CalAmp (CAMP) 29 Apr 222022 Q4 Earnings call transcript

Welcome to CalAmp’s Fourth Quarter and Full Year 2022 Financial Results Conference Call.

As a reminder, this call is being recorded. I would now like to introduce your host for today’s conference call, Joel Achramowicz, Managing Director of Shelton Group, CalAmp’s Investor Relations Firm. Joel, you may begin.

Good afternoon, and welcome to CalAmp’s fiscal fourth quarter and full year 2022 financial results conference call. Managing Shelton Achramowicz, Relations CalAmp’s Joel firm. am Director Group, of Investor I are Chief President Gardner; us CalAmp’s With today and Financial Kurt and Officer, Executive Binder. Chief Jeff Officer,

this I’d remind like Before contain we you begin, that statements. forward-looking call to may

release reflect could risk these that by judgment, they and actual these update issued filings our future SEC our those factors statements earnings available implied no results in in to circumstances. to forward-looking which and best are While on CalAmp’s today, current These to the website. are subject discussed obligation statements periodic are risks to any reflect from undertake We projections. or revise events forward-looking cause or uncertainties differ materially forward-looking

with highlights to call company’s call it’s a With Gardner. Jeff, of Now my results please will the provide session. pleasure begin a and the and detailed Kurt by to Jeff ahead. operational over review of CEO, followed that, go Jeff CalAmp’s great more President financial today’s the then question-and-answer review a will turn

revenue. offset software quarter, Total was total and revenue flat in strengthen for Thank you decline revenue the to as the total subscription fiscal exceeded a prior XX% revenue with and consecutive and our products us on We revenue thanks our revenue quarter in consolidated the quarter all XX% and $XX.X of year, software of call revenue. fourth the subscription third XXXX our the services million a in of with $XX.X quarter, you, in of services ended This telematics the representing Joel, our software today. subscription record essentially of services represents joining million.

fiscal recurring new eligible remains fourth to approximately telematics-device-only logos. management one-fifth our increasing the as device new In of to to device strong, of our coming SaaS and quarter over subscription recurring transition convert we the Our converted contracts, alone, expect our an contracts while application, securing customers continue year. remainder with business also SaaS customers to the number we we

asset preventing joint also to Noregon’s recourse will trailers and in customers CalAmp remote bring And and application. solution failures Noregon, [Phonetic] while by to time, vehicle the advanced Cooltrax, US-based our announced comprehensive new partnership partnership The evidenced with extensive efforts subscription ComNet to collaboration others. recently of and as real-time impact vehicle can view platform strategic fleet cloud thus predictive customers integrating among provide in These a includes edge data ensure new significantly before with is safety. diagnostics will diagnostics preventative and and costly business our in Noregon diagnostic telematics driver maintenance. be gain to and Noregon, Together, having pre-emptive key of Our securing such CalAmp iOn software in occur, algorithms and a also computing from issues tractors, TripVision blend CalAmp vehicle that by with remote real cargo critical powered downtime Noregon’s aims insights products, and software. productivity TripVision of the profitability. of EdgeCore, alerts with fleet their features

targeted in culminated make LoJack XXXX. in our subsidiary recently an We expanded our in with started progress established to also Spain. international which Italy our in continue Toyota, as with has in partnership relationship markets, España

of customers RAVX, enabled leasing and One, access sharing Toyota insurance as part services three enforcement. these further, including underwriting step Now Insurance a also go policies, CalAmp’s The vehicle Cruiser. lower through SVR by law models through will TIS collaboration an Land TIS. as will integral to as and best-in-class, for as have by Services, offering premiums. such services partnership also insurance will Toyota Toyota or By local SVR stolen of in LoJack car services KINTO Highlander part service, policies will with customers offer enjoy LoJack direct Spain well recovery SVR a

will services network SVR over announced Toyota proven a relationship Group have BMW Program. all with solutions Stolen be for improve Finally, delivered dealer BMW past security as that the of official to Accessories the Spain recently, Recovery directly Italy. models system our market Group customers. BMW we is years, Today, the option Vehicle successfully through the long-term More and has vehicles we LoJack as Toyota great to Toyota of Original entire success two for security peace across on offered mind sold of range Group LoJack BMW an custom,

occurrence accessible a telematics complete The solution computing continues by CalAmp connected of OEM is the protect global has vehicle platform edge capabilities growing set capability additional the been stolen on based intelligent solution LoJack in to integrated new components ongoing tracking. by unprecedented their smartphone be and with and will number have BMW the fundamental of through the tag, app. technology app, motorists supply with technology is two and chain to Group’s data includes their GPS-based a the vehicles cloud unique forthcoming and development for Over secure Unfortunately, a impacted after from Group platform decided and LoJack’s standards customer coming years, past features smartphone trust theft. lock This this operated operation BMW constraints. such with a driver as by the engine that ConnectedDrive our centers car business of

