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.
S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.