarket chains. The renewed contract includes the expansion of services into New Zealand, marking a significant milestone in the company’s growth and regional presence.

Operations & IT

Aeeris continues to make great strides towards attaining its ISO27001 certification. Positive feedback was received from the first internal audit, standing the company in good stead to proceed to the Certification Audit, which is scheduled for Q1 FY25. Achieving this certification is expected to improve the company’s competitiveness in future sales and tenders.

Climatics has seen further enhancements and additions to the platform during the quarter. Along with an ever more powerful API modification allowing customers to run multiple risk analysis reports in seconds, Climatics data has been expanded internationally. Climatics signed its first New Zealand customer and expects to see further countries added in the future. Work on upgrades to allow for a complete climate risk report from actual current risk through to future risk scenarios continues. This will allow Climatics to provide a one-stop shop for climate reporting into the future.

Business Activities and Expenditures

Payments made to related parties during the quarter were directors’ fees and consultancy expenses. Other abnormal expenditures include legal, conferences, additional data, and hardware purchases totaling $76k.

This announcement has been approved and authorized for release by the Board of Aeeris Ltd.