PowerFleet Inc (AIOT) 2022 Q4 法說會逐字稿

Good morning, and welcome to PowerFleet's Fourth Quarter and Full Year 2022 Conference Call. Joining us for today's presentation is the company's CEO, Steve Towe; and CFO, David Wilson. Following their remarks, we will open the call for questions. Before we begin the call, I would like to provide PowerFleet's safe harbor statement that includes cautions regarding forward-looking statements made during this call. During the call, there will be forward-looking statements made regarding future events, including PowerFleet's future financial performance.

早上好，歡迎來到 PowerFleet 的第四季度和 2022 年全年電話會議。與我們一起參加今天的演講的是該公司的首席執行官 Steve Towe；和首席財務官大衛·威爾遜。在他們發言之後，我們將開始提問。在我們開始通話之前，我想提供 PowerFleet 的安全港聲明，其中包括有關本次通話期間所做的前瞻性陳述的警告。在電話會議期間，將對未來事件做出前瞻性陳述，包括 PowerFleet 未來的財務業績。

All statements other than present and historical facts, which include any statements regarding the company's plan for future operations, anticipated future financial position, anticipated results of operation, business strategy, competitive position, company's expectations regarding opportunities for growth, demand for the company's product offering and other industry trends are considered forward-looking statements. Such statements include, but are not limited to the company's financial expectations for 2023 and beyond. All such forward-looking statements imply the presence of risks, uncertainties, and contingencies, many of which are beyond the company's control. The company's actual results, performance, or achievements may differ materially from those projected or assumed in any forward-looking statements.

除當前和歷史事實之外的所有陳述，包括關於公司未來運營計劃、預期未來財務狀況、預期經營結果、業務戰略、競爭地位、公司對增長機會的預期、對公司產品供應的需求的任何陳述和其他行業趨勢被視為前瞻性陳述。此類聲明包括但不限於公司對 2023 年及以後的財務預期。所有此類前瞻性陳述都暗示存在風險、不確定性和或有事件，其中許多超出了公司的控制範圍。公司的實際結果、業績或成就可能與任何前瞻性陳述中的預測或假設存在重大差異。

Factors that could cause actual results to differ materially could include, amongst others, SEC filings, overall economic and business conditions, demand for the company's products and services, competitive factors, emergence of new technologies, and the company's cash position. The company does not intend to undertake any duty to update any forward-looking statements to reflect future events or circumstances. Finally, I would like to remind everyone that this call will be made available for replay in the Investor Relations section of the company's website at www.powerfleet.com. Now, I would like to turn the call over to PowerFleet's CEO, Mr. Steve Towe. Sir, please proceed.

可能導致實際結果出現重大差異的因素包括美國證券交易委員會備案文件、整體經濟和商業狀況、對公司產品和服務的需求、競爭因素、新技術的出現以及公司的現金狀況。公司無意承擔更新任何前瞻性陳述以反映未來事件或情況的任何義務。最後，我想提醒大家，本次電話會議將在公司網站 www.powerfleet.com 的投資者關係部分進行重播。現在，我想把電話轉給 PowerFleet 的首席執行官 Steve Towe 先生。先生，請繼續。

Good morning, and thank you for joining us today. It's a pleasure to be speaking with you once again. It's been a rigorous and exciting first year since I joined the company. I'm incredibly proud of the progress the team has made on the journey of transforming PowerFleet towards our mid- to a long-term goal of being recognized as a world-class, high-growth, and profitable SaaS solutions provider. The Board and I are highly encouraged by the progress we've made to date, executing our strategy to turn around the business in the first two years of my tenure as CEO. We're ahead of schedule and executing well on the mission. As a reminder, my initial priorities were as follows.

早上好，感謝您今天加入我們。很高興再次與您交談。自從我加入公司以來，這是嚴謹而激動人心的第一年。我為團隊在將 PowerFleet 轉變為我們的中長期目標——被公認為世界級、高增長和盈利的 SaaS 解決方案提供商的過程中取得的進展感到無比自豪。董事會和我對我們迄今取得的進展感到非常鼓舞，在我擔任首席執行官的頭兩年執行我們的戰略來扭轉業務。我們提前完成了任務並且執行得很好。提醒一下，我最初的優先事項如下。

First, we needed to make dramatic improvements to the caliber and experience of the leadership team in order to become a true IoT SaaS company. Second, we needed to develop a unified SaaS platform strategy that delivers great value for clients, improves our margins, and expands the total available market for our solutions. Third, we need to show evidence that we could drive sales execution and top-line traction in high-value markets and vertical segments. As we move towards the next phases of our transformation plan, we have been focusing heavily on expense containment and rationalizing certain geographies and product lines that we believe are incapable of driving sufficient rates of return and cash flow. In turn, we've been creating strategies for redeploying cost savings to accelerate our product and sales plans in the highest ROI business areas.

首先，我們需要大幅提升領導團隊的素質和經驗，才能成為真正的物聯網SaaS公司。其次，我們需要製定統一的 SaaS 平台戰略，為客戶提供巨大價值，提高我們的利潤率，並擴大我們解決方案的總可用市場。第三，我們需要證明我們可以推動高價值市場和垂直細分市場的銷售執行和收入增長。隨著我們邁向轉型計劃的下一階段，我們一直將重點放在費用控制上，並對我們認為無法推動足夠回報率和現金流的某些地區和產品線進行合理化。反過來，我們一直在製定重新部署成本節約的戰略，以加快我們在最高投資回報率業務領域的產品和銷售計劃。

We've accomplished a tremendous amount over the last year through roofers and rapid execution, powered by hiring a super-talented executive team with deep experience working with high-growth SaaS companies, including Andy David Wilson, our CFO, who you'll hear from shortly. Our profitable growth strategy that we call PowerFleet reimagined and which was first introduced at our inaugural Investor Day last June, has been very well received by employees, customers, partners, and investors alike.

在過去的一年裡，我們通過屋頂改造和快速執行取得了巨大的成就，這得益於聘請了一支在高增長 SaaS 公司工作方面具有豐富經驗的超級人才管理團隊，包括我們的首席財務官 Andy David Wilson，您將聽到他的聲音從不久。我們稱之為 PowerFleet 重新構想的盈利增長戰略在去年 6 月的首屆投資者日首次推出，受到了員工、客戶、合作夥伴和投資者的一致好評。

From a technology perspective, in November, we launched PowerFleet Unity, a new game-changing fleet intelligence platform that unites people, assets, and data together to transform the way its customers do business. Unity will be the cornerstone of our future shareholder value creation and is ahead of schedule and gaining traction with new customers, highlighted by our recent announcements with Kenyan FEMSA. Even with the dramatic business transformation efforts and fundamental operational business change in 2022, we were still able to drive top-line growth, improved gross profit, and enhance profitability, an ambitious objective I articulated to all of you at the beginning of 2022.

從技術角度來看，我們在 11 月推出了 PowerFleet Unity，這是一個全新的改變遊戲規則的車隊智能平台，它將人員、資產和數據結合在一起，以改變其客戶開展業務的方式。 Unity 將成為我們未來股東價值創造的基石，並且提前完成並吸引了新客戶，這在我們最近與肯尼亞 FEMSA 的公告中得到了強調。即使在 2022 年進行了巨大的業務轉型努力和基本的運營業務變化，我們仍然能夠推動收入增長、提高毛利潤和增強盈利能力，這是我在 2022 年初向大家闡明的一個雄心勃勃的目標。

Our encouraging financial results, we're also achieving the face of ongoing macroeconomic pressures and significant supply chain headwinds. David will discuss our Q4 and 2022 results in detail. But at a high level in 2022, we delivered 7% top-line revenue growth, 8% growth in high-margin services revenue, and grew our subscriber base by 8% to 664,000. From a profitability perspective, we improved gross profit by GBP 4 million, reduced loss from operations from Q4 2021 to Q4 2022 by 65%, and grew adjusted EBITDA by 19% in 2022.

