Business
Powerfleet Reports Third Quarter and Nine Month 2023 Financial Results
Q3 2023 total revenue increased 7% sequentially to $34.2 million, marking the highest revenue performance in four quarters Company's SaaS-centric business
About this update from Powerfleet, Inc.
[{"type":"text","content":"Q3 2023 total revenue increased 7% sequentially to $34.2 million, marking the highest revenue performance in four quarters\nCompany's SaaS-centric business model transformation continues at pace with high-margin service revenue increasing 11% in Q3 2023 and 14% for the year to date compared to prior year periods (constant currency)\nAEBITDA increased threefold following the execution of annualized $4 million cost reduction measures to absorb AI and data science talent acquired with the Movingdots transaction\nNorth America total business grew 12% year over year in the quarter leading to service revenue YTD growth of 15%, reflecting the adoption of the Unity data platform for new and existing customers \nPreviously announced transformative business combination with MiX Telematics expected to double revenue and provide the foundation for future Rule of 40 financial performance\nWOODCLIFF LAKE, N.J., Nov. 9, 2023 /PRNewswire/ -- Powerfleet, Inc. (Nasdaq: PWFL), reported results for the third quarter and nine months ended September 30, 2023.\n\n \n \n \n \n \n \n\n \nTHIRD QUARTER 2023 FINANCIAL AND OPERATIONAL HIGHLIGHTS \nBusiness returned to topline growth with revenue of $34.2 million, up 7% sequentially with the increase of new sales centered on Unity and safety led solutions outstripping the shuttering low value and non-core business.Service revenue increased 11% year-over-year (constant currency) to $21.0 million, or 62% of total revenue, demonstrating the company's transformation to a SaaS centric business model.Product revenue increased 19% sequentially and product gross margin expanded to 33% from 22% in the prior quarter, showcasing the company's strategy to pivot selling high-margin products that drive enduring SaaS revenue.Total North American business revenue increased 12% year-over-year, with service revenue growing by15% year to date fueled by Unity data platform success.Adjusted EBITDA totaled $2.0 million; three times higher than Q2 2023 following cost reduction activities of $4 million per year absorbing the incremental operating expenses from the Q1 2023 Movingdots acquisition.Subscriber count increased 8% year-over-year, totaling 707,342 at quarter end.MANAGEMENT COMMENTARY\n\"These highly satisfying quarterly results underscore remarkable execution by our global team and are particularly impressive as they were...