Business
Powerfleet Reports Full Year 2022 and Fourth Quarter Financial Results
Efficiency Program Yields a $5.8 million Improvement in Operating Cash Flow Performance in 2022 Strong Sales Execution Drives 13% Annual Growth in U.S.
About this update from Powerfleet, Inc.
[{"type":"text","content":"Efficiency Program Yields a $5.8 million Improvement in Operating Cash Flow Performance in 2022 Strong Sales Execution Drives 13% Annual Growth in U.S. Services in 2022 Business Optimization and Focus on High Quality Revenue Drives an Absolute Sequential Increase in Gross Margin of 5% in 2H22 WOODCLIFF LAKE, N.J., March 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 fourth quarter and year ended December 31, 2022. Following the appointment of CEO Steve Towe in January 2022, the executive team and board of directors conducted an exhaustive 120-day review of Powerfleet’s business, product offerings, geographic markets, target customers, go-to market strategy and business model. The process culminated in a new roadmap to guide the company’s growth, focus areas, and day-to-day operations. The leadership team’s execution on the strategic plan is in the process of transforming Powerfleet into a world class, high growth, and profitable SaaS solutions provider. 2022 AND RECENT OPERATIONAL MILESTONES Complete rebuild of executive and broader leadership team with a proven track record of delivering outsized results to stakeholders.Implemented new growth strategy, which has produced tangible financial results and positioned the company for greater financial success in 2023 and beyond.Repositioned to a SaaS solutions platform company and elevated the company’s value proposition with customers to offer more extensive business insights and solutions to transform their businesses. Initial success was demonstrated by the increase in high-margin services revenue, which was up 8% on a GAAP basis and 11% on a constant currency basis in 2022.Completed phase one of the company’s optimization plan that removed $5 million of costs, which management has partially reallocated the cost-savings towards sales and marketing efforts within the company’s new cost envelope. In March 2023, launched phase two of the optimization plan, which, when completed, is expected to reduce operating expenses by an additional $3 million annually.Launched Unity, a new game-changing fleet intelligence platform that unites people, assets, and data together to transfo...