Powerfleet, Inc. · NASDAQ:AIOT
Powerfleet — 27th Annual Needham Growth Conference (January 2025)
19 slides from Powerfleet's conference presentation, January 2025
Slide 1: Investor Presentation
Investor Presentation January 2025
Slide 2: Important Disclaimers
Important Disclaimers The contents of this presentation are not to be construed as legal, regulatory, business, accounting or tax advice. You should consult your own attorney, business advisor, accountant and tax advisor as to legal, regulatory, business, accounting and tax advice. This presentation
Slide 3: Important Disclaimers (Cont'd.)
Important Disclaimers (Cont’d.) No Offer or Solicitation This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicit
Slide 4: 8k $405m 2.6 million
Enterprise customers Mid-market customers 8k 40k Powerfleet: 2,500+ total revenue An elite global $405m tenured and talented team members AIoT player continents with total subscribers worldwide 6 physical 2.6 million geographic presence across 120 countries 75% EBITDA services revenue $85m
Slide 5: Forecast to Meet Rule of 40 Performance Within Two Years
Forecast to Meet Rule of 40 Performance Within Two Years ($ in millions) Pro Forma Projections (FY) Fleet Complete acquisition accelerates the stand-alone Powerfleet plan and access to indirect channel provides clear Long-Term vector for top-line growth March ‘25 March ‘26 Targets Revenue(1) ~$352.5
Slide 6: Report Card for 1H'25: Organic Growth Ahead of Plan
Report Card for 1H’25: Organic Growth Ahead of Plan Adjusted EBITDA ($'M) Revenue ($'M) 15 14.5 80 +31% 13.7 +6% 77.0 14 75.4 75 13 72.8 12 11.1 70 11 10 65 9 8 60 Mar '24 June '24 Sept '24 Mar '24 June '24 Sept '24 Primary Focus: Adjusted EBITDA Expansion Secondary Focus: Revenue Growth • Secured 3
Slide 7: Adjusted EBITDA Forecast to Treble in Two Years
Adjusted EBITDA Forecast to Treble in Two Years Adjusted EBITDA ($’M) 160 15 • Dominated by Organic growth (70% of 140 32 130 total) -20 120 • Two major waves to secure EBITDA gains 35 100 • Wave 1: Cost Synergy program 80 • Wave 2; Accelerating top line 25 growth 60 • Disciplined, success-based inv
Slide 8: Wave 1: Direct Control Over EBITDA Margin Expansion
Wave 1: Direct Control Over EBITDA Margin Expansion 35% 7% 30% 30% 25% 3% 5% 20% 20% 2% -2% 15% 15% 10% 5% 2024 EBITDA Gross Margin G&A Reduction GTM Investment 2025 EBITDA Gross Margin G&A Reduction 2026 EBITDA Cost synergy program drives 12% of the total 15% expansion in Adjusted EBITDA margins •
Slide 9: Wave 2: A Winning Hand for Double Digit Topline Growth
Wave 2: A Winning Hand for Double Digit Topline Growth The Broadest Winning ”Next Gen” The Market Expansive GTM Reach Solution Set Product Strategy 1 2 3 4 • $60B market growing • Only end-to-end • Unity device agnostic • Global footprint/land & CAGR of +24% ($120B provider- warehouse to capabilitie
Slide 10: The Market: Forecast to Double from 2023 to 2026
The Market: Forecast to Double from 2023 to 2026 1 2023 Est. Global TAM 2026 Est. Global TAM $64B $120B 5 9 8 15 51 99 Connected Fleet In-Warehouse Unified Operations Connected Fleet In-Warehouse Unified Operations 10 Source: Connected Fleet Samsara June 27, 2024, Investor Day. In-warehouse manageme
Slide 11: Significant Green and Brown Field Growth in North America
Significant Green and Brown Field Growth 1 in North America North America Vehicle IoT North America Video Based Safety ~45% Penetrated ~10% Penetrated Served No Solution Served No Solution 11 Source: Samsara June 27, 2024, Investor day
Slide 12: The Broadest Solution Set: Covers the Supply Chain from End to End
The Broadest Solution Set: Covers the Supply Chain 2 from End to End One-stop shop in a single pane of glass for all asset types, agnostic of device and data source, and for all stakeholders and segments All Asset Types, Agnostic In-Warehouse Logistics Connected Vehicles of Data Source All Key Marke
Slide 13: Winning Next Generation Product Strategy
Winning Next Generation Product Strategy 3 Data & Device Agnostic AI-Led Data Harmonization Deep Enterprise Experience High Velocity Mid-Market Experience Field Service Management Industrial Solutions Logistics & Cold Chain Solutions EV Solutions AI Camera Solutions LCV Solutions Connected Cars Logi
Slide 14: Compelling Reach: Geography and Market Segment
Compelling Reach: Geography and 4 Market Segment Global Revenue Mix Market Segment Revenue Mix 5% 15% 10% 40% 20% 20% 65% 25% North America Africa EME Australia ROW Enterprise Mid Market Franchise 14
Slide 15: Up and Cross Sell Dominates B2B Go-to Market
Up and Cross Sell Dominates B2B Go-to 4 Market • Fleet Complete’s telco channel and FC Hub product provide a New Logo seismic shift in GTM capabilities 30% • Channel and high velocity product unlock low risk GTM motions • Laser focused on unlocking massive opportunity to harvest Up & untapped share
Slide 16: GTM Reach Transformed in 8 Months
GTM Reach Transformed in 8 Months 4 Fleet Complete Channel MiX Channel MiX Channel PWFL + PWFL + PWFL + PWFL MiX MiX MiX Stand Direct Direct Direct alone March ‘24 April ‘24 April ‘24 October ‘24 16
Slide 17: > 10X Wallet Share Opportunity from Existing Customers
> 10X Wallet Share Opportunity from 4 Existing Customers 12 Unified Operations ~15% ARPU uplift Unity Modules ~15% ARPU Uplift In-warehouse sized 10 at ~15% of Fleet + Camera AI Camera sized at ~40% of Fleet 8 Assume ~1/5 Penetrated 6 >10X 4 2 1X 0 Capture full asset … In Warehouse Unified Operation
Slide 18: Modest Penetration Rates Over 5-Years = 25% CAGR
Modest Penetration Rates Over 5-Years = 25% CAGR 4 Builds on current Service Revenue base of $300M Current Customer Penetration 20% Rapidly expanding portfolio of solutions Inc. Penetration 1st Party provides a target rich environment for cross 10% and upsell Inc. Penetration 3rd party Modest improv
Slide 19: Compelling Asymmetric Investment Opportunity
Compelling Asymmetric Investment Opportunity Market landscape presents significant opportunity for a potential multiple re-rate Accessing additional 20.0x 20x growth vectors and 18.0x cost synergies provides line of sight 15.0x to valuation pick up Firm Value / CY’24 Revenue Securing Organic 10.0x G
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