PWFL - Earnings call 3 2023 | PowerFleet, Inc.

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Operator

Good morning. Welcome to PowerFleet's Third Quarter 2023 Conference Call.

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

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

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

will future statements financial there events, regarding call, PowerFleet's including performance. the be made forward-looking future During All statements future other offering other business for include forward-looking financial any growth, than considered anticipated industry strategy, present and regarding position, the expectations statements. company's trends historical competitive the demand position, are plans regarding of for and for results operations, company's future statements anticipated operation, facts, opportunities which product company's for to, statements beyond. XXXX but expectations not company's Such and limited the include, financial are All the such the imply presence of many of risks, contingencies, forward-looking statements uncertainties which company's and are beyond control. The in may differ any actual materially assumed performance statements. or projected company's or forward-looking results, from achievements those and to materially the the actual that for amongst competitive business company's cause products Factors and economic position. emergence cash could and conditions, differ technologies could of new services, demand others, results include, factors, company's overall SEC filings, duty to The undertake to any any company circumstances. or update events statements not does future to forward-looking intend reflect

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

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

Steve Towe

QX I time of call, today's the on well performance strategic our share some an as spending In reviewing as the update on progress will pillars business.

our to Turning report financial a QX delighted to performance. We're QX first strong set results. of

our strategy is nonprofitable shedding in than high-margin where SaaS SaaS pipeline we've us rather take to essence, executing playbook ways to product will in in through required revenue, and existing a the while business a Our market. been product commitment business. evolve sticky, private to revenues pull of high-quality public In into to brave decisions transformative a become equity months. this manage high-margin Central building quarters success clear noncore sales that style

the flow clear revenue early point our transition point begin is I'm now mid-XXXX to XXXX. inflection to higher in revenues have half second through product where We in that will down the evident an P&L to would of reaching executing through this pleased in coming this result before inflection numbers. report been

total impressive in revenue performance gross At QX a service an sequentially. increased increased by XX% revenue basis our Our the our quarters. same currency best improved a QX at on increased four year-over-year. product by quarter-over-quarter margin. revenue much by time, Total was revenue X% constant result XX%

your operational changes business reason we January whether business evaluate as we regular revised are following in the data-led of the decisive To the objectives enable aggressive following our to investors the at foundation and shot we joined is vision, have I do execute PowerFleet far of of through PowerFleet was me was that share A asset it essential highly this business industry. conviction on the it starting a major that and the these now the demonstrate a ultimately points team from this build this to built you and a transform currency to to focusing mixed is program, million. the the kind quarterly for years overview XXXX.The out on a journey say. in is for an substance, transition in an revolutionary ambitious increasing now burn with credible our we EBITDA, knew designed common succeed, adjusted To and EBITDA made industry so would Trust we Looking partners and come. cycle more following who engineering at take absorb telematics. shortly. in commitment navigating we I SaaS in of of words David from of to performance QX two talent in and strategic numbers, a to earnings significantly here on is and to investment bold acquisition. forefront adjusted we actions into in mission success QX This PowerFleet would commitment what we steps years our the the view threefold took at do cash key the areas valued at realize proof a the mantra create and stakeholders by appointment Clear details helm the that those pace. to tenure. commitments. for the to in set took of opportunity revolution say of to plan of first a a substantial transformation To the sequential as being evident change the to our overriding my have cost I'll our $X a have a necessary opportunity our will achieving remains my and SaaS on world-class successfully need our provided and we three dive PowerFleet, financial Movingdots what provide strategy, for appreciated

and we're at the very balance to shape X over the scale, P&L best-in-class players of global and energized time, that of at place to We're for technology; to base. the run and here to feed, right capability of one the the health also second of an mission-critical have in get customer intend the the scale, resources to not and table. at an engines, To breadth First, consolidated them. there we I'm be to convinced much X fashion AI in our level of a sheet.Looking solution integrated data-led there, be an third, invest a need provider secure earning very depth the to will the refine be and demands market top be industry. we dominate evolve space and here will

