PowerFleet (AIOT) 8 Nov 222022 Q3 Earnings call transcript

Good morning. Welcome to PowerFleet's Third Quarter 2022 Conference Call.

Joining us for today's presentation is the company's CEO, Steve Towe; and Principal Financial Officer, Joaquin Fong.

Following their remarks, we will open the call for questions.

Before we begin the call, I would like to provide PowerFleet's safe harbor statement that includes cautions regarding forward-looking statements made during this call.

will future statements financial there events, regarding call, PowerFleet's including performance. the be made forward-looking future During All statements future other offerings other business for include forward-looking financial any growth, than considered anticipated industry strategy, present and regarding position, the expectations statements. company's trends historical competitive the demand position, are plans regarding of for and for results operations, company's future statements anticipated operation, facts, opportunities which product company's for to, statements beyond. XXXX but expectations not company's Such and limited the include, financial are All beyond such the imply presence of contingencies, many risks and forward-looking statements control. and of the uncertainties which are company's

demand to and The include, for emergence does assumed future may technologies in achievements and competitive The any other company's forward-looking economic or of circumstances. overall amongst company's to to conditions, could differ undertake or not statements. forward-looking any duty those results new Factors factors, SEC company that the filings, projected cash performance actual update statements business position. products any the results, intend and cause events could materially materially services, company's or actual reflect from to differ

the in Finally, Investor will be replay this I Relations remind call like available www.powerfleet.com. for section would that made at to everyone company's of website the

turn CEO, call please PowerFleet's Now Sir, I would like to Steve Mr. the Towe. over to proceed.

call. quarter Thank you, operator, and good you for conference morning, PowerFleet's third everyone. joining Thank

being successfully healthy we the can earnings and of across as our release, business from executed As board. is see another transformation very performance you quarter the delivered financial encouraging of our

profitability. by revenue generated XX% adjusted and EBITDA grew gross profit XX% We year-over-year, strong

growth fourth year-over-year the marked of QX revenue fact, for our company. quarter In consecutive

to half in initiatives this sequential an in area top and of us our XXXX. of our enhancing profitability, basis advanced in efficiency improvement for of well reinvestment supporting from from XX% totaling first schedule Ahead line software In a improvement on development. accelerated operations, producing both QX organization's profitability has shift are positive and the operating cross a is in addition over success, our QX also expertise and growth, rationalization an to XX% unwavering positioned loss next determination in go-to-market to year to

constantly have of communicated profitable We our growth. goal

by supply front Our conditions exceeding despite rebound QX deliver is of grit margin and a gross chain in challenging expectations. of our the and in ongoing since prime turn, very us XX% tough of remove organization competition and, updated product in barriers example improvement outperformance against skill to market the

presentation our hear, of reimagined, for promised from subsequent and team and consistency, of strides in As our I'm positioning XXXX business. growth and you proud PowerFleet and revenue predictable and the beyond. plans our profitable Day strategic quality extremely to credibility throughout aiming surrounding our can operations, future made execution improve We improved Investor better the towards has January the and, of confidence frankly, PowerFleet internal tactical for expectations external and plans, in

very We foundations global are a and on high-velocity growth profitable our promises delivering for building stage. solid

for Before Finance provide now QX. on our and outlook. Afterwards, over Joaquin Joaquin? Officer, I I turn call results further, review Fong, the highlights to Principal financial to go operational details I'll our will our

Thanks, everyone Steve, to and good on the morning call.

