PowerFleet (AIOT) 12 Nov 242025 Q2 Earnings call transcript

Greetings. Welcome to the Powerfleet's Second Quarter 2025 Earnings Call. [Operator Instructions] Please note, this conference is being recorded.

I will now turn the conference over to your host, Carolyn Capaccio of Alliance Advisors, IR.

You may begin.

good and operator, you, morning, everyone. Thank Powerfleet's to second quarter call. conference XXXX Welcome me morning Wilson. CFO, this the CEO, With call and are on Steve Towe; David

and remarks from cause are actual differ performance results forward-looking or these statements. only statements Powerfleet be statements forward-looking no in events today's to as contain described on call it or of results, are release. reflect today, statements. those update any materially implied to does different earnings such forward-looking may nor made contemplated by expressed made Today's publicly or may assumes this obligation that Any subsequent Factors to forward-looking circumstances. achievements will press those forward-looking from intend Actual by or revise statements

management financial Investors present the certain press to will at of GAAP release. and GAAP is ir.powerfleet.com. measures. the section release measures press reconciliation available call, is in non-GAAP non-GAAP both on And of During included today's website A this company's the

Steve?

first the by $X $XX million for versus morning, and million continued share that the focus FY in is the $XX and is up April, strategic million of Good million MiX close everyone, XX%. of by our the execution. reflects calling up or year. Revenue or transaction of joining I'll begin highly out thank Having 'XX headlines by prior following financial strong half the $XXX X%. us set half-year another reached impressive robust pleased of numbers EBITDA a to We're today. mark early you

the MiX of the from a said rate to target in million run first cost full $XX half deal. secured the of X-year differently, $XX.X realized efficiencies have We or million be synergies in XX% of annual year, the

a our product and is to weather set playbook, and team, our ability execution our number macro strategy, our headwinds. differentiated business to combination intensity ability of the This testament

the race at on of Complete Fleet similar-sized and was winning transaction. highly the a significant consummating where are X numbers businesses deep integration satisfying the plus These time management focus

resources which with MiX make business. family ambitions be made ahead business progress underpin where delighted and of to the further shaping we the game-changing Fleet to we scale months to are future have Complete We're into expected We on the and just X to company. bring the as the the for bring our gives combination, incisive into the us ability decisions bold we

brings which segment acquisition largest platform market. some Complete, through partnerships product of scale on Hub Recapping an ecosystem, North the goals, culture is low-touch, It the of and accelerate of established plus strategic, with and our and to high-velocity go-to-market execution complements that address in-cab solution in America. a camera telecommunication FC team road XX% AI with the software American dimensions. the high-margin to providers revenue Unity engineers base strong key region further in the a It fastest-growing team of from Unity Fleet map. XXX state-of-the-art Its through and this our quality the It highway cohesive data strength, revenue aligns adding highly brings of a brings XX% especially across well talented North services. with revenue

million It modernization targeted essential Powerfleet's transaction for of MiX also blueprint from brings back-office a offers the internal system year system stack achieving an which proven to accelerate Group for established that $XX fiscal synergies the 'XX. annual is cost in

our confidence gives double-digit will and between into we already building very the nicely reach midterm base customer Fleet pipeline cross-sell, million a trajectory market assigned adding upsell and equation us represents and Fleet The to bases, in the MiX deal. tremendous Complete $XX our cost propositions with growth subscriber incremental Complete Powerfleet an annual reach, accelerated expand opportunity value growth accelerate to high transaction finally, our targets. And synergies the

consciously for calibrating and now We're the and combined entity. new taking of our stock size approach scale our new

only objectives. creation growth. maximize that midterm laying core path to obsessive our will accelerated to resources through shareholders the going about on profitable achieve for group We our measured our greater streams performance forward We're value and a revenue high-quality foundation strategic focus for sustained

the chain further ABI we a testament as As deliver be to global this #X in we're the proof to AI-powered leader proud point customers, recognized compelling smart to solutions quarter by to Research market cold solutions.

