NASDAQ$AIOT

Powerfleet Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

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

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

Headline financials

Total Revenue

$34.6M

Previous: $33.5M+3.1%
EPS (adj)

$0.05

Previous: $0.03+66.7%
Gross Margin

47.0%

No prior period
Product Gross Margin

23.0%

No prior period
Service Gross Margin

65.0%

No prior period
Net Income

-$118K

Previous: -$1.44M+91.8%
Operating Income

-$1.59M

Previous: -$155K-924.5%
Gross Profit

$16.2M

Previous: $16M+1.2%
Cash & Equivalents

$17.7M

Previous: $39.9M-55.6%
Total Assets

$223M

Previous: $233M-4.3%
Stock-Based Comp

$1.31M

Previous: $1.1M+19.8%

Revenue & EPS history

Powerfleet · Revenue · Quarterly

$34.6M

Q2 2022+3.1%vs Q2 2021
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Powerfleet · $34.6M total across 2 segments · Q2 2022

  • Services
    $19.8M
  • Products
    $14.8M

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.

Tailwinds

  • 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

Headwinds

  • 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.

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 Q2 2022

Historical avgQ2 2022

+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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