PowerFleet (AIOT) 22 Aug 242025 Q1 Earnings call transcript

Greetings. Welcome to the PowerFleet's First Quarter 2025 Earnings Call. [Operator Instructions] Please note, this conference is being recorded. Today's remarks will contain forward-looking statements. Actual results may differ from those contemplated by these forward-looking statements. earnings actual those or such expressed are in cause materially to forward-looking may described from different or today's that results, achievements performance be statements Factors release. press implied by today, to made reflect statements subsequent statements nor are as no this Any or and company revise forward-looking assumes intend on powerful the to circumstances. update made events call only or of publicly does forward-looking obligation any

to GAAP both release A and non-GAAP measures will today's measures in presented. over GAAP the is Investors press call, financial reconciliation section company's be press of will I to of the this ir.powerfleet.com. now non-GAAP on The call included Towe. is Steve the During release. at turn website available

You may begin.

the Good morning, call. everyone, and joining thank for you

I'm and financial comments be and the to detail additional successfully able performance. operating on provide With our quarter context resolved, delighted first to SEC

demonstrate clearly results plan combination. our implementing business Our the excellence since executional operating in

much to on have call. today's We share

the scale let's strategic from to So recap the the go combined head-to-head critical current competitors distinguishing is mix business and with start our behind rationale leaders. to market with the of transaction. Securing

to leveraging majority the AI towards shareholder and industry core serve. the the transforms, in mission-critical value advanced next-generated industry will thrive to The become organizations capabilities As agile partners market are and capture by to platforms through evolving rapidly the shifting data solutions consolidation AI-led poised innovative the software winners customers Monetization. telematics of most data rapidly they through and

business a and success that insights on telematics, high-quality platforms go in in well hinges flexible of traditional forward, this delivering firmly manner. Moving beyond actionable profitable industry, evolved improvement

base with business reach through on The and much is and extended sets sides an differentiation. Unity's best-in-class capture to customer pathway Unity customer synergies, market from Unity and of enterprise a and creates strategy unique its significant PowerFleet velocity indirect scale monetization compelling solution to higher both to and SaaS ability product to way value hired opportunity data market signaling revenue direct underpinned response our market. share positive, our for high overwhelmingly centers improved of the routes Our ecosystem.

We post share an The our by of are million a targeted expansion portfolio. on expectation in executing to through well of proven close combined to synergies chapter subscriber wallet and we plan This us growth increased focused a EBITDA extracting through whom Simultaneously, many of a have offer opportunity underpins in playbook. positioned $XX significant now solution X playbook's double-digit rich accelerated future years. achieve base our building cost close. and battle-tested a first transformation rapid integration million

and is exceptional The XX% priority successful traction radical by performance encouraging top evident increasing this in quarter, by losing the strong are year on revenue These critical integrating aligned XX%, a operations. a change culture performance-based for and and disrupting pro highly Our and compared to our in that without ensuring our financial combined is outcomes execution drive and with an prior effectively to transformation efforts are strategies also teams targeted. focused our on forma regions cohesive combined exceptional basis. a We've across operations, customers SaaS delivering shareholders. organizational EBITDA establishing

drive is such progress software our legacy into mix. customer it capabilities for is This work experience transitions Unity as of Unity device unlocks this and the of go-to-market, innovation. in mixed core customer base smooth with areas crucial full capability part and the efficiency ingesting technology, central ecosystem. important established the seen operations at the Key have potential processes as frameworks And to hardware, data and and

integration second months opportunities track within opens Achieving significant centric the for fiscal synergies to the first complete are this X strides up revenue and Unity XXXX. this area in on We in close. making post full remain half milestone of

an changer, had solution we've impressive a wins, continued game commercial quarter, our Unity be results and momentum set. safety confident impressive compliance-centric to with to building delivering of continues and on the across our particularly Moving industries. various

