Wrap Text
Unaudited financial results for the first half of fiscal 2025
POWERFLEET, INC.
Incorporated in the United States of America
(File number: 7272486)
Nasdaq share code: AIOT JSE share code: PWR
ISIN: US73931J1097
LEI 2549007NKEFPYEH4MF81
("Powerfleet" or "Company")
UNAUDITED FINANCIAL RESULTS FOR THE FIRST HALF OF FISCAL 2025
On November 12, 2024, Powerfleet (Nasdaq: AIOT) (JSE: PWR) reported its financial results for the second quarter
ended on September 30, 2024. A Form 8-K has been filed by Powerfleet (the "Form 8-K") with the U.S. Securities and
Exchange Commission in this regard pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934. This
marks the second full quarter following the closing of the business combination with MiX Telematics Ltd.
All prior period comparisons in the highlights section are based on pro forma financials for the combined MiX and
Powerfleet businesses, whereas the prior period comparisons in the summarized financial metrics section reflect only
legacy Powerfleet numbers.
Second Quarter 2025 Financial Highlights
- Total revenue was $77.0 million, up 7% year-over-year, driven by the continued strength of our Unity safety
solutions.
- Product revenue rose by 13% year-over-year to $20.3 million, with adjusted gross margins expanding by 3%
sequentially to 35%, exceeding current guidance of +30%.
- Service revenue growth of 5% was in line with annual revenue guidance, reaching $56.7 million, with adjusted
gross margins expanding by 1.0% to 63.7% versus the prior year.
- Realized $13.5 million in annual cost synergies within the first six months of the MiX combination, achieving
50% of the two-year $27 million target. Cost synergies are the major driver of reduction in adjusted operating
expenses, which declined by over 5% to $36.9 million versus the prior year.
- Adjusted EBITDA, a non-GAAP metric, increased by 41% to $14.5 million versus the prior year, benefiting from
the flow through of expanded gross profit and the realization of cost synergies.
First Half 2025 Financial Highlights
- Total revenue was $152.4 million, up 9% year-over-year, running ahead of annual guidance and reflecting strong
execution in the first six months following the close of the MiX combination.
- Gross profit, after adjusting for the amortization of acquisition-related intangibles and other integration
expenses,
increased by $6.4 million, or 8% versus the prior year.
- Adjusted EBITDA, a non-GAAP metric, increased by $8.9 million, or 46%, to $28.2 million versus the prior
year, driven by increased gross margin from higher sales and the benefits of cost synergies.
Management Commentary
"Just six months into the MiX combination, we're already seeing the integration gain strong momentum, setting the
foundation for us to fully capitalize on the additional strategic opportunities offered by the Fleet Complete acquisition,"
said CEO Steve Towe.
"In the first half of fiscal 2025, we reported revenue of $152 million—up 9% from last year—and a 46% increase in
adjusted EBITDA to $28.2 million. We have already secured $13.5 million in annual run-rate cost synergies, achieving
50% of our two-year $27 million target from the MiX combination within 6 months."
"We are energized by the expanded opportunities gained through the Fleet Complete acquisition. Our strategic direction
is sharply focused on three key priorities: maximizing efficiency to accelerate adjusted EBITDA growth, driving towards
accelerated top-line revenue expansion, and enhancing customer retention. These priorities serve as the foundation for
how we align our resources, empower our teams, and execute initiatives for maximum impact."
"On the revenue front, we're driving the adoption of our Unity platform, in-warehouse solutions, and AI camera
offerings to meet growing demand across North America, Europe, and beyond. Leveraging the Fleet Complete North
American channel relationships, we expect accelerated growth beginning in FY2026, as well as global traction for their
mid-market products and differentiated AI camera solutions. These initiatives underscore our strategy to capture high-
demand markets while deepening customer engagement and expanding wallet share with highly sticky integrated
solutions."
Summarized Financial Metrics
Six months ended September 30,
2024 2023 % change
(All figures in USD'000, except per share data)
Revenue 152,448 66,335 130%
Operating profit/(loss) (17,662) (6,497) (172%)
Basic loss per share (0.23) (0.36) 36%
Adjusted EBITDA 28,212 2,155 1 209%
Headline loss per share (0.23) (0.36) 36%
NAV per share 4.20 1.73 143%
Investor Conference Call
As previously announced, Powerfleet will hold a conference call on Tuesday, November 12, 2024, at 8:30 a.m. Eastern
time (5:30 a.m. Pacific time) to discuss results for the second quarter fiscal 2025 ended September 30, 2024.
Powerfleet management will host the presentation followed by a question-and-answer session.
Date: Tuesday, November 12, 2024
Time: 8:30 a.m. Eastern time (5:30 a.m. Pacific time)
Toll Free: 888-506-0062
International: 973-528-0011
Participant Access Code: 216765
The conference call will be broadcast simultaneously and available for replay at
https://www.webcaster4.com/Webcast/Page/2467/51506 and via the investor section of the Company's website at
https://ir.powerfleet.com/.
Headline Loss Per Share
The inclusion of headline loss per share in this results announcement is a requirement of our listing on the JSE. Basic
and diluted headline loss per share is calculated using net loss which has been determined based on accounting principles
generally accepted in the United States of America. Accordingly, this may differ to the headline loss/earnings per share
calculation of other companies listed on the JSE as these companies may report their financial results under a different
financial reporting framework, including but not limited to, International Financial Reporting Standards.
The table below presents a reconciliation between net loss for the period attributable to common stockholders of the
Company to headline loss attributable to common stockholders for the six months ended September 30, 2024 and 2023.
Six months ended September 30,
2024 2023
(All figures in thousands, except per share data)
Net loss attributable to common stockholders $ (24,225) $ (12,679)
Adjusted for:
Bargain purchase - Movingdots - (283)
Loss on sale of plant and equipment 14 -
Tax effect (1) -
Headline loss $ (24,212) $ (12,962)
Weighted average common shares outstanding on which the net loss 107,335 35,629
attributable to common shareholders per share and headline loss per share has
been calculated - basic and diluted
Net loss per share attributable to common stockholders – basic and diluted $ (0.23) $ (0.36)
Headline loss per share attributable to common stockholders – basic and $ (0.23) $ (0.36)
diluted
Short-Form Announcement
This announcement is the responsibility of the directors of Powerfleet and is only a summary of the information in the
unaudited second quarter 2025 financial results ("earnings announcement") and does not contain full or complete
details. Any investment decision by investors and/or stockholders should be based on a consideration of, inter alia, the
earnings announcement.
The earnings announcement has been filed with the Securities and Exchange Commission and has been released on
SENS and is available on the JSE website at https://senspdf.jse.co.za/documents/2024/JSE/isse/PWRE/Q2-2025.pdf.
The earnings announcement is also available for viewing on the Company's website (https://ir.powerfleet.com/).
A copy of the Form 8-K can be found at: https://www.sec.gov/edgar/browse/?CIK=1774170&owner=exclude.
Powerfleet has a primary listing on The Nasdaq Global Market and a secondary listing on the Main Board of the JSE.
November 12, 2024
Sponsor
Java Capital
Date: 12-11-2024 02:00:00
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