On August 5, 2024, PowerFleet Inc (AIOT, Financial) released its 8-K filing announcing preliminary financial results for the first quarter of fiscal 2025, ended June 30, 2024. The company also raised its fiscal 2025 annual guidance.
PowerFleet Inc is engaged in Internet-of-Things (IoT) solutions providing valuable business intelligence for managing high-value enterprise assets that improve operational efficiencies. It provides critical information that powers unified operations throughout organizations. It is solving the challenge of inefficient data collection, real-time visibility, and analysis that leads to transformative business operations. Its SaaS cloud-based applications take data from IoT devices and an ecosystem of third-party and partner applications to present actionable information for customers.
Preliminary Q1 Fiscal 2025 Results
PowerFleet anticipates reporting preliminary revenue for the first quarter of fiscal 2025 of approximately $75 million, representing a 10% increase compared to the combined revenue of PowerFleet Inc and MiX Telematics Ltd. in the same period last year. This figure surpasses the analyst estimate of $69.83 million.
Additionally, preliminary pro forma adjusted EBITDA, a non-GAAP metric, is projected to exceed $13.5 million, exclusive of $14 million in one-time expenses, reflecting an increase of over 40% versus the combined adjusted EBITDA from the prior year’s comparable period.
However, the preliminary pro forma net loss attributable to common stockholders for the first quarter of fiscal 2025 is expected to be approximately $23 million, inclusive of $21 million in transaction, restructuring, and other one-time costs and accelerated stock-based compensation.
Financial Position and Guidance
As of June 30, 2024, the company held net debt of approximately $114 million, after accounting for $6 million in unsettled one-time transaction costs.
PowerFleet is increasing its full-year fiscal 2025 guidance, forecasting revenue now to exceed $300 million versus prior guidance of approximately $300 million and adjusted EBITDA to exceed $60 million, which includes an incremental $5 million in secured exit run-rate cost synergies, versus the prior guidance of approximately $60 million.
Challenges and Delays
The company announced a delay of its earnings call for the first fiscal quarter ended June 30, 2024, originally scheduled for August 8, 2024. This follows the receipt of a comment letter from the U.S. Securities and Exchange Commission (SEC) requesting additional information regarding PowerFleet’s determination of the accounting acquirer in the recent business combination with MiX Telematics Ltd. This accounting issue is not expected to have any impact on the company’s cash flows.
PowerFleet is actively collaborating with its auditors, financial, and legal advisors to address the SEC’s comment and targets to resolve this matter within the month of August. However, this ongoing process will delay the company’s ability to file its Transition Report on Form 10-KT for the period from January 1 to March 31, 2024, as well as its Form 10-Q for the first fiscal quarter of 2025 ended June 30, 2024.
Preliminary Pro Forma Results for Fiscal 2024
On a preliminary and pro forma basis, assuming the MiX Telematics Ltd. business combination closed on April 1, 2023, management expects to report total fiscal 2024 revenue of approximately $287 million.
Preliminary pro forma fiscal 2024 Adjusted EBITDA, a non-GAAP metric, is expected to be approximately $43 million, excluding $14 million in one-time expenses.
Preliminary fiscal 2024 pro forma net income/loss attributable to common stockholders is expected to total approximately $36 million, inclusive of $14 million in transaction, restructuring, and other one-time costs.
Conclusion
PowerFleet Inc's preliminary results for Q1 fiscal 2025 show promising growth in revenue and adjusted EBITDA, despite the challenges posed by the SEC's comment letter. The company's increased guidance for fiscal 2025 reflects confidence in its operational efficiencies and cost synergies. Investors will be keenly watching for the resolution of the SEC's comments and the subsequent detailed financial filings.
Explore the complete 8-K earnings release (here) from PowerFleet Inc for further details.
