The company — which helps building owners decrease energy usage and improve tenant comfort — highlighted that its unaudited total income for the quarter totalled AU$2.23 million and that its revenue came in at AU$1.84 million, down 2.9 percent and 4.6 percent, respectively.
After the news came out, BuildingIQ’s share price dropped nearly 50 percent to close Thursday’s trading session at AU$0.02.
Despite this hit, the company provided promising operational updates, including the addition of 10 buildings on its 5i Platform — bringing the total buildings on the platform to 1,337. It also added 29 new sites to its Facility Worksite Service during the quarter.
BuildingIQ’s 5i Platform is a cloud-based platform that helps the firm’s customers, who are largely building owners and operators, figure out the needs of their building portfolios. Through the platform, clients can select services that best suit their needs on a day-to-day basis. The company’s Facility Worksite Service helps workers keep tasks scheduled and maintains a fast work order ticketing service.
The company noted that five customer contracts were renewed during Q3 and that it saved its users a cumulative AU$5.15 million, which is a 12 percent increase from the previous quarter.
Michael Nark, president and CEO of BuildingIQ, commented that the company made strides in two key sectors during the quarter — education and health — thanks to its subsidiary Buildingsense being approved for the Cooler Classrooms Program.
“While the program scope is for the provision of systems and infrastructure in schools to allow for air conditioning installation, the future benefit is the adoption of established building services to help schools manage energy efficiency,” Nark said. “In the health sector, Buildingsense won its first contract from NSW Health for the Mudgee Hospital precinct development.”
Nark said that the company sees “potential long-term benefits” thanks to its greenfield project work, which saw the addition of two projects to its established 5i Platform. He also said that the company added new greenfield projects for a hospital, office building and education centre.
“Additionally, in recognition of our services to drive optimization for established buildings, we recently executed a new agreement with an existing healthcare client to rollout 5i services to a portfolio of 16 new sites Australia-wide with a three year term,” he continued.
Year-to-date, shares of BuildingIQ have dropped 50 percent. Since its public launch in December 2015, the company’s share price has decreased in value by 97.4 percent.
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Securities Disclosure: I, Jocelyn Aspa, hold no direct investment interest in any company mentioned in this article.