NASDAQ$AIOT

Powerfleet Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Powerfleet's Q2 2023 performance reflected strong growth in high-margin SaaS revenues and expansion in gross margins.

Powerfleet reported a decrease in total revenue, offset by an increase in service revenue. Gross profit margin expanded due to a shift towards high-margin services. The company is focused on transforming into a SaaS-centric business.

  • Total service revenue increased to 66% of total revenue, up from 57% in the prior year.
  • Gross margins expanded to 50% from 47%.
  • EBITDA increased sequentially by 31% to $1.8 million versus first quarter 2023.
  • Service revenue in North America grew by 16%.

Headline financials

Total Revenue

$32.1M

Previous: $34.6M-7.4%
EPS (adj)

-$0.12

Previous: $0.05-340.0%
Capital Expenditures

-$2.01M

No prior period
Free Cash Flow

-$2.42M

No prior period
Net Income

-$2.98M

Previous: -$118K-2422.9%
Operating Income

-$3.13M

Previous: -$1.59M-97.3%
Gross Profit

$16M

Previous: $16.2M-1.2%
Cash & Equivalents

$21.7M

Previous: $17.7M+22.7%
Total Assets

$217M

Previous: $223M-2.5%
R&D Expense

$2.18M

No prior period
Stock-Based Comp

$852K

Previous: $1.31M-35.1%

Revenue & EPS history

Powerfleet · Revenue · Quarterly

$32.1M

Q2 2023-7.4%vs Q2 2022
Beat estimate in 4 of 9 quarters(44%)
ActualEstimate

Revenue by segment

Powerfleet · $21M total across 1 segment · Q2 2023

  • Services
    $21M+6.1%

Forward guidance

Powerfleet is positioned for accelerated growth in the second half of 2023, expecting greater earnings potential and a compelling business model.

Tailwinds

  • Unity platform continues to track ahead of schedule.
  • Movingdots acquisition enhances the pace of delivery and capabilities within Unity.
  • Successfully executed $3 million expense reduction challenge.
  • Taken actions to secure an additional $1 million in annualized expense reductions.
  • Positioned to exceed commitment to ensure Movingdots is an adjusted EBITDA neutral transaction exiting the third quarter.

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 2023

Historical avgQ2 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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro