PowerFleet, Inc. (NASDAQ:PWFL) Q3 2022 Earnings Conference Call November 8, 2022 8:30 AM ET

Company Participants

Steve Towe - Chief Executive Officer

Joaquin Fong - Principal Financial Officer

Conference Call Participants

Scott Searle - ROTH Capital Partners

Michael Walkley - Canaccord Genuity

Maxwell Michaelis - Lake Street Capital Markets

Gary Prestopino - Barrington Research

Operator

Good morning. Welcome to PowerFleet's Third Quarter 2022 Conference Call. Joining us for today's presentation is the company's CEO, Steve Towe; and Principal Financial Officer, Joaquin Fong. Following their remarks, we will open the call for questions.

Before we begin the call, I would like to provide PowerFleet's safe harbor statement that includes cautions regarding forward-looking statements made during this call. During the call, there will be forward-looking statements made regarding future events, including PowerFleet's future financial performance. All statements other than present and historical facts, which include any statements regarding the company's plans for future operations, anticipated future financial position, anticipated results of operation, business strategy, competitive position, company's expectations regarding opportunities for growth, demand for the company's product offerings and other industry trends are considered forward-looking statements. Such statements include, but are not limited to, the company's financial expectations for 2022 and beyond. All such forward-looking statements imply the presence of risks and uncertainties and contingencies, many of which are beyond the company's control.

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

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

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

Steve Towe

Thank you, operator, and good morning, everyone. Thank you for joining PowerFleet's third quarter conference call. As you can see from our earnings release, the transformation of our business is being successfully executed as we delivered another quarter of very encouraging and healthy financial performance across the board.

We grew revenue 17% year-over-year, gross profit by 20% and generated strong adjusted EBITDA profitability. In fact, Q3 marked the fourth consecutive quarter of year-over-year revenue growth for our company. In addition to our top line growth, our rationalization initiatives are enhancing our organization's efficiency and profitability, producing a 23% sequential improvement in loss from operations, totaling a 68% positive shift from Q1 to Q3 in 2022. Ahead of schedule of success, an unwavering determination for improvement in this area has positioned us well to cross over to profitability on an operating basis in the first half of next year and is also supporting accelerated reinvestment in both go-to-market expertise and advanced software development.