PowerFleet (AIOT) 9 Mar 232022 Q4 Earnings call transcript

Good morning. And welcome to PowerFleet’s Fourth Quarter and Full Year 2022 Conference Call.

Joining us for today’s presentation is the company’s CEO, Steve Towe; and CFO, David Wilson.

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 risks beyond. XXXX but many expectations not beyond company’s Such imply and of company’s are the contingencies, and limited such presence the statements include, and forward-looking of All which control. financial are the uncertainties

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

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

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

recognized speaking with to year provider. again. profitable the transforming progress and joining long-term made first high a growth I’m solutions joined PowerFleet once mid- and our for journey as us the to you you Good company. the world-class, be has thank of been team the of It’s and I morning a a proud goal today. of It’s since exciting rigorous incredibly being SaaS towards on pleasure

around tenure are years highly progress the business strategy executing to-date, our I we’ve to CEO. and two of the by my made the encouraged turn in Board The first

mission. well on of and schedule the ahead We’re executing

my initial reminder, follows. a priorities As as were

order a to of to IoT become company. to SaaS caliber we needed team and improvements make experience dramatic true First, the in the leadership

Second, strategy improve expand our SaaS platform we market our solutions. delivers for needed and to develop the great a total clients for value unified available to margins that

we and in to and sales need show topline segments. drive could traction execution vertical high-value evidence we that markets Third,

As to rates certain focusing In product business of next geographies move on we towards phases turn, incapable the accelerate transformation that and our our redeploying are of creating plans we’ve the for cash lines and we product and return containment areas. savings flow. strategies driving sales plan, we’ve cost believe sufficient rationalizing highest and of been expense ROI heavily been in

adding year CFO, including We’ve and roofers tremendous Wilson, amount companies, execution, a with last powered talented high executive from working who over growth by a SaaS team accomplished hear you’ll with through hiring experience deep the rapid our shortly. super David

profitable well Our first which partners last employees, and Reimagined growth very by June investors PowerFleet alike. received and been was Day customers, strategy inaugural our introduced has call Investor that we at

unites that perspective, platform a customers to game-changing its the assets data transform we people, way technology Unity, business. a PowerFleet fleet November, in launched new From and intelligence together do

recent will gaining FEMSA. Unity and customers, traction schedule with future of ahead is and shareholder by of highlighted the value creation be and cornerstone our new with our announcements Kearney

still XXXX. fundamental articulated the gross I objective Even profitability, an business profit XXXX, beginning able improved dramatic drive enhance operational change and all of and efforts transformation growth, in with were of topline business you to the to we at ambitious

we’re also the financial face encouraging and pressures macroeconomic of results, headwinds. achieving in ongoing significant chain Our supply

delivered by level margin X% detail, in growth, XXXX, and base services XXX,XXX. our at we but and in high David our grew high revenue X% QX subscriber will in discuss revenue XXXX topline results a X% growth to

gross faced million, the improved XX% FX XX% was growing operations we reduced XXXX. and perspective, annual adjusted total QX headwinds constant loss We by to full $X XX% EBITDA by from in revenue QX with growth significant grew XX%, on revenue From services year. from a our basis, XXXX in XXXX profit profitability but currency a XXXX, for

One of questions growth annual of the in growth by could thesis in of revenue market we improve XX% key XX%. the our growth thesis We service delivering the proved region a total the year XXXX. and was, revenue U.S. our in

XX% Industrial business period driver corresponding key the versus was A of our XXXX. success grew in half second segment, of U.S. the in our which XXXX

in We’re services also XX% year-over-year which XX% unit, excited by achieved growth performance business in Mexico revenue. and our total of the

telling compared we progress XXXX. for our of results financial second when most Perhaps is our and the best half measured

versus first on the X% revenues On the sequential margin XXXX XX% X% million. to of currency half annualized basis, of constant increased an XXXX, services the was a or impressive high half For second an basis. increase $XX.X

