PowerFleet Inc (AIOT) 2023 Q4 法說會逐字稿

Good morning. Welcome to PowerFleet's fourth-quarter and full-year 2023 conference call. Joining us for today's presentation are the company's CEO, Steve Towe; and CFO, David Wilson. Following their remarks, we will open up the call to questions.

早安.歡迎參加 PowerFleet 2023 年第四季和全年電話會議。參加今天演講的有公司執行長 Steve Towe；和財務長戴維·威爾遜 (David Wilson)。在他們發言之後，我們將開始提問。

Before we begin the call, I would like to provide PowerFleet's safe harbor statement, which 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. All statements other than present and historical facts, which include any statements regarding the company's plans 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.

在我們開始通話之前，我想提供 PowerFleet 的安全港聲明，其中包括對本次通話期間所作前瞻性陳述的警告。電話會議期間，將對未來事件做出前瞻性陳述，包括 PowerFleet 未來的財務表現。除當前和歷史事實之外的所有陳述，包括有關公司未來營運計劃、預期未來財務狀況、預期營運結果、業務策略、競爭地位、公司對成長機會的預期、對公司產品的需求和其他行業趨勢的任何陳述，均被視為前瞻性陳述。

Such statements include, but are not limited to, the company's financial expectations for 2024 and beyond. All such forward-looking statements imply the presence of risks, uncertainties, and contingencies, many of which are beyond the company's control.

這些聲明包括但不限於公司對 2024 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、不確定性和意外事件，其中許多超出了公司的控制範圍。

The company’s actual results, performance, or achievements may differ materially from those projected or assumed in any forward-looking statement. 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.

本公司的實際結果、業績或成就可能與任何前瞻性聲明中預測或假設的結果、業績或成就有重大差異。可能導致實際結果出現重大差異的因素可能包括但不限於美國證券交易委員會 (SEC) 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。該公司不打算承擔更新任何前瞻性陳述以反映未來事件或情況的義務。

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.

最後，我想提醒大家，本次電話會議將在公司網站 www.powerfleet.com 的投資者關係部分重播。

Now, I would like to turn the call over to PowerFleet's CEO, Mr. Steve Towe. Sir, please proceed.

現在，我想將電話轉給 PowerFleet 的執行長史蒂夫·托威先生。先生，請繼續。

Good morning, everyone. And thank you for joining the call. Today, we'll provide you with a business update that focuses on a review of the key milestones that marked 2023 as a year of stellar transformation for the business, an overview of our strong financial performance in the final quarter and second half of 2023, highlighting increased financial strength and growth trajectory, and demonstrating highly effective results from the strategic operating plan for the year.

大家早安。感謝您參加此次電話會議。今天，我們將為您提供業務更新，重點回顧 2023 年作為業務出色轉型之年的關鍵里程碑，概述我們在 2023 年最後一個季度和下半年的強勁財務業績，強調增強的財務實力和增長軌跡，並展示年度戰略運營計劃的高度有效成果。

And a deep dive into the progress and momentum we're making in bringing together the PowerFleet MiX businesses, highlighting the value the combination brings to our shareholders.

深入探討我們在整合 PowerFleet MiX 業務方面所取得的進展和勢頭，強調此次合併為我們的股東帶來的價值。

In 2023, we embarked upon a bold and aggressive transformation plan, designed to inherently change and accelerate the company's ability to elevate itself to a market leadership position at the very top table of the industry it serves. This plan required us to reshape the revenue profile of the business, fix balance sheet issues that were a major overhang on the company, accelerate a technology pivot to AI and data science led solutions, create scale to truly give the company the ability to compete with the global leaders in the industry, reignite EBITDA expansion and positive cash flow generation, and drive a unique product and platform strategy to bring differentiated value propositions to the industry.