across compliance provides capabilities, chains. a of location advanced regulatory protecting robust and perishable suite monitoring, critical and Our including goods temperature real-time global for analytics, platform supply

our today's we demands deliver meet of platform, secure, the Unity actionable insights industry. chain with Together cold that logistics

Day, and an insights Investor I'll Ahead of hand financial into forward-looking thoughts to overview over and provide November call David results. our of the XX to sharing further detail additional David?

of and Steve, you many today's reconnect on to you, great so with call. Thank

like Before set perspectives echo numbers, of rich Complete Steve's our I'd following detailed on transaction. diving into now opportunities under the direct Fleet of to the the control close

focus ensuring growth growth our We parts, while our maintaining most, on to to bear resources revenue With our vectors focused committed the necessary focus We're to to to and crucial. growth primary on necessary through have validate everything many and expanding so what our key EBITDA execution moving be bringing cost and align discipline in player accelerating time major dynamic, market. a is in maintaining XXXX. achieve matters fiscal effectively, taking double-digit synergy program rapidly

adjustments XX-Q forma period detailed a legacy prior whereas Onetime our Powerfleet All our will pro key quick only the based numbers. Powerfleet forma businesses, are for of and financials MiX forma expenses. comparisons pro combined comparisons. on results, reviewing reflect -- of reminder Ahead pro

This EBITDA for expense transactions rates. million run excluded $X.X quarter's in adjusted EPS onetime for costs ongoing include and restructuring, and from

impact. the margins amortization gross X%. to MiX million by Amortization related noncash service $X.X impacting in also acquisition, Results include

X% for quarter, increased to revenue, million. the starting with which review financial year-over-year let's million Now $XX by $XX from our performance

up differentiated East, XX% Middle to revenue XX% growth respectively. our to and portfolio strong Our global the revenue underscores XX%, safety-centric performance resilience increases continue up and million. with product drive with $XX.X solutions Europe This product of in notable the

quarter in inventory for $XXX,XXX after XX% to to write-offs Strong also robust integration product which product offerings. related our to contributed streamline demand adjusting efforts margins, reached this

points While XX%. margins comparison, near-term were and slightly XXX exceeded tough by over sequentially basis comfortably improved year's of our below last XX.X% guidance they

revenue reorientating our [indiscernible]. analysis for will those secure we improvement substantial grew retention where our million differentiate more reaching in long-term by consequently, in of the in year, legacy churn we're $XX.X rigorous actively customer includes prioritize customer-facing growth in growth base. detail, million, X%, to a growth. from previously This function we on customer to Service prior announced initiative segments MiX guidance with a will impacted in optimizing revenue the of those annual to compared focus with line discuss Steve will $XX.X and,

in margins, to XX.X% to noncash prior basis, of the adjusted mainly MiX service On from to XXX $X.X an attributable by which decrease was margin million, assets XX.X% year, on prior in XX.X%, write-offs related intangibles. $XXX,XXX came charges period, $X.X million compared XX.X%, of to to entirely down acquisition-related in basis service amortization margins the with in gross transaction. points intangible the gross at Moving XX.X%. of and the in amortization Combined to year-over-year the due inventory expanded integration-related

the gross year. XX.X% Excluding matched of margin these expenses, total prior

adjusting versus these versus million $XX of expenses, with million prior in $X for the operating totaled the $X.X After for million total the transaction costs as in was cost year, This costs, of prior included year. driver. Turning key restructuring OpEx onetime the million and synergies million over to in X%, realization $XX.X the quarter. $XX.X which down

revenue medium XX.X%. and On sequentially SG&A key revenue, from to of $XX.X expenses priority to million to expenses an general Within of a while the or anticipated in adjusted contributor is XX.X% revenue EBITDA in be Reducing the were year. XX% down basis, to margin near major expansion improved a SG&A, XX.X% prior administrative term. from spend growing G&A and remains

million post million of or totaled X.X% from the still $X.X investments, software, optimizing R&D were in Movingdots X.X% year revenue, the prior spend $X.X capitalized down where we in acquisition. including

this call, cost QX reflects South of level engineering Africa. of our on and effectiveness highlighted the efficient in investment is talent high-quality As