$X million or gross to profit gross from Overall, our margins expanded XX%. by XX% XX% increasing with

our a from reengineering success expanded gross $X.X $X a million as million to the XX% improvement well products half operations, or the profitability product as a in XX% adjusted XX% we the EBITDA. from initiatives standpoint, from improvement our realized Additionally, From in or and of second XX% in margins year. loss

by profit million losses million a our well as the improved by million to in same last operating $X.X adjusted XX%, we Compared improvement or period $X XXX% year, $X.X or EBITDA. saw gross or as increased XX%,

region. the the our by Mexico, in both increase in During of saw and quarter, fourth XX% revenue sales a segment key double-digit Unity a regions, Industrial U.S. XX% sales and Industrial driven Solutions in in we the increase in initial including our growth

QX reflect The terminate to call. unprofitable overall underperforming and in our QX in deemphasize territories, and the contracts, measures product took to lines topline alluded I we decisive actions results

revenue quarter. approximately into $X.X management lower this the quarter and unrecognized produced contracts the company’s collections highest context, of was of unprofitable cash de-emphasis To in to our the put related margin tight the Nevertheless, in million history. cash products termination the

work financial do to the and possible is to company. in believe our still there especially the progress, for second much us XXXX, by achieve performance of encouraged we level operational we’re our half While more for of is

operating expectations, of challenged this Along when position that expected crucial has the further line, that still speed areas improved. assumed the our focused our earlier a leadership enacted need business. the than more business to exceeded are CEO state Although far be to and the plan was quarter, there on of internal the cleanup team I optimize

grow improvement. annually, we to took which in When $X completed, by out the the teams. is bottom allowed business which development of addition XXXX, and OpEx software of sales and to us $X This additional million plan will in to the an reduce our some expect line drive million our we pivot

detail. our business invite I’m financial our performance discuss and and initiatives in going David? our walk I Before through XXXX XXXX QX to outlook, David more to for

pleased time reaffirmed PowerFleet to month reasons for chose on of I’m on has and and you Steve, I week first connect many join Board time with the this my call. with two Thanks, my second marks to This key team. the

amount complementary that Firstly, a assets value. rich massive PowerFleet of latent of there’s a of have set

Secondly, PowerFleet’s have in experience aggressive full place the has put Steve realize who that team potential. are the to and change required drive agents

is reason joined key third PowerFleet The patent recognition. I

acquired PowerFleet, I companies telco, taps stakeholders. business regional CFO value for was around Prior of was to creating a amalgamation returning team an which huge joining management newly of amount and the installed a that ACS, had a of the

early sector at While achieving was we smooth in more I valuation the success tenure, XX with my a my outperformed quarters, from a times, similar the in rocky and PowerFleet. by forward to turning laggard valuation during ACS playing the to leader. road ACS look part

$XX.X results quarter the fourth compared for to XX, our to was on revenue Now XXXX. ended year in XXXX. million QX Total $XX.X million, December

Steve the approximately focus earlier, sales million the product quarter, and revenue we territories. of sidestepped was As $X.X down in increasingly quality with available In the on the non-core design, versus noted revenue. quantity in in step underperforming by lines sharp

PowerFleet SaaS the central around to $XX in with XX% of fourth is revenue or million mix XXXX increasing Venturing quarter XXXX. of service high million business revenue or the from Reimagined, XX% a $XX.X margin in tenet

million where were the in on was revenue, focused a $XX.X of attachment year. $XX.X last QX SaaS sales service deals quarter’s million revenue with Product versus high

$XX.X was compared million, to $XX.X profit Gross million.

year. Importantly, expanded margin of total XX% X% by XX% revenue, last from gross up to

of in compared $XX.X last of year. revenue to profit Fourth with QX quarter in margins total revenue service of gross XX% service was with This service expectations. XX% or million line million, $XX.X

ago profit gross was compared Product year $X.X period. million, million same in to the $X.X

margin discipline from was a to expanding quarterly primary charges. deal driver last XX% and was and gross out-of-period inventory reserve product adversely While warranty up performance for gross margins $XXX,XXX revenue, X% of of or XXXX product impacted by adjustments year, XX%

and $X.X through expenses which audit gains reverse $XX.X million EBITDA. XXXX to in compared at professional stocks of a incremental million, from period. year adjusted which OpEx Looking million, same flows adjusted benefited in ago to to calculated EBITDA the expenses, fees, is operating exchange translation foreign was $X and million $XX.X

totaled negative attributable common common of In loss profitability per net share of terms stockholders compares and stockholders QX basic $X.X loss to and metrics, $X.XX million last basic loss net $X.X $X.XX diluted a of or in share. or to a to diluted This million per attributable year.