2023 年，我們啟動了一項大膽而積極的轉型計劃，旨在從根本上改變並加速公司提升到其服務業最高市場領導地位的能力。該計劃要求我們重塑業務的收入狀況，解決困擾公司的重大資產負債表問題，加速向人工智能和數據科學主導的解決方案的技術轉型，創造規模，使公司真正有能力與該行業的全球領導者競爭，重新點燃 EBITDA 擴張和正現金流生成，並推動獨特的產品和平台戰略，為行業帶來差異化的價值主張。

The outcomes achieved in the last six months in particular, notably fact-checked by our strong Q4 performance, categorically underlying true world-class execution the team has delivered, with the undeniable achievement of the major business objectives we have communicated to our shareholders over the last 12 to 18-month period.

特別是過去六個月的成果，特別是我們強勁的第四季度業績，明確證明了團隊真正世界一流的執行力，並且不可否認地實現了我們在過去 12 至 18 個月內向股東傳達的主要業務目標。

Starting with revenue where we embarked on a brave transformation early in the year based on improving the quality of our revenue streams, a strategy typically seen in the private equity space, but in our case, executed in the full view of the public markets.

從收入開始，我們在年初開始了一項大膽的轉型，以提高收入流的品質為基礎，這一策略通常在私募股權領域看到，但在我們的情況下，是在公開市場的全視野下執行的。

We are grateful to our shareholders for the trust shown in the leadership team's capabilities to execute this bold plan. This pivot included making tough decisions to exit poor quality revenue segments, unprofitable contracts, low performing territories, and non-strategic lines of business.

我們感謝股東對領導團隊執行這項大膽計畫的能力的信任。這項轉變包括做出艱難的決定，退出品質差的收入部門、無利可圖的合約、業績不佳的地區和非策略性的業務線。

This deliberate pruning of approximately $8 million of annual revenue concentrated in hardware sales, has not only simplified our operations, but also redirected resources towards more SaaS based revenue and business profitability. As we predicted publicly, we reached a fast inflection point and a return to top-line growth in mid-2023, with second half performance painting a clear picture of success where total revenue increase by 6% compared to half one, and gross profit followed suit with a 6% improvement.

有意削減硬體銷售中約 800 萬美元的年度收入，不僅簡化了我們的運營，還將資源重新用於更多基於 SaaS 的收入和業務盈利能力。正如我們公開預測的那樣，我們在 2023 年中期達到了一個快速拐點並恢復了營收成長，下半年的業績描繪出了清晰的成功圖景，總收入與上半年相比增長了 6%，毛利也隨之增長了 6%。

Top-line success is built on our SaaS Unity platform strategy, as evidenced by Q4 '23s high-quality SaaS revenue growing by 16% year over year on a constant currency basis. The total revenue performance in Q4 was our best performance in six quarters, growing 9% on a constant currency basis year over year, and was particularly pleasing as we absorbed the predicted $2 million revenue shortfall in the quarter to our Israeli business due to the current macroeconomic issues for the territory.

營收成功建立在我們的 SaaS Unity 平台策略之上，23 年第四季高品質 SaaS 營收以固定匯率計算年增 16% 就證明了這一點。第四季的總營收表現是我們六個季度以來的最佳表現，按固定匯率計算同比增長 9%，尤其令人欣慰的是，由於該地區當前的宏觀經濟問題，我們吸收了本季度以色列業務預計的 200 萬美元收入缺口。

The reshaping of top-line performance in the full year to focus on high quality SaaS revenue, resulted in a 14% increase in service revenue year over year on a constant currency basis, and a $3 million improvement in annual gross profit from a lower total revenue base. Notably, North America, the leader in adoption of our Unity data ecosystem solution, delivered an excellent performance, with annual growth of 16%.