我們令人鼓舞的財務業績，我們也在面對持續的宏觀經濟壓力和重大的供應鏈逆風。大衛將詳細討論我們第四季度和 2022 年的結果。但在 2022 年的高水平上，我們實現了 7% 的收入增長，高利潤服務收入增長了 8%，並且我們的用戶群增長了 8% 至 664,000。從盈利能力的角度來看，我們將毛利潤提高了 400 萬英鎊，將 2021 年第四季度至 2022 年第四季度的運營虧損減少了 65%，並在 2022 年將調整後的 EBITDA 增長了 19%。

We faced significant FX headwinds in 2022, but on a constant currency basis, our annual total revenue growth was 10% with services revenue growing 11% for the full year. One of the key thesis questions was, could we improve our growth in the U.S. market in the year 2023? We proved our thesis by delivering total annual revenue growth in the region of 12% and a service revenue growth of 13%. A key driver of our success was our U.S. Industrial business segment, which grew 33% in the second half of 2022 versus the corresponding period in 2021. We're also excited by the performance of our Mexico business unit, which has achieved 34% growth year-over-year in total and 33% in services revenue.

我們在 2022 年面臨重大的外匯逆風，但在固定匯率的基礎上，我們的年度總收入增長 10%，全年服務收入增長 11%。論文的關鍵問題之一是，我們能否在 2023 年改善我們在美國市場的增長？我們通過在該地區實現 12% 的年度總收入增長和 13% 的服務收入增長來證明我們的論點。我們成功的一個關鍵驅動力是我們的美國工業業務部門，該部門在 2022 年下半年與 2021 年同期相比增長了 33%。我們也對墨西哥業務部門的表現感到興奮，該部門實現了 34% 的增長總收入同比增長 33%，服務收入同比增長 33%。

Perhaps our progress is most telling and best measured when we compared our financial results for the second half of 2022. For the second half of 2022 versus the first half of 2022, high-margin services revenues increased by 5% to GBP 40.3 million. On a constant currency basis, the sequential increase was 8% or an impressive 16% on an annualized basis. Overall, gross margins expanded from 45% to 50% with our gross profit increasing by $3 million or 10%. Additionally, the success from our products and reengineering initiatives expanded our product gross margins from 20% to 29% in the second half of the year.

當我們比較 2022 年下半年的財務業績時，也許我們的進步最能說明問題，也最能衡量我們的進步。2022 年下半年與 2022 年上半年相比，高利潤服務收入增長了 5%，達到 4030 萬英鎊。按固定匯率計算，環比增長 8%，按年率計算增長 16%，令人印象深刻。總體而言，毛利率從 45% 增加到 50%，我們的毛利潤增加了 300 萬美元或 10%。此外，我們的產品和再造計劃的成功使我們的產品毛利率在下半年從 20% 增加到 29%。

From a profitability standpoint, we realized a 54% or GBP 2.9 million improvement in loss from operations as well as a $2 million or 76% improvement in adjusted EBITDA. Compared to the same period last year, we increased gross profit by GBP 4 million or 13%, improved our operating losses by GBP 3.5 million or 59% as well as saw a $2.7 million or 132% improvement in adjusted EBITDA.

從盈利能力的角度來看，我們的運營虧損減少了 54% 或 290 萬英鎊，調整後的 EBITDA 減少了 200 萬美元或 76%。與去年同期相比，我們的毛利潤增加了 400 萬英鎊或 13%，營業虧損減少了 350 萬英鎊或 59%，調整後的 EBITDA 減少了 270 萬美元或 132%。

During the fourth quarter, we saw double-digit growth in our key regions, including a 20% increase in the U.S. Industrial segment and a 37% increase in revenue in Mexico, driven by both Unity sales and initial sales of our industrial solutions in the region. The overall top-line results in Q4 reflect the decisive actions we took to deemphasize underperforming product lines and territories and terminate unprofitable contracts, measures I alluded to in our Q3 call. To put this into context, unrecognized revenue related to the termination of unprofitable contracts and the de-emphasis of lower-margin products was approximately $2.5 million in the quarter.

第四季度，我們在主要地區實現了兩位數的增長，包括美國工業部門增長 20% 和墨西哥收入增長 37%，這得益於 Unity 銷售和我們工業解決方案在美國的初始銷售地區。第 4 季度的總體營收結果反映了我們採取的果斷行動，以淡化表現不佳的產品線和地區並終止無利可圖的合同，這些措施我在第 3 季度的電話會議中提到過。綜上所述，本季度與終止無利可圖的合同和不再強調低利潤產品相關的未確認收入約為 250 萬美元。

Nevertheless, our tight cash management produced the highest cash collections quarter in the company's history. While we're encouraged by our operational and financial progress, especially in the second half of 2022, there is still much more work for us to do to achieve the level of performance we believe is possible for our company. Although the speed of cleanup has exceeded our internal expectations, the operating state of the business when I assumed the CEO position was far more challenged than expected and there are still crucial areas that need to be improved.

儘管如此，我們嚴格的現金管理產生了公司歷史上最高的現金回收季度。雖然我們對我們的運營和財務進展感到鼓舞，尤其是在 2022 年下半年，但我們仍有許多工作要做，以達到我們認為我們公司可能達到的績效水平。雖然清理的速度超出了我們內部的預期，但我就任CEO時的業務經營狀況遠比預期的要艱難，還有一些關鍵的地方需要改進。

Along that line, earlier this quarter, the leadership team enacted on a focus plan to optimize further our business. When completed, the plan will reduce our OpEx by an additional $3 million annually, which we expect to drive bottom-line improvement. This is in addition to the $5 million we took out of the business in 2022, some of which allowed us to pivot and grow our software sales and development teams. Before I discuss our 2023 initiatives and our business outlook, I'm going to invite David to walk through our financial performance for Q4 and 2022 in more detail. David?

沿著這條路線，本季度早些時候，領導團隊制定了一項重點計劃，以進一步優化我們的業務。完成後，該計劃將使我們的運營支出每年額外減少 300 萬美元，我們預計這將推動底線改善。這是我們在 2022 年從業務中取出的 500 萬美元的補充，其中一些使我們能夠調整和發展我們的軟件銷售和開發團隊。在我討論我們的 2023 年計劃和我們的業務前景之前，我將邀請大衛更詳細地介紹我們第四季度和 2022 年的財務業績。大衛？

Thanks, Steve, and I'm pleased to connect with many of you for the first time on this call. This week marks my second month with PowerFleet, and my time on board has reaffirmed two key reasons I chose to join the team. Firstly, there's a rich set of complementary assets of PowerFleet that have a massive amount of latent value. Secondly, the team that Steve has put in place are aggressive change agents who have the driving experience required to realize PowerFleet's full potential. The third key reason I joined PowerFleet is patent recognition. Prior to joining PowerFleet, I was the CFO of ACS, a regional telco, which was an amalgamation of acquired companies that had a newly installed management team taste turning the business around and creating a huge amount of value for stakeholders.

謝謝，史蒂夫，我很高興在這次電話會議上第一次與你們中的許多人聯繫。本周是我在 PowerFleet 工作的第二個月，我在船上的時間再次證實了我選擇加入該團隊的兩個關鍵原因。首先，PowerFleet 擁有豐富的互補資產，具有巨大的潛在價值。其次，史蒂夫組建的團隊是積極的變革推動者，他們擁有實現 PowerFleet 全部潛力所需的駕駛經驗。我加入 PowerFleet 的第三個關鍵原因是專利認可。在加入 PowerFleet 之前，我是 ACS 的首席財務官，這是一家區域性電信公司，這是一家合併了被收購公司的公司，這些公司擁有新成立的管理團隊，有能力扭轉業務並為利益相關者創造巨大的價值。

While the road at ACS was more rocky than smooth in the early quarters, during my tenure, we outperformed the sector by 16x, turning ACS from a valuation laggard to a valuation leader. I look forward to playing my part in achieving similar success with PowerFleet. Now, on to our fourth quarter results for the year ended December 31, 2022. Total revenue was $33.1 million compared to $34.4 million in Q4 '21. As Steve noted earlier, the step down in revenue was by design with an increasingly sharp focus on the quality versus the quantity of revenue. In the quarter, we sidestepped approximately $2.5 million in available sales in noncore underperforming product lines and territories. Entering the business around high-margin SaaS revenue is a central tenet of PowerFleet reimagined with the fourth quarter mix of service revenue increasing to 60% or $20 million in 2022 from 56% or $19.1 million in '21.