I'd PowerFleet with sources leading a a press leader. U.S. like footprint operated company of in IMC with the highlight dual regarding release IMC, technology Initially, to market holding intermodal to our our partnership compared another recent with smaller

and from However, their Unity's advanced integration data IMC our into provider capability their data ingestion gradually and distinguished consolidate engine operations OEMs unified other promising Uniti. to sets offering, the

are their result, key provider become data for their consolidator full core future. and insights recognizing a Increasingly, PowerFleet now of that transformative as business has partner companies change. As the mission-critical a Unity drive

now and Unity reinforces solutions a major scale highlighting and strengthens in globally. Caterpillar gaining our in momentum needs. most markets for Unisys also our We're automated more solutions, Mexico, value-added from our provide U.S. solutions. warehouse industry leveraging This in notably addressing to versatility came in win and to notable adapt partnership new dealer Another our ability diverse

of open U.S. use Our an their pedestrian technology pet Overall, traction in paper growth quarter. Unity Solutions solutions like Safety AI-led this QX. and expanding to proximity customers demonstrated nutrition, detection year-on-year XX% the our in industries continue with in this and impressive established gain

my to call provide perspectives, to results. and detail of thoughts over and sharing additional David insights financial into David? Ahead forward-looking I'll the our hand

and morning, Steve, you, everyone. Thank good

the with to The in business's MiX is my close approach the Before a PowerFleet, performance, diving X mission. quarter afterthought. highly financial not into operation competency at rigorous no transaction. core They're accretive a results following a want insights our the first clear our M&A of financial first disciplined, Executing founded share on is the months accident. strength an of I in

In the past XX months, improving this has been twice.

X integrated seamlessly [indiscernible] million XX swiftly annualized $X within acquisition, the engineered months. Firstly, of with EBITDA in we and neutralized burn a team where

are our Now to financial scale execute of first our quarter and gained This of reflects on we've traction and sources ability deep with speed results mix, larger a pride. the where quickly the effectively. execution

well-established a talent organization areas. leveraging outcomes implementing key targeted of across the high-impact to are the specifically leaders We playbook achieve in

and XX% to and from in rapid [indiscernible], annualized through the the increase remarkable achievements, our this million million key exiting of program $X.X duplicate Our all execution in in operationally. resulting we changes a revenue, cost beat $X product missing margins of achieved of financial In $X costs through expansion elimination year-over-year approximately work. in success savings XX% without is XX% of QX, synergy million an measured [indiscernible] a gross by the

I the period contrasts PowerFleet This restructuring review press quarter results and backed our based comparisons. our million. expenses. incurred EPS reflect this to stock-based detailed this a The costs with which Before Onetime expenses of forma legacy call highlight. financial totaling are accelerated discussed EBITDA $XX.X important ongoing points the are only forma results, to the of prior include adjusted combined there compensation on are our financial onetime in comparisons release numbers. on pro Pro transaction, versus business. few All out These XX-Q filing, and will and [indiscernible]. results include

Amortization impact.

related acquisition, quarter's and This noncash resulting $X incremental in the over service assets the reducing expenses MiX results intangible an million gross also amortization to onset X%. of reflect in by margins

into the quarter, dive $XX.X which million. for year-over-year revenue, let's with numbers XX.X% to increased the starting million by detailed Now $XX.X from

success million. revenue. revenue XX% points our This solutions note growth important of was are the $XX.X There product primarily with driven product our regarding to differentiated X to rising over product safety-centric by

lead revenue as serves the have product our First, service we in business, out transitioned revenue. of strong growth indicator as of hardware-only

rose pressure North revenue X% at our a strength growth, Second, over X% segments XX% devices which logistics of in America's contributing expansion globally. to scale more driven robust of to product commoditized performance and year-over-year from expansion showed strength, diversification of than more margins, XX.X%. million. the operating our in million This increasing nearly X also installed disclose offset to safety-centric solutions and an risk strategy our Unity $XX.X by the base of to benefits Service product

the prior the lower of at noncash announced mix the of intangible margin to the customer macroeconomic mitigate mainly U.S. assets the million base, period, challenges to Service the gross the XX.X% market headwinds has in $X in mix XX.X% This charges to legacy transaction. us churn allowed to of logistics due effectively Israel. and impact compared previously in amortization was from related in

lower expense an to margin also margin at mentioned. basis, to in million prior Service the just gross XX.X% Combined was primarily XX.X%. On compared $X XX.X% was adjusted noncash the gross due year,