該公司對全年營收業績進行了重塑，將重點放在高品質的 SaaS 收入上，結果按固定匯率計算，服務收入同比增長 14%，並且在總收入基數較低的情況下，年度毛利增加了 300 萬美元。值得注意的是，北美在採用我們的 Unity 數據生態系統解決方案方面處於領先地位，表現優異，年增長率達到 16%。

Adjusted EBITDA in the second half of 2023 saw a terrific 141% increase, a gain of $2.9 million versus the first half. It's important to highlight that this EBITDA expansion was achieved despite a full period of Movingdots operating expenses, macroeconomic challenges in Israel, and a $1 million one-off charge for inventory-related items in the fourth quarter of 2023.

2023 年下半年調整後的 EBITDA 大幅成長 141%，較上半年增加 290 萬美元。值得強調的是，儘管 Movingdots 在整個期間的營運費用、以色列的宏觀經濟挑戰以及 2023 年第四季度 100 萬美元的庫存相關項目的一次性費用，EBITDA 仍然實現了擴張。

The 48% sequential adjusted EBITDA increase from Q3 to Q4 2023, and 110% year over year increase in Q4, is a satisfying reflection on the output of the aggressive transformation efforts we've completed throughout the year.

2023 年第四季至第三季度，調整後 EBITDA 環比成長 48%，第四季年增 110%，這令人滿意地反映了我們全年完成的積極轉型努力的成果。

Moving on to technology in 2023, we successfully tackled the dual challenge of aggressively ramping up investment in our next-generation Unity platform within the challenging landscape of managing near-term liquidity needs and addressing the financial overhang of the ABRY preferred notes.

2023 年，我們轉向技術，在管理短期流動性需求和解決 ABRY 優先票據的財務過剩問題的嚴峻形勢下，我們成功應對了積極增加對下一代 Unity 平台投資的雙重挑戰。

The challenge was successfully addressed in very short order with the close of our rapid and strategic acquisition of Movingdots at the end of March. As a reminder, this deal secured a cohesive and high-performing team of over 30 engineers and data scientists with deep domain knowledge, cutting edge IP in the automotive and safety insurance space, along with robust ESG reporting capabilities to enrich Unity, and was the source of an $8 million influx of liquidity versus a drain on cash.

隨著我們在三月底完成對 Movingdots 的快速策略性收購，這項挑戰在很短的時間內得到了成功解決。需要提醒的是，這筆交易獲得了一支由 30 多名工程師和數據科學家組成的具有凝聚力和高績效的團隊，他們擁有深厚的領域知識、汽車和安全保險領域的尖端知識產權以及強大的 ESG 報告能力，從而豐富了 Unity，並且帶來了 800 萬美元的知識產權流動資金流入，而不是現金流動資金流入，而不是現金流失。

A key commitment we made to our shareholders at the close of the Movingdots acquisition was to ensure it became EBITDA neutral within two quarters of close. As David will share, we clearly met this commitment, posting a flat year on year spend in adjusted OpEx in Q4 2023, which included $1.3 million of absorbed Movingdots spend.

在 Movingdots 收購結束時，我們向股東做出的一項重要承諾是確保其在收購完成後的兩個季度內實現 EBITDA 中立。正如 David 所說，我們明確履行了這項承諾，2023 年第四季調整後的營運支出與去年同期持平，其中包括 130 萬美元的 Movingdots 支出。

Our greatest accomplishment in 2023 is unquestionably the successful signing of our business combination with MiX Telematics. This milestone not only empowers us to fully realize our vision and strategy, but also significantly transforms our balance sheet, including clearing the ABRY preferred instrument from our capital structure.

我們 2023 年最大的成就無疑是與 MiX Telematics 成功簽署業務合併協議。這個里程碑不僅使我們能夠充分實現我們的願景和策略，而且還顯著改變了我們的資產負債表，包括從我們的資本結構中清除 ABRY 優先工具。

The combined value-creation opportunity this presents makes us incredibly excited about the future of our business. The MiX deal is also a game changer in terms of scale, with 12 months training revenue increasing from $134 million to over $280 million, combined EBITDA increasing from $7 million to $40 million. The combination also provides a clear pathway to realize more than $25 million in cost synergies within two years of close.