However, of and as our these outlined last engaging address operations global shortages. team initiatives in to number quarter, a chain is supply

In customers years products accelerating to am and success execution subscription recurring and we subscribers. more investment of transitioning in to also critical the device our to partnerships, new the to of securing summary, while very also roadmaps align contracts generation are the Additionally, I quarter throughout supply team’s ensure access suppliers’ edge logos, with proud come. next that ultimately, material for

call Kurt? results over financial detail. Kurt to more Now I’d like discuss turn to to in the our

the in adjusted commentary basis GAAP measures full included measures EBITDA Thank and these with net you, press to EBITDA, reconciliation closest announcing release my afternoon. fourth prior fourth basis million, A in at financial from corresponding include fiscal XX% XXXX margin. and quarter adjusted is will the in year Jeff. was flat Today, quarter, quarter down the revenue $XX.X of a adjusted issued earnings quarter $XX.X ago. year that the non-GAAP our reference and in the $XX.X the from measures million was full non-GAAP million of income, Total same essentially this

The For remaining despite to at the attributable revenue our year declines million X% limiting annual ongoing in near both revenue the to global and record levels. fiscal $XXX.X component full declined million were backlog fulfill XXXX, year-over-year $XXX.X quarterly orders in from shortages, to ability XXXX.

a a for sequentially business, from revenue. was software year. $XX.X certain $XXX.X industrial car, to rather in record representing equipment, year-over-year services these XXXX breakdown vertical over from upfront. by recognized Additionally, million heavy subscription and the revenue talk XX% International totaled included in The for our of instances the XX% for subscription fiscal we about contracts or where consolidated XX% revenue and total revenue million $XX.X logistics, Highlighting $XX.X the $XX.X quarter million connected $XX.X more software are market year XX% term, million subscription government accelerating contract customer with million million the and million, conversions quarter increasing is and recurring the municipalities. for transportation and $XX.X recorded revenue recurring all than arrangements, or revenues will minute. in XX% new to I of

and XX% $XXX.X fiscal In prior eligible our the generation. logo new sequential the the from in with in current of of million combined expect year, end revenue year. multi-year we one-fifth full the contracts software business and remaining to subscription approximately converted fourth to eligible The contracts, services customers, to million subscription growth total customers $XXX.X device the achieved grew customers recurring this the recurring success telematics converting year-over-year alone, For convert we’ve we the and year. reflects in to quarter by our

enables focused in active and bundled performance prior In ago, metric compared of which terms increased value related XX% contracted subscription the obligations on same quarter. software unbilled RPOs, our business, with metrics of in to and growing $XXX.X defined quarter services contracts forward-looking to during fourth total was million contracts, serves or transformation, revenue of remaining measurement customers. the is all a subscription indicator performance assessment it revenue revenue, $XXX.X revenue are up contracted reflects but including XX% of the our our for deferred future business as This progress and our the as an year a to $XXX million growth. quarter obligations performance million of it in and Remaining from we

of to transition year. obligation this eligible or our by We fiscal customers great This progress ability this recognize in over to contracts. to subscription $XX telematics approximately expect driven device million XX% represents

XXX,XXX in grew our in to these ago, as and efforts, Additionally, and quarter. we the of quarter, up same fourth million result from in the subscribers a of base quarter million prior the X X.X subscribers year secure, new the a logos

telematics in which the XX% sequentially. a decrease Our revenue products XX% was million, quarter $XX.X fourth of year-over-year, was and

the products totaled $XXX.X year, to million For in compared full XXXX. $XXX.X telematics million, revenue

the shortages, demand. ability this exited chain limited ship ongoing year fully our of we backlog products, with record the supply for near our Although against levels to

the environment on using And to point we this year. remain this recurring we However, ease are subscription time customers fiscal to current cautiously contracts. accelerating optimistic our conversions focus supply of the that will some at

ago. and in same million the telematics fourth products the the million Within in year quarter, quarter million segment, $XX.X compared totaled revenue products in the $XX.X OEM quarter a reporting to prior $XX.X

year, the $XX.X full million revenue XXXX. in OEM was $XX.X For to compared million,