from MiX include the achievements towards $XXX scale. step of the million, XX million X,XXX. organizations the than enterprise from combination, EBITDA increasing transaction of to growing to to to team from from combined over a announcement of securing and massive have number growing subscribers necessary million X,XXX $XXX,XXX our Anticipated XXX The support increasing the The million. annual colleagues on $X.X both from taken more million. increasing With engineering to revenues $X the to adjusted $XX customers $XXX platforms strategy

industry has leading data Unity validation been a that wholeheartedly right XX a steeped validated and one analysts pivotal and for have in AI alike. PowerFleet. the forces mix technology, produced a fact platform combine in is industry to by with team Now well-run successful the our for years. business unique over that the compelling integrated where Josh to highway The also been industry the to has data they take strategy believe and Unity his and ecosystem. this was It incredibly fast-evolving decision Unity and is position on the customers that to vision

remains in with which us Movingdots, space engineering pillars technological leader unique teams the sets scientists PowerFleet through some MiX this artificial that in be domain Another things, and We Unity believe rapidly year QX and platform. team data driven the AI experts IP intelligence of alongside proud sizable of acquisition combined and knowledge. market for deep the to the data achievement a space of secured insurance or of provide a evolving and strategic the will IoT the

the build that our of product at evolution to sheet. the start strategy Now I on and of in add I'd our through some pull P&L shared the SaaS evolution on the like of high-margin and strategic strong P&L shedding sheet. point and nonprofitable we've to and sales against to evolve noncore a inflection while product QX progress the color more successfully strategic call, P&L business our this balance revenue, the performance. balance of sticky, our that pipeline to reached

Argentina stroke, address with operation books would enables Brazil, comes the directly now critical MiX sheet, South business, Based a MiX's pathway to mass against we've single and to geographical powerful the elegant to of areas, challenging this provides been that which across Looking local instrument. us commitments very mindshare regards the results combination our subscale to balance deliver on revenue, to the at combination cost these the and targets. reaching our we're adjust hidden we clear measure, shareholder-friendly scale distribution all ability a particularly of team and true. on our With combined combine and accomplishments in the major a any At an Brazil, of meet drag ambitious Africa. preferred testament compelling the South retain are three in and with is of avril basis businesses will Africa, announced MiX to these and

strategic Ahead thoughts shareholders. third phase centered As the the I right test prospects place value our approach our I'll and on X-year for to are in of my The transformed. ask the insights realizing through potential our that David anniversary, of for journey, I'm a and detail. of to quarter the phase say proud now sharing are significant on results that in next walk business pieces enterprise is this,

David Wilson

strategic accelerate key business accountability. Continuing I'll on Strategic the providing sheet. an called the call prior provide priorities on I limits insight current update our while the spirit our out the transparency before #X Priority firstly that and within of is our balance to living additional numbers. on transformation of

is MiX a can announcement demonstrate realized Our decisively cut tripling team October business execute XXth EBITDA from cover activities a with pace. for game Movingdots the and to results changer, combination our sequentially while adjusted at that

headwind global in this $X.X short-term Priority naturally financial all #X our the initiatives and improve incurred business expenses a across platform million these the are our of with results is wins, and talent onetime created by in of central rationalization to While a leverage major they in initiative underlying ERP system. some the quarter. of implementing rollout common is software operating scalable The transaction geographies.

at alternate appreciate, for and inherent that entire standardize durability with MiX expeditious is this out. on MiX endeavor the building we with solution us of single proof for the execution, sure rich an we get globally instance and scale and work pathways. provide option business updates and review, XXX calls. both millions points on to the planning is business spend stream major is As being set on concluded dollars revenue regular and will and to SaaS dynamics that you in A critical rolled ERP can leverage initial global ERP that our ERP integration presented operating Based on provide a I'm to importance, a metrics of is efficiencies of realizing combination in actively model. future increases our continue of our the business a significantly most of insights

