Aeeris reports 12% recurring revenue growth, reaping rewards from pioneering Tomorrow.io partnership

Leading weather tech firm Aeeris has reported ARR up 12% as it benefits from a groundbreaking partnership with Tomorrow.io.

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• Aeeris achieves 11.9% ARR increase for Q4 FY24

• Strategic partnership with Tomorrow.io boosts capabilities, draws new customers

• Significant contract renewals include 5-year insurance and 12-month supermarket contracts with expansion to NZ

Special Report: Leading weather technology company Aeeris has provided a robust overview of its activities during the fourth quarter, reporting significant advancements in strategic partnerships, customer acquisitions and contract renewals.

Aeeris (ASX:AER), the parent company of Early Warning Network, is a leader in severe weather and natural hazard forecasting, alerting, and climate risk reporting, trusted by some of Australia's largest companies. The company’s round-the-clock monitoring team leverages proprietary technology, providing access to the most granular weather modelling information available in the country.

The company’s recent results highlighted its strategic partnership with global weather resilience leader Tomorrow.io.

Tomorrow.io's hyper-precise resilience platform utilises AI and the world's first commercially built weather-radar satellites. Its clients include major US airlines, Google, Amazon, Microsoft and the US Air Force.

The collaboration has significantly bolstered Aeeris’s alerting and risk mitigation capabilities, enabling Australian businesses to manage weather risks with unparalleled precision. The partnership has already resulted in multiple new customer acquisitions, demonstrating the enhanced market reach and effectiveness of Aeeris’s expanded service offerings.

Transformative leap

Aeeris founder and CEO Kerry Plowright said the partnership represents a transformative leap in predictive capabilities.

“The collaboration allows us to provide businesses and communities with unprecedented foresight in weather-related decisions.” he said.

“This partnership is already yielding significant new customer acquisitions, demonstrating the tangible benefits of enhanced weather resilience solutions."

In addition to Tomorrow.io, Aeeris extended its long-standing partnership with Weatherwatch, which has been a key collaborator for over fourteen years. The combined expertise of these alliances has driven a sharp increase in inquiries and demand for Aeeris’ Hail, Flood, and Alerts services.

During the period, Aeeris’ subsidiary companies, Early Warning Network and Climatics, achieved significant contract renewals. One of Australia’s largest insurance providers renewed its contract with EWN for a five-year (3+2) term. Similarly, Climatics secured a 12-month contract with an environmental consulting firm and 12-month renewal with a major supermarket chain, expanding its services into New Zealand.

Plowright said the contract renewals underscore the enduring confidence in Aeeris's advanced technology and strategic vision.

“It signifies not only the robustness of our Early Warning Network but also the trust our clients place in our commitment to innovation and strategic excellence,” he said.

Aeeris reported unaudited revenue and scheduled services for the period totalling $716,824, with customer receipts amounting to $677,508. The company’s cash and cash equivalents stand at $1,904,545.

Return customers boost outlook

A notable achievement was the 11.9% increase in annual recurring revenue (ARR), rising from $2.78 million in April to $3.11 million at June 30.

The end of the financial year also saw the consolidation of multiple service agreements into a streamlined five-year contract with Aeeris’s largest customer. This restructuring, alongside annual CPI increases applied to customer contracts, positions Aeeris for continued financial stability and growth.

Aeeris has made substantial progress towards ISO27001 certification, receiving positive feedback from its first internal audit.

Achieving this certification will enhance the company’s competitiveness in future sales and tenders.

The Climatics platform has also seen significant upgrades, including enhanced API capabilities and expanded data coverage internationally. The Spatial Risk Analyst team has been particularly active due to prolonged warm season events and limited but impactful cold fronts.

On the product development front, Aeeris introduced updates to alerts for faster delivery and further improved its GIS platform, offering customers the highest resolution weather radar and satellite imagery. The launch of Earthquake Alerts further cements Aeeris’s position as a leader in critical hazard and severe weather data in Australia.

"Achieving an 11.9% increase in Annual Recurring Revenue for the quarter and significant advancements in our ISO27001 certification process highlight our dedication to continuous improvement and operational excellence,” said Plowright.

“These milestones ensure we remain at the forefront of climate risk reporting and severe weather alerting, providing our clients with critical insights and reliable data."

This article was developed in collaboration with Aeeris, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

Originally published as Aeeris reports 12% recurring revenue growth, reaping rewards from pioneering Tomorrow.io partnership