Our down which same $XX.X largest from million revenue customer last year in quarter for $XX.X was the quarter a represented the ago. $X.X million quarter, million of and

year to cycle, million of ability last to booked full $XX.X XG continued orders. demand compared XG the supply fully limit shortages chain the $XX.X in customer this million strong For revenue upgrade year. our XXXX, have the to from was Though to all support ship remains

Consolidated with in current fourth XX% be was our estimated backlog this XX% and quarter, margin quarter shipments in with ago. year line same quarter that will suggest levels. last and shipment consistent more gross with the a customer However, historical in the

full increased not the through XX% our to margin of a being reportable continues fiscal the of of gross price increased to pass XXXX. the fully offset margin by component across costs the implement. from generally to couple of that in quarter For since both take Gross year quarters XX% these are segments in XXXX, increases, reflect

global was while X% due and year-over-year, by quarter, strict that and quarter. fourth meet full with a the dollar $X past of million global as months. an increased by on year employee from our a attempting of absolute of expenses, the XXXX, brought customer EBITDA the and year-over-year as non-GAAP and same compensation absolute $X.X and sequentially, declined arose X% Adjusted lower a declined revenue solid as measures quarter margin or basis, In we over of fiscal from last the as in an also the percentage to to EBITDA base in revenue basis, last cost emerged expense, XX demand in adjusted For X% the non-GAAP and on EBITDA incentive dollar expenses operating $X the fourth personnel an operating pandemic, control of margin on quarter, the percentage million to compared year. quarter XX% million prior adjusted the approximately of

contract For operating XX% the or year-over-year million lower X% in to some also than flows due expenses $XX.X mainly EBITDA attributable in pressure or multi-year due the as upon was year. transition timing The supply was of volumes $XX.X prior cash revenue, prolonged EBITDA adjusted million cash constraints efforts the adjusted compared in totaled changes decline quarter the revenue the with to decline billings the to to year, of in our prior period, adjusted year. fourth sequential lower EBITDA under occur to coupled contracts, the quarter of Free increase full the to customers to which shipment in in revenue quarter-over-quarter. rather was over The shipment. compared delayed to attributable flows

similar effects, to contracts. the quarters lesser but we in complete extent, experience a recurring as to multi-year transitions customer in expect subscription We upcoming

quarter. cash had quarter, million terms approximately to of last cash our $XX compared equivalents and $XX In we overall the fourth of the total liquidity as of end at position million

was unused terms a final the as our XXXX, extended negotiate credit June to we revolving million $XX credit facility. XX Additionally, facility of longer-term of

of due solid coming Our approximately difficult the maintain along questions. it is going position quarters. for not are in our maintaining to for We With and recognition providing very The back the notes final senior current customer expect do conversions guidance. aggregate to provide nature quarter balance purposes $XXX to forward. sheet of before subscription situation make comments quarterly for million outstanding strong to of including call August turn uncertain with million, financial up outlook some we ongoing global $XXX to we of the policy the economic with cash open revenue working reference contracts, a XXXX. debt our capital to that, project In in X% Jeff? first convertible call the the Jeff over I’ll XXXX, your

Kurt. In occurring making we’re to we CalAmp transition of company you, our Thank and summary, are software advancing significant subscription progress.

have historically and recurring a been success. high to enter combined questions. I’d with we roadmap robust that, with open the portfolio like partnership expanding efforts well-positioned to met Operator? of backlog And conversions new call cadence solid a with year Our increasing With customer your solutions the levels of and to of software contracts. now

Please is ahead. line Our . Instructions] go from first question [Operator with Notter George Jefferies. the of

about talk customers? you’re transition, you and pushback subscription. I I fifth that is maybe devices moving it when guys. guys? -- in think for that you look very about Hi, the guess think to your then customers, telematics talk PULS much. side, eligible on interested on I very a What’s getting correct? to Thanks. I the transition of that like Are about for what’s assume you CTC And talking the the Thanks transition? in