雖然 ACS 的道路在前幾個季度並不平坦，但在我任職期間，我們的表現超過了該行業 16 倍，將 ACS 從估值落後者轉變為估值領先者。我期待著在 PowerFleet 取得類似成功的過程中發揮自己的作用。現在，我們來看看截至 2022 年 12 月 31 日止年度的第四季度業績。總收入為 3310 萬美元，而 21 年第四季度為 3440 萬美元。正如史蒂夫之前指出的那樣，收入的下降是有意設計的，越來越注重質量而不是收入的數量。本季度，我們在非核心表現不佳的產品線和地區迴避了大約 250 萬美元的可用銷售額。圍繞高利潤 SaaS 收入開展業務是 PowerFleet 重新設想的核心原則，第四季度服務收入組合從 21 年的 56% 或 1910 萬美元增加到 2022 年的 60% 或 2000 萬美元。

Product revenue, where the quarter's sales were focused on deals with a high attachment of SaaS service revenue was $13.1 million versus $15.3 million in Q4 last year. Gross profit was $16.4 million compared to $15.4 million. Importantly, the gross margin expanded by 5% to 49% of total revenue, up from 45% last year. Fourth quarter service gross profit was $12.8 million with margins of 64% of total service revenue in line with expectations. This is compared to $12.4 million or 65% of service revenue in Q4 last year.

產品收入為 1310 萬美元，而去年第四季度為 1530 萬美元，而該季度的銷售額主要集中在與 SaaS 服務收入高度相關的交易上。毛利潤為 1640 萬美元，上年同期為 1540 萬美元。重要的是，毛利率佔總收入的比例從去年的 45% 增長了 5% 至 49%。第四季度服務毛利潤為 1280 萬美元，利潤率佔服務總收入的 64%，符合預期。相比之下，去年第四季度服務收入為 1240 萬美元，佔服務收入的 65%。

Product gross profit was $3.6 million compared to $3.1 million in the same year-ago period. While deal discipline was a primary driver of quarterly product gross margins expanding to 28% of product revenue, up from 20% last year, 2022 performance was adversely impacted by $600,000 or 5% gross margin for inventory and warranty reserve adjustments and out-of-period charges. Looking at expenses, OpEx was $17.6 million compared to $18.9 million in the same year-ago period.

產品毛利潤為 360 萬美元，而去年同期為 310 萬美元。雖然交易紀律是季度產品毛利率從去年的 20% 擴大到產品收入的 28% 的主要驅動力，但 2022 年的業績受到 600,000 美元或 5% 的庫存和保修準備金調整毛利率的不利影響期間費用。從支出來看，運營支出為 1760 萬美元，而去年同期為 1890 萬美元。

2022 operating expenses benefited from foreign exchange translation gains of $1 million, which is reversed to calculated adjusted EBITDA and $0.7 million in incremental stocks and audit professional fees, which flows through to adjusted EBITDA. In terms of profitability metrics, net loss attributable to common stockholders totaled $2.9 million or negative $0.08 per basic and diluted share. This compares to a net loss attributable to common stockholders of $7.9 million or a loss of $0.23 per basic and diluted share in Q4 last year.

2022 年的運營支出受益於 100 萬美元的外匯換算收益，該收益被轉回計算調整後的 EBITDA 和 70 萬美元的增量庫存和審計專業費用，這些收益流入調整後的 EBITDA。就盈利指標而言，歸屬於普通股股東的淨虧損總計 290 萬美元，或每股基本股和攤薄股負 0.08 美元。相比之下，去年第四季度歸屬於普通股股東的淨虧損為 790 萬美元，或每股基本股和稀釋股虧損 0.23 美元。

And finally, adjusted EBITDA and non-GAAP metric in the fourth quarter of '22 totaled $1.4 million compared to an adjusted EBITDA of $1 million in the same year-ago period. Our balance sheet remained strong in the quarter with $18 million of cash and cash equivalents. The company's working capital position at quarter end was $35.5 million.

最後，22 年第四季度調整後的 EBITDA 和非 GAAP 指標總計 140 萬美元，而去年同期調整後的 EBITDA 為 100 萬美元。我們的資產負債表在本季度保持強勁，擁有 1800 萬美元的現金和現金等價物。公司在季度末的營運資金狀況為 3550 萬美元。

Shifting gears to our financial results for the full year ended December 31, '22. Total revenue was $135.2 million, an improvement compared to $126.2 million in 2021. High-margin services revenue was $78.8 million compared to $73.2 million in '21. Product revenue, which drives future services revenue was $56.3 million compared to $53 million in 2021. Gross profit was $64.2 million or 48% of revenue compared to $60.2 million or 40% of revenue in 2021. Services gross profit was $50.5 million or 64% of total service revenue compared to $46.6 million or 64% of total service revenue in '21. Product gross profit was $13.7 million or 24% of total product revenue compared to $13.5 million or 26% of product revenue in '21. Operating expenses were $72 million compared to $68.2 million in 2021, while net loss attributable to common stockholders totaled $11.9 million or a negative $0.34 per basic and diluted share in '22, which compares to a net loss tribute to common stockholders of $18.8 million or negative $0.52 per basic and diluted share in '21. Adjusted EBITDA, a non-GAAP metric, totaled $7.3 million compared to adjusted EBITDA of $6.2 million in '21. That concludes my remarks. Steve?

轉向我們截至 2022 年 12 月 31 日的全年財務業績。總收入為 1.352 億美元，與 2021 年的 1.262 億美元相比有所改善。高利潤服務收入為 7880 萬美元，而 2021 年為 7320 萬美元。推動未來服務收入的產品收入為 5630 萬美元，而 2021 年為 5300 萬美元。毛利潤為 6420 萬美元，佔收入的 48%，而 2021 年為 6020 萬美元，佔收入的 40%。服務毛利潤為 5050 萬美元，佔收入的 64%服務總收入與 21 年的 4660 萬美元或服務總收入的 64% 相比。產品毛利為 1370 萬美元，佔產品總收入的 24%，而 21 年為 1350 萬美元，佔產品收入的 26%。營業費用為 7200 萬美元，而 2021 年為 6820 萬美元，而歸屬於普通股股東的淨虧損總計 1190 萬美元，即 22 年每股基本和稀釋後每股虧損 0.34 美元，而歸屬於普通股股東的淨虧損為 1880 萬美元或為負21 年每股基本股和稀釋股 0.52 美元。調整後的 EBITDA 是一項非 GAAP 指標，總計 730 萬美元，而 21 年調整後的 EBITDA 為 620 萬美元。我的發言到此結束。史蒂夫？

Thanks, David. One of my stated goals on joining the company has been to substantially increase the revenue share of our SaaS and recurring revenues, which has the benefits of increasing our visibility, margins, and relative competitive advantage. We've built a great team at PowerFleet and the concentration of this talent around the best and highest quality revenue and profit opportunities as a result of a dynamic capital allocation strategy to yield the highest potential returns to our shareholders, employees, and customers.

謝謝，大衛。我加入公司的既定目標之一是大幅增加我們 SaaS 的收入份額和經常性收入，這有利於提高我們的知名度、利潤率和相對競爭優勢。我們在 PowerFleet 建立了一支優秀的團隊，並將這些人才集中在最佳和最高質量的收入和利潤機會周圍，這是動態資本分配戰略的結果，旨在為我們的股東、員工和客戶帶來最高的潛在回報。

In this spirit, we have decided to entertain strategic alternatives for our Argentina and Brazil, and South Africa business units. As background, there have been third parties who have expressed interest in these business units, and we've decided to evaluate these potential opportunities with these partners. In parallel to our organic growth strategy, we are continually evaluating balance sheet accretive M&A opportunities to enhance our capabilities and augment our ability to scale more rapidly. Along that line, this morning, we announced the acquisition of moving dots, a German-based telematics provider, a fully owned and operated subsidiary of Swiss Re.

本著這種精神，我們決定為我們的阿根廷和巴西以及南非業務部門考慮戰略選擇。作為背景，有第三方對這些業務部門表示了興趣，我們決定與這些合作夥伴一起評估這些潛在機會。與我們的有機增長戰略並行，我們不斷評估資產負債表增值併購機會，以增強我們的能力並增強我們更快擴展的能力。沿著這條路線，今天早上，我們宣布收購總部位於德國的遠程信息處理提供商 moving dots，它是瑞士再保險的全資子公司。

Since 2015, moving dots has served a Swiss Re's technology hub in the automotive and mobility space. For those not familiar with Swiss Re, they are one of the world's leading providers of reinsurance and insurance. Moving to spent the last decade designing and perfecting data science algorithms with insurers to provide risk-based drive-style analytics for fleets and personal auto risk. Backed with actuarial insights, moving dot enables data-driven insurance propositions for insurers, car manufacturers, and mobility platform players worldwide.

