Loading...
•
Sep 30, 2021
Powerfleet Q3 2021 Earnings Report
Reported 6% topline growth and 10% recurring revenue growth despite supply chain challenges.
Key Takeaways
PowerFleet reported a 6% increase in total revenue to $29.2 million and a 10% increase in recurring revenue for the third quarter of 2021. The company faced challenges due to cargo ship container backup and industry-wide electronic component shortages, but secured significant orders and launched new products.
Total revenue increased by 6% to $29.2 million compared to the same period last year.
Services revenue increased to $18.5 million, representing 63% of total revenue.
Secured a follow-on order for 10,000 LV500 container telemetry devices.
Launched the first site at a major government agency, with potential for an additional 80 sites representing a $20 million plus opportunity.
Powerfleet
Powerfleet
Forward Guidance
The company anticipates normalization of supply chain issues by early next year and aims to build on momentum with existing opportunities and new product launches.
Positive Outlook
- Solid backlog in Logistics and Vehicle opportunities.
- Implementations underway at Ford and a major government agency.
- Potential normalization of supply chain issues by early next year.
- Plans to close deals and launch several new products.
- Robust opportunity pipeline.
Challenges Ahead
- Cargo ship container backup at the Port of Los Angeles affected new forklift builds and deliveries.
- Unable to procure necessary parts due to industry-wide electronic component shortage.
- Decrease in product gross profit due to a one-time expense and supply chain issues.
- Higher costs associated with supply chain issues and electronic component shortages and inflation.
- Increased selling, general and administrative expenses.