Executive Summary
PowerFleet reported Q4 2023 revenue of $34.652 million, up 4.64% year-over-year and 1.34% quarter-over-quarter, supported by a gross margin of approximately 50%. Despite top-line growth, the company produced an operating loss of $4.276 million and a net loss of $3.793 million, with an EPS of -$0.11. EBITDA was negative at -$1.73 million, reflecting high selling, general and administrative (SG&A) expense relative to gross profit. The company generated positive operating cash flow of $4.629 million and delivered free cash flow of $2.889 million after roughly $1.74 million in capital expenditures. The balance sheet remains healthy, with cash and equivalents around $19.0 million and modest indebtedness, contributing to a current ratio of 1.40 and a debt-to-capitalization of ~16.6%. Management commentary is not available in the provided data, so the analysis leans on the visible metrics and industry dynamics in IoT asset management. The results suggest a business transitioning toward higher software and services content, while profitability improvements will hinge on SG&A efficiency, product mix, and accelerating software revenue.
Key Performance Indicators
QoQ: -31.29% | YoY:-242.90%
QoQ: -3.24% | YoY:-128.91%
QoQ: -10.00% | YoY:-135.55%
Key Insights
Revenue: $34.652 million in Q4 2023, YoY +4.64%, QoQ +1.34%. Gross Profit: $17.309 million; Gross Margin: 49.95%. Operating Income: -$4.276 million; Operating Margin: -12.34%. EBITDA: -$1.730 million; EBITDARatio: -4.99%. Net Income: -$3.793 million; Net Margin: -10.95%. EPS: -$0.11 (diluted -$0.11). Cash Flow: Operating Cash Flow $4.629 million; Capex $1.740 million; Free Cash Flow $2.889 million. Balance Sheet: Cash and cash equivalents $19.022–$19.332 million range, Total Assets $217.746 mi...
Financial Highlights
Revenue: $34.652 million in Q4 2023, YoY +4.64%, QoQ +1.34%. Gross Profit: $17.309 million; Gross Margin: 49.95%. Operating Income: -$4.276 million; Operating Margin: -12.34%. EBITDA: -$1.730 million; EBITDARatio: -4.99%. Net Income: -$3.793 million; Net Margin: -10.95%. EPS: -$0.11 (diluted -$0.11). Cash Flow: Operating Cash Flow $4.629 million; Capex $1.740 million; Free Cash Flow $2.889 million. Balance Sheet: Cash and cash equivalents $19.022–$19.332 million range, Total Assets $217.746 million, Total Liabilities $79.825 million, Total Stockholders’ Equity $137.819 million. Liquidity: Current Ratio 1.401, Quick Ratio 0.918, Cash Ratio 0.325. Leverage: Total Debt $27.502 million; Long-Term Debt $4.908 million; Net Debt $8.48 million; Debt/Equity 0.20; Debt/Capitalization 0.166. Activity metrics: DSO 90.15 days, Inventory Days 117.29, DIO 207.44, DPO 99.82, CCC 207.44 days. Valuation cues: P/S ~3.32, P/B ~0.84, P/E negative; FCF per share $0.0822.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
34.65M |
4.64% |
1.34% |
| Gross Profit |
17.31M |
5.80% |
1.13% |
| Operating Income |
-4.28M |
-242.90% |
-31.29% |
| Net Income |
-3.79M |
-128.91% |
-3.24% |
| EPS |
-0.11 |
-135.55% |
-10.00% |
Key Financial Ratios
operatingProfitMargin
-12.3%
operatingCashFlowPerShare
$0.13
freeCashFlowPerShare
$0.08
dividendPayoutRatio
-29.7%
Management Commentary
No earnings call transcript was provided in the data set. As a result, management commentary and quotes from the QQ4 2023 call are not available here. The synthesis therefore relies on disclosed financials and ratios to infer themes (e.g., margin pressure from SG&A vs. gross profit, cash flow resilience from working capital improvements) and to flag areas where management commentary would normally be expected (growth drivers, backlogs, customer concentration, and guidance).
Forward Guidance
No explicit forward guidance was provided in the supplied data. Based on the QQ4 2023 results, the company demonstrated topline resilience with a 4.6% YoY revenue uplift and meaningful positive operating cash flow, suggesting potential for cash generation to fund strategic initiatives. Key factors that would influence the outlook include: (1) sustaining gross margins around 50% while bringing SG&A as a percentage of revenue down toward industry benchmarks for IoT hardware/software providers, (2) accelerating software-as-a-service and maintenance/revenue from hosted services to lift profitability, (3) improving working capital efficiency to further enhance cash flow, and (4) managing customer mix and contract terms to reduce earnings volatility. Investors should monitor potential initiatives around product diversification, geographic expansion, and any potential acquisitions that could scale software and services revenue. Without explicit guidance, the outlook depends on execution cadence in cost control and revenue mix optimization.