•
Jun 30, 2022

Powerfleet Q2 2022 Earnings Report

Reported a 10-quarter revenue high and improved bottom line performance.

Key Takeaways

Powerfleet reported a 10-quarter revenue high of $34.6 million, marking the third consecutive quarter of year-over-year revenue growth. The company's rationalization initiatives drove a 58% sequential improvement in loss from operations. High margin, recurring and services revenue were up 9% year-over-year to $19.8 million.

Total revenue increased 3% to $34.6 million from $33.5 million in the same year-ago period.

Services revenue was $19.8 million, or 57% of total revenue, an improvement compared to $18.1 million, or 54% of total revenue, in the same year-ago period.

Rationalization initiatives drove a 58% sequential improvement in loss from operations in Q2.

Non-GAAP net income totaled $2.0 million, or $0.06 per basic and $0.05 per diluted share

Total Revenue
$34.6M
Previous year: $33.5M
+3.1%
EPS
$0.05
Previous year: $0.03
+66.7%
Gross Profit Margin
47%
Service Gross Margin
65%
Product Gross Margin
23%
Gross Profit
$16.2M
Previous year: $16M
+1.3%
Cash and Equivalents
$18M
Previous year: $39.9M
-54.9%
Total Assets
$222M
Previous year: $233M
-4.5%

Powerfleet

Powerfleet

Powerfleet Revenue by Segment

Forward Guidance

PowerFleet entered the second half of 2022 in a strong position, supported by building customer engagement, a growing pipeline, and several strategic opportunities on the horizon.

Positive Outlook

  • Building customer engagement
  • Growing pipeline
  • Several strategic opportunities on the horizon
  • Sufficient runway to execute strategy
  • Executing well on driving transformation and accelerating our vision

Challenges Ahead

  • Ongoing macro headwinds
  • Supply chain issues affecting our industry
  • Supply chain issues affecting our competitors
  • Supply chain issues affecting companies globally
  • Foreign currency translation losses of $0.7 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income