PowerFleet, Inc. (NASDAQ:PWFL) Q3 2023 Earnings Call Transcript

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And this is all kind of ARPU uplift, that we will see continue in the future. So that’s all part of this strategy. And as I said, the confidence and proof points are very strong to-date.

Gary Prestopino: Okay. Thank you. And then, just briefly comment on your markets, industrial logistics. I believe the third one is transportation. What — how did they each perform in the quarter? And what would be the outlook going into Q4 for those market segments?

Steve Towe: Yeah. So our safety solutions across the board, whether that safety in the warehouse or safety on the road, — so we look at it not just by vertical, but — and kind of are we in the warehouse or are we truck or are we like commercial or are we a car? We look at it as kind of the solutions we’re delivering. So safety solutions across the piece, we’re seeing extremely strong traction pool, a lot in the warehouse in terms of The Pedestrian Proximity alert solutions that we have, and a strong kind of, I think, Sway towards video solutions as we talked about the ABI Research piece. The logistics kind of, I would say, more commoditized stuff is still the clunky area for us. And I think people are still weighing up their overall needs, following the post-pandemic and rationalizing their assets estate.

So we don’t see a huge growth at that end. But that is more kind of, as I say the lower ARPU revenue that we enjoy today. But it’s not kind of the key growth area for us moving forward. So moving into Q4, moving into Q1, we’re seeing pipelines around safety, insurance, sustainability and compliance as really strong. And that’s where we focused our efforts, in terms of Solution Design, in terms of Marketing and in terms of being the best of the best, because we truly believe that if we win the rate in that space, then where customers want to consolidate have fewer suppliers, then we will win the Traditional Telematics Business alongside it. And so far, the early signs of that strategy are coming through nice.

Gary Prestopino: Thank you.

Operator: Thank you. And there are no further questions in queue at this time. And the Q&A session has now concluded. I would now like to turn the floor back to Steve Towe, for closing remarks. Sorry, Steve, just turning the floor back to Steve for closing remarks at this time.

Steve Towe: Thank you. Sorry, I had a slight audio problem there. So everyone, thank you for the insightful questions, and thanks again to everyone joining us this morning. As I mentioned, we’ll be hosting an Investor Day, alongside The MiX Telematics, Thursday, November 16, at 2:00 PM Eastern Time in New York City. If you’re interested in attending this event, please get in touch with our Investor Relations representative, Matt Glover from Gateway Group, who can provide you with all the necessary information. We look forward to seeing many of you at week, until then, take care and talk to you soon.

Operator: Thank you for joining us today for our presentation. You may now disconnect.

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