our September ended quarter to for Turning XXXX. the results XX, financial third

period. $XX.X compared the up was which to same ago revenue million, is Total XX% year

facility late It during of As to $XXX,XXX approximately unable that Ian. Steve SaaS our mentioned, we're our mix high-quality Tampa in we our and encouraged noting in because September, we to is by revenue temporarily were worth Hurricane we the are revenue. making progress closed shifting product recurring ship

not Our facility and hurricane damaged October. the was in was back online and from early operational fully

was million compared which revenue revenue. of in or This $XX.X $XX second XXXX. total or in XX% total revenue. million revenue services XX% to an was Product million services and compares $XX.X million revenue, to or quarter the XXXX. XX% recurring revenue, of XX% This total High-margin $XX.X or total improvement revenue QX of of was drives of future

million $XX.X revenue Service Gross total profit last or of or total revenue or XX% or $XX.X in year XX% total the profit compared service ago product of was total revenue, total million of to $XX.X product $X.X service $X.X total XX% in million the of Product million was year-ago gross improvement of same revenue was XX% same profit to $XX million revenue or period. gross period. QX compared in year. million XX% XX% or revenue of an compared to

of reengineering The sequential challenges. successful improvement in and XXXX management PPV our reflects efforts gross product QX margin in

continue to work at are an order our macroeconomic we our to commitments, actively customer order. managing attractive In price. components in backdrop constraints the on of We headwind ability affecting short these against to procure electronic deliver

Going forward sequential expect we margin our product through XXXX, into initiatives. QX to reengineering improvements and in realize

year. over expenses compared charges remain Despite our Looking million in in marginal $XX.X increases other FX nonrecurring to and at confident the costs, period. Total our quarter due by operating million operating QX expenses. in our $XX.X we expenses XX-month next to approximately $XX and reduce million to were the ability operating million $X last prior QX our in expenses onetime in annual

at worth of Looking a or portion from XXXX. the a quarter $X.X of impact. in in noting loss was quarter of currency once operations and foreign related is our the that our It significant by metrics. XX% to $X.X to improved PPV loss to million second again Loss profitability $XXX,XXX million compared

XXXX. expect progress in usage to on over and truncating half in we at rationalizing the our still profitability cash an we've operating basis costs, Looking made to cross of the first

year $X.X same ago the or diluted and or stockholders $X.XX totaled Non-GAAP This $XXX,XXX per to $X.XX common GAAP to period. or attributable and share. to loss and net net net QX $X.XX or net in income, non-GAAP million stockholders year. per of $X.XX per basic a loss share $X.X loss last $X.XX a and basic common non-GAAP share share per metric, totaled $X.X GAAP compares basic diluted $X.XX diluted million of million diluted attributable compared per to of per basic in

a ago end, in of year million working period. EBITDA compared to of cash by had and non-GAAP quarter $XX improved Adjusted gain, $X.X same EBITDA capital. and million $X million in equivalents $XX.X the At adjusted $X.X metric, million to cash million we

That prepared remarks. my concludes Steve?

Joaquin. Thanks,

Following evolved to year, operations. and the of business my the a assets appointment the business PowerFleet we solutions leader the optimizes strategy at unify SaaS that as position of beginning IoT mobile global resources to of performance

new it that position was aligned with Following imperative mission. this in our move, branding our we

from So, team. being qualities customer-centric the we our during passionate, knowledgeable, identity a brand company, values the of new global and around quarter, Powered IoT unveiled third born empathetic the centered People and

evolution, We'll the division, incubation Innovation innovation as safety technology very an Israel, hub space. a in operating announcing partner assumed this week our our personal of partnership ground edge a an increased brand the proving Center advanced part exciting importance new later solutions. be and Pointer for in leading IoT As the technology with

terms In our key to we the deliver double-digit of exciting continued operating impressive and in regions, U.S. growth

including third and delivered broadly, we John in growth quarter, region bringing Nissan, X the year-over-year in demand our business, Deere, is During industrial U.S. logistics XX% XX%. growth XXXX by Georgia-Pacific the our growth we've building high our being Walmart. region, this driven Toyota, for to year More total generated in and the first the months customers from of the

drive safety their business These improved operations. and productivity enterprises across are solutions looking fleet to to power

response plays changes and vital in of our in forward industry As our customer in role to a their transformations. the modernizing support to continued solutions. of We technology accelerating the data software challenges, digital innovation software look the our

our only go-to-market not Our validate in the in untapped potential strategy, the ongoing U.S. success reflects the but area.

