NASDAQ$AIOT

Powerfleet Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

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.

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.

Headline financials

Total Revenue

$34.2M

Previous: $34.3M-0.3%
EPS (adj)

-$0.14

Previous: $0.04-450.0%
Gross Margin

50.1%

No prior period
Capital Expenditures

-$1.57M

No prior period
Free Cash Flow

-$3.14M

No prior period
Net Income

-$3.67M

Previous: -$2.3M-59.7%
Operating Income

-$3.26M

Previous: -$1.22M-167.4%
Gross Profit

$17.1M

Previous: $17.2M-0.4%
Cash & Equivalents

$19.3M

Previous: $16.7M+15.5%
Total Assets

$216M

Previous: $220M-1.8%
R&D Expense

$2.38M

No prior period
Stock-Based Comp

$1.1M

Previous: $1.07M+2.9%

Revenue & EPS history

Powerfleet · Revenue · Quarterly

$34.2M

Q3 2023-0.3%vs Q3 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

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.

Tailwinds

  • 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

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

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 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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