The transport software company Eroad has reported a full year loss due a number of one-off costs following its acquisition of Coretex.
Photo: RNZ / Dom Thomas
Eroad supplies devices and software for trucking companies to manage fleets, maintenance, driver hours, and road user charges, as well as dashboard cameras.
Key numbers for the year ended March compared to a year ago:
- Net loss of $9.6m vs net profit of $2.5m
- Revenue $114.9m vs $91.6m
- Underlying profit $21m vs $30.4m
- Operating expenses $93.9m vs $61.2m
"Eroad has made significant progress accelerating its growth strategies and delivered on its FY22 financial result despite challenging macro-economic conditions and a number of one-off impacts,' acting chief executive Mark Heine said.
These one-off costs included a bump in labour, administrative and operating expense following the acquisition of Coretex, which produces software to manage fuel consumption, speed and monitor driver's habits.
The company increased its number of contracted units by 64 percent to 208,967 reflecting the merger with Coretex, which added 66,157 units
North American growth slowed prior to the merger of Coretex as Eroad experienced high churn from its small-to-medium size customers through the 3G to 4G upgrade programme, it said.
"Growth gained momentum following the merger with Coretex, which improved ERoad's product market fit and increased capability to win enterprise customers," the company said.
Eroad said it was now in the "final stages" of appointing a new chief executive, after the company's previous leader, Steven Newman, resigned in April.
Looking ahead, the company said revenue growth in the year ahead would reflect the lumpy nature of enterprise sales and the phasing of the hardware roll-outs.
"It is anticipated Revenue will be between $150m to $170m, reflecting the contribution of a full year of Coretex and continued growth across all the markets."
Eroad would continue to invest in its business and was expecting to break even or make a loss of up to $5m.
Longer term, it was targeting revenue of at least $250m by FY25.