after of Turning $X.X million. performance by to amortized increase for in plus up adjusted restructuring was top and in which OpEx. benefit cost in the synergies This gross margin XX% million, $X.X strong accounting to EBITDA, driven additional $XX.X by on million from an costs, flow-through line million resulting increased intangibles $XX.X

stockholders diluted $X.XX attributable for share, in onetime prior intangibles, a compared net expenses to $X.X share, stockholders adjusting per to prior After of year. and common the loss the profit basic of $X.XX loss million or in Net the and common million a $X.XX $X.X loss basic to attributable $X.XX year. was compared acquisition-related per of was amortization to or

sheet. balance the and cash with Closing

at in working capital million This $XXX the for receivables Excluding increase of unsettled debt line for million $XXX.X of of quarter million debt forma and performance. pro $XX.X $X.X from pro we the a driven net due $XX.X in net attributable rise cash million largely transaction $XX MiX debt. $XXX with stands in million, at strong is net close by in in $X.X part of the the costs, million from in closed equity net forma total Fleet Complete to proceeds half in up top transaction. an million debt million consisting Adjusting million to the $XXX.X first year, the burn transaction,

half on net Complete of associated expected free fees, a to is expected service substantially raised not to prior Complete's price cash projected This transaction interest first million with half. consummate proceeds fully flow by the additional deal the in in cash the transaction. $XXX purchase and Consistent with the second the we Fleet cover the fiscal debt in guidance, to the and with impacted cash XXXX burn anticipated guidance Fleet recovery

the This as transaction. approximately Complete work reflects GAAP The and standards. for which are subject EBITDA respectively. of to U.S. remains reflects reaffirming revenue financial million guidance $XX fiscal and $XXX of the capture we guidance months to Complete to our for updated Fleet also annual preacquisition million, conform treatment, the XXXX Finally, review impact guidance to we accounting Fleet X

million quarter to XX, the is expected revenue to revenue March EBITDA, expected the $X in to Annual third is million. approximately expected $XXX quarter we XXXX exceed for debt million, at to and exceed synergies, be $XXX million, is million. for million. run expected with including expect Net to EBITDA third Annual rate exceed $XX $XX.X annualized exceed $XXX.X

That remarks. concludes Steve? my

by David. through blocks We're energized highly following combination the start MiX. our out you, acquisition of the great Thank and opportunities gained Fleet the expanded with our Complete

blocking business. will intense tackling another of fiscal organization channel to value high-velocity acute This the year groundwork on Over becoming and customer our the X into next entered focus focus market shape on growth upsells. leading harmonize with to the a us proposition and to we've and allow 'XX, an period overall months extensively

customer phenomenal a rapidly accelerated underpinning Two, expand revenue core subscriber priorities and from path forward. stickiness attention firmly is and driving efficiency our as maximizing And strategic EBITDA growth. business One, wallet on customer share reinvestment. chart enable our that Our set base. to X and three,

efficiencies, maximizing this with on synergies. focus Starting is annual the track well EBITDA realization achieve $XX through cost million to of We're expanding savings our immediate on in year.

fiscal drive Complete and million the over the an us million transaction meaningful synergies next the extra 'XX, in mitigates Fleet Additionally, slated gains potential in $XX opens for X savings. positions This for $XX EBITDA up to quarters.

plan and their enhances over established to the systems effectively And by Modernizing our to This enables which aligning scale synergies, top a also Fleet our the and future accelerated operating after early XXXX. our anticipate We global with working transition focusing December, to our and hubs by to to on only realize the launch systems can infrastructure we're assessment but meet priority. manage of is QX major us that cost Complete closely operations. our XX% team not well-resourced capability operational a needs. initiative completing infrastructure new we'll back-office confirm

most in growth. underpinning the Turning comprehensive our portfolio product industry. revenue believe We the is to now

evolving our in heavily is AI focusing within our resources meet investing our customers, us segments. the more and to camera as solutions. of of as are designed these competitively positioning We well in-warehouse high-demand go-to-market market Each platform Unity on propositions needs

and and expanded Unity's client device-agnostic regions will our and multiple data firmly strongly usage we robust resonate ingestion capabilities believe base. analytics drive across adoption and across differentiation industries, this

the including Complete, Moving particularly accelerated which priorities in channel market relationships, with for viable to massive multiple avenues strategically One, established growth, reach the American following. market. its from North Fleet offers top the

positioning We growth this actively carriers, our XXXX. a telecommunication suite as with accelerated qualifying solutions some fiscal springboard for year the are of early activity in starting world's largest