Excluding XX.X%, gross margin this to comparable period. year prior relatively the was expense, total

on general On XX.X% and operating for onetime the total costs. million prior cost XX.X% OpEx $XX.X administrative rich an $XX.X was compared [indiscernible] adjusted million in totaled stock-based SG&A, transaction, were were million, the prior environment administrative expenses, basis, expenses representing year. selling, these additional quarter. $XX.X revenue in restructuring compensation This which and million expenses general providing includes with $XX.X Within and in Moving for optimization. line year. After a revenue, costs, of to adjusting the for of XX.X% to

or the million acquisition. $X.X Investment engineering million still process in when affordability software compared in prior the South capitalized X.X% X.X% revenue highly high-quality talent were reflects in costs Movingdots level $X research in to is development year, rationalizing of in of Africa. including spend of efficient spend and the following of we the of This and

breakeven XX.X% adjusted after was of $X.X driven for $XX.X million to the from diluted increased or for impressive by gross $X $X.XX stockholders or adjusted onetime the additional in prior which This accounting in the of to $X.XX loss quarter. was million million to generating compared line EPS for primarily an a per top $X.XX million. [indiscernible]. $XX.X on attributable in intangibles, strong margin to acquisition-related and growth Moving million $X was adjusting EBITDA, share After and amortization basic by common loss performance, current year. amortized Net an expenses,

in stands includes with $XX.X million million at an total top to of cash capital million. forma After debt which $XXX ended We working $X $XXX.X million debt of net increase The costs, at forma attributed debt pro strong driven pro net $X transaction primarily with cash of debt net due the the unsettled quarter, the $X quarter to increase line next for receivables million the transaction. adjusting performance. in $XXX Voting in $XXX.X million the burn of compared of in to by in balance million, sheet. net a million is and close

in April half. anticipate XXXX discussed cash As our of a with we net burn expected the fireside half in recovery second first fiscal chats, the in a

adjusted $XXX start we X fireside to shared Finally, chat the full million, in initial August and XXXX exceed approximately $XX up guidance million of to we our run on million. to rate revenue includes $XXX from strong given cost exceed synergies our initial approximately secured year, an to of our our which $X the that exit EBITDA $XX are an million. guidance increased incremental guidance guidance fiscal year million with reiterating compared

remarks, concludes my Steve? That

outstanding. short David. implemented we since the shareholders a Long-term far in been appreciate company today's call for how early a can vision time. the The new come we've Thanks, strategy business of on XXXX [indiscernible] just and analysts in transformation has and

of is team this proud our I'm has what the While accomplished, beginning. just

goal level valuation potentially the would from to revenue and rule is value companies XX the achieve benchmark. in performance increasing SaaS of significantly multiple to this years, seen today's enhance our Xx surpass which Our SaaS meeting X by over X typically public the to Xx next shareholder

central in our in road driving in over has The breadth of never this library solutions higher. warehouse to the full the market, its Unity rapidly third-party of integrations to in the pillar ecosystem compelling. first transformation capabilities from potential the our and is realizing with and response confidence device Starting agnostic growing is value where customer been

to to mandatory optimization traction with provide gaining complex integration. excitement that who pain automation for unskilled data and these resources reaffirms points acute need simplification understanding looking running and immense. is address geographies. requirement value are as and low visibility The base Unity and enterprises customer more and organizations The and for are face mix our organizations increased more engagement conviction The and efficiency. for becoming harmonization, capabilities across solutions consolidation, We is the the market with verticals provides digital large

cost strong $X.X our a commitments annual synergy first securing start off in the million to savings We're in within XX days. achieving

our pivot customer mix teams. clear $XX our support We and to transaction, reach success which years resources savings annualized the in to of will to going expansion. more have continue our go-to-market X and into We're million into more a of plan target deeper EBITDA within plan savings

uplift savings expansion efficiency and and scaling is program over customer-facing the We X giving years. XX% Additional to capabilities over increased continue our our we a significantly we plan million operations realizing as above the quote us our next carrying extended are leverage the sales $XX to ability EBITDA hire on to [indiscernible].