由此帶來的綜合價值創造機會讓我們對業務的未來感到無比興奮。MiX 交易在規模方面也有重大改變，12 個月的培訓收入從 1.34 億美元增至 2.8 億美元以上，綜合 EBITDA 從 700 萬美元增至 4,000 萬美元。此次合併還提供了一條清晰的途徑，可以在兩年內實現超過 2500 萬美元的成本協同效應。

With resounding shareholder approval for the transaction secured for both PowerFleet and MiX, our integration teams, led by Chief Corporate Development Officer, Melissa Ingram, will now begin to move from the planning phase to active execution. In deploying a trident tested business integration methodology with a track record for delivering tangible results, the program aims to expedite the integration phase, enabling us to swiftly shift our attention to towards driving increased shareholder value and enhancing our customers’ experience, underpinned by a highly robust EBITDA expansion program.

在 PowerFleet 和 MiX 交易獲得股東的一致批准後，由首席企業發展長 Melissa Ingram 領導的整合團隊將開始從規劃階段轉入積極執行階段。透過部署經過三叉戟測試的業務整合方法（該方法具有提供切實成果的記錄），該計劃旨在加快整合階段，使我們能夠迅速將注意力轉移到推動增加股東價值和增強客戶體驗，並以高度強勁的 EBITDA 擴展計劃為基礎。

With 100 day plans in place and the non-negotiable deliverables defined, our teams are ready to embark on implementing key elements of the integration plan. The entire organization is firmly behind this effort, and we can already feel the collective strength of the combined team driving our integration success. We are committed to swiftly and effectively putting the integration stage behind us, emerging as a unified, stronger, and more effective company.

在製定了 100 天計畫並確定了不可協商的交付成果後，我們的團隊已準備好著手實施整合計畫的關鍵要素。整個組織都堅定地支持這項努力，我們已經可以感受到合併團隊的集體力量推動著我們的整合成功。我們致力於迅速有效地結束整合階段，成為一家統一、更強大、更有效率的公司。

Before I dive deeper into our future business opportunities and outlook, I'll turn the call over to David to walk you through our numbers in more detail. David?

在我深入探討我們未來的商業機會和前景之前，我會先將電話轉給大衛，讓他更詳細地向您介紹我們的數據。戴維？

Thanks Steve. And good morning, everyone. We are delighted that our progress in transforming the makeup of our revenue base with growth in our differentiated sticky recurring service revenue, putting through product sales where we have increased levels of pricing power.

謝謝史蒂夫。大家早安。我們很高興看到，我們在轉變收入基礎結構方面取得了進展，差異化的黏性經常性服務收入有所增長，產品銷售也獲得了更高的定價能力。

As Steve noted, we have actively shared approximately $2 million in quarterly revenue from the first quarter of 2023, and it is great to see that market success from our next-generation offerings now outpacing these surgical cuts, with fourth quarter revenue of $34.5 million, up 4.2% on an absolute basis, and 9% on a constant currency basis versus the prior year period. As noted earlier, service revenue was the driver here, up 8.2% on an absolute basis and 16% on a constant currency basis.

正如史蒂夫指出的那樣，自 2023 年第一季以來，我們已積極分享約 200 萬美元的季度收入，並且很高興看到我們下一代產品的市場成功現已超過這些外科手術式削減，第四季度收入為 3450 萬美元，與去年同期相比，絕對值增長 4.2%，按固定匯率計算增長 9%。如前所述，服務收入是推動力，以絕對值計算成長 8.2%，以固定匯率計算成長 16%。

While our gross profit margin for the quarter reached 50%, reflecting a modest improvement of one percentage points over the prior year, these figures only partially reflect the underlying progress we've achieved in expanding margins. It's important to note that within the quarter, we absorbed $1.1 million in non-recurring inventory adjustments without these one-time costs, our gross margin would've been 53% or four percentage points higher than the prior year.