DM capabilities. great for Yes, It update there over spent volumes question. customers in from deal And many going better transitioning George. ability a do much exactly. their we’ve with air security, from time over to Yes, just is to which higher gives customers. advantages device they’re of our management It the able everything that to Thank improved Jeff. for them to This you today. are our PULS than is CTC much devices

would If software, allow really all of which kind customers about their be the old on going will shifting one XX-year here to tremendous do. doing that to forward, able is the them you has is we’re think not to what product otherwise from they and a insights built capability software to latest provide that

a the they’ve and I’ve out spend long on day, the that been while with customers, of for PULS So at once that it excited were. is the go pleased very transition a end for how time time, been customers the they we

folks potential I our technical how last was their fit new phone -- into roadmap was customers, their one Just were the who product the forward. largest the excited that on with of of and tremendously week, about going

ahead work them advantages and we’ve to team sales new of doing are that So well products, very I pleased what our to customers of think is I’m the that our DM, hard our our the convince of do. with expectations. CTC migrating been able

or about think the about software five you we’ve now to transitioning actually happen. years, If our and we’re for exciting it because talked seeing really last it’s business, a six business

the loss ambitious and as little we’ve converting expect the in fiscal fair an our complete all call, the And year over transitions, these very customers we this have successful so throughout the say, with mentioned to been with customer to date on XXX% service new to and quarter fully schedule to next in I XXXX.

question define asked targeting customers, fourth telematics MRM you are we that’s our that the regarding eligible other the that are they historically the we’ve customers in to to, device that telematics over are sold move transferred of correct. and George customers, When devices have customers we’ve quarter. universe customers one-fifth the to defined And these over the we’re you

eligible installed how devices? know devices Do universe you the of with that an that base represents many

that about and don’t fourth looking I to can target and in core we space customers, at of between in were devices. customers the over know of somewhere number of XX XX XX of we’re we the that in tell quarter. we to to -- that I XX have you number move this our successful estimate

Got it.

much. Thank Great. right. you very Okay, all

You’re welcome.

Thank line Capital. you, The from next ROTH of with comes Notter. Scott the Please go Searle ahead. question Mr.

availability? I sure a you thought been for attack bit if company, unable Hi. What overall the certainly Good I’m telematics of afternoon. component you dig not gross Hey, the same quarter been margin gross the to margins ballpark. a the of have issues. Thanks blended in if for would table deeper. if the side looking the heard taking questions. because I’m would number, was wondering to gross have little of my maybe guys, with telematics but it I on component at equation higher did margin the had ship kind a availability leave in could rough

you clarify can you what that normalized think levels us think or follow help want normalized up just And So two. that bounce to expect had of out I kind a you that on Caterpillar indicated front? I to you to And then also are? and levels. back

that. take I’ll Sure,

highlight. how Scott, of you. hi So, A couple to things are

terms we of remaining in extremely our off, when that obligations, backlog, overall about device was include So we you did backlog. backlog performance our in is with healthy mentioned, our both which, our our $XXX as RPO, first aggregate disclose million, backlog, total

that’s side, revenue. $XX about potential to $XX device million the On million of

So we believe the not us. for was ship to demand there against that we had but plenty supply of unfortunately, additional

the in Caterpillar, just and everything run our $XX on table, although should at XG and quarter. that you healthy say, between it’s overall million $X and because we’re now as cycle revenue anxious million of possibly million the product as hard fourth very high we typically a about say, say number of of reasons. particular So million a $X is the lot quarter In doing we the XG I quarters Obviously, about look can. million, when more somewhere largest or get to was historical and I to customer, $XX that our upgrade $XX what customers talked can are our that, we’ve quantify, it’s backlog to a we terms left believe to but right of device

and levels, because Caterpillar when supply to rebound more at to levels. was So there of driven continues healthy will our The levels down anticipate constraints. backlog you look that relevant were for principally be we we very that historical we albeit again from historical

Okay. I so Kurt, a up just -- had, follow

ahead. Go

I’m current, you’re then that margin question. I going think sorry. timeline Is And to Kurt? with there associated a the gross recovery answer