million an adjusted XXXX EBITDA metric $X And a in the non-GAAP the year EBITDA, million, of compared of $X.X same period. finally, adjusted ago totaled to in quarter fourth

million. strong sheet and working of at quarter the company’s million equivalents. $XX quarter remained capital position Our in $XX.X balance was cash The with cash end

was $XX million, an December the XXXX. to drives Product gears million, Total compared to to services improvement in for revenue, compared High $XXX.X which million full Shifting future ended in XX, our compared XXXX. revenue revenue in to financial margin XXXX. $XXX.X year million million was $XX.X was million, $XX.X revenue services XXXX. $XX.X results

or product of in gross total $XX.X compared total XX% gross XX% or $XX.X to or compared profit profit of million XX% $XX.X compared was revenue XXXX. XX% Services revenue profit Product Gross or $XX.X revenue, in to of or $XX.X in XXXX. XX% to was or of service XX% million million product million million of was total $XX.X revenue, revenue, million of service XXXX. revenue

of to to totaled million $XX diluted expenses non-GAAP net tribute $X.XX XXXX, attributable Operating compares common were per of and a EBITDA, $XX.X adjusted XXXX. a XXXX, stockholders million common and negative in negative metric, net EBITDA loss diluted $X.XX $X.X or per compared XXXX. million basic $X.X in while or $XX.X in Adjusted basic which to compared in million, million share to totaled loss to million, stockholders share $XX.X

Steve? remarks. my concludes That

David. Thanks,

my benefits strategy highest on of margins to stated visibility, team been great to and competitive a of company dynamic at recurring of capital the revenues, shareholders, customers. share the advantage. which a of result has goals revenue increasing our a and profit SaaS joining substantially and increase quality returns and of yield employees concentration around talent allocation our and PowerFleet best the highest this and to opportunities the as the relative potential built has One revenue We’ve our the

spirit, this have South Brazil In strategic and Argentina and for entertain Africa to our we units. decided business alternatives

As in to been background, we’ve there have interest evaluate third partners. these potential these business with who these decided expressed have opportunities and parties units

our organic Re. In accretive a that Along growth to enhance parallel the M&A German-based line, scale to strategy, fully-owned a continually Movingdots, morning, announced we augment to rapidly. sheet and evaluating are acquisition our this provider, ability we operated of subsidiary opportunities our Swiss more capabilities and telematics balance of

has hub Swiss served Movingdots the in XXXX, and Since space. automotive technology mobility Re’s a

world’s For those reinsurance are one the Re, and with leading insurance. not they providers familiar of Swiss of

insurance car decade provide risk. players style data-driven fleets insurers and with to Backed for designing science perfecting with Movingdots last auto Movingdots insurers, spent mobility analytics algorithms proposition platform data worldwide. actuarial and personal drive enables manufacturers insights, and for risk-based the

and on providing assessment. to insurance focusing technology an safety Movingdots analytics transparent AI needs individual and comprehensive combined and drive by risk monitoring, ML and By security customer with

sustainability has and ESG the reporting developed Movingdots space. also technologies leading-edge for

have Movingdots sustainable, solutions been precisely deliver scalable and strategic way. partner insurance and to searching the market the growth profitable in Re Swiss architected to global for right these a

insurers bodes works Chip Movingdots customers automotive as and and XXX perspective, customer European the enterprises in major partners with a OEMs From more several as than also serves Blue market.