自 2015 年以來，moving dots 一直服務於瑞士再保險在汽車和出行領域的技術中心。對於那些不熟悉瑞士再保險的人來說，他們是世界領先的再保險和保險提供商之一。在過去的十年裡，我們與保險公司一起設計和完善數據科學算法，為車隊和個人汽車風險提供基於風險的駕駛式分析。在精算見解的支持下，moving dot 為全球的保險公司、汽車製造商和移動平台參與者提供了數據驅動的保險建議。

By focusing on customer safety and security needs and by providing transparent and comprehensive monitoring, moving Dots combined insurance analytics with AI and ML technology to drive an individual risk assessment. Moving Dot has also developed leading-edge technologies for the sustainability and ESG reporting space. Swiss Re and moving dots have been searching for the right strategic growth partner to deliver these precisely architected insurance solutions to the global market in a sustainable, profitable, and scalable way.

通過關注客戶的安全和安保需求並提供透明和全面的監控，moving Dots 將保險分析與 AI 和 ML 技術相結合，以推動個人風險評估。 Moving Dot 還為可持續發展和 ESG 報告領域開發了前沿技術。 Swiss Re 和 moving dots 一直在尋找合適的戰略增長合作夥伴，以可持續、盈利和可擴展的方式向全球市場提供這些精心設計的保險解決方案。

From a customer perspective, moving dots several blue-chip insurers as customers and works with major automotive OEMs as partners and also serves more than 160 enterprises in the European market. Moving dots checks all the boxes of a highly complementary and synergistic acquisition. First, it accelerates PowerFleet entrants into Europe by providing a meaningful beachhead with major reference customers and a network of Tier one partners.

從客戶角度看，移動點數多家藍籌保險公司為客戶，與各大汽車主機廠為合作夥伴，同時服務於歐洲市場的160多家企業。移動點檢查高度互補和協同收購的所有框。首先，它通過為主要參考客戶和一級合作夥伴網絡提供有意義的灘頭陣地，加速 PowerFleet 進入歐洲。

Second, PowerFleet presents a significant opportunity to cross-sell moving dot solutions into our base of customers and partners and vice versa. Third, the acquisition brings strong technically advanced data science IoT solutions for the insurance and sustainability markets, which present a distinct competitive advantage and credibility in a highly strategic end market for PowerFleet. Fourthly, the acquisition enhances our Unity platform with moving Dot's focus on delivering innovative automotive and mobility safety solutions and ESG reporting that will enrich PowerFleet SaaS enterprise applications. Finally, moving dots has built a hub of software and platform excellence in Germany and beyond.

其次，PowerFleet 提供了一個重要的機會，可以將移動點解決方案交叉銷售給我們的客戶和合作夥伴群，反之亦然。第三，此次收購為保險和可持續發展市場帶來了技術先進的強大數據科學物聯網解決方案，在 PowerFleet 具有高度戰略意義的終端市場中呈現出獨特的競爭優勢和信譽。第四，此次收購增強了我們的 Unity 平台，使 Dot 專注於提供創新的汽車和移動安全解決方案以及 ESG 報告，這將豐富 PowerFleet SaaS 企業應用程序。最後，moving dots 在德國及其他地區建立了卓越的軟件和平台中心。

Moving dots' employees will strengthen PowerFleet's current tenured and talented team, all striving to deliver on the promise of people-powered IoT. From a consideration perspective, we've agreed to acquire moving dots for EUR 1 and issued 800,000 warrants to Swiss Re that have an exercise price of $7 per power fleet common share. Swiss Re has agreed to fund EUR 8 million in cash at close to ensure continuity of moving dots telematics offering and a seamless transition for the company's talented 50 employees as well as its value customers and partners.

Moving dots 的員工將加強 PowerFleet 目前經驗豐富且才華橫溢的團隊，所有人都致力於兌現以人為本的物聯網的承諾。從考慮的角度來看，我們同意以 1 歐元的價格收購移動點，並向瑞士再保險發行 800,000 份認股權證，行使價為每股電力車隊普通股 7 美元。瑞士再保險已同意在收盤時提供 800 萬歐元現金，以確保移動點遠程信息處理服務的連續性，並為公司 50 名才華橫溢的員工及其重要客戶和合作夥伴提供無縫過渡。

Equally, important to Swiss Re was a continued strategic commercial alliance with PowerFleet. Looking to the future, we anticipate generating sequential revenue growth in Q1 despite the expected revenue reduction as a result of our strategic rationalization efforts, driven by robust double-digit growth from our U.S. industrial segment, a trend we expect to continue through 2023.

同樣，對瑞士再保險來說重要的是與 PowerFleet 的持續戰略商業聯盟。展望未來，儘管我們的戰略合理化努力導致收入減少，但我們預計第一季度的收入將實現連續增長，這是由於我們的美國工業部門強勁的兩位數增長推動的，我們預計這一趨勢將持續到 2023 年。

In summary, we're focused on realigning and restructuring our cost base to realize the potential of an increasingly robust and competitively differentiated high-growth SaaS offering. Moving dots has an important role to play, enriching our Unity offering while simultaneously providing a leading position in the strategic insurance vertical and enhancing balance sheet liquidity. That concludes our prepared remarks. Now, I'll turn back over to the operator for Q&A.

總之，我們專注於重新調整和重組我們的成本基礎，以實現日益強大和具有競爭力的差異化高增長 SaaS 產品的潛力。移動點可以發揮重要作用，豐富我們的 Unity 產品，同時在戰略保險垂直領域提供領先地位並增強資產負債表的流動性。我們準備好的發言到此結束。現在，我將轉回接線員進行問答。

Thank you. We will now be conducting a question-and-answer session. (Operator Instructions). One moment, please, will be all for questions. Thank you. Our first question is from Scott Searle with Roth. Please proceed with your question.

謝謝。我們現在將進行問答環節。 （操作員說明）。請稍等片刻，大家可以提問了。謝謝。我們的第一個問題來自 Scott Searle 和 Roth。請繼續你的問題。

My apologies. Hi, good morning. Thanks for taking the question. Steve, a lot is going on this morning. I wanted to quickly clarify a couple of things and then dive into moving dots. But $2.5 million in sales in the quarter, and fourth quarter were lost related to basically walking away or terminating bad contracts. I want to confirm that. And then the $3 million reduction in OpEx, I want to understand if that is going forward off of the fourth quarter levels. And then I had a bunch of follow-ups on moving dots.

我很抱歉。早上好。感謝您提出問題。史蒂夫，今天早上發生了很多事情。我想快速澄清幾件事，然後深入研究移動點。但本季度和第四季度的銷售額為 250 萬美元，與基本上走開或終止不良合同有關。我想確認一下。然後是運營支出減少 300 萬美元，我想知道這是否會超出第四季度的水平。然後我有一堆關於移動點的後續行動。

Yes. So, in terms of the OpEx, I'll start that first way, it's David Wilson. Scott, it's the first time you've been on a call. That's primarily a reduction in terms of go-forward spend. There was also some planned investments we're going to do this year, which is a piece part of it, but the vast majority of it would be a reduction in terms of tone. And in terms of $2.5 million in contracts, Steve, again, I think predates me, but on the Q3 call, he was talking about just being a lot more disciplined in terms of the deals that we do. So, there were some low-margin businesses, which would require investment in inventory that we chose not to do. There's also the roll-off of certain contracts we have, particularly in EMEA, where we have chosen not to pursue that business. So, that's falling off as well. So, it's a combination of both hardware sales in addition to some reduction in terms of recurring services revenue.

是的。因此，就 OpEx 而言，我將首先從 David Wilson 開始。斯科特，這是你第一次接電話。這主要是前期支出的減少。今年我們還計劃進行一些投資，這是其中的一部分，但其中絕大部分將是降低基調。就 250 萬美元的合同而言，史蒂夫，我想再次早於我，但在第三季度的電話會議上，他說的是在我們所做的交易方面要更加自律。因此，有一些低利潤業務需要我們選擇不做的存貨投資。我們還取消了某些合同，特別是在 EMEA，我們選擇不開展該業務。所以，這也在下降。因此，除了經常性服務收入方面的一些減少外，這是硬件銷售的結合。

Great. And then on moving dots, it sounds very exciting, but I want to make sure I've got a couple of the basic metrics understood. Your -- the purchase price is EUR 1. You've got 800,000 warrants at $7. They're going to give you $8 million in cash. But I'm not sure if I heard the employee number correctly. Was it 50 employees? Or was it 150 employees, what's the revenue run rate that you got with moving dots coming in? It sounds like you're bringing a very powerful data science team that's got some specific domain expertise in the insurance market, but how quickly do you start to monetize that? How quickly can you get that integrated into the Unity platform?