our of key business enhancing We're and leading vector profitability in be driving years consistency region the and will believe ahead. for the U.S. the PowerFleet growth the

and solutions by looking of the the in the our strong, we've the built work new fleet for Our go-to-market pipeline early connected excited region. by XXXX market is this team of launch enhanced We're segment.

hit despite quarter to the recorded of to year. constant $XXX,XXX due in dollar. the up U.S. we was revenue well QX revenue performed last compared also currency a foreign strong On basis, the XX% currency Israel

foreign by Operationally, exciting translation we executing business million the U.S. and continued currency the strength IoT hit arena. QX. in to given to However, to be $X.X some market Israeli to of related the approximately dollar, bringing to solutions plan expect is

further and go-to-market FEMSA displace quarter win. the we win secured were retail point beverage FEMSA, delivered as highlighted integrations data able we of FEMSA excited with are a strategic provide multinational an our relationship to region technology the strong a with second competitor how and strategy and largest major good across business operations. insights also, is proof can in and company established Mexico, In by company. PowerFleet the develop a to see Mexican a to their another Mexico global

markets untapped in in In which Arab that in other deep introducing progress a Emirates, both expressed Dubai our international solutions our markets, the of are making we're IoT have technology. and interest steady

and reimagining PowerFleet release this IoT makes a is lives, called of global will help ecosystem as IoT Unity, later PowerFleet's time the brand move new PowerFleet month. operating the Part and we the through to our real tangible helping difference increasing change in mission-critical more to continuing deliver. to we business We're serve management to and profitability save position cementing upstream creating company. technology on platform we organizations within our solutions a which time

as ML single industry's most PowerFleet advanced such fleet operational transform new brings data to data electric well intractable optimize applications engine a management, solve Unit's people, risk performance, management, fleet data and operations. and to assets the cognitive Unity platform as traditional and vehicles, business challenges AI as on the PowerFleet fuel some benefits of and sustainability, maintenance. move together to intelligent applies to safety provide compliance

just we our platform and from feedback very released, interest is to And already customers. the positive current prospective although and receiving about be beta, are

throughout at We on data safety be XXXX. value-added end and with new to science-led first the modules AI security and for to also released module release the schedule of remain QX XXXX,

have be We in rich game-changing industry. the confidence will solutions in high

our None the team. today could be global dedicated achieved and without future of talented our and success in

the cutting-edge People with commitment as towards promised. Our IoT, we're upon importance technologies growth and team that tagline, to reflects profitability. is and Powered world-class our well success to as advancing and solutions we customer tenured as building our new talented team to sustained Powered continuously that IoT place on committed drive People our Aligned our existing perform

Ranjay. Hayton Betz and additions will leaders including these [Ofer of our leading our portion SVP team, Intelligence additions, I'm the efforts to rationalization Enterprise of and Sales; we've impressive expect appointments with leadership out Josh, additions really Lehman] Engineering. the broader Ranjay records the savings our to line, Artificial to Andrea Even Along executing help recently made track team, cost build IoT in Data of increase to several with and for to earmarked as Kumar Marketing; technology annually. from Josh brings Each PowerFleet's SVP the that SaaS To of we ecosystem. as VP of initiatives as realize companies. of COO; be $X large-scale including [Ofer], their as role of of Andrea experiences sure, customers continue confident these a we and cost million savings senior global

with Looking ahead, we the entered momentum. quarter solid fourth operating

These rationalization and segments. on expect our of complete and are the business efforts greater customers low-margin even stages our in highest on to margin and We emphasis shedding final QX. actions customers focused placing controlled solutions,

these will new will to sales growth continue and promotions higher business parallel, within our pipeline XXXX, in run. profitability drive greater Starting long actions existing the fuel proactive value margin help go-to-market territories. In to over and revenue, in

will according strategic road are our confident map growth. plan executing to and generate are sustainable long-term We

driving transformation speed and transformation. consistent business strategy brought deliver headway leadership making accelerated the and encouraged delivery XXXX The tangible focus, execution Overall, our and enhancing throughout enhanced XXXX beyond. our in by organizational to greater a and has of team strong we success SaaS and expect efficiencies are