efforts components as sharing strategically momentum updates. of key its and maintaining In growth our summary, accelerate of through to quarterly [indiscernible] we towards the forward all revenue EBITDA have our regular we performance march scale, results the in targeted rationalization. gross enhanced this Rule We margins place in continue cost look in XX to and to

New share combined Investor to growth progress year, to We'll pleased to within be Day on we've and I'm deeper you further in more focusing the York business going holding communicating be path the made coming our a on weeks. concluding, November years. the in in this City we'll XX that into Before the this accelerated about coming

the I'll now to for turn it Q&A. back Operator? operator

for first with today Roth Capital. is Scott Your question Instructions] Searle [Operator from

the Congratulations And congrats It's the to service filings nice quarter. see done. growth returning. on on getting

Thanks, Scott.

In but there. the we're be terms still come filings, coming they're week, of very positioned to well this

there. pipeline think, capabilities building to of of looks And of they're talk more you'd TCV I'm and ongoing in dialogues, requirements. that's you little translating competitive at pipeline? that's the I if stab what in wondering terms if of the of landscape customer because of kind and how the more the terms a those AI near-term take give out idea more pipeline bit the I don't color giving maybe want hearing magnitude in to device you Steve, unique, know kind to What agnostic of a Okay. the that magnitude around us start terms us of customer an impacting could the like? about data that's

Yes.

to we're it of our some is we highly get say that Investor significant. quantification, going is would what Day it's I to terms save in Scott, magnitude -- So until and but of

of complex across have who companies, lot being a pain collect, do make to and fleets. And that number able of acute So who different data. are data secondly, companies the insurance subcontractor the of logistics sense enterprises large base being the true we point something to refine are to presented their they resources then the that's actually across organizations and streams seeing also an have they don't able seeing get whether with are not them. understand, globe, a all not with large are visibility to

to monetization we play in ourselves them would to then in kind increase in positioning make harmonize real a a other to for that the capability, the easy consume, our also fashion of making them for us data So of center to really harmonize date terms significant is difference. for it say I a real that pipeline. which shop being which is opportunities one-stop present in is the means organizations ultimately now of it their investor and that

realize to of some kind and global, all say who significant. at is would across what As come industries. benefits the that, this some But is we you'll and I multi expect magnitude it future, we the of multi-verticals to It get you that of to customers have come point is it's see that talk in and and through. about

could, up. I Great. follow Very just if to helpful. And Steve,

looks terms I versus that product think number the wondering at logos Service And what sell global on the now X logos? real update, up availability the expanding talked XX%. pro quickly around of about now, gross given the of August you set offering adjusted new like forma with gross base and customer versus the in-house. existing of margins. and Unity, I'm new in opportunity margins set

higher I target think I just you couple over give level progresses the how us if that quarters. about that. the of than wonder some next could idea is

think first third-party solution insisting obviously seeing have from David that is themselves. to customers ultimately taking let solution, within the but So the business having differentiated terms is the really need evolving I'll because driving what new business coming in on contractors I of But both the second our their which question, question. is they're then new answer we're this

well. our QX. general -- see existing logos effect us end of is because But just base subcontractor as this at is taking we from a services, we're this compounding partner more customers growth but having a XX-XX the that the getting or to as to of is of then them the where new we're kind new in an insistence So split on alliance solution with also customer a bringing installed

service do you gross take David, to want the please? margin,

Yes.

versus you're look if right. margin year, gross Scott, So absolutely year at this last services you

adjust this XX% up for rounding If we sort year versus last of rounding intangibles, to amortization you XX% the to of year. were

of driving higher we that Africa and discussed in also South that, what's base devices, depreciation subscriber churn primarily known levels particularly of it's In of legacy terms in in-vehicle previously. from the