Initial the now accesses extensive for segment. results is America Hub across mid-market This markets. solution FC Hub's where for untapped with the solution, Africa in product best-in-class encouraging, Two, fit significant especially North being South market our capabilities. evaluated which demand well aligned are global FC high-velocity

in opportunities unlocks And AI the then expanding launched number three, marketplace. substantial quick-install this camera recently rapidly solution

team sales set, indirect combined credible currently expanded robust starting highly our solution launching us path in 'XX. fiscal from our and from channels proposition value and double-digit investments productivity activities to on cross-sell and conversion motion, year give our to the Laying from a and driving our pipeline all upsell in growth clear scaled

our Turning and actively our redefine wallet we combined and teams to to relationship success priority, additional initiative renewals with third includes customer across driving to stickiness customer the retention comprehensive focus managers share, business. value. This are on emphasis effort customer retention a undertaking allow and on an adding managers to accounts model managing enterprise long-term

that Through revenue integration framework cash The of These select drive customer a a of solution stickiness drive streams, investing be to sustainable segments our loyalty efforts manage and systems these growth are consistent, potential data clients efforts, and Unity part our in our strong building to subscription for push high-growth and platform in broader strengthens with our our added and segment we're to areas proactive engagement for base. retaining mission-critical capabilities commitments. while for ingestion flexibility optimization. status strategy

Fleet Powerfleet synergy growth Unity, share, scale transactions, power Ahead to the insights into trajectory. overview upcoming product the and a deep the will both on on opening insights evaluation Fleet north of time, ability areas, of of growth focus of realization will share deep additional several Powerfleet's the a session the the to Q&A, including a into and dive X The where ABI's MiX next understanding program unlock I'll and over XX% an Complete and level market Unity demo, EBITDA of the and quickly XX Day on expansion as Complete strategic business, call for our November cost dive revenue to panel discussions. Investor opportunity we of including TAM critical share up research driving for mission

and partnering second, strategic Eastern p.m. and partners, at X:XX held The providers presentation the the event with at the Time provides, on concluding be customers value leaders by in-person and to benefits the first, Eastern Powerfleet. The by New dominated with on key Sofitel York senior will X:XX dominated market X:XX unlock from the around telecommunication channel including Time. starting mutual Powerfleet large from

person and Operator? by be in is turn and attendance analytics will only to the for Q&A. While investors, invitation also operator on institutional live. I'll streamed now event back focused the

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

the on Maybe, Analyst now and below, thinking that we Dave, how should about the quarter, quickly dive the several for should margin on services side, going front to little be to Congrats looking Is gross forward you Product talk the Can the forward? And the trending just to we Day a over be think, margin about next I next range. clarification. quarters? the on in bit that week. gross is expect at XX%. level target

Yes.

you. So thank Scott,

to a In sequentially. quarter. is basis terms both better was of was of product say a way blend strong quarters points margin, probably up about think XXX a I it Obviously, it it. would

north of guidance, XX%. guidance base the sort be of is terms to of base In the

will there. feel a give you So that

margins, first been device In half some something especially. leadership, it that in been the the expected second half has by in South the year. to that the new addressed actively and service of of acceleration dissipate been terms in That has the There's year. business in depreciation African impacted in-vehicle of is is terms of

for sort guidance XX.X blended our points. guidance, of percentage our about think you if So margins is

lot in-vehicle in makes of half of the headwind think think, the of the year, I half, blended dropping I of with second second sense. for the XX.X% the device margins depreciation a

try starting to see it to commentary your not increasing around getting but of the comfort crumbs that sounds preempt on and week, double-digit Day decent visibility you're for to growth, you front. Steve, And like bread Analyst Great. the much too next