synergistic Movingdots checks a of all boxes highly acquisition. complementary and the

entrants meaningful beachhead PowerFleet and into reference accelerates Europe a major of customers providing Tier network X it a with partners. by First,

into solutions and Movingdots vice cross-sell to base partners of opportunity customers versa. significant our a presents PowerFleet Second, and

strategic strong IoT science for the highly data advantage which Third, advanced market sustainability and and end competitive technically for brings a insurance credibility markets, present PowerFleet. acquisition distinct the solutions in

applications. and Platform Fourthly, enhances that ESG our the solutions PowerFleet automotive on enrich Movingdots and enterprise safety acquisition SaaS reporting innovative delivering Unity focus will mobility with

Finally, software of and beyond. Germany platform in excellence Movingdots has built hub a and

talented and promise employees on Movingdots to will powered striving of PowerFleet’s tenured current deliver people strengthen IoT. team, all the

continuity Re $X From has price a agreed share. of XXX,XXX agreed cash Re consideration acquire per and company’s continued for €X alliance for exercise and its an as to close €X we’ve perspective, offering XX transition telematics customers to to the that million Equally have Movingdots common value Swiss as issued to a PowerFleet Swiss PowerFleet. in partners. Swiss to well strategic warrants at fund important talented and employees, Re commercial a seamless ensure of was Movingdots with

to sequential as reduction our Looking in QX by revenue XXXX. rationalization efforts, we anticipate our result trend Industrial strategic growth a growth expect through a the segment, of from despite future, expected generating revenue we double-digit the to robust continue driven U.S.

In summary, robust growth we’re and and to on of potential an realize base realigning SaaS our cost offering. restructuring increasingly high competitively focused differentiated the

strategic liquidity. important Movingdots offering, Unity play, in to an role enhancing a position vertical while balance our has leading providing sheet the enriching simultaneously insurance and

our prepared remarks. concludes That

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

you. Thank Thank [Operator you. Instructions]

Scott, your with from proceed on ROTH. Scott line with question. is your is question Our first Please mute? Searle

Thanks basically $X to the for Movingdots. of wanted Movingdots. clarify the is I to to if questions. things quarter the reduction Good then going terminating Oh! My in bunch million this dive of lot OpEx, off apologies. sales confirm morning, taking a understand levels? quarter bad I that? contracts, in quickly million and then of I that Steve into lost the forward And or related walking But Hey. fourth on had $X.X want on a And fourth were morning. follow-ups quarter, away I then a to want couple in going

Yes.

the go-forward first spend. know piece would one, spend. be it So investments been time terms have we’re majority a got also in to vast at going in would ongoing There planned That’s primarily the first was the this I of on in but of which Wilson. terms reduction a of year, call. some you is of start David the OpEx, a do it, reduction part terms it’s of I’ll that it’s

$X.X just call, he we was in that contracts, lot of terms think about deals but me, Steve, of I million in terms And talking predates again, the a more in disciplined the QX on do. being

margin which investment some business, in would do. So chose there low we to that require were not inventory

that’s have contracts There’s have, also business, certain the in of where as EMEA, so falling not pursue that particularly, chosen to we roll-off off we well.

combination of in sales revenue. a hardware in reduction it’s to So both services of addition terms recurring some

got understood. I couple want Great. exciting, of to on And basic then Movingdots, make very sure I’ve the it sounds but metrics a

price purchase the -- Your is €X.

$X. Movingdots bringing that you But They’re number, I’m that to You’ve do team cash. $X rate but What’s very was domain if can the some I quickly got science powerful get specific the start market, the or sure you It the employees? it in sounds employees give insurance like XXX,XXX warrants you data at correct. you that, run in not expertise got heard coming going XXX Unity how million a in? to integrated revenue got employee quickly Was you’re it into how monetize Platform? that’s XX with

question, Scott. great So

look a bringing we’re beachhead. believe that sustainability safety employees XX driver. previously that leading European it’s mean, a get in. take at key market want all, wanted And stated, I a we in to and insurance. position of and to We first Movingdots, is So, We if you

to We some that great in capabilities false Unity and and done to wanted expedite drive our and talent soup. we’ve data in bring one science

