EROAD has reported a net loss of $1.5 million for its half year results while lifting operations to be cash flow positive.
The NZX- and ASX-listed transport technology firm achieved positive free cashflow of $0.1m for the six months to September 30 compared to negative free cash flow of $0.2m in the same period last year.
The company says it’s now consistently free cash flow positive as a result of growth in units, price increases and cost control.
Revenue for the half year period was up 8% year-on-year to $95.9m with growth reflected in all its markets.
Customer retention sits at 92.8% compared to 94.2% in the same period last year. The half year period saw a major enterprise customer renew more than 6000 connections in its New Zealand fleet and expanded their Australian fleet with more than 5000 connections.
Another highlight for the period was EROAD signing a strategic partnership with Canadian-based telematics provider Geotab to target new opportunities in the light commercial vehicle sector.
The company says it remains on track to meet its FY25 financial guidance which includes revenue between $190m-$195m, normalised EBIT between $5m-$10m, remaining cash flow positive and R&D spend of $35m.
Co-CEOs Mark Heine and David Kenneson say it’s been another six months of “solid execution against our strategy, with the core business in Australia and New Zealand delivering excellent free cash flow, costs well managed, and significant work put into strengthening the North America sales pipeline”.
“We’ve expanded our product suite, including the new and innovative AI dashcam. Our recent strategic partnership with Geotab also illustrates how we can grow our addressable market by partnering to augment our product solutions and meet diverse fleet needs.
“While pleased, we have a long way to go to meet our ambitions for sustainable, long-term growth in shareholder value. For the remainder of the FY25 year, we will be maintaining our focus on customers, on disciplined execution, on cost control, on targeting sustainable growth opportunities and on building out the sales and conversion pipeline,” they say.