versus the for our on year. the to revenue, Now prior radically the where is improved quarter. underlying financial quality Starting performance with

total and line has low-value While XX, over revenue high-margin the constant quarter service the business in been XX% and September million on $X ended with 'XX $XX.X up absolute basis. million from actively approximately currency X% of with last basis shed a for an year, on replaced revenue product of was revenue,

profit Xx gross and XX% to for to impacted onetime high from line quarter product pulling line Meanwhile, On centered year. million, current margin and diluted higher sequential deal from depreciation by is XX%. XX% year. for gross evident XX% share which ago $X gross here million Product expense. $X.XX out-of-period Success are with gross margin recovery. $X cover Net revenue. On of year attributable the the with million. hindered in $XXX,XXX performance $X.X quarter XX% and prior infrastructure prior was of prior import by Adjusting costs in posted or basis, service XX% the the these and on totaled our same the out-of-period following was margin shareholders an basic to than SaaS Unity Movingdots. with compared adjusted margins for margin to increasingly XX%. Additionally, to increased was margin, of and over sticky was EBITDA service sales margin Total per increased operating was duty in expense benefited $XXX,XXX $XX.X product product activities million the differentiated cut expenses, items, million in in rationalization through to period adjusted where of $X the by common $XXX,XXX in in

strong sheet position cash cash $XX.X quarter and in a million at with $XX.X equivalents Our of capital working end remained million. balance and

specific and future, the poses to markets regions. certain we recognize that Looking challenges in environment the macro

XX% worthy in to recurring has product that business are and and and strain Israel remain Israel report safe currency temporary impacted about that despite challenges. fluctuations ongoing over our safety our It the to is and events versus in revenue book of of Israeli note facilities that understandably related team unaffected. transportation, discretionary on essential all importantly, conflict is foreign in Specifically, subscription members ongoing is the more those needs. centered security currently and to horrific Most our I'm demand relieved

situation, assurance to paramount. we While safety is of continue closely monitor this the

distribution. global We our business, team services particularly supply ensure have also That our continuity capabilities my to and enacted redundant we chain around business concludes for plan our to have provides Israeli remarks. the

Steve Towe

impressive QX they results on-plan results particularly in effort business the our combination These to consideration when to take transformative an team. financial of are were by immense midst testament Our are global MiX. achieved the into execution sign a you exceptional our with

Moving of back to overall view business. the the

Valvoline, gain perspective, Development, From & safety-driven do. the car industrial of as safety Summit Glass CMC O-I offerings. to This we announce projects Brink's, of in is delighted the the major solutions we General our of account a especially continue witnessed of with Georgia-Pacific and Construction the MARPAC, wins very Unity, development market what traction. and North and at remains our resounding Motors, We strong likes QX, likes connected we In true success heart with logo FEMSA. expansion are New America and to

vendors remarks, compared the financial innovator over to performance ranked subsequent to in streets. Starting PowerFleet After selected top Americas, X in an a After expanded commitments existing the in as campaign technology. IoT made which of I'll and solutions following the deliver advantage options, a the Department analyst extensive process, solution Department We the injuries world. Transportation a QX. review an safety. deaths achieved road U.S. for Logisnext Unity Here rising to relationship leading serious reduce agreement largest initiative ABI in fourth and efforts are additional now I set prepared use combined team includes the number white manufacturer revenue PowerFleet an platform a in PowerFleet fashion X off on the ranking. join creating stream forklift coming be full some roads within label the partner on to top committed Unix will Research, our the competitive Mitsubishi we examples innovation was world. similar U.S. for a what and user to signed technology, for expectations Highway Transportation's MLA, was MLA America of initial with across To the in industry realizing of at a safety that the quarters criteria beginning released competitive and provide close assessment The and process, video of assessment improve of XXXX.Delivery our PowerFleet the of my value. PowerFleet. and a with is what its third-party like a and shareholder launched named providers to cases, vectors: report business as in a experience

