Simble Solutions’s energy management business receives sales orders of $480,000
Simble Solutions (ASX:SIS), an Australian software company focused on energy management and mobility solutions, has received its first material purchase order for its Australian energy platform.
With sales of nearly $500,000 prepaid in advance and a three-year subscription model that strengthens the group’s recurring revenue base, this is an important development for the company.
The sales represent stocking orders by the company’s partners to cover expected sales ahead of delivery and installation to their customer base.
Endorsement of Software as a Service technology
The Simble Energy Platform will be sold as a bundled software and hardware solution and the weighted average subscription term associated with these orders is three years.
This large order is an endorsement of the company’s Software as a Service (SaaS) technology.
Although this does remain a speculative stock so investors should seek professional financial advice if considering this stock for their portfolio
Commenting on the order, Simble chief executive Fadi Geha said, “These sales galvanise our position as the fastest-growing energy management software play on the ASX.
“Fulfilling this partner demand has potential to more than double our current installed customer base, and we are very pleased that over 10 per cent of the total order has already been scheduled for installation prior to sales and marketing activities.”
Indeed, once the company actively markets its IoT technology to small to medium enterprises, it should gain traction given that smaller businesses are currently being impacted by volatile energy prices.
Delivering strong organic growth
This development will boost Simble’s already impressive organic growth.
The company recently highlighted that it was the fastest-growing sub - $200 million market capitalisation energy management play on the ASX, based on number of metres under management and customers with growth in a range between 128 per cent and 160 per cent.
Long-term momentum should be assisted by industry growth.
marketsandmarkets.com estimates the energy management industry will generate compound annual growth in the order of 19 per cent out to 2021 when it expects the global value to be US$76.7 billion.