XX% Is and of purely broader talked to Can if items. about level from just could And XX% did of the Is interest take maybe that through A camera, closed, existing couple Unity. little that's that time want know the starting I you AI seeing to terms the the in you accounts? when logos? of existing you're plus talking Complete customers? extrapolate where seeing Fleet get that then the to just just it is acquisition the I to comfort. at of it clarify, us opportunity from it about give a portfolio? right on you you warehouse, the you're expand bit you've what kind now the growth

Yes.

taken bringing of thesis we're in So but but X out? task A winning pipeline have from the I multiple growth substance discussed a think terms seeing new Scott. thesis, significant on absolutely confidence right, the you've terms areas a and you're also that every quarter. lot together. there. with And we the We've of play does you And us base, mean, well. in I think these business companies seismic I grows credibility existing some across as that are always

Unity And the that agnostic of device is play. really because

I think of the people the more that the warehouses where are and, operation, and looking win. road for visibility visibility key their over their and a is overall more therefore, in traction

And a into glass, of data real, pain real that customers. I where think a consolidating pane single point is for we're

So do sense And can so. saying, who real to we're multiple seeing ability this people how that's heck we where providers have I have stuff? make a of really the

to I at the group drivers I -- optimization. product the compliance, that of the capabilities. think safety, comprehensive and sustainability same have terms those The you now, none we second remarks, remain prepared market in the in And portfolios look said if as across it's

the solutions a customer as can grow And into well.

that's estate, giving that pain So of of that ROIs be across going in more more they we're are kind hit getting of payback. choice. to us that fast when ultimately, ticking vendor And their we terms the specific can boxes points, and confidence

drivers Fleet We're weeks the all then there's and those Day, Investor really in MiX, the exactly be. first But abilities to this kitchen at the you for look and double-digit the to, we break if that days. today are have credibility and to what I and growth months all, and in can high that at we you'll we are smells do we confidence I to of into of X into different look in so. to where it ability us market want a level growth, early X Complete. think think And at So we're see down, get accelerate you our

save a week, point, us, to want of for our that but well. what's transparent investors open really we'll partners that But and of very not from kind We've customers shareholders only see been we house. our and we're we're your being you lot where next confidence, it behind also and to confident will from see get our as to

Steve. slip another if could Great, just I And in. one

seeing telco like there? be And the that them? from you. that reaction for in certainly channel pretty level the interest key Fleet going real it's for seems Complete. what's Just you're to has It What's powerful been initial

the investors -- of then big Geotab. always the and big And table around the Samsara with getting is one to from questions

just to So some quick on terms thoughts table the of that turn to some front. in getting how you Are doing heads? you maybe a you're starting quick and are

mean, from the hear to So going leadership senior themselves. look, I you're telco

is order But have fact to just that you in to launch Investor part right? go So to that certain parameters they they of products wanting itself. are go become through fast, and Day So solutions. I and to think the want testament are there to our

there can been that very a segment, much is, as So a that portfolio lot the quicker? our that mid-market feel they real solutions Because of bring, the they think very have in Fleet I quality opportunity. the enterprise they have. we if to focused so high to solutions get broader can said has you see feel they they Complete business I think as anything,

and the stuff in-warehouse the for of like been has some prepared the chain guys. in remarks, we talked never by that And those cold opportunity about touched

they but So for it. have demand

properly. to of that It execute to you'll for terms real So strong well it's themselves hear in and a opportunity. But resource opportunity us. from guys us those stands

of And that have our months in what credibility and I in built we've last status the really the made marketplace. moves kind think the X

demonstrate coming industry reports block, the various now have RFPs but way kid the more mention of because our from portfolio, Samsara X us: see we We're you now and that a Powerfleet. are So on the new and more Geotab that high-performance customers maybe And proper level business to come now seeing partners. that credibility as starting really we're those record opportunities organizations that something. to perspective, that track we didn't us definitely of want have and see proper individual we're businesses to

look forward week. to guys and Great. next you Congrats seeing

Your Prestopino from next Gary question with Barrington. is

Steve couple actually MiX cross-sell of At you Unity? this and can integrated where you questions. the point David, have to point, a

is So the delighted say to answer we're to that yes.