our share will true customers to platform and IoT Unity and broader they new those We to ones. a capabilities, points. device IR on that for through powerful data or acting strengthen of Unity integration and data cases. ecosystem well ingestion capabilities go for a capable how led for magnet the our future continue will a Positions broaden use consume as Unity as expanding as platform highway traditional in beyond hub insights, Scaling become advanced software the demonstrate and our customers existing agnostic this applications the insights telematics. flexibility wallet is harnessing on ecosystem whether path a well of true and with and other our as is providing

at financial expect revenue Looking accelerated deliver we growth. to performance,

subscribers steady retention of of We Expect MiX's to expect levels Unity cross-sell upsell revenue quarterly channel device set of engine from we the XXX the driving following areas: expands dollar solutions the those complementary benefit climb an PowerFleet through directly through best-in-class Unity from capabilities available MiX to will from agnostic a global well be of partners. beyond supply. to the readily the revenue-generating combination portfolios. realize net the product synergies reach opportunities also compelling combined sourced indirect and

on significant revenue subscriber. provide of generate can per headroom points amount the integration and modules we value-added Our

we the double expect underlying XX-month adjusted to adjusted opportunities Finally, increasingly and the our starting both trailing expanding combination value in as asset of the well the a organizations. EBITDA owner data solutions become point. sticky than that we and reaches EBITDA. accessible, rapidly out of substantial coming more provide beyond are readily from The Expect

financial best-in-class close. years rule XX performance expect within Finally, of of two

us recalibrating Now that Unity release PowerFleet AIoT major the set viewed and to an business set combination report allow following: by specific us retention. expect on way Areas dollar enable where break the of scale view size away global the quality recurring broader rollout of take powered telematics the market. company of focus metrics, with to which net on combined a will rich ERP increasingly focus much of attract enable us and revenue MiX -- on SaaS of and in from of we is investors. to strides include to and the market's durability for book will the providers. of traditional offerings transparency will shareholder The provide the value The creation, valued of clarity to a provides our will steady our

value enterprise revenue have a to now a that XX value by is to an underpinned clearly securing present compelling the Finally, midterm rule of markets. to proposition short multiple. We

week, we team a starts on XXth. PowerFleet Conference will intensifying Manhattan Investor Midtown where the As in MiX Roth be outreach. will our next the investor November joint result, and This attend

December will Time host the XXth. Midtown InterContinental team David Barclay Investor be X:XX with the Xth. in at Eastern York New joint MiX TMT at Raymond Manhattan Conference Hotel the our joining We MiX will in Day November James New on at p.m. York the on

events. Finally, for over to seeing We year. possible these to I'll in to turn back investor now Q&A. as we forward plan an roadshow execute look operator the many you of as it new early the at

Operator

The Instructions] this MKM. is questions. first floor from Roth is morning coming Our Searle Scott from question for open [Operator now

Scott Searle

things I clarify to to how confirm know you or term David, sounds the systems if clarification, I use quarter, to are we transformation you're quickly clarify MiX? trend Israel, December the for see a to going particularly It see choppy. expecting but out combination was in maybe just Then start sequentially? you going on there, intermediate impact wanted ERP that going comment the I that. it there little wondering MiX. forward the that as headwinds could before was near in things in macro how immediately are wanting million, to you be quickly like if $X.X costs in the just markets want I just term to thought to are some audio quarter like progressing my from well.

David Wilson

audio, the onetime the terms transaction Yes dots. to were remarks. referred rationalization of for path ERP, quarter, in That evaluated choppy reduction In on. the million we of both was as to well million the addition the referred in team MiX certain terms terms the on that both cost incurred ongoing of was we've Dynamics in the to $X.X costs to MiX to that costs the XXX cost cover that Moving the NetSuite attached prepared and the path as $X.X deal in that in obviously the were

between most it, of looking is to looked obviously, very a issue us and be and terms the It platform move there is, to that of important obviously close terms actually aggressively business. forward the work As of and is future quickest financial will for in Then our Israel. we've executing with performance, in of post-close. very platform. We're piece a at the now the piece. key the important get for that that piece Again, be common on expeditious Dynamics a planning way we'll