偉大的。然後在移動點上，這聽起來非常令人興奮，但我想確保我已經理解了幾個基本指標。您的——購買價格為 1 歐元。您有 800,000 份認股權證，價格為 7 美元。他們會給你 800 萬美元現金。但我不確定我是否聽錯了員工號碼。是50名員工嗎？或者是 150 名員工，移動點的收入運行率是多少？聽起來您正在帶來一支非常強大的數據科學團隊，該團隊在保險市場上擁有一些特定領域的專業知識，但是您開始將其貨幣化的速度有多快？您能多快將其集成到 Unity 平台中？

So, great question, Scott. So, first of all, it's 50 employees that we're bringing in. And if you look at moving dots, I mean, previously stated, we wanted to get a European beachhead. We want to take a leading position in safety and sustainability and insurance. We believe that is a key market driver. We wanted to bring in some great talent to drive and expedite Unity and our data science capabilities. And we've done that in one for soup. So, we feel very good about that. And obviously, that's supported with an ongoing relationship with Swiss Re and then providing $8.5 million in cash towards the future growth together. We've taken some good time to look at the go-to-market approach. That will take some time to get revenues moving. They've spent an inordinate time almost a decade perfecting the solutions, which if you think about it for the insurance market to be robust by and ensure the risk profiles that are being put forward, it has to be bulletproof. So, it's an amazing product. It's got modest revenues today, and we look to expand in the future. We'll give more details on the financials. We're still under confidentiality through to close on any kind of more detail on the financials, but we'll update that at next call.

所以，很好的問題，斯科特。所以，首先，我們要引進 50 名員工。如果你看移動點，我的意思是，如前所述，我們希望獲得歐洲灘頭陣地。我們希望在安全、可持續性和保險方面處於領先地位。我們認為這是一個關鍵的市場驅動力。我們想引進一些優秀的人才來推動和加快 Unity 和我們的數據科學能力。我們已經為湯做到了這一點。所以，我們對此感覺很好。顯然，這得到了與瑞士再保險的持續關係的支持，然後為未來的增長共同提供了 850 萬美元的現金。我們花了一些時間來研究上市方法。這將需要一些時間來推動收入的增長。他們花了將近十年的時間來完善解決方案，如果你認為保險市場要穩健並確保所提出的風險狀況，它就必須是防彈的。所以，這是一個了不起的產品。它今天的收入不多，我們希望在未來擴大規模。我們將提供有關財務的更多詳細信息。我們仍然處於保密狀態，以關閉有關財務的任何更多細節，但我們會在下次電話會議上更新。

Got it. But Steve, the expected closing is in the current quarter. Is that correct? Or is this going to go into the second quarter?

明白了。但是史蒂夫，預期的收盤是在本季度。那是對的嗎？或者這將進入第二季度？

So, 31st of March, 1st of April, I'm not sure which date yet, but very soon, three to four weeks from there.

所以，3 月 31 日，4 月 1 日，我還不確定是哪一天，但很快，三到四個星期後。

Got you. And lastly, if I could, just looking at the core business today, the outlook as we go into the first half of '23, what are you seeing? I think you -- I'm not sure if I heard some specific guidance as it relates to services, but I was wondering if you could just kind of talk to what the outlook looks like, what the pipeline is. You've got a lot of engagement early on the Unity platform. I'm wondering if you could talk a little bit about how that's transitioning to more rich feature sets and higher ARPUs within the customer base? And maybe just a quick update in terms of supply chain headwinds, what you're seeing there if that's causing any problems and push out of some revenues. Thanks.

明白了最後，如果可以的話，看看今天的核心業務，我們進入 23 年上半年的前景，你看到了什麼？我想你 - 我不確定我是否聽到了一些與服務相關的具體指導，但我想知道你是否可以談談前景如何，管道是什麼。您在 Unity 平台上的早期參與度很高。我想知道您是否可以談一談如何在客戶群中過渡到更豐富的功能集和更高的 ARPU？也許只是供應鏈逆風方面的快速更新，如果這會導致任何問題並減少一些收入，你會在那裡看到什麼。謝謝。

Thanks, Scott. I'll try and break those down. So firstly, in terms of pipeline, we feel very good, very bullish about the future. We've invested a lot in new sales and marketing to drive that pipeline. And I think we're ahead of schedule in terms of getting some of the customers onto the Unity platform. Unity is today feature-rich by combining all of our previous platforms together. The launch of the first new module. We're very excited about Safety and Security, which is coming out at the end of this month. And obviously, from an ARPU perspective, the modularity of which allows us to drive significant increases over time.

謝謝，斯科特。我會嘗試將它們分解。所以首先，在管道方面，我們感覺非常好，對未來非常看好。我們在新的銷售和營銷方面投入了大量資金來推動這一渠道。而且我認為我們在讓一些客戶進入 Unity 平台方面提前了計劃。通過將我們以前的所有平台組合在一起，Unity 現在功能豐富。推出第一個新模塊。我們對將於本月底推出的 Safety and Security 感到非常興奮。顯然，從 ARPU 的角度來看，其模塊化使我們能夠隨著時間的推移推動顯著增長。

The first deals that we've got are probably, I would say, 20% higher in ARPU than our standard deals have been due to the kind of promise of Unity moving forward. So, we feel very good about it. We feel very confident that we have a winning formula with the platform, and we're bullish about the future.

我想說，我們獲得的第一筆交易的 ARPU 可能比我們的標準交易高 20%，這是由於 Unity 向前發展的承諾。所以，我們對此感覺非常好。我們非常有信心，我們有一個成功的平台，我們看好未來。

Great. Thank you. I'll get back in the queue.

偉大的。謝謝。我會回到隊列中。

Thank you. Our next question will come from Mike Walkley with Canaccord Genuity. Please proceed with your question.

謝謝。我們的下一個問題將來自 Mike Walkley 和 Canaccord Genuity。請繼續你的問題。

Hi, guys. Good morning. This is Dan standing in for Mike. Thanks for taking my question. So, I guess, first off, congrats on the solid Q4 results and recovering gross margins. I just wanted to double-click on this. Was this primarily driven by mix, maybe improving supply input costs or other factors such as passing on increased costs? Obviously, we know the supply chain remains pretty challenging. But can you just discuss how you're managing this and what it means for hardware gross margins over the next year?

嗨，大家好。早上好。這是 Dan 代替 Mike。感謝您提出我的問題。所以，我想，首先，祝賀第四季度業績穩健並恢復毛利率。我只是想雙擊這個。這主要是由混合驅動的，可能是改善供應投入成本或其他因素，例如轉嫁增加的成本？顯然，我們知道供應鏈仍然非常具有挑戰性。但是你能談談你是如何管理這個的，以及這對明年的硬件毛利率意味著什麼嗎？

Sure. So, and apologies, Scott, I didn't finish some of answering your question about the supply chain piece. So, I mean, the supply chain remains challenging. We received price increases out of the blue from our partners that obviously, we try and move as fast as we can to pass some of that onto our customer base where we can and where it's appropriate, and there are still component challenges out there. I think we've done a super job in the last 12 months of making sure that we can fulfill for our customers. We took a lot of headwinds in the first half, I think, over $4 million worth of one-off spending for high-priced components. But we've really tried to reengineer and manage a lot of those components out, which is why we're seeing the improvement. I think we're doing better quality deals. I think we're managing price and value a lot better as a company. And we expect that to continue. If you added in the FX wins that we had in the second half, then we're probably at a couple or 3 percentage points higher than reported today. So, we look to maintain that. It is -- there is volatility out there, but we're confident that we can drive it forward. But I would say, it's just better sales execution, better management of our costs, and better alignment in our organization.

