Severe weather and natural hazard risk assessment company Aeeris has reported steady earnings for Q2 FY24, noting cash flows from operating activities amounting to AUD $952,259 and customer receipts for the quarter at AUD $931,581. The company ended the period with a respectable AUD $2.25m in cash and cash equivalents, carrying no debt.
Aeeris witnessed continued revenue growth from both new and recurring sources in Q2, boosted by a combination of new customer partnerships and increased earnings from existing accounts. Central to this success was Aeeris' Hail product suite, which accounted for nearly 50% of total new recurring revenue, driven by robust demand from the insurance and solar farm sectors.
The company's severe weather alerting and custom forecasting services maintained their robust performance. Aeeris is invested in demonstrating the practical benefits of these products and services, working closely with key customers to build marketing case studies and testimonials. The impending launch of a B2C Climatics product offering is another key focus for the company as it ramps up its sales and marketing efforts in Q3.
Aeeris's commitment to constant development was evident in Q2 as it concentrated on implementing user-requested features and managing new projects for Climatics, its innovative offering. This focus entails enhanced scalability and agility to accommodate future requirements. Concurrently, initial research into forecasting short-term risks for critical hazards and their subsets kicked off, heralding a substantial enhancement in the platform's predictive capabilities.
Operational activities at Aeeris tracked the severe weather patterns in Australia in the final quarter of 2023. Importantly, December saw a record number of hail alerts issued by the team totalling 1,178 for the month. Noteworthy events included Tropical Cyclone Jasper, marked by extremely heavy rainfall around Cairns, and an extended period of severe thunderstorms across southeast Queensland with giant hail and severe winds recorded.
In a significant operational advancement, an automated system to process Fire Weather Warnings was rolled out, boosting the team's efficiency and productivity during periods of high bushfire activity. Aeerisis is also working towards finalising ISO 27001 Certification during 2024, which is geared to significantly streamline and expedite the process of onboarding new clients.
Operational costs during the quarter contained some abnormal expenditures such as directors' fees, consultancy expenses, additional IT resources, legal fees, ISO accreditation-related fees, hazard data, and marketing and conference expenses, amongst other things, totalling approximately AUD $128,434. Without these non-reoccurring expenses, the result would have been even better.