revenue recurring $X million, to It of also opposed $X nature. is product, in a business quarter, in an referred $XX services. I need of recurring discretionary was majority million around in as Last Israeli prepared remarks, is about essential vast million the that north to just As need. the

actually the FX actually some a FX services through of issues, piece clearly there. standpoint, week the recurring in consumer well. has quarter. last the obviously, Then weaker was exposure product or product over sold it that to up amount expect hold improved from to than the rate very revenue be but is and so, the earlier We Other dealerships. fair There'll a

country. be You will can piece of on terms headwind. softened market key That's the the given a that the appreciate just in that's what's demand of definitely going in

business, we we terms steam. nice performing we're very, building In absorb a Obviously, clear very up strong, and the The our in numbers. very Israeli QX fundamentals think of can headwinds. the well. the of of fundamentals We're head very are

Scott Searle

from you could, you get existing I if it a logos, like continue add-ons level, seems more to high Steve, add with customers.

of in what the in bit growth a of side that MiX little when think, product are of look that in getting currency. opportunity of that I looks quarters, reach and services comment you the a the terms opportunities, Could in competitively, guys in trending? are couple in XX%, Geotab? sequential now different when with in the at to cut terms had perceived? I and table combination now year-over-year like? marketplace big you're Also, relatively like? does How you constant and initial changing the on the you over Samsara you You MiX doing some just basis. Is pipeline look had you upsell the total what terms TCV out think company with start Also breadth. that is terms a you the How last to dialogue how add of growth scale

Steve Towe

$XX of added, pipeline new which the is I a we've ever million Roundabout $XX Scott, pipelines think net about around TCV number. It's being to great. growth sequentially. We've million talked full don't continued. given

I it's you've new as and seen every with as think strong. logos quarter, business, out the extremely the towards customer in terms come powerfully Both account of loan, we expansions. sentiment the

receive now. links positioning in That market broader in to to inbound well being the already business we're interest. MiX scale. starting seen We've of appreciation at as terms more see the that a You with

the I to takes us almost think top very table. this

biggest the in I chances and think in position well. we about now ourselves we're more will a business confident those interactions are fight seeing industry, as boys the we where against in

Operator

from Your Walkley next question Canaccord is coming from Mike Genuity.

T. Michael Walkley

think terms number business quarter to strong there the been of gross Or about guess, of on about should on margin stand-alone David, forward? has anything in a good for your margin, trends? strategy. your very I gross in going a off think is we part MiX which start hardware XX% side, To is

David Wilson

definitely the target is of the that terms XX%, In spoken that we've about past. a in

very the North in would I the quarter forefront XX% terms terms important when say Unity terms clearly, gaining reflective piece use challenging in That's strong is expectations in in is often it. traction of of In story. to on go-forward business, standard always is at are of an differentiated. of the of MiX of things itself, America, MiX,obviously, There's you a Within word sort and a issues that -- use. basis. terms MiX some our highly there's of which

like our example, For industrial solutions.

We have more from pricing a of blended on power is there expectation than There's maybe XX% the have. then some a I logistics always think basis, but and side there of sort things. fluctuations, growing to good

Steve Towe

Yes.

Just coming of top the over that.

unprofitable in terms do business. This we the As margin the of newer were. signaled and to a pipeline higher-margin proof lower profitable was that we in the execution we've product down product is commitment new lines, of and that that where out terms the reason we of great our pipeline business were that -- point taking built,

T. Michael Walkley

question, some follow-up on of a Just building question. Scott's

year-to-date. Israel sounds kind expected, little it Just for the products been strong America different are regions? soft. has pipeline on business, you the business of your and pipeline a a like the be seeing of North How trends as could

