PowerFleet reports Q4 EPS (7c), consensus (10c)

Reports Q4 revenue $34.5M, consensus $34.34M. “2023 was a year of stellar transformation for Powerfleet,” said CEO Steve Towe. “We are highly encouraged by the results of our pivot to our data and AI-led Unity ecosystem and associated high-quality SaaS revenue, which underpinned an annual increase in constant currency service revenue of 14%, led by 16% growth in our strategically important North America territory. Effective execution of our strategic plan has also improved the overall quality of revenue where we exited approximately $8M in annual revenue from unprofitable contracts and non-strategic lines of business. These moves have simplified our operations and allowed us to redirect resources toward more profitable, higher-growth areas. As we promised shareholders when we embarked on this brave strategy of shuttering low-quality revenue streams, we duly returned to total revenue growth in the second half of 2023, with revenue and gross profit both increasing by 6% compared to the first half. Additionally, adjusted EBITDA in the second half of 2023 increased 141% compared to the first half, an impressive feat given a full period of Movingdots operating expenses, macroeconomic challenges in Israel, and a $1M charge for inventory-related items in Q4.”