months. of we would pane We we So said that glass within that. achieved a single X produce

the Unity So portfolio as plus can data enjoy now both services of the portfolio MiX customers heritage alongside the well. Powerfleet all MiX

job So executing time teams do did to a that. phenomenal of on

And be then Complete, maybe June, in that's Fleet X-month terms of right? towards looking should So a endeavor, Okay. we July...

solutions That of is correct. completed of the the we've get been teams of that significant give their into to visibility. step the into But solutions base in-warehouse They And set first able already opportunity have to base. that doing visibility FC already, for see Hub.

line very more So We've to done, got these blocks the to the a team time out your are on that. fast around complete fleet X-month work But things. point. be

us help could you maybe And here. Okay.

sold? customer What successful which the In is been has give Unity, us just Powerfleet, the idea of terms that what business, some some modules legacy legacy are legacy of that and you uptake the you've the of can maybe more base? of

or Unity is seeing the terms at the the Where we're in solutions, that the huge in from value-added over whether of So into base, full services traction XX% having the around safety data we're a probably warehouse road. to and services our of compliance XX% that's base perspective.

said, whether to base, But dried are part to kind continue we've to and we've which pivot previously the big a logistics trucking that headwinds low-end trade was grow able been solutions, up. of those the business. As of

base, And have, strong and value-added resources both the traction. in those safety, are around warehouse in over less models, warning solutions getting and particularly in that less. is the road the really that skilled really But customer we around around in managing drive are particular, resources becoming particularly pedestrian

things to the doing people got we've with sure ability driving been has either equipment they're right are traction. the that make So significant the using that or right the where

the just you is the payback? remind what someone return investment us, on could for And taking. What's

XX On months. within average breakeven

a a on X see period. investment Xx should to of over X-year return minimum You

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

plan? I'm looking of products Is their forward week to safety growth as impressive to into sharing product, to kind is to I Complete one unified the seeing products. well. the what you focus safety you integrate on next curious in And safety safety platform? on also, your Steve, rate. safety you at Or Fleet when I'm separate? now for rates view you take wouldn't keep in the mind XX%. going growth wanted Pretty it are and the strong products Fleet if what's Complete

Yes.

we're and to freeze going So not our freeze customer market. base, our

to for propositions So folks great cases, sides you mid-market well. both And some safety is of enterprise compelling. that house need in very so. and for be great our have able is full And strong I think to get view solution X as to do -- to to midterm the

bang And product on. kind do we'll the our where obviously where But get we're that's that incremental time. in medium the growth of to the for is term. over to working that is we're evolution focusing strategy And buck biggest short

FC key. getting growth for alluded yet, having across X company those see So that platform end-to-end tactical solution, being in rates we before, And a where warehouse Hub to without safety the just those customers I one safety pedestrian full is available solutions expanding. super the

the stuff for a within opportunity that part You XX% growth add that AI safety that doing we're XX% cameras. to into this us the is of of segment around market. And

at And do really forward. a move strong of to think of of now, needs quality even very very is harmonize end-to-end be we're and this all to give that data that DNA. slick to definitely strong, there the the right products, You it our work be part have which of experience. to seeing is But to quality something is good super super, I

into more launching So more will around different we more really it The We're of and the territories. playing build and in company are in regulations hands. more territories that. our

So that lead of first of kind very us accelerated very, nice focus will both putting X year confident to once curve, a of our and on growth this safety of out growth. the harmonized majority organization, very the together that and companies compliance we're the is then the we've we're solutions these

next good. you Very See guys week.

