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Mar 31, 2022
Powerfleet Q1 2022 Earnings Report
Reported a solid start to the year with year-over-year revenue growth.
Key Takeaways
Powerfleet's first quarter 2022 results showed a 14% increase in total revenue year-over-year, driven by deployments with major customers and growth in core verticals and markets.
Total revenue increased by 14% year-over-year to $33.2 million.
Services revenue accounted for 57% of total revenue, amounting to $18.8 million.
Product revenue was $14.4 million, comprising 43% of total revenue.
The company is focused on establishing a world-class SaaS and AI platform.
Powerfleet
Powerfleet
Forward Guidance
PowerFleet expects product gross profit to improve as they begin to realize the benefits from their operational and product reengineering initiatives and are working hard to expand recurring revenue while reducing operating expenses through even closer integration of our business units.
Positive Outlook
- Ongoing deployments with major customers.
- Growth across core verticals and markets, particularly in Mexico and Pointer operation.
- Product gross profit expected to improve.
- Benefits from operational and product reengineering initiatives.
- Closer integration of business units to expand recurring revenue and reduce operating expenses.
Challenges Ahead
- Navigating through the global supply chain and electronic component challenges.
- Product gross profit was impacted by product mix, higher costs associated with supply chain issues and electronic component shortages and inflation.
- Selling, general and administrative expenses increased compared to the same year-ago period.
- Research and development expenses increased compared to the same year-ago period.
- Net loss attributable to common stockholders increased compared to the same year-ago period.