雖然本季我們的毛利率達到了 50%，比上年略有提高一個百分點，但這些數字僅部分反映了我們在擴大利潤率方面取得的基本進展。值得注意的是，本季我們吸收了 110 萬美元的非經常性庫存調整，如果沒有這些一次性成本，我們的毛利率將達到 53%，即比前一年高出 4 個百分點。

Improved margins were driven by the continued evolution of revenue, with high-margin service revenue now comprising 63% of total revenue, up from 60% in the prior year, and absolute service margins expanding to a historic high of 67% versus 64% in the prior year period. Product margins were 22% on an absolute basis, and 30% when adjusted for non-recurring inventory charges, up from 27% in the prior year period.

利潤率的提高得益於收入的持續變化，高利潤率的服務收入目前佔總收入的 63%，高於去年的 60%，絕對服務利潤率擴大至歷史新高 67%，而去年同期為 64%。產品利潤率為絕對值 22%，調整非經常性庫存費用後為 30%，高於去年同期的 27%。

Now onto OpEx, which was $21.3 million on an absolute basis and $17.6 million after adjusting for $3.7 million in transaction expenses, and in line with the $17.6 million incurred in the prior year. Flat year over year OpEx provides a compelling proof point of meeting our commitment that Movingdots would be EBITDA neutral within two quarters of closing the transaction, with cut-to-cover activities absorbing $1.3 million of OpEx incurred by Movingdots in the quarter.

現在談談營運支出，絕對值為 2,130 萬美元，扣除 370 萬美元交易費用後為 1,760 萬美元，與上一年的 1,760 萬美元持平。與去年同期持平的營運支出為我們履行承諾提供了有力的證據，即 Movingdots 將在交易結束後的兩個季度內實現 EBITDA 中性，而削減覆蓋活動將吸收 Movingdots 在本季度產生的 130 萬美元的營運支出。

Moving on to adjusted EBITDA, which more than doubled from $1.4 million to $2.9 million, with a $1 million increase at the gross margin level, a lower cash op spend year over year key drivers. Net loss attributed to common stockholders totaled $4.6 million or $0.13 per basic and diluted share, inclusive of additional $1.5 million gain on bargain purchase arising from the Movingdots transaction.

調整後的 EBITDA 成長了一倍多，從 140 萬美元增至 290 萬美元，毛利率增加了 100 萬美元，現金營運支出較去年同期下降是主要驅動因素。歸屬於普通股股東的淨虧損總計 460 萬美元，即每股基本虧損和稀釋虧損 0.13 美元，其中包括 Movingdots 交易產生的 150 萬美元廉價收購收益。

Adjusting for transaction costs and the gain on bargain purchase, net loss attributed to stockholders was $2.4 million or $0.07 per basic and diluted share. Closing with cash, we reacted the quarter with cash of $19.3 million on the back of strong generation, with cash from operations totaling $4.5 million in the quarter, inclusive of $1.2 million in cash settled transaction costs.

經交易成本和廉價收購收益調整後，歸屬於股東的淨虧損為 240 萬美元，即每股基本虧損和稀釋虧損各 0.07 美元。以現金結算，在強勁發電的推動下，我們本季的現金為 1,930 萬美元，本季經營現金總額為 450 萬美元，其中包括 120 萬美元的現金結算交易成本。

I'll now provide an update on closing the MiX transaction, with a focus on funding and the underlying capital structure. We have finalized $100 million credit agreement with Rand Merchant Bank in South Africa, and renewing a $50 million credit agreement with Bank Hapoalim in Israel.

我現在將提供有關完成 MiX 交易的最新進展，重點是資金和基礎資本結構。我們與南非蘭特商業銀行達成 1 億美元信貸協議，並與以色列工人銀行續約 5,000 萬美元信貸協議。

In terms of timing, and as a condition for the merger to be declared effective in South Africa on April 2, we will draw down $85 million of debt from RMB on March 13. In order to demonstrate we have unfettered access to the necessary capital to pay down the $90 million owed to ABRY at close.