believe to is acquired capabilities, transformation us growth company's go-to-market which strategy, fully sustainable, profitability top we the of companies enabling realize and translate our cash from extensive all line high-quality flow. refocus Our integrating with to expanding combining core the benefits technology positive and will

the accomplish global market very confidence strong. obtaining will The expanded a of for IoT The solution our retaining a executive be both in able and outlook the top Board to in the seat table high PowerFleet ahead. providers we of of and goal is team years at degree has

gives have front in We of of team success. laser-focused, every tremendous us global much chance work but us, our desire hard world-class and

concludes prepared our That remarks.

it the turn I'll Q&A. over Now back operator for to

with from first Scott Our ROTH Instructions] [Operator Capital. is Searle question

into see go to build XXXX. momentum the you nice Steve, of we end guys as the

quick First, just a clarification.

clarify, like to the GAAP XXXX, income On better, for on that's supply want comments in operating getting just breakeven but basis, the there. And then, a things front, still are constraints on I there's it chain some correct? seems

like terms from margin. in It product step-up also nice of combination really sounds chain. but a of supply a gross had You the reengineering,

tick Wondering the side gross said are fourth sequentially the in here product you you on the margins the think expecting fourth side go product gross clarify I you we targets term? the that what quarter, intermediate into to as the could if quarter. over up the and were on margins for

the Sure. I'll first part ask question, the the Joaquin then second. I'll of to take take

your just and and process seeing our manage answer And in to contributing part is issues in yes, margin. the U.S. And on we're and decisions. GAAP first To deals that's line, the analyzing on we're Yes. of chain product product all a middle to reengineering right the question, basis. our now that making ability our right existing the the improvements the margins it's in now supply the the improvement of

gone quarters. schedule We're lot at XX%. progress has tremendous in into So, be hard of to I that. we've made mean, of work X ahead look, A

the a think, mid- of longer But we'll looking in it we to also our improving the think to due challenges. terms but But starting fruitful will good I be pricing we're some I I with just see the scale, margin, gross be into higher-XXs still to and the QX. not it's output. work side, in product about and slight face cost the term, hard but back customers, improvement think

I regional And you're a accounting of just bit bit of lot not could your on what in generated. just wondering a hedging the got terms take has if if I'm or quickly a costs high-level you headwind. different hedging. exposure, a some the could, on you. through side, policies of of I Got us little currency so service been staying

one assume currency. that's So, I I that. follow-up. to all just in had then clarify local want I And

We're in doing kind not all hedging. currency. It's of Yes. any local financial

in Obviously, offsets we're it's so, the though And some currency. with natural -- we're that currency, we're transaction even doing local just local currency there's fluctuations in facing. the

we So, is there and -- in U.S. dollars. transactions have

we're hedging, So kind you any doing there's mean. not a financial little bit of what hedge, that's of but if

Yes. then, XX about from Perfect. tremendous months the what, done high months, guess current amount I a Steve, time. a -- And look, level XX in -- at you've

building. like go-to-market, of In sounds terms a there's platform, it pipeline

You've new coming. modules got some

you what get to kind starting opportunity filter wallet be reporting data customers then, categories You're the you base. lot or size start different down mix XXXX. into the magnitude the wondering fleet, help now modules from about products, as got the within like. opportunity within level Maybe to or grow and going but different of is if talking I'm modules the addressable customer We've the high how the science about industrial, of thinking existing of And within and the to that. be metrics pipeline in are break could us we set understand logistics, into a you quantify should business? forward, the with going services as the you a looks what we

the going be measuring business against you those of how about milestones thinking some So, forward? And we we thinking that you the business? be are about how should should

and the just longer-term I kind lengthy XXXX, about but for of to that's on I to margins, XX% clarify is, EBITDA $XXX It the and just in apologize on throw that. like but and of early And million then targets thoughts if you've think question, still -- it track? sounds talked

and working the But our obtain or and are of don't we I I if me ratios we're forgive growth, all those in I'm terms we'll coverage very missed that the to anything, business. I've mean, I encouraged best. our think answer of starting for by And do pipeline

times me from a it is pretty If And you through growth year, the key do on those hard business through do solutions periods. this lot business, how for existing transformation. and a difficult about some that indicator of our come you think has

