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Sep 30, 2023
Powerfleet Q3 2023 Earnings Report
Reported highest revenue performance in four quarters, driven by an 7% sequential increase in total revenue and an 11% increase in high-margin service revenue.
Key Takeaways
Powerfleet reported Q3 2023 results with a 7% sequential increase in total revenue to $34.2 million, marking the highest revenue performance in four quarters. The company's transformation to a SaaS-centric business model continues, with high-margin service revenue increasing 11%. Adjusted EBITDA increased threefold due to cost reduction measures. A transformative business combination with MiX Telematics is expected to double revenue.
Total revenue increased 7% sequentially to $34.2 million, the highest in four quarters.
High-margin service revenue increased 11% in Q3 2023 and 14% year-to-date (constant currency).
Adjusted EBITDA increased threefold following $4 million in annualized cost reduction measures.
North America total business grew 12% year-over-year, with service revenue up 15% year-to-date.
Forward Guidance
The company anticipates that the transformative business combination with MiX Telematics will double revenue and provide the foundation for future Rule of 40 financial performance.
Positive Outlook
- Expected doubling of revenue through the MiX Telematics combination.
- Foundation for future Rule of 40 financial performance.
- Deepened opportunity to create meaningfully increased shareholder value.
- Addressing the current balance sheet overhang.
- Excitement about the momentum being built.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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