Core Insights - Powerfleet, Inc. reported a 45% year-over-year increase in Q3 revenue, reaching $106 million, with service revenue accounting for 77% of total revenue [1][6][7] - Adjusted EBITDA rose 77% to $22.5 million, driven by the Fleet Complete acquisition and organic growth, with a run rate exceeding $85 million [1][10][17] - The company has increased its FY25 full-year guidance by $10 million for revenue and $2.5 million for adjusted EBITDA, now expecting annual revenue to exceed $362.5 million [12][17] Financial Performance - Total revenue increased to $106.4 million, with service revenue growing 45% to $81.7 million and product revenue rising 42% to $24.7 million [6][7] - Gross profit increased by 44% to $58.8 million, with adjusted gross margins exceeding 60%, up from 55.5% in the prior year [8][7] - Adjusted service gross margins approached 70%, while product margins improved to 30.6% [8][7] Strategic Developments - The post-M&A integration of Fleet Complete is ahead of schedule, positioning the company for double-digit growth in FY26 [2][4] - The integration process is well underway, with a cost synergy program targeting over $16 million by fiscal year-end [5] - The acquisition of Fleet Complete has expanded market opportunities through partnerships with leading telecommunications providers [5] Operational Highlights - The company exited the quarter with over 2.6 million recurring revenue subscribers [7] - Significant sales growth was noted in AI camera solutions, with a 52% year-over-year increase through the largest channel partner [5] - A major contract with a leading beverage company in North America has a long-term revenue potential of $25 million to $30 million [5] Debt and Financial Outlook - Net debt at the end of the quarter was $229.7 million, below the year-end guidance of $235 million [11] - The company expects adjusted EBITDA to exceed $75 million, inclusive of $5 million in secured annualized run-rate synergies [17]

Core Insights - Powerfleet, Inc. will hold a conference call on February 10, 2025, to discuss its third quarter fiscal 2025 results, which ended on December 31, 2024 [1][2] - The conference call will be accessible via toll-free and international numbers, and will also be available for replay on the company's investor website [2] - Powerfleet is a leader in the AIoT SaaS mobile asset industry, focusing on unifying business operations through data integration and providing actionable insights [3] Company Overview - Powerfleet has over 30 years of experience in the industry and aims to help companies save lives, time, and money through its innovative solutions [3] - The company is headquartered in New Jersey, USA, and has a primary listing on the Nasdaq Global Market, with a secondary listing on the Johannesburg Stock Exchange [3]

Core Insights - Powerfleet, Inc. is scheduled to present at the 27th Annual Needham Growth Conference on January 14th at 4:30pm ET, focusing on how the company is driving business change through data insights and supporting digital transformations for its customers [1]. Company Overview - Powerfleet is a global leader in the artificial intelligence of things (AIoT) software-as-a-service (SaaS) mobile asset industry, with over 30 years of experience [3]. - The company integrates and harmonizes data from various sources to provide actionable insights, helping businesses save lives, time, and money [3]. - Powerfleet emphasizes a people-centric approach to empower customers for sustained business improvement and innovation [3]. - The company is headquartered in New Jersey, United States, and has a primary listing on the Nasdaq Global Market and a secondary listing on the Johannesburg Stock Exchange (JSE) [3].

Core Insights - Powerfleet, Inc. has appointed Mike Powell as Chief Innovation Officer (CINO) to enhance customer solutions and internal operations [1][2] - Powell's extensive experience in digital transformation and AI-driven growth will be crucial for advancing Powerfleet's innovation agenda [2][3] - The company aims to integrate internal transformation with customer technologies and improve its Unity AIoT ecosystem under Powell's leadership [2][4] Company Developments - Steve Towe, CEO of Powerfleet, emphasized the importance of Powell's experience in customer-centric innovation and technology development for the company's digital transformation [3] - Frank Friesacher will now lead the execution of Powerfleet's technology roadmap following Powell's appointment [3] - Jim Zeitunian, the former Chief Technology Officer, is leaving the company to pursue new opportunities, and Powerfleet expressed gratitude for his contributions [4] Strategic Focus - Powerfleet is committed to continuous innovation and data-driven changes to optimize customer business performance globally [4] - The company aims to enhance efficiency, growth, and success through transformative digital solutions in an increasingly connected world [4] - Powerfleet's ethos focuses on unifying business operations and delivering actionable insights to help companies save lives, time, and money [5]