So that's the primary drivers.

looking In between the quarters terms undertaken steadily. of do that, terms and margins to In year. the gross and now expand expect of end forward, target in have services actions of future been improving we

So we last over at the we're time beyond expect above of it and year. levels to sort increase

in then grow. the apologize. double-digit level you're to the sustained double-digit to services Steve, think queue. punching you and the I'll might Could enthusiastic. growth like idea back growth, it on X like in confidence when I It out, about to us get going through I'm an you toss front. start continues more we But give particularly seems sounds be that

Yes.

don't I ever been think enthusiastic. So not we've

taking in transformation I think place. measured very terms of the that being is we're

you about in getting the always we've very which do think demonstrated we're If about I foot year organization, the so. we'll been wholeheartedly this seismic on the and front has continue the of think to EBITDA shifts quarter, making that in one then expansion,

validation that we play a stick and a -- take I through. a had to large we pipeline you've our growth. much to in are I as that get of a will heard flow we currently higher which confidence we productive. hiring will we've thesis we never remarks, sales increase the quoted very I expect the double-digit that time and So momentum and force, become And that prepared fact Also we changing that, in to the have we But reaction to perspective. guidance we're here, and sustained that think perspective, are not growing our winning when well, customer what seeing think from is from think

really X little good key faster that realizing And the And engineering pipeline. scale I able at part in around outer the the we're of just think growth XX in and performance double-digit then something Rule of a to we we've that bit extended of obviously, double-digit then the of that feel have that. those very, now business, a we things, more take And projected. very confident is force feel scales of a pipeline accelerated very Unity kind rate to and that about. as this the the momentum we build-outs time. is growth scale years and

is Your with next Barrington question from Prestopino Research. Gary

you couple also I willing Realizing you questions. subscriber up number? change Are maybe subscribers. can the your idea number A of absolute you had you what said but mentioned and was churn, get And that that you up give year-over-year. some some was base us give of right? to an percentage of Did that

Yes, I cover can Gary. that,

million X.XX the the at subscribers percentage up about the [ quarter So . year. prior end It's X ]. of points was versus

what I'm sorry, the churn. was

Correct, Gary.

came in final was base that the David and their some out So the referencing they quarter in churn mix public said combination. before had

that space. the this And churn. PowerFleet the terms the is have of that U.S. of in faced of of mitigating the the has in macroeconomic proud where been where all in more in some in our challenges us some commoditized also logistic that in successful front that regions industry churn challenges of particularly we're subscriber have and past is of So that including base terms been headwinds the

retention, also growth top those mitigated those overall the So but the elements. the growth has subscriber line -- not has been just all and

putting together. we're quarter of we equals. and that's of proud merger when business This So a this is are why a just particularly

your customer that disjointed, teams of all could results post very, supremely we're extremely to you the been why So sales proud the well, get managed that's could confused. your and of able could we've very that be get distracted across We've base board.

fiscal back did base to And of I transitioned platform right hear this half great. all that's that said by you year? be the mix customer the you No, the Unity of will

said by What end is we've of X. quarter the

customers MiX be So Unity September, the the will the to end capabilities. able of consume

ecosystem. have So they to is will those. an consume ability Unity the the

back migration the one the across lot that to parts So from another customers of to here technologically of risk, with market. is comes also the strategy force and go to because platform of to both not opening a up

solution variation also and do on ability, they have well. So can what to for, they the look the services, can sets that's in-warehouse improved that kind those signed up everything get, consume in still the of that as but that they've Unity solutions enjoyed not then here in and take data we the that having but only of ability is they perspective, terms with highway the to

to September of be those consume base. from the will customers fully the from So mixed able customer end

to on service kind So assumption? Unity, as be that is they to Is key lever correct to going a get growth elect that to accelerating. of move revenue a

XXX%.

expansion. increased ARPU retention wallet a is is this sticky biggest of of more this becomes perspective. the one differentiators share. And So It's from Unity. It

to ability in more as piece the well. have harvest the you you think far So customer agnostic device if the about And base.