Re Swiss million growth supported relationship future good about So very feel And that’s towards with the and an ongoing with cash in $X.X providing that. obviously, we then together.

take insurance ensure think stand time solutions, the good that decade get risk be time market to it for if the moving. be to robust at forward, revenues it perfecting approach. has taken are almost to a the being profiles time That which about by They’ve the put and to inordinate We’ve spent you bulletproof. some an go-to-market look will some

We’ll it’s it’s on and So look an we more amazing revenues to product, got future. expand today modest the the details in financials. give

next that call. still on at detail through kind we’ll on update our financials, close of confidentiality We’re to under any but more the

is correct is into that to Got you. or in But, Is expected this current go going the Steve, quarter? second the closing the quarter.

very XXst weeks date four there. April, of three not of I’m weeks but So to March, yet, soon, which sure Xst from

today, you. as lastly, outlook core you guidance could, half some wondering -- if if was of Got of into I services, I the sure but as business not outlook if XXXX, at go just think it looking I could pipeline. the heard to specific looks we just first What kind to what you like? what relates you the talk are I’m And I the seeing? the

got base? customer early could You’ve some engagement chain and of you’re causing little Thanks. Unity the ARPUs feature sets lot headwinds, And any maybe if in that’s about bit there, out supply how that’s wondering more update on talk what of higher Platform. push to if quick the of seeing a and transitioning rich a within a I’m terms you just problems revenues?

Yeah. Thanks, Scott. I’ll try down. and break those

in terms firstly, future. Platform. getting in to the think of customers new a invested So, to the schedule ahead sales feel pipeline Unity marketing terms I we’re good, lot that drive about and very very of of pipeline, We’ve of we and the some on in bullish

is today new together, of combining of first previous launch by module. the feature-rich Unity our all the platforms

of and We’re very safety which the out coming excited at about this end month. is security,

obviously, significant drive allows increases us time. And of perspective, to modularity an over ARPU the it from

ARPU Unity than we’ve that kind I deals our have of would been promise say, to higher forward. got first The probably, standard are XX% moving of in the due deals

bullish feel that we the So it, a we about and very with platform confident formula very about future. we’re we have good winning feel the

queue. in get I’ll the you. Thank Great. back

Thank you.

Walkley will question Please question. Mike your with with from Canaccord next Genuity. proceed come Our

questions. Hi, for Mike. Daniel morning. is This my Good for guys. Thanks taking on

costs, gross supply costs on was this, or this wanted congrats and to primarily double just the solid mix, increased chain maybe other factors But can driven the year? margins. off, managing challenging. we on what recovering you’re next just first means discuss hardware input this on margins by I improving for guess, gross you I So, click the know obviously, passing results as remains over supply and how such QX pretty it

Sure.

some chain an piece. answering I Scott, question supply finish your didn’t of So around the apology,

component we supply customer mean, there fast partners we out we remains challenges still move and pass our can received some appropriate, out chain onto I So, blue try there. challenging. that to increases from our We that, as where obviously, as and price base and the of of it’s are where can

a done for $X over we making took half, fulfill customers. think, lot million lot we’ve the components. really out, in think we’ve can sure tried of first I of those manage which headwinds and worth I our We of a superb high seeing months the last priced the XX spending that components job for is of why we’re one-off a improvement. to But reengineer in

continue. I managing price and better that expect deals, think better a think I doing we’re and a we’re to value quality company, lot as we

in than added couple we FX a that wins half percentage probably points in of you the we’re reported the If had, today. X and second higher

is So I in But our is alignment we organization. there, out but can volatility better management of and -- better look that it’s better maintain we’re forward. it would just that. confident say, we there drive costs It to execution, sales our

the savings, the I gross guess pace regards or both is in in in just additional and OpEx? more $X And margin Great. OpEx this million to of

It’s but heavily would I towards say, both, weighted OpEx.

the way really the in has And that going the lot very the of by ruthlessly we that need in and I’m, I think team to success business. again, tough for basis challenges January thing were a was tackling a strong about last I to challenges, forward moving year that changes one very mean taken execute on talked make. I encouraged the we creating

the programs rebrand that same the to rebrand we that in and think been run, that team plus individuals us. an to costs testament super at the we’ve able I some look way we’ve -- repurpose opportunity talented ahead the bring this efficiency very of is company, do reduce if the focused time, acquisition on is a at

you much Great. additional very Thank color. for

Thank you.