A terms now. In folks of in X going new in we kind XXXX, in car we that are as in got some that of really yet quarters deals. we technologies of pitch of U.S., the brought haven't teams have scenario we about a the the lot in putting bear. We the of will for excitement talked for to in the excitement kind -- anger in, that creating bring go-to-market new connected lot on

are So, those the pipeline. guys building

as going we're to lot place, the that have having also of of expecting strong a anticipation months So belts, new -- a XX well to in in terms under their got X we've team with we're XXXX growth.

in So, think, of months, ahead both for remain And longer our we're point track on to confident expectations, I made 'XX your our that progress. significant and short-term and we've term, we XX schedule.

-- I to think should One think, service of be we business, the SaaS I improvement at. couple that a in in will and measure we is, terms give looking indicators looking be margins. just of I'll you how we the gross

our you something terms new we'll for more think overall of be logos. that's our share, in think got the growth, overall increase kind value emphasis clients wallet on talked putting Subscriber future. added ARPUs we've of our our today. those solutions eye so I that new will new logos, on the from and we as impact about And existing

we is as create as But we see on information want that because bit we'll kind get can visibility more the more the SaaS the of outcomes we that growth, ultimately of over high aim company. that's add where to kind really start profitable we So, we formalize of of them. give to a That revenue. those,

shift You'll do. at pricing terms deals, of is that have seen good a in profitability that doing margin high-quality of weathered on very good we moving epicenter with from the towards our eye and what

really done We've an in to as that said, of overall, very future of beyond. and by seeing trajectory I of some as XXXX the to think, market time kind by business. fruits So awful in work believe be excited of improve we judged we're a the well. strong. I strength of the that we'll short come But is to continue space And the lot

the Nice the you get team new see in to I'll out queue. the pitch. back Great. getting on

Walkley is Genuity. question Mike Canaccord from with next Our

And my of congratulations on the some line and transformation. a question progress of also Scott's on I guess, the follow-up strong to Steve, results questioning.

us your might give on market as this of to how might base be this to or Just can And ARPU you new kind you platform? Unity, remind upsell to differently differently? this uplift what how priced installed go

Yes.

great So, Mike. question,

So, all in we're combining user interface. terms different first of platforms all, into of one Unity, our

segment. So, we shape a vehicle

have we have IoT. As industrial, we Scott vehicles, logistics, we we have we have to, alluded have fleet,

view having key the platform and to of usability multinational going the through of and customers that one So, type all to one be from is multi-asset giving utilize data this place. be to able to

So, we're excited that. about

security, platform Secondly on, base those on then, issue to, compliance, work depending that of different modularization be in modular will we then, fuel there terms that, the charges management, modules as for effectiveness, different there are a fee. business of efficiency. looking will safety be And to and the business business advanced sustainability, you alluded

So, us our we'll ability for to start see to grow ARPUs. the

good think that XX% on -- I a improvement XX% to midterm midterm ARPUs range the we to is near in get. the a

give. that what not functionality that just those to taste inside think brings allow company We give -- suite some teams the sales us have allow turn the the people time, to at our of has will on with time, today. can to go-to-market be But take module structure and opportunities the we of of just a opportunity solutions. different whole our cross-sell a upsell And modules overall, a that take whole other at people can the grow one

So, moving it a forward. will of part our be key strategy

goal area then, or those margin, to said the you higher is get your higher. And or gross helpful. on That's solutions services Great. just

maybe where the hardware trend gross but time services long-term, software if getting XXs successful? margin could talked the you're to over about to You margins gross higher

is very our XX%, we mid-XXs it ambition we'll disappointed where be get don't trending Yes, above lines. if towards

