Executive Summary
PowerFleet reported strong revenue growth in QQ3 2024, with revenue of $77.018 million, gross profit of $41.343 million and a gross margin of 53.7%. The quarter produced positive operating income of $0.573 million and EBITDA of $2.415 million, underscoring early operating leverage as revenue scales. However, net income remained negative at $1.889 million driven by financing costs and one-time tax dynamics, resulting in a negative earnings per share of -$0.0176. On the cash flow front, the company generated $4.629 million from operations and $2.889 million in free cash flow, while maintaining a solid cash balance of $19.332 million at period end. Balance sheet liquidity remains favorable with a current ratio of 1.71 and quick ratio of 1.51, and leverage remains modest (debt-to-capitalization ~0.257) with ample cash to fund growth initiatives. The market still assigns a premium to AIOT on a price-to-sales basis (~6.98x) reflecting expectations of continued top-line growth and scale-driven margin improvement. Management commentary (where available) was not provided in the data set; as such, the analysis relies primarily on the disclosed financials and sector context to gauge the earnings trajectory.
Key Performance Indicators
QoQ: 103.14% | YoY:114.79%
Key Insights
Revenue: $77.018m (+YoY 122.9%, +QoQ 2.1%); Gross Profit: $41.343m (+YoY 137.9%, +QoQ 4.3%); Operating Income: $0.573m (+YoY 114.8%, +QoQ 103.1%); EBITDA: $2.415m (+YoY not disclosed in data; QoQ not disclosed); Net Income: -$1.889m (YoY improvement vs. prior-year loss); EPS: -$0.0176 (YoY +43.9%, QoQ +91.6%); Gross Margin: 53.68%; Operating Margin: 0.74%; EBITDA Margin: 3.14%; Net Margin: -2.45%; Cash from Operations: $4.629m; Free Cash Flow: $2.889m; Cash at Period End: $19.332m; Current Ratio...
Financial Highlights
Revenue: $77.018m (+YoY 122.9%, +QoQ 2.1%); Gross Profit: $41.343m (+YoY 137.9%, +QoQ 4.3%); Operating Income: $0.573m (+YoY 114.8%, +QoQ 103.1%); EBITDA: $2.415m (+YoY not disclosed in data; QoQ not disclosed); Net Income: -$1.889m (YoY improvement vs. prior-year loss); EPS: -$0.0176 (YoY +43.9%, QoQ +91.6%); Gross Margin: 53.68%; Operating Margin: 0.74%; EBITDA Margin: 3.14%; Net Margin: -2.45%; Cash from Operations: $4.629m; Free Cash Flow: $2.889m; Cash at Period End: $19.332m; Current Ratio: 1.712; Quick Ratio: 1.506; DSO: 87.06 days; DIO: 59.25 days; DPO: 105.51 days; CCC: 40.81 days; Debt/Capitalization: 0.257; Interest Coverage: 0.142x; P/S: 6.98x; P/B: 1.192x; P/E: negative; Dividend Yield: 0.164%
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
77.02M |
122.92% |
2.11% |
| Gross Profit |
41.34M |
137.92% |
4.28% |
| Operating Income |
573.00K |
114.79% |
103.14% |
| Net Income |
-1.89M |
46.12% |
91.55% |
| EPS |
-0.02 |
43.89% |
91.62% |
Key Financial Ratios
operatingProfitMargin
0.74%
operatingCashFlowPerShare
$0.05
freeCashFlowPerShare
$0.09
dividendPayoutRatio
-4663%
priceEarningsRatio
-71.19
Management Commentary
Transcript data not provided in the supplied materials. As a result, no management quotes or thematic quotes from the QQ3 2024 earnings call are available for inclusion. The synthesis below reflects the disclosed financials and typical management guidance themes observed in Technology IoT peers (growth in SaaS and recurring revenue, market expansion, and cost discipline) where applicable.
Transcript not provided for QQ3 2024 results; unable to extract quotes.
— N/A
Transcript not provided for QQ3 2024 results; unable to extract quotes.
— N/A
Forward Guidance
No formal forward guidance was disclosed in the QQ3 2024 results within the provided data. Investors should monitor: (1) trajectory of recurring SaaS revenue contribution versus hardware revenue; (2) gross margin sustainability and potential expansion as revenue scales; (3) operating expense discipline to convert revenue growth into earnings; (4) financing costs and interest expense dynamics given the very low interest coverage (0.142x); (5) working capital management given elevated DSO and CCC. If management provides targets on revenue mix, gross margin, and EBITDA progression in upcoming communications, those will be key indicators of the company’s ability to reach a more favorable profitability profile.