Steve Towe

we can North if was think terms Yes. in look results, we strategic at and very a arena American focus. our that level mean year-to-date #X quarterly you our of It's -- market leadership. get to high the #X I that

while known us strength as market. our be reputation. pipeline is I there growing a the in think to that is took out The playing for well. It is

go. we're to into growth area big interest starting see XXXX. far now of kind Europe in very inbound will we for earlier think as I Scott's question That's as well, the a us business be more to strong.

pipeline confident business invested background of in particularly building into terms of a that our As that others bought execute you're Europe. in and that We've have abilities experience considering I market. Very aware, nice the the we've there. got to and I

we I have was we've the in of future of then we're a going businesses starting space pipeline the combination, an development BXB see some and of of Israel grow short able despite think to scale Since the uncertainty. the particularly Latin naturally we're is naturally pipeline, remains that to business of been our that the to perspective, still again. place From settle kind have term with now the in medium mix American business term. the headwinds, in strong for fact

MiX versa, if I Unity We're is terms get we're on MiX traction in incremental opportunities point top revenue. really -- in take terms overall, the you to the of proof getting then look of terms in so being hot think that all be stuff that logistics rates combination, growth going new strategy. of MiX incremental the not Then that path we you definitely on.Then able we're particularly the to for there. see solutions terms the we don't the the territories, strong have, available in-cab getting that to vice the in have solutions we're of industrial that will can alluding to. if

Operator

next Lake Jaeson Schmidt from Street. coming from question is The

Jaeson Schmidt

seeing what the pricing given curious from standpoint. Just backdrop, macro you're a

a any current is more Have the significant it changes you If telematics space you've the seen get always seen fairly lot I competitive. given know competitive? just macro?

Steve Towe

I be Business would rates. trying at some revenue desperation over to think I I it. won take is last maintaining growing you've not going and there. from the very selective of low in we're We're year for profitability. us, mean things over terms strategy we our more competitor how seeing is would describe seen rather

Particularly we're and enough value. allowing think Again, proposition in good growth out concentrate revenue to much pipeline there of set sales value the delivering, the on more for North hired folks far there. comfortable. very of alongside the C-suite. out be have of than is American more based very of that selling to strong there's growth conviction we're of hold the market, That's who terms the a on it the the pricing. quality and in we us us EBITDA across think doubt, very pressure have I enterprise No software we

Jaeson Schmidt

a the follow-up, as seeing headwinds supply from are just any meaningful Then you chain?

Steve Towe

In supply component terms of for our sales?

Jaeson Schmidt

Correct.

Steve Towe

how We've fulfill. distribution able sourcing supply got No. long they and effectively go sourcing enough terms the big we'll can that deliver, share as of terms Again, confident in our then again of team dual work of to and triple lot a to chain team awful in that as an Israeli capabilities. be about done sure inventory sales our we've supply quarters. coming making Very to in

Operator

Your next from is Prestopino from Barrington coming Gary question Research.

Gary Prestopino

couple called profit them to David, couldn't that on all, you the gross please? I you of through Could down. a onetime just First write related again, of expenses services. go out

David Wilson

things. a Yes, things. absolutely. in product a is of side rebate that side margin One just prior of terms There benefit active also standpoint. of the from in of period, offset margin from was the pickup that standpoint, of a been that the was that thing to sort billing catch-up We've service very tune infrastructure Again, import of in transform the two terms other. things $XXX,XXX quarter. neutral, just we this sort duty that is from the duty $XXX,XXX the total a of gross but came There's each that as pickup through margins working the there offset benefited hindered

Gary Prestopino

I'm onetime for is that down you trying that that's said it to to understand thing service. saying the Well, services -- was ongoing? going That's year-over-year. something what trying is that what one be I'm there impacted to you're at. issue? product, because Or Was that one something you thing for get was margin

David Wilson

is a One is infrastructure There's issues. that two cost which this out-of-period margins. issue, impacted onetime $XXX,XXX

the I'd amount on -- terms investment. will costs of leverage that will hit. on is margin That terms is that's of a basis. up that $XXX,XXX a an quarter is of operating in back cost on next be and a revenue about impacted was happened more we're only there go-forward the other has this too. gross is prominent That pickup of of amount growth step Unity be The obviously versus the the increase depreciation fixed significant have we'll platform. a be will add this the thing on massive There because continue impact enjoying a there The essentially just an Unity that in thing that quarter and is noncash quarter something that taking

Gary Prestopino

it the safe that Israel dealt on impact shekel? of assume and is to Then currency the the most with

David Wilson

Yes.