當然。所以，抱歉，斯科特，我沒有完成一些關於供應鏈部分的問題的回答。所以，我的意思是，供應鏈仍然充滿挑戰。我們從我們的合作夥伴那裡收到了突然的價格上漲，很明顯，我們試圖盡可能快地採取行動，盡可能快地將其中的一部分傳遞給我們的客戶群，在我們可能的地方和適當的地方，並且仍然存在組件挑戰。我認為我們在過去 12 個月裡做得非常出色，確保我們能夠滿足客戶的需求。我認為，上半年我們遇到了很多不利因素，一次性支出超過 400 萬美元用於高價零部件。但我們確實已經嘗試重新設計和管理其中的許多組件，這就是我們看到改進的原因。我認為我們正在做質量更好的交易。我認為作為一家公司，我們在管理價格和價值方面做得更好。我們希望這種情況繼續下去。如果你加上我們在下半場取得的 FX 勝利，那麼我們可能比今天報告的高出幾個或 3 個百分點。因此，我們希望保持這一點。它是 - 那裡存在波動，但我們有信心我們可以推動它向前發展。但我會說，這只是更好的銷售執行、更好的成本管理以及更好的組織協調。

Great. And I guess in regards to the pace of the additional $2 million savings, is this both in gross margin and OpEx or just more on OpEx?

偉大的。我想關於額外節省 200 萬美元的速度，這是毛利率和運營支出還是更多的運營支出？

It's both, but I would say, heavily weighted toward OpEx.

這兩者，但我會說，都非常重視 OpEx。

I mean I think one thing that I talked about in January last year was we were going to execute ruthlessly the changes that we need to make. And I'm, again, very encouraged by the way that the team has taken on the challenges, really creating a very strong basis for success moving forward and tackling a lot of tough challenges in the business. I think if we look at the efficiency programs that we've run, the way that we've been able to rebrand repurpose the company, bring in some super-talented individuals, and reduce costs at the same time, plus doing an acquisition is a testament to a team that is very focused on the opportunity ahead of us.

我的意思是，我認為我在去年 1 月談到的一件事是我們將無情地執行我們需要做出的改變。我再次對團隊應對挑戰的方式感到非常鼓舞，這確實為成功前進和應對業務中的許多嚴峻挑戰奠定了堅實的基礎。我認為，如果我們看看我們已經運行的效率計劃，我們能夠重塑公司品牌、引進一些超級人才、同時降低成本以及進行收購的方式是這證明了一個非常專注於我們面前的機會的團隊。

Great. Thank you much for the additional color.

偉大的。非常感謝您提供額外的顏色。

Thank you. Our next question comes from Gary Prestopino with Barrington. Please proceed with your question.

謝謝。我們的下一個問題來自 Gary Prestopino 和 Barrington。請繼續你的問題。

Hey. Good morning, everyone. Several questions here, and really a lot to get through in a short period of time from when you issued the press release. But first of all, on the $2.5 million of the business that you did not or you walked away from in Q4, how does that break down between products and services?

嘿。大家，早安。這裡有幾個問題，而且在你發布新聞稿後的短時間內確實有很多問題需要解決。但首先，關於您在第四季度沒有或離開的 250 萬美元業務，它如何在產品和服務之間分解？

Yes, I would say 95% of it is the product. So, the vast majority is the product.

是的，我會說其中 95% 是產品。所以，絕大多數是產品。

Okay. So, 95% is the product. Okay. So, now that business doesn't include or does it include your evaluation that you're going through with Argentina, Brazil, and South Africa? Or was that included in that $2.5 million?

好的。所以，95%是產品。好的。那麼，現在該業務不包括或是否包括您對阿根廷、巴西和南非的評估？或者這包括在 250 萬美元中？

No. That was some contracts in various territories around the world, some in Latin America, some in Europe, and some in the U.S. So, it was spread plus. We have a historic heritage business, of course, allocator, which was a hardware-only business. And that's in the light of India, Colombia, and Croatia. And it's just not high-quality business for us. So, we walked away from a number of opportunities and running down contracts and inventory in that space. Our ambition --sorry, go ahead.

不，那是在世界各地的一些合同，一些在拉丁美洲，一些在歐洲，一些在美國。所以，它是傳播的。我們有一項歷史悠久的傳統業務，當然是分配器，這是一項純硬件業務。這是根據印度、哥倫比亞和克羅地亞的情況得出的。這對我們來說不是高質量的業務。因此，我們放棄了許多機會，減少了該領域的合同和庫存。我們的野心——對不起，繼續吧。

No, no, go ahead. I'm sorry, Steve, go ahead.

不，不，繼續。對不起，史蒂夫，繼續。

Our ambition, obviously, is to focus on high-quality SaaS recurring revenue. And that type of business just doesn't really fit the mold of what we're trying to achieve moving forward.

顯然，我們的目標是專注於高質量的 SaaS 經常性收入。而這種類型的業務並不真正符合我們正在努力實現的目標。

Okay. So, in 2023, as you finish this evaluation, I think you said you've got parties that may be willing to take over the business in these various regions. We would expect that there will be further adjustments to the sales in 2023 going forward as you move out of these countries. Is that correct?

好的。所以，在 2023 年，當你完成這個評估時，我想你說過你有可能願意接管這些不同地區的業務的各方。我們預計，隨著您離開這些國家/地區，2023 年的銷售額將進一步調整。那是對的嗎？

Yes, that's correct. So, for those regions in 2022 was about $13 million worth of revenue. So, that is --

對，那是正確的。因此，這些地區在 2022 年的收入約為 1300 萬美元。所以，那就是——

Okay. All right. That's good to hear. And I guess that's a fairly low margin or problematic?

好的。好的。聽起來還不錯。我想這是一個相當低的利潤率或有問題？

I mean, these regions are quality businesses. The way the business was previously run was independent territories. So, there's a lot of complexity and some differentiation in those local territories. And look, we've got phenomenal growth opportunities in some good core territories where we have great established customer bases and large momentum. If you look, as we said, in terms of the U.S., one of the big questions was could we really drive the U.S.? I think in a year of transformation, we've proven that out. If we look at our Mexican business unit growing at 30-odd percent a year, that is very strong. We're now going to have a good, strong European business alongside it. So, we just want to not spread ourselves too thin. We have dilution in our activities and distraction by some of these smaller territories that we believe, may be better served in different organizations or smaller organizations. So, it's a very focused strategy on high-quality growth, and we think it's smart and true and sensible to do what we're doing there.

我的意思是，這些地區是優質企業。以前經營業務的方式是獨立領土。因此，在這些地方地區存在很多複雜性和差異性。看，我們在一些良好的核心領域擁有驚人的增長機會，我們擁有強大的客戶群和巨大的發展勢頭。如果你看，正如我們所說，就美國而言，最大的問題之一是我們真的能推動美國嗎？我認為在轉型的一年中，我們已經證明了這一點。如果我們看看我們的墨西哥業務部門每年以 30% 以上的速度增長，那就非常強勁了。我們現在將擁有一個良好、強大的歐洲業務。所以，我們只是不想把自己攤得太薄。我們稀釋了我們的活動，並分散了我們認為在不同組織或較小組織中可能更好地服務的一些較小區域的注意力。因此，這是一個非常專注於高質量增長的戰略，我們認為我們在那裡所做的事情是明智、真實和明智的。

Now, that's fine. So, look, then just looking at the quarter a little bit here, and I realize these are my numbers, but it looked like you had been on a run rate of close to high 2s, 2.8x, 2.8, 2.9 -- or I'm sorry, $2.8 million of adjusted EBITDA Q2, Q3, step down of $1.4 million this quarter. Obviously, some of that is related to the business that you jettisoned. But I'm also looking at this and seeing the service revenue was only up about, I think, 5% year-over-year. And after being up in the high single digits Q2, Q3. So, what would explain that step down in the growth in service revenue? I mean if you've got the subscribers there, how does that go down?

現在，沒關係。所以，看，然後在這裡稍微看一下這個季度，我意識到這些是我的數字，但看起來你的運行率接近高 2s、2.8x、2.8、2.9——或者我對不起，調整後的 EBITDA Q2、Q3 為 280 萬美元，本季度減少 140 萬美元。顯然，其中一些與您放棄的業務有關。但我也在關注這一點，我認為服務收入僅同比增長 5%。在 Q2、Q3 處於高個位數之後。那麼，如何解釋服務收入增長的放緩呢？我的意思是，如果您在那裡有訂戶，那會怎樣？

Yes. So, I can pick that one up. So, there was $300,000 of FX impact between Q3 and Q4. So, that was a step-down. There was also -- sorry, I'm not answering the question directly, but in terms of nonrecurring revenue, it's a small part of our business. It's probably sort of sub-3 % of our total services revenue, but that was actually down $150,000 sequentially. So, that onetime revenue was just lower in Q4 than it was in Q3. So again, that probably had some impact in terms of the jump-off point you're expecting going into the quarter.