I Yeah, Scott, or been of that happening say, gross here, do hard some a I heavily respond exactly has on margin say optimistic well, when. the We during other things regarding the timelines, but with it’s fiscal to is XXXX point question What to going chain. late. range your XX% margin, will to in should predicated gross supply we’re cautiously our the at to with supply in was as what’s chain rebound bit start

of feel inflation, costs, a component backlog. gross labor that’s happening with this backdrop the costs, what’s good fuel Given pretty costs, relative we like margin, to

being said, and I as in a a that has we Now, pass believe number the fourth third mentioned, effective program increases. That did quarter, on we continuing. of the cost the during went to been program institute quarter,

We customers. some effort, half in pass the of increases see expect more price on our return through to that as XXXX, on so to those first fiscal

Gotcha. up I -- if could the And go follow on sorry, ahead.

ahead, Go Scott.

love going I roll your I’m no, No, sorry. thoughts. get question, to another into was to so I’d

them Yeah, to say will our but our fulfilling mentioned, the we’re Fair job add to few demand. to a came our I with said. just what Kurt say, that is to customers. close an with providing excellent Kurt time, difficult we transparency things nowhere day. is on a It as every phone doing team

continue customers manage so that network best products effectively. business important are them can managed to their we’re get through initiatives our to XG like to XG they As conversion, doing these

job as a business as seeing any, in of this And as nice or not very orders the result very good with look we’re time. our say, if regard; I is very are at a maintaining difficult relationships we’re a to when doing unique So overall, it canceled we few, customers this. in hard believe

backlog more the can sales executives of suppliers that Caterpillar our about same. Kurt build. time much our to with committed our Caterpillar, with every and enthusiastic everything spending customers day. and the all our is with best our with very we’re communicating we do here customers, teams very possible. buying working the On are job I to along and working the So of

to them with with vendors with closely. Caterpillar supply good We’ve together conversations working We’re and as very suppliers necessary. improve had work the very to

back our with getting transition, effectively to levels, very XG, for is there And normal they’re there so and very our when Kurt very strong. good the Caterpillar, relationship them still is managing the XG quality demand the says, is

you. on Okay. And step Very side, just the helpful. and up was the sequential I could follow software services if in up a quarter. Thank it subscription big

like connected As call software there. to Thanks that of conversion it’s of lot over looks there’s going like in or that to PULS you XXX,XXX ballpark added around in the it how a base? of that during else one-time one-time the quarter note. that something Are benefits much. conversions there, in then on from devices that it’s there And PULS occurred subscriptions, a out indicated, terms any mix, either much one-fifth the of of sounds was of sale so

a let wouldn’t and add our MFAs these customers. time, these agreements over one But color commitments start three-year these that I’ll with enterprise in some of that. say on Well, I lot not customers, with negotiating agreements, Kurt we’re there’s we’re negotiating as

solution, bundled device a includes that commitments longer-term software. plus that includes So the

one So It’s RPO the so much terms solid nicely, our revenue. not grew of reasons this in is so one-time. of

XXXX. were of of I more throughout XX% think pretty you our happy can that to get base that quarter, able the in embedded we’re customers’ to expect and we

we to the a portion subscribers, I and yes, those customers got your good just attributable the Scott last subscribers, we were over regarding subscription question of converted added of based that would to And model. the these XXX,XXX say to north to

guys. much, so thanks Great,

you. thank Sure,

Mr. you, Searle. Thank

comes question go Canaccord from of next Genuity. line Mike Walkley ahead. with Our a Please

for question. Great. taking my Thanks

exiting the hardware year we about think subscription be to MRM would line not about Just hardware should ‘XX over guidance, into zero go business Just how but to with systems telematics Does just and if your any you’ve the that then theoretically of in MRM fiscal line? ‘XX, services revenue helpful, the think revenue conversion? model all specific how follow the up, given we I you’re should just that course successful comes directionally. thematically know color to

the for thanks question. Mike, Yeah,

telematics you we as a telematics the look our unit, combination customer. OEM when description, largest including as So, customers customers, of have MRM our legacy well within OEM at our our reporting customer customers, products

we as and and in includes our into our solutions, So to subscription unit, over be software software do services. device through telematics MRM expect customers, convert device-enabled legacy our move of the our which the services, of majority plus services are the reporting we subscription customers to the to typically device access they our carrying multi-years, CTC engaged whereby contracts, management three-year to platform, device base

to these we’ve addition In devices is to services. working to have customers, what those deliver we doing longer-term whereby been get with necessary greater that, commitments procure out the years, three to on visibility