And frame what that time be? would

I'm yet. not to put going that in place

do too over got much we that we something, do we've seen to past going would All say you've then the I to think do. I work year is, say we're hopefully it. do when

to of So, in we that we more get to being date. give able delivery kind as that bit more moving, confident we'll update need a time little feel and

jump last the in And question and Great. queue. for I'll me,

how a you're the right also of the get Just people hiring to made is place? environment cost. You've hires but reduce lot trying in to

And strategy? So, the have to should you we like go-to-market execute you your do in feel balance X? how now place on those team

hire. So, I'm talent of of first all, level the that by been humbled we've to able

testament I a the real and testament that's It's moving the Board of the strategy a and to the support forward. team. existing the think plan to

may on came are when at grow early take to cost you, We being down look, -- same difficult it's into it and Mike, we the be also to think this, I me, said very very time. even

reengineering really of lot our are business fast. taking We out. We're a cost

And talent the within envelopes we've improvements hire this business to we that living been our have. and are the able We make into in losses.

continue do we'll to through to, alluded we've as that XXXX. And

you the people with So really to we're We we exciting. of the we've we about can't can my very some in it new And perspectives that that feel feel voice team who've SaaS from and very achieve new And now in experience got then hear companies the good bear. what can to comfortable truly wait talent see coming brought of just mixture high-value think have where tenured years. at. we the proven I the existing probably track growing records is

Schmidt Lake with is Our next Jaeson Street Markets. Capital from question

Lake on Max Street. with got here You

to any looking you then kind what improvement in QX? the of want currently, the to in I Just And first like? know, chain. going chain talking supply lead about are supply times see are

seen margin product we've in So improvements big And we've slight QX. seen improvement. since gross

traditionally. customer slight But components. of we pipeline is and at that terms make longer supply to much around the we're In -- now that as fruition that orders. we're I us. ensure can get seeing scrapping think kind as that about, the very we're we of elongated tunnel. to sure making that talking grow I we end were sure they're fulfill light still to We're comes and But we than invest are they're for of think But still that time they XX% work scales, we hard

got a the eye on balance. very But a weathered times. component lead we've it's constant So

inflationary increases? have with just lines then, along And those instituted you guys any pressures, price

actively to. business, very Yes, out And that's a very easy and to we our conversations It's I think we but base obviously That's We've easy. conversations. received. never and having going pragmatic are have. started customer well run to new been having

We in areas we really PowerFleet. little tougher and make certain for focus going a bit is get we are, overall, as actually on think unprofitable going to said I and QX, things some there. that on movements But this new in have

that our really think we're we the in I think we'll and by it's terms I our technology now have with confidence think get market And and Patrick we in Maley that that value our is value. what team we for that the And go-to-market of weight led the our applying well. I price. punch the give in applying

then, one, the I'll jump and queue. back my Okay. in last just And

QX, Given trended far November? in how order we're have months about October into X.X so patterns early and

nothing quarter. I to way. similar it's QX, to dramatic So, the would still either early say, in QX, But similar

is final Barrington Prestopino from with And question our Gary Research.

A questions couple of here.

you're you want margin you were Joaquin, said to QX. be the into side improvement product got that just I where still correct. from Just make sure QX going clarify, in to going to I gross that on for looking

and correct. of that we that said I I questions. the got hope other answered Yes, on that, You one

and mid-XXs over the a maybe So is And momentum we'll range longer-term, time. a slight better continues. see little improvement. Again,

$X the you been see done? take of any the what from Okay. And you've starting equation able then, as million what expenses benefit you've far of to out as you to are from said

pitch. what invested I and to capabilities. and sales we Obviously, PowerFleet the best a and about scope we're broader we in function, we've in getting also described have message stage. much, in one say, rebranding data externally. done more exercise now, have. really the improved And the are. AI all at significantly improved we the bought science articulate We've and marketing on as secret And R&D, Yes, ourselves would communications We folks go-to-market put that starting to and understand people is kept IoT the

savings. of reinvested So we've that some

in well. improvement basis, But time. net margin an lines bigger on a expansion million as and chop that very $X over some of be some comfortable have in we're gross You've to And seen business. system annualized that efficiencies in the integrations wood terms will we the

