PowerFleet, Inc. reported significant financial growth for the three and six months ended September 30, 2024, largely driven by its acquisition of MiX Telematics, which became a wholly owned subsidiary on April 2, 2024. Total revenues surged to $77.0 million for Q3 2024, a 124.9% increase from $34.2 million in Q3 2023. For the six-month period, revenues reached $152.4 million, up 129.8% from $66.3 million in the same period last year.

Product revenues rose to $20.3 million in Q3 2024, a 53.4% increase, while service revenues skyrocketed by 170.0% to $56.7 million, with the MiX acquisition contributing significantly to both categories. The gross profit for Q3 2024 was $41.3 million, compared to $17.1 million in Q3 2023, resulting in a gross profit margin increase to 53.7% from 50.0%. However, total operating expenses also rose sharply to $40.8 million, up from $20.2 million in Q3 2023, primarily due to the integration costs associated with MiX Telematics.

Despite the revenue growth, PowerFleet reported a net loss attributable to common stockholders of $1.9 million, or $(0.02) per share, for Q3 2024, an improvement from a net loss of $6.5 million, or $(0.18) per share, in Q3 2023. For the six months ended September 30, 2024, the net loss was $24.2 million, or $(0.23) per share, compared to a net loss of $12.7 million, or $(0.36) per share, for the same period in 2023.

The company’s total assets increased significantly from $308.7 million as of March 31, 2024, to $748.3 million by September 30, 2024, reflecting the impact of the MiX acquisition. Total liabilities also rose from $179.8 million to $297.2 million during the same period. Cash and cash equivalents, along with restricted cash, totaled $89.0 million as of September 30, 2024, bolstered by proceeds from a private placement.

PowerFleet has also initiated a remediation plan to address identified material weaknesses in its internal control over financial reporting, which were noted as ineffective as of September 30, 2024. The company is focusing on refining control processes in conjunction with the operational integration of MiX Telematics and Fleet Complete, which was acquired on October 1, 2024, for $200 million.

Overall, while PowerFleet has made substantial strides in revenue growth and market expansion through strategic acquisitions, it continues to face challenges in profitability and operational integration.