the terms your us. future, benefit the in can to the software will believe how we that business, And question a so our in advantage that But only visibility we them go supply of that’s huge in telematics to us do not to have zero. products around trends entire not so moving multi-year also contracts services, that our so better subscription give the but chain of and manage into business

as such We expected that who device purchase device done make are in remain configured customers a there development use to form like Those volume a high so the devices of that base customers. particular be customers be case sticky. and the devices somewhat will those that of OEM customers of them will likely highly are most will

get a OEM to it’s products time, business servicing software level it that services, where expect baseline larger will would as into eventually customers. it cannibalize decline, yes, telematics but that over we these I will and it moving primarily So subscription

throughout business, continuing you investors revenue do. feel is confident that are this that include looking and at a where is we’ve CalAmp, which been towards a us a ultimately for we’re it customers OEM a more be to they’re to getting moving our trying something when good will to think multi-year exception look business SaaS purchases in of the subscription, some our the position about of what from put good perspective, large ourselves better there. all with We feels year, and our future hopefully, growth, with a accomplish and feel to I And about feel RPO time for recurring

part we’re feeling the of progress. transformation. That good really So is important about making most our

a model [Phonetic]. just margin of understand or mechanics good over a should divisions. think trends tough between level the XX% company? then tried to two intermediate gross term I kind two That’s as the combined at we the that think for between the this just of should businesses, to we how about level the is And stay

we’re there I short component run, the No, some cost seeing increases. think in

we’re to XX% whole moving our software, recurring our historically And the is telematic profitable. reason that to revenue trying revenue, delayed those to because the the we base, in more of compared we business bit trying price ultimately, we’re a a in to and software We’re on tend XXs. do, definitely to that. that to Mike, revenue see increases pass is up quarters But increases that devices businesses above and be offset trying we’re what couple with after more keep the so low

to as you see see increase, going to expect a margins So us should continue we’re forward. similar that XX%, now time, move in over to our progress, up we you

Thanks for taking Make sense. Understood. my questions.

Sure.

Thank you, Walkley. Mr.

ahead. line a from go Please Capital. of comes question with next Northland Mike Our Latimore

you Europe in me kind behalf slowed of affected the demand has Ukraine tell your Hi, because of Mike the Could of Latimore. war? any this in war international the of is Has Aditya down on revenue?

No, we a big impact it’s effects. haven’t some from seen any but suppliers significant There’s business. Ukraine of our the part tertiary not

-- our pretty more chain diversified. much focused supply So is we’re

providing supplies. in If one relying primarily are five Mexico locations, three or mostly ago, in you have that years our think on China, about four we’re Asia, we now CalAmp

Ukraine. impact So from very little

We’re to today, lot cost but, us of attention it’s paying that a not today any significant problems.

cycle? the the inflation sales or cycle, right. elongated the any sales color some Could has macro also give of concerns All on you the

I fair, yes, I No, in sales think guess, I with our be regards. yes. mean, to some cycle,

quarter. sales or We’re don’t that made time PPV, prices, MSA, as saw progress do with etc. kept our requires with about from we the I increases, we spending passed our on away team talking them a to component moving to effort. forward lot that And price on you customers great it’s our have in extra of that think them

feel sell day, a going MSA a on gaining team forward, like, navigating we confidence methodology. I forward more and sales is as solution continue with expertise. the software and complicated more requires solution every So going nicely, the focus it bit our cycle It’s the selling with this but

All you. Thank right. Fine. right. All

You’re welcome.

Latimore. Thank you, Mr.

Orin ahead. comes Partners. Our of Please go from next with question Hirschman AIGH Investment one

are how Hi, you?

Great.

project part components In terms that out in hi, -- -- some able being base shortchanging giving projecting know of of to and of there of of on the it? of business the transitioning in that project the of it that supplies is guidance, the be but recurring part over recurring terms in projecting terms level your projection what’s much of being of that to not difficulty customers? difficulty also that terms kind Is Wouldn’t components really you able business? Is being it? in on

it’s Orin. common -- there, of a Well, a things couple

matters with over that conversion. first customers and a is and some of the services a I there forecasting sales are we make imagine, so will out time and telematics think with challenge the discussions, when we and take to roadmap complicated they work bit they’re through comfortable off as is, the a anticipate you have software customers to just conversion device can of We do the more subscription we making customers that those but convert, our sure process and want contract.

