PowerFleet(PWFL) - 2024 Q2 - Quarterly Results

Financial Performance - Total revenue for Q1 2025 increased by 10.2% year-over-year to $75.4 million, up from $68.4 million in the same period last year[4] - Product revenue rose by 29% year-over-year to $18.7 million, contributing to a 7% expansion in product gross margin[2] - Adjusted EBITDA increased by 52.2% to $13.7 million from $9.0 million in the previous year, driven by strong topline performance[6] - Full-year 2025 revenue is expected to exceed $300 million, with adjusted EBITDA anticipated to exceed $60 million[7] - Service revenue grew by 5% year-over-year to $56.7 million, highlighting the strength of the Unity product strategy[4] - The company reported a net loss attributable to common stockholders of $22.3 million, or $(0.21) per share, compared to $(0.04) in the prior year[5] - Combined gross margin was 52.6%, with an adjusted gross margin of 56.5% excluding non-cash expenses[5] - Total revenues for the three months ended June 30, 2024, increased to $75,430 thousand, up from $68,443 thousand in the same period of 2023, representing a growth of approximately 12.9%[21] - Gross profit for the three months ended June 30, 2024, was $39,648 thousand, slightly up from $39,131 thousand in the prior year, indicating a stable gross profit margin[21] - Non-GAAP net income for the three months ended June 30, 2024, was $326 thousand, compared to a non-GAAP net loss of $203 thousand in the same period of 2023[20] - The adjusted total gross profit margin for the three months ended June 30, 2024, was 56.5%, down from 57.2% in the prior year[21] - The company reported a net loss attributable to common stockholders of $36,245 thousand for the year ended March 31, 2024, compared to a net loss of $4,634 thousand for the year ended March 31, 2023[24] - Total revenues for Powerfleet, Inc. and MiX Telematics combined for the year ended March 31, 2024, were $286,904,000, a slight increase from $280,469,000 in the previous year[31][32] Expenses and Liabilities - Operating expenses totaled $57.9 million, including $20.4 million in one-time costs related to the MiX transaction[5] - Total operating expenses for the three months ended June 30, 2024, increased to $57,883 thousand from $38,140 thousand in the same period of 2023, reflecting a rise of approximately 51.7%[22] - Total liabilities increased to $294,365 thousand as of June 30, 2024, from $251,477 thousand[16] - The company incurred $2,901,000 in preferred stock dividend and accretion during the reporting period[29] - Acquisition-related expenses for the three months ended June 30, 2024, amounted to $14,494 thousand, significantly higher than $223 thousand in the same period of 2023[22] - Interest expense for Powerfleet, Inc. rose to $2,174,000 in 2024 from $757,000 in 2023, indicating increased borrowing costs[31][32] Cash Flow and Assets - The company ended the quarter with net debt of $108.2 million, comprising $31.4 million in cash and $139.6 million in total debt[6] - Cash and cash equivalents, along with restricted cash, decreased to $31,393 thousand at the end of the period from $49,902 thousand[18] - Cash used in operating activities for the three months ended June 30, 2024, was $(7,615) thousand, compared to $4,522 thousand in the prior year[17] - The total current assets for Powerfleet were $169,788,000, and for MiX Telematics, they were $66,041,000, leading to a pro forma total of $235,829,000[26] - Cash flows from operating activities showed a net cash used of $457,000 for PowerFleet Inc. and a net cash provided of $4,979,000 for MiX Telematics, resulting in a pro forma combined cash flow of $4,522,000[27] Stock and Shares - The weighted average shares outstanding for the three months ended June 30, 2024, were 107,136, compared to 106,390 in the same period of 2023[20] - The weighted average common shares outstanding for Powerfleet, Inc. increased to 35,813,000 in 2024 from 35,548,000 in 2023, reflecting potential dilution for existing shareholders[31][32] Research and Development - Research and development expenses for Powerfleet, Inc. increased to $8,675,000 in 2024 from $7,458,000 in 2023, highlighting a focus on innovation[31][32] Acquisitions - The company made an acquisition net of cash assumed amounting to $27,531 thousand during the period[17] - The company reported a bargain purchase gain of $1,800,000 related to Movingdots in 2024, contributing positively to the financial results[32]