CalAmp Corp. (NASDAQ:CAMP) Q4 2022 Earnings Conference Call April 28, 2022 5:00 PM ET

Company Participants

Joel Achramowicz - Managing Director of The Shelton Group, Investor Relations

Jeff Gardner - President and Chief Executive Officer

Kurt Binder - Chief Financial Officer

Conference Call Participants

George Notter - Jefferies

Scott Searle - ROTH Capital

Mike Walkley - Canaccord Genuity

Aditya - Northland Capital

Orin Hirschman - AIGH Investment Partners

Jerry Revich - Goldman Sachs

Operator

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.

Joel Achramowicz

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

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

Now Jeff will begin today’s call with a review of the company’s operational highlights and then Kurt will provide a more detailed review of the financial results followed by a question-and-answer session.

With that, it’s my great pleasure to turn the call over to CalAmp’s President and CEO, Jeff Gardner. Jeff, please go ahead.

Jeff Gardner

Thank you, Joel, and thanks to all of you for joining us on the call today. We ended our 2022 fiscal year, with software and subscription services revenue of $41.2 million in the fourth quarter, representing a record 60% of our total consolidated revenue of $68.4 million. Total revenue in the quarter was essentially flat with the prior quarter, as the strengthen in our software and subscription services revenue offset a decline in telematics products revenue. This represents the third consecutive quarter our software and subscription services revenue exceeded 50% of total revenue. Our SaaS business remains strong, as we continue to transition an increasing number of our telematics-device-only customers to recurring subscription contracts with our new device management SaaS application, while also securing new logos. In the fourth quarter alone, we converted approximately one-fifth of our eligible device customers to recurring contracts, and we expect to convert the remainder over the coming fiscal year. Our efforts to bring in new subscription business is evidenced by securing of new customers such as ComNet [Phonetic] and Cooltrax, and a recently announced strategic partnership with Noregon, among others.