does second shipment is our solution of you actual thing delivery solution and know, our The so the a activation the solution, devices. of device-enabled require that, as is

ability ensure an the that healthy, to our are has still impact been to customers future. allocations our of our are forecast in the very good, hard have to that but devices working subscription-based We on

to do of managing our couple through, the time; back and however, there latter get limiting challenges So a give fiscal the through hope complexities giving at to to we year. chain of guidance supply this here that ability towards just guidance are we’re is resume which this half

And coming a clear forward. that committing a investors And that and and I should customers view today, over say all that revenue really driving nice his years. consistent give should outstanding I that going in our revenue at quarter million to to the we plus quarters Kurt backlog are job mentioned it $XXX drive we more where would our stand and have Orin, and of RPO aside, when script look that doing we

the more will make good visibility. I average, that going easier aside, to business, going which we’re as much understand about revenue, forward. investors I and straightforward more of recurring get getting more improves, for we’re our that really more and XX% and chain to that today think So supply feel On

of a of So couple couple quick follow ups.

we read want would to device, your available? if physical are have had more So, higher, this you been devices, from recurring even would that have

Absolutely.

the some -- of even new going obviously, make be new if and uptick fair it And ship there to the with the throughout natural you there’s a wreck. Is devices Obviously, assume Okay. layering just just, but going a of even assumption not in live. no sequential devices, point. are revenue no terms in to going recurring, quarter there’s live fair to devices that that’s

added the that’s the or have install base customers the our from these an that margin. subscription enhancing would gross provides layer model, commitments only overall MSA to as in installed our device-enabled of Yeah, for help well, itself we to as growth expect help looking and to revenue, to so in do of additional but revenue well the benefit activate solutions, base arrangements of future build not you

answer on answer but to we goal device a portion -- telematics of three of and question customers over the over to next converting larger plan that our forward and really yes, this to the that four do quarters. to base move So to the is continue larger is, short

any or calculation would conversion? the successful give side how that the just, on just being on us last the ARPU And flavor question, of there something a for business the is you’re

we any time. this don’t ARPU information Well, at publish

that indicated application, service. solution providing, ARPU providing integrated includes just type business, the solution, device when depending higher a device-enabled you’re fully in that utilizing on that baseline of past which fluctuates when customers our firmware we’re have the are look a the our procuring software or the at versus also the management you has and We ARPU platform our

any and mix, in ARPU So looking at guidance, at we’ll be haven’t time, given this depending the fluctuate, term. long point on the ARPU to but medium evaluating that will we in

components your is, abating of during were will this is, we’ve shortages number -- my as Okay. that my begin component a of feel ramping in heard had started feel, Can related things you because lockdown tracks abate but companies lockdown. shortages you from shortage And of that guess got in hopefully qualitative to of been even -- have versus a the China. that can a you do on what’s question stopped to year. component truly last new still tell question sometime I the

to It’s very say. hard

that mentioned, of the phase final have As we Jeff China. outside manufacturers in of do contract locations assembly

into the manufacturers. out However, China from that our accumulate components are of lot different downstream bump coming of up of dependent a

pandemic, easing, or We the our it’s difficult be around to are certain continues it’s in in areas to continued for challenge impacting areas, the struggles certain why China, very because the product. that China, So it things us. lockdown know a especially in of where do say how but of

watching we’re closely. it very So

what’s situation, measures of the taking circumvent to each it’s We’re try to chain causing supply to say but these layer challenge. difficult

Speakers]. [Multiple Okay.

you. Thank

additional there the to a do We Please I Jerry do of Currently, with ahead. queue. remarks. line Sachs. Excuse back pass Instructions] apologize. go have [Operator conference like questions Jeff I waiting in Revich a no any are question would closing Goldman to for from Gardner, me.