就時間而言，作為4月2日在南非宣布合併生效的條件，我們將於3月13日從人民幣提取8,500萬美元的債務。為了證明我們可以不受限制地獲得必要的資金來償還欠 ABRY 的 9000 萬美元。

We also plan to draw down the full $30 million of term loan from Hapoalim and pay down $23 million of existing Hapoalim debt on March 18. In terms of the makeup and the cost of debt, $30 million in term loans from Hapoalim will be denominated in new Israeli shekel, providing a natural hedge for USD denominated investors for cash flows generated in Israel.

我們也計劃在 3 月 18 日從哈波阿利姆銀行提取全部 3,000 萬美元的定期貸款，並償還哈波阿利姆銀行現有的 2,300 萬美元債務。在債務組成和成本方面，哈波阿利姆提供的 3000 萬美元定期貸款將以以色列新謝克爾計價，為以美元計價的投資者在以色列產生的現金流提供自然對沖。

$90 million will be denominated in USD, which differs from our earlier intention to have $50 million denoted in ZAR. While we were ultimately enabled to obtain exchange controlled relief in South Africa to borrow in ZAR and remit to PowerFleet Inc. In USD, we are exploring entering into an FX swap to essentially obtain the same hedging benefit for USD denominated investors by alternate means.

9000 萬美元將以美元計價，這與我們之前打算以南非蘭特計價 5000 萬美元的意圖不同。雖然我們最終能夠在南非獲得外匯管制救濟，以南非蘭特借款並以美元匯給 PowerFleet Inc.，但我們正在探索進行外匯掉期，以便透過其他方式為美元計價的投資者獲得相同的對沖利益。

The blended annual cost of debt is expected to be $11 million, an effective cash coupon of 8.8%, with interest rate fixed on $85 million of USD denominated debt. While this cash coupon is approximately 1.7 percentage points lower than the effective rate included in the January 2024, S4 filing, we expect this saving to be effectively consumed by the contemplated FX swap.

預計混合年度債務成本為 1,100 萬美元，有效現金票面利率為 8.8%，利率固定在 8,500 萬美元的美元計價債務上。雖然該現金息票比 2024 年 1 月 S4 文件中包含的有效利率低約 1.7 個百分點，但我們預計這筆節省的費用將被預期的外匯掉期有效消耗。

Total and net debt at close is forecast to be $125 million and approximately $110 million, respectively. Total liquidity at close is forecast to be approximately $40 million, inclusive of $25 million in undrawn revolver capacity. In terms of the underlying business, it is performing in line with the numbers shared at our November Investor Day, with expected trailing 12 months revenue and EBITDA of the combined business at close to be approximately $285 million, north of $40 million, respectively.

預計交易結束時的總債務和淨債務分別為 1.25 億美元和約 1.1 億美元。預計收盤時的總流動資金約為 4,000 萬美元，其中包括 2,500 萬美元的未提取循環信貸額度。就基礎業務而言，其表現與我們 11 月投資者日分享的數據一致，預計合併業務過去 12 個月的收入和 EBITDA 分別接近 2.85 億美元和 4,000 萬美元以上。

Some additional context here. When overriding focus in the first quarter has been on aligning both organizations so we have a running start on aggressively realizing revenue and cost end user close. While this is undoubtedly the right call from a shareholder value creation standpoint, it necessarily requires taking some focus away from maximizing top line performance in the first couple of quarters, as well as investing back into OpEx to ensure we have the right team and skillset in place to meet and beat our prior guidance on the timing of synergies.