So, because team just down things for next a kind et be year, correct assumption? money cetera. you Is million that add a $X are we and on doing step spending expenses overall in of to to expecting of shouldn't branding, your

Yes.

want future of And by we And proving that We're have in is progress for momentum maximize So, best in the that. we don't think be will looking so. fitter. getting level practice. that's the I we're making, relevant and a that going the we're do. of We'll business far company, will to -- that efficient. to terms improving and that a that a out we're Reengineer far investing Fundamentally, look, that continue over in to the I stand market. we opportunity systems, will to different the operating our we're the a within engine at do the that of are there hump bit spend of top and growth mean, processes. reduce cutting out be looking And that lot think line business, the we're time really become more we'll of little

then, And of of a Okay. couple just A questions couple more questions Unity. here. on

say You platform user you're where combine going into your interface. one to

also that give that Or on based that to that So, XX% on be clients charging taking through fact to mentioned going newer the of that the you're going is you're the overall? Unity? assume, of offering modules here benefit more based just would you you be some ARPU. Is XX% lift use. for real it to I in could But is the a ease Unity

No.

point, your all, is, to usability far think, I the of first will be stronger.

multi-asset well. much provider, then we've are I we improve better think which as modernized user larger will the think interfaces business placed for type be And enterprises. a I to

all, that's feel ARPU making driving -- across place. real we to that we'll it value provide a from if where, ability the the everything growth -- to will depth that real able data functionalities to that use. able as looking And insights in and from in the be easy and come we're by We work will data from in but look XXXX, of ultimately will the the We're customer putting The modularity, functionality [Phase business of we're, asset the we platform. the the our this value the types like it it base So, look X], provide at multiple of first future. change insights become and XXXX to one in have comes give. we come the improvement

Mexican you I've Okay. beverage And of us then, the agreement? the before. down just size believe heard the said, larger this companies beverage there area. you or just metrics possible I of FEMSA, with the in some it was one deal Because is do them company? just -- maybe of they're help lastly, on with a Could the

behalf the revenue We're second the largest those in on not give out allowed metrics Yes. are company Mexico. but to yet of customer, they

large very with distribution So, enterprise network. huge a

that data much the suppliers and on So, very excited. of. grow their kind PowerFleet -- we're relationship they're I want it's very past, much had their proud And change. focusing a We're multiples they've deal within around to driving it's and of strategic of business the operating and the platforms, a very think in deal that that

side Is this is -- the this or is industrial less this both? you got or this on logistics or more business where

asset across type. other This is are we on our that moment, solutions have excited about the but in the they very different that logistics side at the portfolio

now take ROTH follow-up Searle a question Scott will We Capital. with from

you faring winning? you up deals Steve, particularly landscape, are and win otherwise. just list? how seeing on rate the looking FEMSA on look does like are And why the competitive at short follow there? And competitive the guys What guys like? you What are to

think not I call would think players. of to really what a global -- you'll I So, consolidation names, mention but I see enterprise I'm going

So, a the well entities few market. are that larger doing in

I we understanding of about is an the people scale, on range the solutions as think our our higher I win a than was at that rates want XX% in it It's those this credibility the that But huge ago. moment around is the scenarios plus to higher to be and customers. PowerFleet about future. year XX%. in size, of organization, have offer to all experience

think, in look years it a our come. go-to-market approach I to in the the with numbers. to has seeing I borne competitors And lot. main And forward out being that out our And slugging transformed in you're

I This remarks. for turn does over like Steve to conference our session. the question-and-answer conclude closing to would back

the soon. and joining speaking for day. thanks questions, morning. you bye. us everyone, to look this forward you, to again great to I Thank again a care. Bye, insightful Take Have

our Thank presentation. joining for you us for

now may disconnect. You