afternoon in Yes, months put evening. the finer the wonder what look could business subscription XX a on might hi, you good is once just and like Kurt, transition if point complete. good I

you on based quarter, So, subscribers, added this XX,XXX that’s transition. and XX% folks

get framework discussions? Is higher rough that’s prior in rate months should to the X.X you’ve business been wanting commensurately into getting about and a economics run subscriber the So into that’s subscription essentially now, XX from to rate compared without mentioned, base be -- today? a you we that revenue thinking million for reasonable unit

are Yeah, you? how Yes. hey, Jerry,

help overall to of number your extremely answer XX%, the continuing and quarter, XX% goal in to revenue. only business revenue that our the about although of We obviously, contracts SaaS that grow. because us that with that XX-month the not our the question, given and to months. medium close key million over fiscal with In to is do concentration able so and subscription somewhere in were customers, year the and So to metric to was subscribers the we XX software full so XX% experiencing extended believe do long of will provisions with upcoming reaching quarters. success we a our drive fact next term we revenue, most pleased into XX% With us a that contracts see X.X our was subscription reasonable for the converting mind, we’re these the of to were that only fourth model, is that between that in that of target to out and consolidated to of services software million year, renewal future, X.X but base our to obviously get are and get very couple

it’s XXXX. and with be pleased that extremely grow to good the going we success think foundation So a into off quarter to the for on fiscal

conversion we’re at reps about us force the pace sales us over most is focused we’re future that next XX see to force. Speakers] really conversion on quarters XX% on Jerry, continuing in fiscal to be organic is couple sales to growth the you’ll that we’re our In excited [Multiple going add And sales to across also this looking and -- of the gets going and invest our range. the XXXX, the what we’re but year Jeff. XX% to globe. in focused this to for Subsequent sales sales what be

rate allow that growth We’re product. going keep flat going that, investors important terms year-over-year. XX% to that’s we’re sales, know that with I important add given for in relatively and our think resources to we’re marketing to us really to also realize to going in headcount of it’s areas of Even growth organic product marketing, our investing in but overall transformation, the and

subscribers, X.X clear. expand of to new X.X? that to high bridge end X.X from you laid so the comment you range Is would pretty the X.X it on million on Kurt’s just is the gets wins? what you to Jeff, What expand get Can up? And million Kurt platform just to of towards just X.X

we we where sales the focused I we product hungry customers, pushed think COVID the this year. X.X, in what is of The reps is of be, hopefully there’s deliver. new it a Digital and going convergence gets I logistics base, our on. pivoting the these in going on logos. can little to like a going what’s mentioned, this more. Marketing Chief a board absolutely And new they’re transportation Yes, our easily team space, that conversion we’re then all really We our more is lot which that during on to in brought is of many for terms insights Officer going much to very like for just us

that’s that’s looking that revenue kind recurring So that going this transformation coming long our all deliver our and to have that’s the CalAmp going of at with long of growth customers together or on investors been for. been really have

that, is realize but comment today. rate could not relative you payback if about the wondering math lower I of And sales one-time that MRM one, million for the MRM is it. MRM last versus once suggest that million line complete. product would on sale of that we’ve conversion perfect, a one Got maybe year to $XX run for I’m historically, a assuming that three the ratio the Thanks. subscription seen $XX

we really lot being area a relationship. the three-year contract That don’t sticky, the I I in be revenue them to say incremental for population to. is space were subscription talk if customer We’ve to would a probably customer, know, the will range. figures great strong that mean, given arrangements, largest more that customers in servicing We exact been believe that ours. can strong them revenue, you’re of revenue we in that move XX subscription is Jerry, in all of of kind I still space. XX we anywhere a to base our and a said, have good of OEM referring them mentioned, There’s as those a it’s that customers from do is Yeah, I’m of telematics that very prepared years. device five into

we’ve get You’re familiar it good those revenue our plan to and had with is them back them to Historically, generated grow them. from and from historical there. revenue levels of with

right So now. that’s our focus

Thanks. Okay.

You’re welcome.

closing back like remarks. I would Jeff Thank pass conference Gardner to Revich. the any you, for Mr. to now

Growth on today call. Kurt will appreciate on Conference a interest all us joining the in from for and and event. Bethany, the We This Oppenheimer investors. the be be our you, participating virtual will XX. thank May I Emerging Yeah,

really team. firm every our excellent year. Very a this challenging efforts CalAmp representative future. or your employee take to proud to year possible at pleased request excited Really our job customers to our about and like single Group. especially been meeting, a you’d quarter, please do for Shelton best of the IR effort of grateful If It’s the of contact Oppenheimer the I’m care the putting forth the with

now forward progress quarters call. reporting may to you our next call. on look the our we disconnect Operator, So

conference call. rest That enjoy your day. concludes I all today’s hope the you you. of Thank

lines. your disconnect now may You