EROAD has grown reported revenue 52% to $174.9 million for its full-year result.
The transport technology company’s results were in line with guidance and reflected a full 12-month contribution from Coretex following its acquisition in December 2021.
It posted a total net loss of $3m compared to a net loss of $9.6m in the previous year.
Reported earnings before interest and taxes (EBIT) recovered from a loss of $7.2m in FY22 to a profit of $1.7m, reflecting the recognition of one-off acquisition revenue and integration costs.
Normalised EBIT saw a loss of $4.5m at the midpoint of the company’s guidance (loss between $3m and $6m).
Annualised monthly recurring revenue increased 14.2% to $153.7m, reflecting growth across all markets and a foreign exchange benefit of $8.6m.
Operational highlights included a high asset retention at 94.8% (NZ 96%; AU 97%; NA 93%). The company also celebrated key client wins during the year including Sysco in North America (over 9k connections), Fonterra in New Zealand (taking the full product suite including cameras, Ehubo, and satellite), and the renewal of ABC in North America (6k connections).
Following a strategic review which commenced in November 2022, management is targeting positive free cash flow by FY26 by “right sizing” the cost base and better capitalising on significant growth opportunities in its key markets. The company cut costs by $10m (annualised) in FY23 with an additional $10m (annualised) targeted in FY24.
In New Zealand, the company renewed plans with 1092 customers in FY23, representing a total of 28,631 units renewed for another term. This included enterprise customers Bidfood (735) and Higgins (496) renewing their contracts.
Chief executive Mark Heine says the team’s “dedication to strategic discipline and execution in FY23 has paid off”.
“I am proud to report that our financial results have met the market guidance we provided 12 months ago, demonstrating our commitment to delivering on our promises.
“I continue to believe EROAD is building the right foundations for future growth. As a result of our strategic business model review, we are shifting to a segmented customer service model, refining R&D priorities, right-sizing the cost base while growing revenues and focusing on differentiating to win enterprise clients in North America.
“We have a highly motivated, refreshed and talented team and we can successfully execute this strategic approach within our current funding headroom,” Heine says.
