NASDAQ$AIOT

Powerfleet Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Powerfleet reported first quarter 2023 financial results with total GAAP services revenue growing, gross profit increasing, and liquidity improving due to the acquisition of Movingdots.

Powerfleet's first quarter 2023 saw a focus on profitable growth and SaaS recurring revenue expansion, with total revenue at $32.8 million. Services revenue increased to $20.4 million, representing 62% of total revenue. Gross profit margin expanded to 51%. Net income attributable to common stockholders was $3.5 million, or $0.10 per basic share.

  • Total revenue was $32.8 million, compared to $33.2 million in the same year-ago period.
  • Services revenues totaled $20.4 million, up $1.7 million year-over-year, accounting for 62% of total revenue.
  • Gross profit margin expanded to 51% in Q1 2023 from 43% in the prior year.
  • Net income attributable to common stockholders totaled $3.5 million, or $0.10 per basic share.

Headline financials

Total Revenue

$32.8M

Previous: $33.2M-1.0%
EPS (adj)

$0.00

Previous: -$0.06+100.0%
Net Income

$4.77M

Previous: -$2.93M+262.9%
Operating Income

-$1.89M

Previous: -$3.74M+49.4%
Gross Profit

$16.6M

Previous: $14.4M+15.4%
Cash & Equivalents

$24.8M

Previous: $20.6M+20.5%
Total Assets

$223M

Previous: $226M-1.3%
Stock-Based Comp

$832K

Previous: $774K+7.5%

Revenue & EPS history

Powerfleet · Revenue · Quarterly

$32.8M

Q1 2023-1%vs Q1 2022
Beat estimate in 4 of 9 quarters(44%)
ActualEstimate

Revenue by segment

Powerfleet · $20.4M total across 1 segment · Q1 2023

  • Services
    $20.4M

Forward guidance

Powerfleet expects revenue growth and EBITDA expansion in Q2 from its core business, with an even stronger performance in the second half of 2023. The company remains on track executing its transformation plan to deliver its strategic foundational pillars - sustainable top-line growth, increased profitability, and cash flow.

Tailwinds

  • Expect revenue growth in Q2 from core business.
  • Expect EBITDA expansion in Q2 from core business.
  • Expect stronger performance in the second half of 2023.
  • Remain on track executing transformation plan.
  • Delivering strategic foundational pillars.

Headwinds

  • Incremental transitional investments in Opex are expected.
  • Short-term fluctuation in cost base is expected.
  • Challenging macroeconomic pressures.
  • Highly significant FX headwinds.
  • Moderates overall total revenue growth in the short term.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+3.2%

Avg return

Earnings day

+3.5%

Avg return

5 days after

+1.9%

Avg return

30 days after

57%

16 / 28 earnings

Positive

+42.7%

Q3 2024

Best reaction

-29.0%

Q4 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025+0.5%+9.6%
Q4 2026+0.5%+9.6%
Q3 2026-1.2%-19.6%-32.6%
Q2 2026+4.9%+0.6%+9.2%
Q1 2026+13.4%+18.1%+29.2%
Q4 2024+11.9%+2.0%-1.1%
Q3 2025+31.1%+36.1%-1.2%
Q3 2024+42.7%+36.1%-1.2%
Q2 2024+13.5%+8.4%+23.7%
Q1 2024-0.2%+0.6%+1.4%
Q4 2023-0.3%-1.9%+16.3%
Q3 2023+4.0%+13.6%+16.1%
Q2 2023-17.1%-20.5%-6.8%
Q1 2023+11.1%+3.6%+19.7%
Q4 2022-0.7%+5.4%+4.1%
Q3 2022-9.7%-2.9%-13.4%
Q2 2022+15.6%+32.0%+12.9%
Q1 2022-17.3%-19.7%-19.0%
Q4 2021+0.3%-2.3%-2.3%
Q3 2021-4.9%-6.1%-16.0%
Q2 2021+4.6%+6.5%+4.1%
Q1 2021-6.1%-11.1%-3.4%
Q4 2020-2.2%+3.0%+11.1%
Q3 2020+22.6%+15.6%+13.3%
Q2 2020+1.3%+12.2%-10.8%
Q1 2020-3.8%+11.3%+16.4%
Q4 2019-29.0%-44.5%-21.8%
Q3 2019+3.9%+2.9%+0.9%

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