Barrington. Our comes Prestopino next proceed your Please with with Gary question question. from

a the everyone. services? down a questions period all, how you on press from you in to million here of release, products time but through business between or when the short of that get and from in Good walked $X.X you and first does break away the issued that morning, did QX, Hey. of Several lot not really

would XX% I Yeah. say product. is it of

vast product. majority the So is

Okay.

So XX% is product.

Okay.

or include $X.X you’re through that Africa Argentina, So value Brazil does included with in your evaluation that your or South it now was that include business doesn’t going and that -- million?

various some in some in territories No. in America, world, That was the some Europe, the U.S. Latin in contracts some around

So it spread was plus.

business. for heritage that’s India, historic Colombia, not a in the Croatia which us. business course have business was locator, of it’s And light just hardware-only of We high-quality and

from So a and and down of that number contracts we opportunities running space. in away walked inventory

Our ambition…

So…

Sorry. Go ahead.

ahead. Go Go I’m No. No. sorry, Steve. ahead.

achieve focus obviously, ambition, and business on of of that fit really to high trying is quality forward. So the just doesn’t SaaS we’re revenue type moving what our recurring to mold

Okay.

XXXX, in there over sales you willing you you XXXX in forward as that may expect the be Is these of as So further correct? out take got be that finish I various move to parties this regions. going countries. in to that would said, We think, adjustments these will the evaluation, you’ve business

Yeah. That’s correct.

XXXX regions of for So in about $XX million revenue. was worth those

that right. is So

Yeah.

that’s low That’s margin or and right. All fairly to problematic. I hear Okay. good guess

was previously The businesses. quality are regions these territories. mean, run way was the independent business I

So there’s complexity… a lot of

Right.

local … in established those growth have in got customer good some where and momentum. And great bases phenomenal we’ve territories. differentiation opportunities core territories we some look, large and

strong. one as big drive questions the of said, I we in we our could a U.S., that of look, look Mexican a U.S.? we’ve you out. proven in at If transformation, was, think If business terms year, growing really is that of year XX%-odd at unit very we the

a it. European to business good, going now alongside have We’re strong

ourselves want thin. spread So not just to too we

in distraction believe organizations territories that organizations. or may served some in be different have smaller by we dilution activities our We smaller these better and of

it’s smart very we’re focused -- we and on and to doing do it’s what we true sensible a high So there. strategy quality think and growth

fine. That’s No.

here I’m these looking the or bit quarter million on numbers, $Xs $X.X Step you I looked million, $X.X is QX, was the point, had sorry, you and this it million, that $X.X high million rate realize been year-over-year quarter. this also a jettisoned. at my being X a and but just are down I’m business So, close QX. the little in adjusted like of EBITDA run of and to then look, million related seeing up QX. the of of revenue only about, I single Obviously, at service that think, $X.X to digits But high some up looking X% QX, after

So what would growth service how explain I got there, subscribers that that down? the step down revenue, the does in go you’ve if in mean,

Yeah.

So one I can pick that up.

$XXX,XXX So FX between QX. there impact of and was QX

So in that of also, but It’s sort of of business. I’m question services am it’s revenue, probably answering part a step and was not sub was $XXX,XXX total X% a revenue, small your nonrecurring directly, actually sequentially. but our that was sorry, of down. I terms There our down

So lower that in QX. was was in QX one-time just it than revenue

you’re impact point in going the some of expecting jump-off that So, had quarter. into terms probably again, the

we contracts with We those And the customers the moving -- off I’d of just add some platform. on. that move they’re decided to

to some contracts there well. was as agreement there service an So terminate

Okay.

good. That’s Okay.

that So then in you’ve terms of made. this acquisition

or How that all, of they this Re sole now First it the does to is insurance or other work? fleets companies are of whatever? Movingdots selling is right account Swiss out Movingdots or

Yeah.