your with can very into bring third-party That centers arm So do sticky long-term more a would same. strategic customer. center the that kind road then creates really have for data do. what company in. customers' you the customer build estate SaaS of and And are also systems the of operating would is strong a you lock their what you other to the true across the the modules allows the a integration map be streams say or what applications, attractive The to a are in conversations

your us revenue. that to the and accelerate salient excites service very So what ability us point gives to that's

the of just X Unity approximate revenue join can magnitude to elect off. subscribers million drive and With us what X.XX that split idea MiX? legacy can subscribers, these get service legacy we PowerFleet, you were an Just then And give jump so can I'll an of more growth? that questions.

Yes.

from MiX PowerFleet substantial substantial the X.X the and [indiscernible] and opportunity remainder there's X.X in roughly it's opportunity, was million, So subscribers. as so million base still well,

subscriber to base combination rich strategic that bring to but the rationale MiX globally, we So and we've one the see the base those was and do customer of for major set has. obviously, services built

know if a very don't And then briefly, just answer to this question. there's brief I

here talked You a platform, with some one the and competitive selling there? of the points key Cat then IMC Unity about takeaways dealer. Was

was point. the It selling

Your next from Craig-Hallum. for today Anthony with . is question Stoss

a with on on us And safety-centric of and view you Steve, the that's I overall I David. up strong Can XX% or the for growth wanted market perhaps your year-over-year revenue, follow had rate. follow-up the then percent share to been you penetrated the potential? highlighted a market

Yes. then look driver people, will systems and of and that et et that likes the cetera, trucks, are in many stuff, we've into penetration still management is I the quantify around ultimately, harm. causing basic at it have lot ADAS improved offered, behavior, stop what But driver years from a you with now, the a if you driver remains performance and low. offered based mean solutions distraction, and of for and cetera, telematics warehouse capabilities the solutions forklift if training there got and scoring. do we driver increased much banging camera-based injury

are And So we manage within a but see on the well, talk organizations their to front other big their is just are because about and when broad that trying warehouse. a we also uniqueness us. how it opportunity mobile safety see to resources you the as individuals in road, not of the there of opportunity employees

much whole their to capability of control we understanding compliance estate. director, across where have pretty give of visibility a director, and safety unique this performance around a that So safety is

And of who's person times tube. the that is the the is having the out driver X across safety warehouse. road on and that big unique the proposition traction where also responsible person seeing for a of for we're in who safety responsibility the is So XX,

itself, not growth from super, it just super their that distraction terms regulatory that sure significant fashion in hours in, competent global having be making as organizations and the managing coming they very, very safety safe, in are working see manage element employees we a fatigue So ultimately risk. they're that keep requirements and and a area, the to in of but

insurance to fleet the companies more a looking are off that out for perspective. adjust risk risk-based extrapolate more you what And the from their who is be of then to -- of create security base and estates premiums if in that profile then able the how premiums to and safety profile and likes

very we the a safety it's other to value feed the much we're that So strong propositions that, that use is or as for very of very space leads seen But see surround other the systems, significant. cameras about that. excited that. operators and element data

Very on good, overall trajectory gross to any what just curious . your you David, the gross then I'm Steve. the you see margins. targets change road? if And overall have down or margin hitting

Yes.

percentage midpoint it's So the the if obviously, you of with at comfortable the our look We out guidance, there Tony, current that for in XX.X points realm. year. very feel public

improve noted the And positioned. expect to now well services between we're So the margins gross earlier, as steadily I and end of year.

