Business
Powerfleet Reports First Quarter 2023 Financial Results
Total GAAP Services Revenue Grows 9%, Increasing to 62% of Total Revenue and up 17% YoY on a Constant Currency Basis Total Company Gross Profit Increases by
About this update from Powerfleet, Inc.
[{"type":"text","content":"Total GAAP Services Revenue Grows 9%, Increasing to 62% of Total Revenue and up 17% YoY on a Constant Currency Basis Total Company Gross Profit Increases by $2.2 million,15% YoY Go-forward Core Business Gross Margin Expands to 53%, with Services Gross Margin Climbing to 71% Liquidity Improves with $8.7 million in Net Proceeds from the Acquisition of Movingdots WOODCLIFF LAKE, N.J., May 09, 2023 (GLOBE NEWSWIRE) -- Powerfleet, Inc. (Nasdaq: PWFL), a global leader of Internet of Things (IoT) software-as-a-service (SaaS) solutions that optimize the performance of mobile assets and resources to unify business operations, reported results for the first quarter ended March 31, 2023. FIRST QUARTER 2023 AND RECENT OPERATIONAL MILESTONES Continued strong execution of SaaS growth strategy demonstrated by an increase in high-margin services revenue, which was up 9% on a GAAP basis and 17% on a constant currency basis compared to Q1 2022, led by impressive 20% recurring revenue growth in the U.S.Go-forward core business (excluding Argentina, Brazil, and South Africa business units, and third-party hardware only business) gross margin expanded to 53% and core business services gross margin increased to 71%.Launched phase two of cost optimization plan and expect to hit the $3 million annualized operating expense reduction target.Secured several strategic Unity sales deals in Q1, with H2 pipeline growing by 47%.Closed Movingdots acquisition, bringing solution advantage in the safety, insurance and sustainability strategic verticals, alongside increasing data science and AI talent. FIRST QUARTER 2023 FINANCIAL HIGHLIGHTS (COMPARED TO FIRST QUARTER 2022) High-margin services revenue increased 9% to $20.4 million. On a constant currency basis, the year-over-year increase was 17%.Gross profit increased 15% to $16.6 million, with gross margin expanding from 43% to 51%.Product gross margin expanded from 17% to 27% with deal discipline and product re-engineering being the key drivers.Loss from operations improved by 49%, or $1.9 million.Adjusted EBITDA, a non-GAAP metric, improved by $2.0 million to $1.4 million, compared to $(0.6) million.Ended the quarter with $25.1 million in cash and cash equivalents and a working capital position of $41.8 million. MANAGEMENT COMMENTARY “Our positive start to the new year reflects our unwavering focus on driving ...