-- percent business percentage a a So, obviously, Re. within of Swiss their go-to-market good

So the of one are reinsurers. world’s they largest

So they number have a products… of

Correct. Right.

independent insurance some on fleet plus with base their basis, telematics, of core insurers they but part their into customers which have of kind was some global a as as other … have their proposition, selling previous are relationships well. they it heritage also to and

and the market proving the rationale team The story. in a opportunity So really the fantastic. maximizing better why and the together that’s capability this is where is a sales around out now relationship of such product business for the and is it’s that going and the

been through this are I they than where is go to acquisition. synergistic and effective PowerFleet why it through sell that be more that’s very bring have makes can Re aware think good this this channels going such at scale to and far and deploy a Swiss

this you Well, that’s question mean pose to companies, the Swiss sell to I this, I in insurance to simply business do plan insurance-to-insurance. in of still insurance this of going that’s and here this, because to realize guess? it’s other closed the you. PowerFleet. see not wanted Continent to I you But growing obviously, but legacy as haven’t a you’re cases doing is I business product how companies, lot as trying expand try that to Re on other mean to the any the well work I European

independently months with alike, So, first four and insurance, synergy seeing I telematics. probably recognized the five analysts, now or all, think, and over been it’s safety, interesting risk people last months investors of really it’s the between

So that…

Right.

again you the part growing is things vertical that. and if of even risk include that. in be move vehicles, …that as like we want premiums leader to changed market And the to electric then insurance the

electric around technology We have vehicles. great

at risk and warehouses. pedestrian the warehouse, and in can and from space and see safety growth insurance stellar there’s we’re you between risk you there safety, saving a synergy in around industrial our If look the lives getting

where put the heartbeat So organization. want where to for us, it’s play right to want we and of we at the

From we available perspective, great perspective channels BXBXC have and already. a BXB

as AXA, with the sensor both We likes have telematics. a relationships of smartphone Swiss plus hardwired Movingdots and

not good other that So channels our we Europe, only a today. think this for open and lot we territories have is for but of

into with put security. actually this when we’re safety leading Unity, And of if -- kind and we

terms credibility be this to give expedite in proven this super where So will been this out bring our capabilities by advantage. strong an us of insurer. will going and is, has competitive real And it’s -- will

take bases, risk believe a go now advantage we for the very for -- into So door for there’s and the this take-up companies insurance selling open us to commercially. of their

And what’s Steve? Okay. here, That then model all the sounds good. revenue

of mean? terms and versus subscription service, In hardware you

sales I subscription-based model? mean is SaaS it basically Yeah. revenue a

It Yes. Yes. is.

Thank Okay. All you. right.

Thank you.

question. Street Markets. with your with Our next Lake Please from question Michaelis Max Capital is proceed

Nice quarter. Hey, guys.

maybe to out guys want you’re on could weaknesses potential I guide. noted Industrial Solutions. from you wondering then growth some lay seeing you other touch press the if was know strengths Just your QX and into QX? I in that U.S. going double-digit release

Yeah.

So I’ll up, one Max. pick that

U.S. obviously, growth that look really the the as of have, have U.S. a good about is as we good that future engine that us. increase and source revenue Obviously, coming we it that that outside of a key and set that sell where sort feel assets for differentiation growth really of So, ability being to we at Industrial concentrated today. we also

Steve the continues there. when well, incredibly pared Mexico good remarks, movement to obviously, We, said perform so in

of the a of So, terms continued there would of growth. the be main areas in couple sort of sort high-digit

headwinds, to some of going some QX. FX impact terms see the definitely in we’re of In

the there. obviously, today. mall significant of toy obviously political So have a in Israel there’s happening business our portion We

there’ll some there. FX So headwinds be

There’s stretching of just the out as also well, decisions there been of uncertainties. a some sort of a given

be So say, that would wish, of -- would the would we would in there. less there things that I be rosy key be comment terms will

Okay. just Thanks. know Could for And be guide the that an you throughout it given your on digits throughout grew you just outlook U.S. safe guys sequential would but then from or the final guys growth to XXXX. give one didn’t I say -- year, full double me. expectations expect Industrial year?