這裡有一些額外的背景資訊。第一季的首要重點是協調兩個組織，以便我們能夠積極實現收入和成本最終用戶的接近。雖然從股東價值創造的角度來看這無疑是正確的選擇，但它必然要求我們將注意力從最大化前幾個季度的營收業績上轉移開，並重新投資於營運支出，以確保我們擁有合適的團隊和技能，以滿足並超越我們之前對協同效應時機的指導。

Building on this, in order to provide investors with a comprehensive understanding of our joint operations, our first quarter 2024 earnings call and release will concentrate on the financial outcomes of the merged entity rather than just standalone figures for legacy PowerFleet, which will appear in the 10-Q filing.

在此基礎上，為了讓投資者全面了解我們的聯合運營，我們 2024 年第一季度的收益電話會議和發布將集中於合併實體的財務結果，而不僅僅是傳統 PowerFleet 的獨立數據，後者將出現在 10-Q 文件中。

A final note in the first quarter of 2024. Israel continues to be impacted by the challenging macroeconomic backdrop, which is more pronounced in the first quarter, which has historically been the strongest quarter for new business car sales and associated revenue. That concludes my remarks. Steve.

2024 年第一季的最後說明。以色列繼續受到嚴峻的宏觀經濟背景的影響，這種影響在第一季更為明顯，而第一季歷來是新商務車銷售和相關收入表現最強勁的一個季度。我的發言到此結束。史蒂夫。

Thanks, David. 2023 has been a landmark year for the company, wholeheartedly meeting the objectives I pledge to achieve to the board and our shareholders within the first two years as my tenure CEO. I'm profoundly proud of the substantial progress we've achieved across vital areas on our operating vectors of the business, all completed during aggressive and extensive M&A activity and execution.

謝謝，大衛。 2023年是公司具有里程碑意義的一年，我全心全意地實現了我在擔任執行長的頭兩年內向董事會和股東承諾的目標。我為我們在業務營運關鍵領域取得的實質進展深感自豪，所有這些都是在積極而廣泛的併購活動和執行過程中完成的。

The transformation of our business from where it stood just a year ago is remarkable. We created an exciting foundation in 2023 that is poised to generate substantial value and rewards for our stockholders starting in 2024 and beyond.

與一年前相比，我們的業務發生了顯著的變化。我們在 2023 年創建了一個令人興奮的基礎，將從 2024 年及以後開始為我們的股東創造巨大的價值和回報。

The signal from the market and our customers is crystal clear that our Unity platform effectively addresses acute pain points and needs across a broad swathe of the mobile asset market, highlighted by our improved revenue performance from our North America market, which has been the number one priority for the go to market activities of Unity.

來自市場和客戶的訊號非常明確，我們的 Unity 平台有效地解決了廣泛行動資產市場的嚴重痛點和需求，這突顯在我們北美市場的營收表現有所提高，而北美市場一直是 Unity 進入市場活動的首要任務。

The acquisition of Movingdots in Q1 and the pending completion of the game changing MiX transaction, massively expand our capacity to accelerate the further development and hardening of this comprehensive SaaS software platform and data ecosystem.

第一季對 Movingdots 的收購以及即將完成的改變遊戲規則的 MiX 交易，大大擴展了我們加速進一步開發和強化這一綜合 SaaS 軟體平台和數據生態系統的能力。

The Unity play is not only increasing our share of wallet with current customers, but also attracting new top tier enterprise accounts, which is highly encouraging. Unity will evolve over time into a platform and ecosystem that extends well beyond telematics.

Unity 的推出不僅增加了我們現有客戶的錢包份額，而且還吸引了新的頂級企業帳戶，這是非常令人鼓舞的。隨著時間的推移，Unity 將發展成為一個遠遠超出遠端資訊處理範圍的平台和生態系統。

In the immediate term, we are scaling up our device-agnostic data ingestion and processing and leveraging AI to empower customers to flexibly consume insights, be it via our own advanced applications or through integrations with other third-party business operating systems they utilize. The need for these capabilities is opening substantial market opportunities by positioning Unity as a central hub for a broad range of IoT applications and an all-encompassing data highway for our customers enterprise.