是的。所以，我可以拿起那個。因此，第三季度和第四季度之間產生了 300,000 美元的外匯影響。所以，這是一個降壓。還有——抱歉，我沒有直接回答這個問題，但就非經常性收入而言，這只是我們業務的一小部分。它可能占我們服務總收入的不到 3%，但實際上連續下降了 150,000 美元。因此，第四季度的一次性收入僅低於第三季度。因此，這可能會對您預期進入本季度的起點產生一些影響。

And I'd just add some of those contracts that we decided with the customers to move on. We -- they're moving off the platform. So, there was an agreement there to terminate some service contracts as well.

我只是添加了一些我們與客戶決定繼續前進的合同。我們——他們正在離開平台。因此，那裡也達成了終止某些服務合同的協議。

Okay. Okay. That's good. So, then in terms of this acquisition that you've made, first of all, is moving dots -- is Swiss Re, the sole account right now of these moving dots? Or are they out-selling it to other insurance companies or fleets or whatever? How does that work?

好的。好的。那挺好的。那麼，就您所做的這次收購而言，首先是移動點——瑞士再保險是這些移動點的唯一賬戶嗎？還是他們將其出售給其他保險公司或車隊或其他什麼？這是如何運作的？

Yes. So, obviously, a good percentage of their go-to-market and business within Swiss Re. So, they are one of the world's largest reinsurers. So, they have a number of products and are selling it into their base as part of their proposition. But they also have some independent relationships with other insurers on a global basis, plus their previous heritage to insurance was kind of core fleet telematics, which they have some customers as well. So, this is a business where the product and the capability of the team is fantastic. The rationale for the relationship is around now proving that out in the market and really going and maximizing the sales opportunity. And that's why it's such a better-together story. I think Swiss we are very aware to go and sell this at scale and deploy it through channels that PowerFleet can bring is going to be far more effective than where they have been. And that's why this makes this such a good synergistic acquisition for.

是的。因此，很明顯，他們在瑞士再保險的上市和業務中佔很大比例。因此，他們是世界上最大的再保險公司之一。因此，他們有許多產品，並將其作為他們提議的一部分銷售到他們的基地。但他們在全球範圍內也與其他保險公司有一些獨立的關係，加上他們以前的保險傳統是一種核心車隊遠程信息處理，他們也有一些客戶。因此，這是一個產品和團隊能力都非常棒的企業。建立這種關係的理由現在已經在市場上證明了這一點，並且真正實現了銷售機會的最大化。這就是為什麼這是一個更好的故事。我認為 Swiss 我們非常清楚地大規模銷售並通過 PowerFleet 可以帶來的渠道進行部署將比他們過去的方式更有效。這就是為什麼這使得它成為如此好的協同收購。

Well, that's the question I wanted to pose to you. I mean I realize you still haven't closed this, but obviously, Swiss Re trying to sell this to other insurance companies, that's simply not going to work in a lot of cases because it's insurance to insurance. But is the plan here to try and expand this product on the European continent to other insurance companies as well as any business that you're doing in the legacy business of PowerFleet? I mean how do you see growing this, I guess?

嗯，這就是我想向你提出的問題。我的意思是我知道你還沒有關閉它，但顯然，瑞士再保險試圖將其出售給其他保險公司，這在很多情況下根本行不通，因為它是保險對保險。但是這裡的計劃是嘗試將此產品在歐洲大陸擴展到其他保險公司以及您在 PowerFleet 遺留業務中開展的任何業務嗎？我的意思是你如何看待這種增長，我猜？

So, first of all, I think it's independently recognized. And it's been interesting over the last probably four or five months with analysts and investors alike. People now really seeing the synergy between insurance, safety, risk, and telematics. So, that vertical is growing and we want to be the market leader in that. And even if you include things like the move to electric vehicles, then the insurance risk premiums again changed as part of that. We have great technology around electric vehicles. If you look at our industrial space and safety and risk in the warehouse and you can see from the stellar growth we're getting around pedestrian safety, there's a synergy there between insurance risk and saving lives in warehouses. So, for us, it's right at the heartbeat of where we want to play and where we want to put the organization. From a B2B perspective and B2B2C perspective, we have great channels available already. We have relationships with the likes of AXA, Swiss -- moving dots, both smartphone and as a sensor plus hardwired telematics. So, we think this is not only good for Europe, but for a lot of our other territories and channels that we have open today. And if -- when we actually kind of put this into Unity, we're leading with safety and security. So, this will bring -- this will expedite our capabilities and will give us a real competitive advantage. And where it's going to be super strong in terms of credibility is, this has been proven out by an insurer. So, for the take-up of insurance companies selling this into their bases, we believe there's a very open door for us to now go and take advantage commercially.

所以，首先，我認為它是獨立認可的。在過去的四五個月裡，分析師和投資者都很感興趣。人們現在真正看到了保險、安全、風險和遠程信息處理之間的協同作用。因此，該垂直領域正在增長，我們希望成為該領域的市場領導者。即使你包括轉向電動汽車之類的事情，保險風險保費也會作為其中的一部分發生變化。我們在電動汽車方面擁有出色的技術。如果你看看我們的工業空間和倉庫中的安全和風險，你可以從我們在行人安全方面取得的顯著增長看到，保險風險和挽救倉庫生命之間存在協同作用。所以，對我們來說，這正是我們想在哪裡打球以及我們想把組織放在哪裡的核心所在。從 B2B 的角度和 B2B2C 的角度來看，我們已經有了很好的渠道。我們與 AXA、Swiss 等公司建立了合作關係——移動點，包括智能手機和傳感器以及有線遠程信息處理。因此，我們認為這不僅對歐洲有利，而且對我們今天開放的許多其他地區和渠道也有利。如果——當我們真正將其放入 Unity 中時，我們將在安全和保障方面處於領先地位。所以，這將帶來——這將提高我們的能力，並將給我們帶來真正的競爭優勢。就可信度而言，它會變得非常強大，這已經被一家保險公司證明了。因此，對於保險公司將其出售到他們的基地的接受，我們相信我們現在有一個非常敞開的大門去利用商業優勢。

Okay. That all sounds good. And then what's the revenue model here, Steve?

好的。聽起來不錯。那麼這裡的收入模式是什麼，史蒂夫？

In terms of subscription versus hardware and service, you mean?

在訂閱與硬件和服務方面，你的意思是？

Yes. I mean is it basically a SaaS subscription-based revenue model?

是的。我的意思是它基本上是一種基於 SaaS 訂閱的收入模式嗎？

Yes. Yes, it is.

是的。是的。

Okay. All right. Thank you.

好的。好的。謝謝。

Thank you. Our next question is from Max Michalis with Lake Street Capital Markets. Please proceed with your question.

謝謝。我們的下一個問題來自 Lake Street Capital Markets 的 Max Michalis。請繼續你的問題。

It's a nice quarter. Just want to touch on the Q1 guide. I know you guys noted in your press release that double-digit growth from U.S. Industrial Solutions. I was wondering if you could lay out some other strengths you're seeing and then maybe potential weaknesses going into Q1.

這是一個不錯的季度。只想觸摸 Q1 指南。我知道你們在新聞稿中提到了美國工業解決方案的兩位數增長。我想知道你是否可以列出你看到的其他一些優勢，然後可能是進入第一季度的潛在弱點。

Yes. So, I'll pick that one up, Max. So, obviously, U.S. industrial increase as we look at that set of assets that we have, the differentiation that we have, and also that ability to really sell it outside the U.S. where that revenue is currently concentrated to date. Obviously, we feel really good about that as being a good source of future growth and a key sort of growth engine for us. We obviously -- when Steve said in the pared remarks, Mexico continues to perform incredibly well. So, good movement there. So, there would be a couple of the sort of the main areas in terms of continued sort of high, high digit growth. In terms of some of the headwinds, we're definitely going to see some FX impact in Q1, so obviously, there's the political toy more happening in Israel today. We obviously have a significant portion of our business there. So, there will be some FX headwinds there. There's also been a sort of stretching out of decisions there as well, just given some of the uncertainties. So, in terms of things that will be less rosy, we would wish, I would tell you, sure would be the key comment there.

