EROAD is reporting more than 50% growth in total contracted units for the three months to December 31.
The transportation technology services company grew by 70,736 units in the quarter (up 53.3%), ending with 203,439 units.
It also saw the acquisition of Coretex successfully completed on November 30 and the company says integration is on track with initial focus on building sales in the North America market. This has “significantly improved” EROAD’s North America market position and growth potential, it says.
In New Zealand, contracted growth was 11,165 units for the quarter. This reflects the 7637 units acquired at November 30, the continued roll out of several enterprise fleets won in Q2 FY22, a new bus fleet won and largely installed in the quarter, as well as ongoing small and medium size customer run-rate growth.
Over the quarter, North America units increased by 50,725 reflecting the 50,628 Coretex units brought on with the acquisition. Gross organic sales of 2091 included an enterprise customer win of around 500 units. This was offset by customer churn including the loss of around 650 units with an enterprise customer which ended its agreement with EROAD after both parties were unable to reach mutually agreeable renewal terms. Ongoing impacts also include driver shortages, broader macro-economic concerns and continued fleet reduction.
Coretex delivered a further 671 net units in December, and also has signed contracts across the construction, mixed fleet and refrigeration segments for around 2600 additional units which commence roll out in Q4 FY22. The North American business currently has five enterprise customer pipeline opportunities at the pilot stage relating to potential opportunities totalling over 23,000 units.
Australia grew by 8846 units over the quarter reflecting both the Coretex acquisition (7892 units added at November 30) and the roll out of enterprise customer Ventia. EROAD has now dispatched around 97% of the Ventia Australian units, and roll-out is expected to complete this quarter. Operating conditions have become “more challenging” since December with the Omicron COVID-19 wave impacting EROAD staff and customers, it says. There are three ongoing enterprise customer pipeline opportunities at the pilot stage due to conclude in Q4 FY22 relating to opportunities for around 1400 units and 13,000 microtags.