Yeah.

non-core said we some and Obviously, territories. grow comments aside in earlier year-over-year. all We of expect setting the to aside terms our of putting

to side. you that So one need put to

it guys. Thanks. That’s for Okay. me

Thank you.

with your Our is proceed Scott from Searle next with Please ROTH. question question.

having of of I size in Hey. other just just quantify taking Brazil follow-ups. South the follow-up. couple I’ve have wanted and a But I African did you then my been and Thanks to terms I clarify, for issues. apologize operations phone some

revenue about million It’s XXXX. of $XX in Yeah.

XX?

yes. XX,

it’s you if you in going past provide data And to Movingdots, that terms of looking back And at a evolution to of and on Perfect. investment this by And could the more I’m Unity so platform little bit talk to that presentations, XX. the really when seems Platform, accelerate an AI, get. color number years. about wondering your right? multiple and scientists you basically front the analytics

years to So incorporate that into what of translate if out Unity creep terms that can I’m could address we to TAM two revenue in a platform. starts it type into wondering the now expectations you if of maybe Movingdots with now you look total into start

Yeah.

the deal. But other until would a terms the we what science, of I think side question high say, closing there’s I level capability. to in a that’s ask of get data of tough

very space, order to build insurance and incorporating AI is insurance we’re the dramatically that at are that propositions complex look risk versus technology. us it’s has in provide. built what that That algorithms you If very, able advanced to

said, exaggeration, have I And decade almost this as together. a putting guys spent these this no is

So doing the there’s a further think, where speed to to were market, the without increase ability drive and this tenfold acquisition. we that credibility in for I in us space, growth

opportunity credibility with market we the of think perspective, available I bring has talent us both is to the look strength and us feel very front where today dominate next and Unity the about a confident the from place that So the that in space. years, we to have feel leads very channels to perspective, insurance We much over two that going we to us. a

if $X Great. could, bring the taken terms in You’ve of costs. into to And lastly, right? I out million just annualized OpEx perspective,

to team I this total. in basically, You’re out, talking bringing back capabilities impact? kind in you’ve been if that start way to $X another be, changing I your but really that Basically do structure where without of $X the coming were so you to cost quantifying before, is XXXX. about really what science able million back gets guess, look of to you million Is data right middle jump the your

Yeah. Yeah.

spend as company. the a think because rebranded brand dramatically, perspective, well, from I we’ve we’ve increased marketing

that the done that of through has the enterprise been grow generation to activities. trying lead market. We’re brought And drive within new We’ve to fleet cost a pipeline U.S. sales team envelope. all in our in

going software you we’ve a why real Unity increased as very referenced that’s a are and super Platform. the got is on to dramatically only on and leading-edge not but And set get going very teams, features this the year, to -- the got be platform strong the are who which quickly. We’ve development by released overall roadmap solutions have we’ll end became paying architecture customers of of XXXX, our throughout science, Unity that said, released data feature-rich

a driven of been to us, terms we’ve in business changing game that liquidity all sheet. metrics So at I I very have. find brings the have also that able then to cost forward, most, complementary the again, I humbly year. way look If my moved some we within acquisition been but plus, performance the the re-architect the feel proud think, enough not We’ve very, scorecard, trued the through we to if as for of balance said, we’ve envelope

Hey. and in Movingdots front. guys. difficult Thanks, the environment a Perfect. Great. on Nice job exciting very

There you. Steve to Thank are would closing no like over at further this any for comments. I time. back questions the to hand Towe floor

Operator. you, Thank

morning. again and So again very I you care. soon. to forward thank joining Have us to day. Take look questions -- again this thanks you great everyone to all a the speaking for for insightful

conference. today’s concludes This

lines your participation. You Thank at may time. this your you disconnect for