是的。所以，我會選擇那個，麥克斯。因此，很明顯，當我們審視我們擁有的那套資產、我們所擁有的差異化，以及在美國以外真正銷售它的能力時，美國工業的增長顯然是目前收入集中的地方。顯然，我們對此感覺非常好，因為它是未來增長的良好來源，也是我們增長的一種關鍵引擎。我們顯然——當史蒂夫在縮減的評論中說時，墨西哥繼續表現得非常好。所以，那裡的運動很好。因此，就持續的高數字增長而言，會有幾個主要領域。就一些逆風而言，我們肯定會在第一季度看到一些外匯影響，所以很明顯，今天以色列發生了更多的政治玩具。顯然，我們在那裡有很大一部分業務。因此，那裡會有一些外匯逆風。考慮到一些不確定性，那裡的決策也有一種延伸。因此，就不太樂觀的事情而言，我們希望，我會告訴你，肯定會是那裡的關鍵評論。

Okay. Thanks. And then just the final one for me. I know you guys didn't guide or give an outlook on the full year. But just given your expectations from U.S. industrial that grew double digits throughout 2023. Would it be safe to say you guys expect sequential growth throughout the year?

好的。謝謝。然後是我的最後一個。我知道你們沒有對全年進行指導或展望。但是，鑑於你們對美國工業的預期在整個 2023 年增長了兩位數。可以肯定地說你們預計全年會出現連續增長嗎？

Yes, we expect to grow year-over-year. Obviously, putting aside and setting aside all the comments we said earlier in terms of some of our non-core territories. So, you need to put that to one side.

是的，我們預計會逐年增長。顯然，擱置並擱置我們之前就我們的一些非核心地區發表的所有評論。所以，你需要把它放在一邊。

Okay. That's it for me, yes. Thanks.

好的。對我來說就是這樣，是的。謝謝。

Thank you. Our next question is from Scott Searle with Roth. Please proceed with your question.

謝謝。我們的下一個問題來自 Scott Searle 和 Roth。請繼續你的問題。

Thanks very much for all your time. I apologize I've been having some phone issues. But I just wanted to clarify, did you quantify the Brazil and South African operations just in terms of size? And then I have a couple of other follow-ups.

非常感謝您的寶貴時間。抱歉，我的電話出現了一些問題。但我只是想澄清一下，您是否僅根據規模量化了巴西和南非的業務？然後我還有其他一些後續行動。

Yes. It's about $13 million of revenue in 2022.

是的。 2022 年的收入約為 1300 萬美元。

113?

113？

13, yes.

13，是的。

13. Perfect. And going back to moving dots, I'm wondering if you could provide a little bit more color in terms of the number of data scientists that you get. And looking at your past presentations, when you talk about the Unity platform, it's basically an evolution to analytics and AI, right? And so, this really seems to accelerate the platform and investment on that front by multiple years. So, I'm wondering if you could translate that into maybe revenue expectations if we start to look out two years of the total TAM now that it starts to creep into in terms of what you can address now with moving dots incorporated into a Unity-type platform.

13. 完美。回到移動點，我想知道你是否可以就你獲得的數據科學家的數量提供更多的顏色。看看你過去的演講，當你談到 Unity 平台時，它基本上是向分析和人工智能的演變，對吧？因此，這似乎真的使這方面的平台和投資加速了多年。所以，我想知道你是否可以將其轉化為收入預期，如果我們現在開始關注總 TAM 的兩年，現在它開始逐漸進入你現在可以通過將移動點合併到 Unity 中來解決的問題 -類型平台。

Yes. I think that's a tough question to ask until we get the other side of closing the deal. But what I would say in terms of data science, there's a high level of capability. If you look at the insurance space, it's that AI very, very complex algorithms that are built in order to build risk and insurance propositions that is incorporating to technology. That has advanced us dramatically versus what we're able to provide. And as I said, this is no exaggeration. These guys have spent almost a decade putting this together. So, the speed to market, the ability for us to drive further growth and credibility in that space, I think there's a tenfold increase in where we were without doing this acquisition. So, I think over the next two years, we look to very much dominate the space. We feel that both from a talent perspective, credibility with the insurance market perspective, the channels that we have available to us, and the strength that Unity has today and he's going to bring leads us to a place where we feel very confident about the opportunity in front of us.

是的。我認為在我們達成交易的另一方之前，這是一個很難問的問題。但就數據科學而言，我要說的是高水平的能力。如果你看看保險領域，就會發現人工智能非常非常複雜的算法是為了構建風險和保險建議而構建的，這些建議正在融入技術。與我們所能提供的相比，這使我們取得了顯著進步。正如我所說，這並不誇張。這些人花了將近十年的時間將其整合在一起。因此，上市速度、我們在該領域推動進一步增長和信譽的能力，我認為我們在沒有進行此次收購的情況下增長了十倍。所以，我認為在接下來的兩年裡，我們希望在這個領域佔據主導地位。我們認為，無論是從人才角度、保險市場角度的可信度、我們可用的渠道，還是 Unity 今天擁有的實力以及他將要帶來的實力，我們都對這個機會充滿信心在我們前面。

Great. And lastly, if I could, just to bring the OpEx into perspective, right? You've taken $5 million out in terms of annualized costs. You're talking about another $3 million coming out. So, $8 million in total basically bringing in this team kind of get you back to where you were before, but basically, what you've been able to do is really jump-start your data science capabilities without really changing your cost structure if I look back to the middle of '22. Is that the right way to be, I guess, quantifying that impact?

偉大的。最後，如果可以的話，只是將 OpEx 考慮在內，對嗎？就年化成本而言，您已經扣除了 500 萬美元。你說的是另外 300 萬美元。所以，總共 800 萬美元基本上讓這個團隊讓你回到以前的狀態，但基本上，你能夠做的是真正啟動你的數據科學能力，而不會真正改變你的成本結構，如果我回顧 22 年中期。我想，這是量化這種影響的正確方法嗎？

I think as well, we've increased marketing spend dramatically because, from a brand perspective, we've rebranded the company. We're trying to grow the pipeline through our lead-generation activities. We've brought in a new enterprise sales team in the U.S. to drive the fleet market. And all of that has been done within that cost envelope. And as you said, dramatically increased not only data science, but our overall software and architecture teams, which is why Unity became real very quickly. We've got paying customers who are referenced on the platform, and we've got a super strong development roadmap that's going to be released. The features are going to get released throughout this year and by the end of 2023, we'll have a very feature-rich leading-edge set of solutions on the Unity platform. So, again, we feel humbly proud in terms of the way that we've been able to re-architect the business within the cost envelope that we have. We've driven performance through the year. If I look at my scorecard, then most, if not all of the metrics have moved forward, plus, I think we've been trued enough to find a very, very complementary game-changing acquisition for us that, as I said, also brings some liquidity to the balance sheet.

我也認為，我們大幅增加了營銷支出，因為從品牌的角度來看，我們對公司進行了品牌重塑。我們正試圖通過我們的潛在客戶生成活動來擴大渠道。我們在美國引進了一個新的企業銷售團隊來推動車隊市場。所有這些都是在該成本範圍內完成的。正如你所說，不僅數據科學顯著增加，而且我們的整體軟件和架構團隊也顯著增加，這就是 Unity 很快成為現實的原因。我們有在平台上被引用的付費客戶，我們有一個即將發布的超強發展路線圖。這些功能將在今年全年發布，到 2023 年底，我們將在 Unity 平台上擁有功能非常豐富的前沿解決方案集。因此，我們再次為能夠在現有成本範圍內重新設計業務而感到自豪。我們在這一年中推動了業績。如果我看一下我的記分卡，那麼大多數（如果不是所有）指標都向前發展了，另外，我認為我們已經足夠真實地為我們找到了一個非常非常互補的改變遊戲規則的收購，正如我所說的那樣，也為資產負債錶帶來一些流動性。

Great. Perfect. Nice job in a difficult environment and very exciting on the moving dots front. Thanks, guys.

偉大的。完美的。在困難的環境中乾得不錯，在移動點方面非常令人興奮。多謝你們。

Thank you. There are no further questions at this time. I would like to hand the floor back over to Steve Towe, for any closing comments.

謝謝。目前沒有其他問題。我想將發言權交還給 Steve Towe，請他發表任何結束評論。

Thank you, operator. So, thank you all for the insightful questions, and thanks again to everyone for joining us this morning. I look forward to speaking to you again very soon. Take care. Have a great day.

謝謝你，運營商。所以，感謝大家提出富有洞察力的問題，再次感謝大家今天早上加入我們。我期待很快再次與您交談。小心。祝你有美好的一天。

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

今天的會議到此結束。此時您可以斷開線路。感謝您的參與。