Becker Your William is Dylan from with next question Blair.

nice here. job starting Really Steve, Maybe, you. for

side to how back -- more areas we engineering kind the go-to-market some revenue You on are of think like those incremental kind accelerate earlier, building help about the of well an equation? opportunity those maybe kind revenue targets doing of in guys that of synergy that to and on to support realizing pipeline should the I reinvestment, flow synergies job like of confidence, as exceptional of kind and into capture sounds hitting of that it of the side. the guess

Yes.

of we delighted question. got what million to the truly And in are $XX terms we've to progress great So our the we've need with path we made. that achieve of terms And guidance. promised we've the in

in of pivoting terms base deeper sales to the cost just that said, we've both the the front and be to on as able allow toggle. to customer success we much front. And going us are supplement, than our have on will model We that

that we're the putting So will EBITDA, on have the use the will journey, us the the balance to trade-off put we this then months, to we if We've and on X can do accelerator, can profitability, opportunity do our understand us next first And to ability do. and credibility is market we the from into want this another foot sustainable have do kind we the want blocking you a obviously in if we'll have continue which to that that that allow as so. and business. to to come building so, set But to we that we really which period we through to of for go out transformation and got see optionality. tackling step

very dry to want the But will And of foot if ready come put But so. manner, at certainly a in controlled we that. our do feedback powder a accelerator, that want should we to manner. And to. and do we as opportunity have do when have sensible do very see speed that terms to to the we'll how do that we in -- we to the growth the we'll go on take

So sentiment. lot a customer of there's good

end. be over of time plan. And We combined our restructuring to X will the the stage strong horsepower business real are at this overall that front business have that's next

good. far, And so so

to then So what future. the we'll opportunities up do, see we for do where we'll in continue and us open

that come guess, the side services way as are Yes, sure that's think in to to we hear of remarks, obviously, strong telematics customers. in I'm value the it's accelerated an growth kind know you we'll think Perfect. revenue on about in you half. and about the safety about Obviously, of kind Okay. release unlock more how pairing what's but well prepared fair, Maybe, called core of indicator maybe week as kind switching the it that the product the leading with as or value guys too. revenues side. David, of safety and revenue been side thinking first on proposition a as the for to I there's lot product out well? kind next of I as I compounding think for in on you a exceptionally one,

-- obviously points. X No. Yes.

both the which differentiated revenue, of that's a product. speaks basically and the means market, a margin to by valued highly it's product size Firstly, the that the

them, our And the both we in in and badly cross-sell bring so have increase terms as ours, MiX base, customer base of and devices especially getting those out sort to where legacy we're live customer and really massive of direct opportunity within of just terms in with spreading upsell size the market existing focused engagement. huge of we

absolutely So on focused that.

to And revenue through been that than rate terms performing over the faster growing revenue. growth of in We're Over growth. It's the service a next evolution well. time the product expect quarters. kind been be leading do you're going we few of product has right, at exceptionally

value. they good to the we're pickup, And revenue is really only secondly, but not annuity some So attached the clearly product of that providing onetime is it. the great the market revenue sort news to it's a

have differentiated solution. We a

complementary progresses. gives few years share great within wallet us quarters, the those expand existing values. to That to have solutions as few a We the of business market a opportunity customers,

next Your is for Alex James. Sklar today from Raymond with question

first one for Steve, you. Great.

the from called of of you versus can Middle color of SKU enterprise strength and some perspective, drove the there. you terms curious You of I'm or logo saw kind in out what strength anything the in a provide mix the what mid-market, quarter. in particular expansion? terms across more this Europe Any new East

Yes.

I think a couple of So things.

we all, territory. So first leadership have new of in European the

new front is So capitalize And I driving some on to science think a we've portfolio is seen your to of expanded us point, and and sales the sales the then getting foot. logo think which play. has on business, the methodology I real that second allowed great. And thing

safety the bonus into that into seen So solutions we've some whether for is the MiX a pickup been And both nice base, the that is sides. that base, whether us. brought in in of a MiX on Powerfleet warehouse it's have the region

markets, underperformed have we for in, those in the territories is right general. right the We the now these able expect harmonized and markets. to to be feel So putting we're and grow value proposition structure

side of MiX on bringing is been that individual customer team as that just And demonstrate expertise And again front the business. whether Powerfleet, a missing or that was able response level be the from solutions to glass proposition, the to has credibility been it's foot the either pane that's super us of alignment of to and the to base to single the maybe strong. really of get broader

what's reorientating you one. I Dave, is of in you customer terms And kind realizing to take customer But there? team? customer-facing the just their your just a elaborate about more in the or place, be if to know color. can timing whole lift of own Great want part of they organization, this success think Steve then the go-to-market closed, Fleet and on don't the when bit the Complete right Okay. little just bigger done that Is teams, that of kind success will obviously that team have