Gary Prestopino

drive customer to much to adopt very Unity the about new business, point. as get logos I it's the or at How with and to Steve, assume is base Unity base helping where could stages platform? early platform? -- accept well you talk as your your trying base that the this you are maybe

Steve Towe

and insights a more more business on better, the smarter journey us lot take why is winning new predictive we why functionality to a Unity place of saw adopting the that too Plus race a too customers. of those systems sources is a consume to ability solution, data and That's for fairly are to of new terms in their platform. to Then benefit the and ways market. digital The people in unique Unity. top is on them. reasons terms that have put They fragmented have that's simplification protractive Unity then our they multiple prices AI much they to data which one with the integrate see also To single logos heritage also customers we today. sees because on business. together of consolidation for their them to existing to helping value-added number someone a Unity is it people people help modules the one. helping in It's for ease so as way operating into in lot all new us significantly people Yes. case that A now us really platforms everyone this transformation in two, able win this is that to it, are making harmonize that That be their win business. are use, and that seeing simplify different data, many looking in is differentiated want market. us previously number

What on on are Unity. feature very and the ability the In customers have integration of are premium have they more then of the that the ingestion, value-added take value-added is of to easy do top a modules top data that more the on device and path. fact, that It's they today. functions services modules

the of in that. still We upsell are early process fairly

We This the an we ARPU good now together is this That's inside part is those strategy. have of put out team going and see really conversations. uplift will just continue that sales all future. having all that in

confidence As to very date. proof points I strong are said, and the

Gary Prestopino

those into in believe third perform logistics. your outlook just the they the comment transportation. industrial each Then segments? markets, What How market for on did QX would going was briefly one I quarter? be the

Steve Towe

at We're Our by we safety or as think, logistics, not are proximity truck the strong the A terms a I delivering. commoditized Safety look pool. on we or safety we the Research just towards extremely A are we cross piece. the solutions car? the for commercial board, the the piece. have. warehouse still across would we're area about at solution us. We pedestrian that lot safety seeing whether that's stuff are We is we strong, or talked clunky -- the say, solutions look are or I and in to it warehouse video road. more solutions of solutions, ABI it the vertical, but the we a The in as alert in in sway traction warehouse

people their post-pandemic rationalizing don't overall That us growth It's We not area following end. assets that ARPU think see key of, growth that I a the is their are say, kind for lower moving I still estates. today. enjoy forward. at the needs as more we weighing up huge revenue the and

suppliers, customers fewer we're if truly best around moving in believe our QX, space, then that alongside will consolidate, that really want business of into best the the pipelines in because where we where and we win the then and the in into win traditional efforts of it. to we being solution rate telematics have is of of Moving strong.That's terms insurance, focused safety, marketing QX, sustainability terms compliance in we seeing terms design,

the nicely. strategy far, early signs coming So of are that through

Operator

this queue time, concluded. would session There to Steve at floor closing are the further like to and back has the now no now turn Q&A in remarks. I questions Towe for

Steve Towe

Everyone, insightful morning. joining you the us thanks again to for this everyone thank and questions,

next Time As hosting York City. in alongside I Thursday, Day at MiX Investor XXth, be we'll team November Eastern p.m. New the an X:XX mentioned,

take with all next please information. this with from many touch you in Gateway event, to interested you of look week get you the attending We you're to and care in forward If who seeing our Investor necessary talk then, Glover until soon. Relations can provide Group, Matt representative,

Operator

joining today presentation. for for our you us Thank

disconnect. now may You

PowerFleet (AIOT) 9 Nov 232023 Q3 Earnings call transcript