Transcription of The Stock Network Interview with Asset Vision (ASX:ASV) co-CEOs, Lucas Murtag and Damian Smith
Lel Smits: Asset Vision is a leading Australian provider of enterprise asset management solutions for both the public and private sectors. Its cloud-based mobile-first platform brings together planners, engineers, contractors and field crews on a single shared system to make asset management easier and more collaborative for its clients. Asset Vision’s executive directors and co-CEOs Lucas Murtag and Damian Smith join me to discuss the company’s solutions and key plans for the year ahead. Lucas, welcome to the Stock Network.
Lucas Murtag: Thanks, Lel. Great to be here.
Lel Smits: And Damian, great to have you on the Stock Network as well.
Damian Smith: Thanks, Lel.
Lel Smits: Now, Lucas, you’ve recently released your full year results showing growth in licensing revenue, increasing cash at bank and being debt free. Can you outline what the highlights were?
Lucas Murtag: Yeah, thanks, Lel. Look, each year we set clear priorities and we really remain focused on these throughout the year. And by doing this, we’ve delivered some great results in FY25. So some of the highlights look from a revenue perspective. Licensing revenue was up 32% to just over $4 million and ARR grew 28% to $4.4 million. So that strong revenue growth drove operating cash flow up 152% to $1.33 million.
And that strength in cash generation meant we were fully able to settle the Eaglesoft deferred consideration. So that left us debt free and with over $1.5 million in the bank at year end. We’ve also achieved another year of 100% staff retention, which is testament to our strong culture.
And finally, for shareholders, we’ve delivered another year of 100% growth in share price. So we’re really proud of what we’ve delivered in FY25.
Lel Smits: Excellent. Some very impressive numbers and achievements there. And moving on now really to look at the benefits of the Asset Vision platform compared to alternatives. The platform is being used by some of the largest asset owners, operators and service providers in Australia and New Zealand. Can you outline the really what differentiates your platform from other service providers?
Lucas Murtag: Yeah, so we ask our customers why they choose us or why they like working with us and generally four themes come up. The first one is Asset Vision is the best product to manage the whole asset lifecycle. So whether our clients are monitoring the performance of assets, managing maintenance, planning and tracking capital works or performing asset accounting, everyone involved in the asset lifecycle works together in the one platform. So there’s no more disconnected systems. It’s just more collaboration and better decision making. The second thing we hear is Asset Vision is simple and fast to implement. So unlike traditional enterprises, we’re up and running in months, not years. And with no costly upgrades or hidden fees, there’s a lower total cost of ownership.
Lel Smits: Damian, I might throw to you for the other two themes.
Damian Smith: Yeah, yeah, sure. And I think the next one is a really important one. It’s innovation. I mean, you hear that a lot from tech companies and it’s hard to pinpoint what that is and where it comes from. But I mean, we certainly show our innovation by what we produce in terms of new features and functionality. We average one app or web release a week and often these bring new features as well.
But I think it’s also important to look at where that drive comes from to be innovative. And so if anyone has read the Asset Vision story, we sort of came into being in 2011. But I started the core business 10 years before that.
And I began creating systems for road maintenance contractors to capture their field work without using pen and paper, which is all they ever used to do. And it was a really different time back then. So we had to get really creative about how we’re going to use technology to solve those challenges.
And it was a field we knew nothing about. So that meant we had to spend a lot of time listening to the end users and understanding their needs. And so I built a team around me back then.
Many of them are still part of our team today. But I personally think that I guess our culture was forged by a lot of those earlier experiences and our commitment and our attitude towards continually listening and building and innovating is really a big part of why our platform is growing in capability as rapidly as it is. And continuing on that theme that probably the last one to talk about is the team, the differentiator of our team itself.
And on the technical side, a lot of us have come up together throughout the years. And so there’s a deep knowledge of the platform and the choices that we made along the way. Our client facing team are also all very experienced at what they do.
And many of them have come across from industry backgrounds as well. So they can relate really well to our clients.
Lel Smits: Excellent. And Damian, when it comes to industry adoption, can you outline what industries is the Asset Vision platform suitable for? Also some of your key clients?
Damian Smith: Yeah. And so I guess back up a little bit, Asset Vision is a SaaS or software as a service enterprise asset management platform for critical assets. I’ve mentioned we’ve had this long history with roads and transport assets earlier. Our first ever client was VicRoads here in Victoria, now called the Department of Transport and Planning or DTP. And we’re still working with them 12 years later. We’ve been working with Transport New South Wales since 2018.
And now South Australia’s State Road Authority, the Department for Infrastructure and Transport or DIT for the last few years. And we’ve got their major contractors that hold maintenance contracts with them like Ventia, Downer, Fulton Hogan, and then hundreds of smaller subcontractors that do the work for them. And like Lucas said before, our platform was designed for all these parties, asset owners, contractors, subcontractors to connect and interact with each other seamlessly.
But yeah, I mean, even though we started with roads, we’re not limited to roads and we’ve made deliberate choices to expand into these other types of asset classes. So in recent years, that’s meant utilities, facilities and ports and councils as well. We just went live with the city of Greater Dandenong here in our backyard and they were up and running in 10 weeks, which if you know anything about our industry, that’s kind of unheard of.
And yeah, a few other wins with Gippsland Ports earlier this year, Rouse County Water, Western Port Water. So as a business, I guess we’re well on our way to spreading out beyond the transport assets and it’s exciting to see.
Lel Smits: Excellent and finally, Asset Vision recently secured several new contract wins across various industry sectors. What are your priorities for the year ahead?
Lucas Murtag: Yeah, thanks. It’s been a really exciting time. Lots of new customers, lots of new logos. You know, Jamie mentioned a number of them there. And look, we’ve just recently announced only about 10 days ago that we’ve won six new local government customers, which is really exciting for us.
And with our pipeline at its strongest ever, we’re looking forward to more growth in FY26. Yeah, but just like last year, our FY26 priorities are very clear. We’ll keep innovating our product.
We’ll continue to grow our ARR and we’ll remain diligent. So we’ll remain, you know, to be cashflow positive, just like last year. And of course, always, you know, we’ll look to reward our staff and grow our staff, which is always really important to keep that culture up.
This year, probably different from last year, we’ll step up our marketing to strengthen our brand and demand generation. And this year, we’ll pursue some acquisitions that help expand our offering and market reach. So yeah, it’s a pretty exciting time.
And we’re looking forward to updating the market on our progress against those priorities at half year.
Lel Smits: Well, thank you so much. You’ve both done a great job in outlining the achievements and the opportunity coming up and look forward to following those developments.
Ends