Powerfleet, Inc. (Nasdaq: AIOT) has announced its financial results for the second quarter ended September 30, 2024, marking the second full quarter following the business combination with MiX Telematics Ltd. The company reported a 7% increase in revenue to $77.0 million compared to the same period last year. Adjusted EBITDA also saw significant growth, rising by 41% to $14.5 million year-over-year.
The first half of FY25 also exceeded expectations, with revenue up 9% to $152.4 million and Adjusted EBITDA up 46% to $28.2 million compared to the previous year. Powerfleet achieved 50% of its two-year annualized cost synergy target of $27 million within six months of the MiX combination.
The strong financial performance is attributed to the continued strength of Powerfleet’s Unity safety solutions, with product revenue increasing by 13% to $20.3 million and service revenue growing by 5% to $56.7 million. The company realized $13.5 million in annual cost synergies within the first six months of the MiX combination, resulting in a decline of over 5% in adjusted operating expenses.
CEO Steve Towe expressed optimism about the integration of the MiX combination and the strategic opportunities presented by the recent Fleet Complete acquisition. He highlighted the company’s focus on maximizing efficiency, driving top-line revenue expansion, and enhancing customer retention. Towe also emphasized the adoption of Powerfleet’s Unity platform, in-warehouse solutions, and AI camera offerings to meet growing demand globally.
Powerfleet reaffirmed its full-year 2025 financial outlook, with revenue expected to exceed $352.5 million and Adjusted EBITDA anticipated to exceed $72.5 million, inclusive of secured exit run-rate cost synergies. The company’s guidance reflects Fleet Complete’s pre-acquisition accounting treatment, subject to review as it aligns with US GAAP standards.
Powerfleet will hold a conference call on November 12, 2024, to discuss the second quarter fiscal 2025 results. The company’s non-GAAP financial measures, including adjusted EBITDA, adjusted gross margin, and adjusted operating expenses, are provided to enhance investors’ understanding of its financial performance.