NASDAQ$AIOT

Powerfleet Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported a 7% sequential increase in total revenue, gross profit expansion, and profitability improvements.

PowerFleet reported strong financial results for Q3 2020, demonstrating business resilience and focus on profitable growth. Total revenue increased by 7% sequentially to $27.6 million, driving gross profit expansion and profitability improvements. The company generated $3.6 million in adjusted EBITDA, marking the highest quarterly level since the acquisition of Pointer.

  • Total revenue increased 7% sequentially to $27.6 million.
  • Gross profit increased 6% sequentially.
  • Adjusted EBITDA increased 71% sequentially, reaching $3.6 million.
  • Net loss improved compared to the prior quarter.

Headline financials

Total Revenue

$27.6M

Previous: $16.9M+63.5%
EPS (adj)

-$0.06

Previous: -$0.12+50.0%
Net Income

-$590K

Previous: -$2.1M+71.9%
Operating Income

$752K

Previous: -$2.13M+135.4%
Gross Profit

$14.9M

Previous: $7.63M+95.6%
Cash & Equivalents

$21.1M

No prior period
Total Assets

$214M

No prior period

Revenue & EPS history

Powerfleet · Revenue · Quarterly

$27.6M

Q3 2020+63.5%vs Q3 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Powerfleet · $27.6M total across 2 segments · Q3 2020

  • Services
    $16.7M+187.9%
  • Products
    $10.9M-1.8%

Forward guidance

PowerFleet has 570,000 subscribers and expects high-margin recurring services and subscription revenues. The company has a strong financial foundation with $21 million of cash.

Tailwinds

  • 570,000-subscriber base provides high-margin recurring services and subscription revenues.
  • Strong financial foundation with $21 million of cash.
  • Consistent cash flow generation.
  • Diversified and stable plan to execute growth strategy.
  • Confident in continued ability to execute strategy.

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 Q3 2020

Historical avgQ3 2020

+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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