Yes.

we sides. less stickiness been think into Obviously, and right, share, that through into of I previously, I of turns much the we quarter some X- terms there's stronger wallet think both it in But migration, of discovery, turns terms be there's improve whether we there's is the cross-sell, where that the businesses whether X-month in optimal job integration, is look do that in a on actually will a the lift of customers, business So than to got through can over much we've the in improvement it's in-life management if quarter whether retention what retention, this opportunity growth so around upsell next have. whether individual at period.

that I help particular going rate. great And in discipline good really our think will growth from to

identified as improvement that it's we've are of things areas so something for businesses. the And that

So management piece, to cornerstone not for share. as we're wallet that just services, that, extra piece do to but retention the extra around retention see the looking drive in-life we a

for house both model. the sides at now is do the base? our that do they money us How do do of How can we at we So strength they customer how look look getting base? stay at expand? segmentation How feedback really how look with of what it's in of got multidimensional. customers the do And from longer? us? more we've the we terms combined looking of And they our How at customer spend we're

evolution business. major takes this exciting process. a in of It opportunity. it time. an terms take is takes It talent. evolution It opportunity upside But terms So very an of does for in

from next is question with Greg Your Northland Gibas Securities.

Steve results. and congrats David, on the

I the and, business I been for guess, wanted I looking follow my answered, have performance up, Israel maybe the to I to your how Day. Investor it's guess, of forward late? But trended within think updated of just most and ask outlook questions

that. take I can Yes,

So terms we October. a outlook in early of shared what guidance standpoint the outlook, consistent the with is from

So no there. change

year a growth focus have terms of into in the financial XXXX. going rate maximizing We

what example, script, how a well year. everything you up, there get how we sort have lined about very it in clearly next do can like we're we think of into so sales, of drive. things, So When board going positioned terms the organization about channel the in positioned really spring well detail for is it we covered as in do we the get

of your So no question, real change Greg? guidance. I'm there of the the terms part in sorry, other

to just decent Israel Sorry, it know chunk... a actually it's was of business. the related kind I

Yes. Israel business The trying in circumstances. -- yes -- well has performed unbelievably

of well. It's to done grow some it's been So the despite challenges. able

sell very And security Obviously, focus value is is a pretty demand So holding the But in there a a circumstances. in we standpoint than change about solution up driver probably that well we delighted what how Israel macro the has think prop. expected that with it's if the with safety key there, of reacted. well. you from and been as trying

helpful, maybe to to demand obviously, guess we're your on relative than But I I just And more across expectations? sense relatively of churn. a That's kind wanted trended QX being offset it. I Got up fiscal how to up David. know, and get related service, to it still follow QX of churn wanted as X%. in I by it's

was did where also in a up. recurring to held very there terms very churn business, MiX been customer not large that the impact clear was attached especially. We've a and the of has headwind There there's some an they the into acquisition Yes. business that on churn entering with that stream revenue year-over-year year

the So year-over-year that's sort the been headwind. of

would much the sort In terms performance, of have overall expected. we it's of pretty as tracking

there. changes So no major

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

with for spending everybody, us. more Thanks, time

going with are time even ] ask [ that us. lend you more We

look virtual to And many you attendance. you still hopefully, if forward can't you then next make can in meeting make it, of the So person week.

in very objectives, terms be forward to to reach week. we're to how getting [ delighted outward seeing next into we're and detail our and collaborative you we're progress look around that more with to But of the we making. want delve We much look ]

You have soon. day, to you you. Thank a and we'll great speak Bye-bye.

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