Your next question Blair. is from Dylan William Becker with

Dylan. It's Jason for

capacity, investments called as migrate cross-sell ramps? the additional directly adding is stakeholders to this talk unlocking with productivity capabilities about platform. been on as how thinking continue how you able sales this out in the maybe then sell mix use that to opportunity cases And past? to maybe those And you Unity you are to or in over, you wanted about of kind this Just haven't resonating

Yes.

safety across traditionally, as something, our a and ability used terms technology. across have to have much to operators cases market, of and safety we've in their set So we're for which CTOs, seeing visibility and more conversations and becoming the selling the a the is is of with who a stakeholders And just directors, perspective Unity a CEOs said, and What great even we CIOs, compliance from But example. the us evolving do important. broader itself. with more use is with perspective, who to . is organizations need to business the great use CFOs this that's directors, compliance organization want for we've been doing the this as manage from the to asset opportunities, the very

So same is data use the this applications points We're sale moving to for true multiple selling across SaaS different into cases. organization. a the

-- of our moving extrapolating it's you in your question? so multi-dimensionally terms can me forward. of opportunity And then just second remind And

you as in to invest sales continue and . go-to-market Just your guys

Yes.

in individuals talk an new being efforts applications, solution, there, to can and a about that then insights, it's that because that into AI or able is installed that integration? we putting we're more quota-carrying then when stickiness perspective multidimensional you So from sell the perspective. about science-led is we agnostic harvest SaaS talk more it's putting And base can the do growth new account, further people enterprise who success sales more One whether and data we're secondly, and success twofold. the in customer a applications the device modular piece around customer

added X the it's capabilities very time. those us customer much and we've mixed add easy to So things . solutions their very growth. a us layers primes very, as service over in maintain where Unity built current said, accelerated for And is and a way, on that with for then with incremental

right. X an done Then any engineers, on, that more, whether that capacity months, capabilities the of you're this together. from Is you the looking in to anything into? mix, going innovation you're I in All your you standpoint, once maxing X next with Great. just add can increased on. guys kind adjacencies Maybe on if are now Or legacy it's mix else there platform enter expansion? and is to there PowerFleet focus the that horizon have

focus for we very around are pipeline to the No. will be to capabilities over we us existing the we added bring need build us to from resource in is We've that building market willingness the the see speed and and customers, said, questions that dialogue time. scale. cope base and earlier scaling platform to increase we're and the with which we That that able then much our being. new to revenue got laser our of speed adoption. the and have something that's applications, more pivoting enough now terms these But to new capabilities, than And will will to take very both differentiate want logo to to allow and time

people more getting bringing know that be immediate be manage want capabilities accounts focus now. much to right we has we more innovating, today. always these priority value and scale first So that now solutions and added anchor us will new the that's we're exist the who are very but some market, to and to take solutions as said, That that added because well, to

Your today with James. [Operator Alex is question Sklar next from for Raymond Instructions]

Jonathan is carry on This for Alex.

quarter. color do the demand to there So about around longer building think those between the I the of enterprise you know X how in enterprise. you the you And environment the on mentioned smaller additions sales Can term? you in any subscriber give breakdown any heads I between wanted touch out? And the is versus additions cohorts out the call mix cohorts? then And on that difference customer that

Go on, you go first. David,

Yes.

global So business. we obviously a have

The going a If markets Europe, whole, the you think where about and enterprise. business there key Unity. lot demand. there's on as future be setted regulatory primarily America on are really also increasingly the ended a It's is North of to

which Africa So that are the said, focus That very do X well. business. key of franchise in market. and businesses the what the they both the describe and players Israel, the are we have very, also that in is that X performing businesses, South in or of are dominant we as is future

good are growth seeing there. They're fast we generators So cash. of

strong look so definitely a our it's you been of seeing terms franchise of always in And sort it's we're but businesses. when the at blend, demand subscribers

flexible. what is I add would just is And Unity super

So ecosystem mid-market the space. enterprise for relevant for thing the Unity that very end-to-end well as the in dancing full of fleets, solution are whole there small elements small the very, medium as in and and are

integration regions, that very even because a way Unity much fleets flexibility really big their them it if part a So enterprises. system market less of or couple ability to third-party a of target can in that, for the a on it And go have utilizing an smaller to we've manage just more advanced skilled capabilities the that is they device Or have medium-sized, gives smaller built flexible. because actually can integrations? it's to actually organizations this depending conditions or of resources piece very our a set is

in different their what mitigate very able from how pivot of different of they're we've focusing types, headwinds the pipeline shown to have quickly customer the industry to our types base. to is on elements I So storms and regions lot managed and a new to out think