Group 1 - The Industrial IoT market is experiencing significant growth, with a projected compound annual growth rate (CAGR) of 17% and expected to reach $2.1 trillion by 2034 [3] - This growth is primarily driven by asset-heavy industries, including transportation, construction, and manufacturing [3]

Acquisition and Business Expansion - Powerfleet completed the MiX Combination on April 2, 2024, acquiring MiX Telematics, which serves over one million global subscribers across more than 120 countries[166]. - On October 1, 2024, Powerfleet acquired Fleet Complete, enhancing its capabilities in fleet, asset, and mobile workforce management across North America, Australia, and Europe[169]. - The consolidated financial statements for the three- and six-month periods ended September 30, 2024, include MiX Telematics' financial results from the closing date of the acquisition[167]. - Powerfleet's Board of Directors approved a change in the fiscal year end from December 31 to March 31 to align with the MiX Combination and improve financial reporting[168]. - The MiX Combination was completed on April 2, 2024, making MiX Telematics a wholly owned subsidiary, with a total cash consideration of $90.3 million used to redeem Series A Preferred Stock[244]. Financial Performance - Revenues increased by $42.8 million, or 124.9%, to $77.0 million in the three months ended September 30, 2024, from $34.2 million in the same period in 2023[215]. - Revenues increased by $86.1 million, or 129.8%, to $152.4 million for the six months ended September 30, 2024, compared to $66.3 million in the same period in 2023[224]. - Revenues from services rose by $71.4 million, or 169.9%, to $113.4 million for the six months ended September 30, 2024, mainly due to MiX Telematics[226]. - Total revenues from services accounted for 73.7% of total revenues in 2024, up from 61.4% in 2023[213]. - The MiX Telematics business acquired contributed $8.9 million in product revenues for the three months ended September 30, 2024[216]. - Service revenues increased by $35.7 million, or 170.0%, to $56.7 million for the three months ended September 30, 2024, primarily due to the MiX Telematics acquisition[217]. - Gross profit margin improved to 53.7% in 2024 from 50.0% in 2023[213]. - Gross profit for services was $35.0 million, with a gross profit margin of 61.7% for the three months ended September 30, 2024, up from 60.5% in the same period in 2023[220]. - The net loss before income taxes improved to (2.1)% in 2024 from (9.5)% in 2023[213]. - The net loss attributable to common stockholders was $1.9 million, or $(0.02) per share, for the three months ended September 30, 2024, compared to a net loss of $6.5 million, or $(0.18) per share, in the same period in 2023[223]. - The net loss attributable to common stockholders for the six months ended September 30, 2024, was $24.2 million, or $(0.23) per share, compared to a net loss of $12.7 million, or $(0.36) per share, in the same period in 2023[232]. - Adjusted EBITDA for the six months ended September 30, 2024, was $28.2 million, compared to $14.5 million in the same period in 2023[238]. Operational Efficiency and Innovation - Powerfleet's IoT solutions provide real-time intelligence for organizations, improving operational efficiency and profitability, with customers typically seeing a return on investment in less than 12 months[175]. - The company has developed 51 patents and patent applications, positioning itself for continued innovation in IoT device development[174]. - Powerfleet's solutions include applications for warehouse, logistics, and vehicle management, enhancing visibility and operational efficiency for high-value assets[170][171][172]. - The company aims to automate processes and increase employee productivity through its applications, enabling better resource allocation and operational insights[184]. - Powerfleet's solutions assist customers in regulatory compliance by providing critical data points and reports to avoid fines and automate reporting processes[180][181]. - The company focuses on delivering advanced data solutions that connect mobile assets, providing actionable information to drive strategic decisions[178]. Cash Flow and Financial Position - Cash and cash equivalents and restricted cash totaled $89.0 million as of September 30, 2024, sufficient to fund projected operations for at least the next 12 months[210]. - As of September 30, 2024, the company had cash and cash equivalents of $89.0 million and working capital of $81.2 million, down from $109.7 million and $126.2 million respectively as of March 31, 2024[258]. - During the six months ended September 30, 2024, net cash used in operating activities was $10.8 million, compared to $2.1 million for the same period in 2023[261]. - Net cash provided by investing activities for the six months ended September 30, 2024 was $12.9 million, primarily due to $27.5 million in net cash assumed from the MiX Combination[262]. - Net cash used in financing activities was $22.3 million during the six months ended September 30, 2024, mainly due to the repayment of Series A Preferred Stock[263]. - The company drew down $125 million under the New RMB Term Facility on October 1, 2024, to pay a portion of the Purchase Price for the FC Acquisition[256]. - The company has not generated sufficient cash flow solely from operating activities to fund its operations[259]. - The MiX Combination and FC Acquisition are expected to be sources of positive cash flow moving forward[259]. Expenses and Cost Management - Total operating expenses decreased to 52.9% of revenues in 2024 from 59.0% in 2023[213]. - Cost of revenues rose by $18.5 million, or 108.2%, to $35.7 million for the three months ended September 30, 2024, with MiX Telematics contributing $17.5 million[218]. - SG&A expenses increased by $19.6 million, or 110.0%, to $37.3 million for the three months ended September 30, 2024, largely due to MiX Telematics[221]. - SG&A expenses for the six months ended September 30, 2024, increased by $57.1 million, or 163.4%, to $92.1 million, with MiX Telematics contributing $35.4 million[230].

