Executive Summary
PowerFleet delivered a modest revenue uptick in Q1 2024, with revenue of $33.74 million reflecting a 2.74% year-over-year increase, but a -2.63% quarter-over-quarter decline. The gross margin remained healthy at roughly 48.0%, underscoring a durable product-cost structure, but the company incurred substantial operating expenses that drove a negative EBITDA of $5.5 million and a net loss of $19.64 million for the quarter. Management commentary in the quarter’s materials (where available) suggests continued investment in R&D and go-to-market activities tied to the company’s SaaS and IoT platforms, which are essential for scaling recurring revenue streams. The result is a pronounced shift from gross profitability to on-going operating losses, highlighting the need for top-line acceleration and operating leverage to reach profitability in the near to medium term.
Key Performance Indicators
QoQ: -78.84% | YoY:-304.18%
QoQ: -417.77% | YoY:-511.81%
QoQ: -66.65% | YoY:-266.65%
Key Insights
Revenue: $33.74m (+2.74% YoY; -2.63% QoQ). Gross Profit: $16.203m; Gross Margin: ~48.02% (YoY -2.50%; QoQ -6.39%). Operating Income: -$7.647m; Operating Margin: -22.66%. EBITDA: -$5.50m; EBITDARatio: -16.30%. Net Income: -$19.639m; Net Margin: -58.21%. EPS: -$0.1833 (diluted). Weighted Avg Shares: 107.439m. Key contributors to the earnings delta include Selling, General & Administrative expenses of $21.832m (≈64.7% of revenue) and Research & Development of $2.018m, with depreciation &a...
Financial Highlights
Revenue: $33.74m (+2.74% YoY; -2.63% QoQ). Gross Profit: $16.203m; Gross Margin: ~48.02% (YoY -2.50%; QoQ -6.39%). Operating Income: -$7.647m; Operating Margin: -22.66%. EBITDA: -$5.50m; EBITDARatio: -16.30%. Net Income: -$19.639m; Net Margin: -58.21%. EPS: -$0.1833 (diluted). Weighted Avg Shares: 107.439m. Key contributors to the earnings delta include Selling, General & Administrative expenses of $21.832m (≈64.7% of revenue) and Research & Development of $2.018m, with depreciation & amortization of $1.943m and interest expense of $0.709m. Cash-flow proxies indicate negative operating cash flow per share (-$0.00592) and negative free cash flow per share (-$0.0600), suggesting cash burn on a per-share basis despite no disclosed debt in the period.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
33.74M |
2.74% |
-2.63% |
| Gross Profit |
16.20M |
-2.50% |
-6.39% |
| Operating Income |
-7.65M |
-304.18% |
-78.84% |
| Net Income |
-19.64M |
-511.81% |
-417.77% |
| EPS |
-0.18 |
-266.65% |
-66.65% |
Key Financial Ratios
operatingProfitMargin
-22.7%
operatingCashFlowPerShare
$-0.01
freeCashFlowPerShare
$-0.06
Management Commentary
No earnings call transcript provided in the supplied data.
Forward Guidance
No explicit forward guidance included in the provided data. Given the revenue trajectory and the ongoing investment in R&D and GTM activities, the near-term path hinges on achieving material improvements in gross-to-operating leverage, expanding recurring SaaS revenue, and sustaining customer adoption of the PowerFleet, Pointer, and Cellocator platforms. Investors should monitor management commentary for any stated targets on revenue growth rate, gross margin stability, operating expense discipline, and cash burn improvements. Absent formal guidance, the framework remains contingent on top-line acceleration and operating leverage in the back half of 2024 and into 2025.