. for is perspective. But David flexible So an tool. enterprise it's end-to-end a Unity play as from an said, really full

then X Great. Okay. you, And for just quick X David.

synergy then So schedule spoke on to. it's And the you color good on go-to-market of ahead realization. of good obviously cost investments some progress the been

cost So linearity about we of think EBITDA I the just -- the just outlook how the year? should savings implied in rest through the of

Yes.

million spoke savings. run rate about we So $X.X of realizing

of in the rate exit think $XX million March. April, you end target of the [ Melissa the about If run at ] shared was that guidance

an incremental $X.X second the sort realized. being that we So million year view terms in to terms of obviously But that will in that the that that of there. this of the I add-on didn't get quarter. of benefit benefit be we million terms realized, of more of in full the the would seeing half as pickup $X.X

So improvement do quarter terms in next to our G&A you an see onwards. expect of [indiscernible]

from Greg Northland with Securities. is question next Your Gibas

on on us get that I And churn . less again. impactful of customer quarter some out the potentially could to [indiscernible] once it from of anticipated? mixed than churn play drivers -- color what expected were? base as guess, of level I the Congrats remind the Was wanted were since the you kind you

take I'll it, Yes. David.

the the to investment of niche in MiX speed was capability markets have maybe the work had that really, really mixed full And I some play. seamlessly I particular very the leadership transparency. had in the no, that hasn't that customers the expected. team of playing head MiX as were competitors of we couple mean, -- was think, very industries played at with and these which a So move out customers It valve in and

that about was we've feel mitigate forward very to nothing churn, but moving So able David And good we as expected, different. as now. been it . said,

could expectations those Is a And That's your QX that anything given this there with the maybe if segments can the kind growth expectations revenue? product it. would terms of just And normalized side. when overall Got in there? of versus the get in sense we address you helpful. I side product maybe on service year strength you had

Yes.

ask, So it's to question right Greg. the

of terms end performance the level exceptionally the that the forecasting of in and not now between it was obviously, this quarter. year. strong So revenue, product of we're

that individual we Steve all is certainly the clearly, enjoyed mixed that level not at QX. tough robust, to revenue the in to in blended, about of So And again, levels given the side that discussed but for remain the but strong, future in really pieces Unity us benefit will the of get work of terms ingested us of do for gives the leveraging of of able devices of in remain that we in do revenue then revenue. will from indirect pickup into service product we sort that MiX always, has second initially product the and of you which some as additional have more the a you channel a be terms have to half the product more terms have have talk of the sort from it's guidance expect to growth as But standpoint of helpful, the year, things, being well. the be services momentum everything also

the being into our revenue at year of for that up about the this feel line items in to terms individual of guidance north going sort again, we're down $XXX million. So make number. it But good break that overall not we point, of

contextual are we uniqueness And is have just what perspective space. add would from within and I our safety because a compliance people of kind the product just buying

attached. of All comes in the revenue sell that services with product that we

the ingest the have, us well the they solution choose we then and that large partner layering if in our that in of they our the but saw think PowerFleet. it any overall is looking that be to terms other hardware that only people purchases, to devices, choice you uniqueness both through part to the very and that, of the in over But will ability and So want capabilities hardware you'll -- very, to sources, where reason us makes their strength product own as we see placed are double ingest overall that that not we of do to will organizations will have have strength time. now for future the data look about which of us

super a combination is revenue there's . good So future there which for growth.

will I call session. of closing the to question-and-answer We the remarks. end have And turn Towe reached now Steve the over for

for support. be. than this November at to got look everyone, earnings most later through we Investor review, very we've delighted Obviously, and So have the the call would speaking to Day We're that forward notably SEC much liked is to again, XX. thanks, on it you

future. and with support, as . start encouraged and combined day. we're we a once organization, great highly in future Have we've So a again, to forward Thanks. highly, thank for that the the made look updates you your

conference, and lines participation. at for you today's concludes your disconnect This may your Thank you this time.