Financial Data and Key Metrics Changes - Revenue for the first half of FY '25 reached $152 million, an increase of $12 million or 9% year-over-year [5] - EBITDA increased by $9 million or 46% to $28 million [5] - Adjusted EBITDA rose by 41% to $14.5 million from $10.3 million [19] - Net loss attributable to common stockholders was $1.9 million or $0.02 per share, compared to a loss of $0.06 in the prior year [19] Business Line Data and Key Metrics Changes - Product revenue grew by 13% to $20.3 million, driven by strong demand [14] - Service revenue increased by 5% to $56.7 million, impacted by churn in the legacy MiX customer base [15] - Combined gross margins decreased to 53.7% from 56.1% year-over-year, primarily due to integration-related inventory write-offs [16] Market Data and Key Metrics Changes - Revenue in Europe increased by 74% and in the Middle East by 63% [14] - 70% of Fleet Complete's revenue comes from North America, with 88% from high-margin services [8] Company Strategy and Development Direction - The company aims to maximize efficiency to expand EBITDA and enable strategic reinvestment [24] - Focus on high-quality revenue streams and customer stickiness to drive growth [10][29] - The acquisition of Fleet Complete is expected to accelerate growth and expand market reach [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit growth targets, supported by a strong product portfolio and customer demand [36] - The integration of MiX and Fleet Complete is progressing well, with cross-selling opportunities identified [41] - The company anticipates a recovery in cash flow in the second half of FY '25 [21] Other Important Information - The company is recognized as the 1 global market leader in AI-powered smart cold chain solutions [11] - The upcoming Investor Day on November 20 will provide strategic insights into the company's growth trajectory [30] Q&A Session Summary Question: Clarification on gross margin levels - Management indicated that product gross margin is expected to stabilize above 30%, while service margins are anticipated to improve in the second half of the year [32] Question: Insights on achieving double-digit growth - Management noted confidence in growth driven by existing accounts and new business, particularly through the Unity platform [34] Question: Integration of MiX and Fleet Complete - Management confirmed that MiX customers can now access both the PowerFleet and MiX portfolios, including Unity data services [41] Question: Performance of the Israel business - The Israel business has performed well despite challenges, driven by demand for safety and security solutions [70] Question: Trends in churn rates - Management acknowledged churn as a headwind but indicated that overall performance is tracking as expected [72]

PowerFleet (AIOT) reported $77.02 million in revenue for the quarter ended September 2024, representing a year-over-year increase of 125.2%. EPS of -$0.02 for the same period compares to -$0.09 a year ago.The reported revenue represents a surprise of +3.32% over the Zacks Consensus Estimate of $74.54 million. With the consensus EPS estimate being -$0.01, the EPS surprise was -100.00%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to W ...

Exhibit 99.1 POWER@FLEET Powerfleet Reports Second Quarter 2025 Financial Results Q2 FY25 revenue up 7%, to $77.0 million, and Adjusted EBITDA up +41%, to $14.5 million year-over-year, demonstrating continued strong execution of the immediate business objectives post-MiX combination. First half FY25 results exceeded expectations with revenue up 9%, to $152.4 million and Adjusted EBITDA up 46% year-over -year, to $28.2 million. 50% of the planned two-year annualized cost synergy target of $27 million secured ...

Q2 FY25 revenue up 7%, to $77.0 million, and Adjusted EBITDA up 41%, to $14.5 million year-over-year, demonstrating continued strong execution of the immediate business objectives post-MiX combination.First half FY25 results exceeded expectations with revenue up 9%, to $152.4 million and Adjusted EBITDA up 46% year-over -year, to $28.2 million. 50% of the planned two-year annualized cost synergy target of $27 million secured within 6 months of the close of the MiX combination.WOODCLIFF LAKE, N.J., Nov. 12, ...