就短期而言，我們正在擴大與設備無關的資料提取和處理，並利用人工智慧使客戶能夠靈活地獲取見解，無論是透過我們自己的高級應用程式還是透過與他們使用的其他第三方業務作業系統整合。透過將 Unity 定位為廣泛物聯網應用的中心樞紐和客戶企業的全方位資料高速公路，這些功能的需求正在開闢巨大的市場機會。

Feedback on our one-stop shop strategy for providing rich data solutions that cover operations in both the warehouse and over the road is very positive, as larger enterprises look for true mission critical partners who can help drive their digital transformation and business improvement.

我們的一站式服務策略提供了豐富的數據解決方案，涵蓋倉庫和道路運營，並獲得了非常積極的反饋，因為大型企業正在尋找能夠幫助推動其數位轉型和業務改進的真正關鍵任務合作夥伴。

In addition to accelerating our technology and go to market build, we have achieved in a single step the necessary scale and punching power to give us a much stronger ability to execute our long term vision and strategy for the company. The deal more than doubles the size and the scale of our operations, increasing trailing 12 months revenue to north of $280 million, and EBITDA to over $40 million, with active subscribers going from 700,000 to 1.8 million, resulting in an exceptional medium term cross sell and upsell opportunity.

除了加速我們的技術和市場建設之外，我們還一步實現了必要的規模和衝擊力，使我們更有能力執行公司的長期願景和策略。這筆交易使我們的營運規模擴大了一倍多，過去 12 個月的收入增加到 2.8 億美元以上，EBITDA 增加到 4,000 多萬美元，活躍用戶從 70 萬增加到 180 萬，帶來了絕佳的中期交叉銷售和追加銷售機會。

Early dialogue with customers focused on the broader value proposition the combination presents, has been extremely encouraging, and provides us with strong confidence that we will accelerate the growth trajectory of the company in the medium term. As the deal is set to conclude at the start of April, we will spotlight key indicators in our future earnings calls to demonstrate the trajectory towards significantly enhancing EBITDA and propelling revenue growth.

早期與客戶的對話著重於合併所帶來的更廣泛的價值主張，這非常令人鼓舞，並使我們充滿信心，我們將在中期內加速公司的成長軌跡。由於交易將於 4 月初完成，我們將在未來的收益電話會議上重點關注關鍵指標，以展示大幅提高 EBITDA 和推動收入成長的軌跡。

In the forthcoming update, we will focus on the cumulative annual run rate cost synergies achieved by the end of each quarter, advancements in transitioning MiX'S customer base to the Unity platform, specific instances of how we are expanding our share of wallet with existing customers through cross-selling the comprehensive product lineup resulting from the combination, and also progress in utilizing MiX's extensive global network of 130 resellers to broaden the sales reach of our in warehouse solutions and advanced safety solutions.

在即將發布的更新中，我們將重點關注每個季度末實現的累計年度運行成本協同效應、MiX 客戶群向 Unity 平台過渡的進展、我們如何透過交叉銷售合併產生的綜合產品陣容來擴大現有客戶的錢包份額的具體實例，以及在利用 MiX 廣泛的 130 個經銷商的全球網絡擴大我們的倉庫解決方案和先進安全解決方案的銷售範圍的銷售範圍。

To conclude, we have a team that has undoubtedly proven that it is highly effective at executing brave and highly complex business improvement at pace, and one which will now be bolstered even further by the addition of the talented individuals joining us through the MiX transaction.

總而言之，我們擁有一支團隊，該團隊無疑已證明其能夠高效地快速執行大膽且高度複雜的業務改進，而現在，透過 MiX 交易加入我們的優秀人才將進一步增強該團隊的實力。

We have the clarity of vision and mission for the combined team, a disruptive and compelling data led software strategy, and much improved global market opportunity to build a business centered on highly differentiated, sticky, recurring SaaS revenue that gives us the ability to expect to meet and then beat Rule of 40 performance two years into the closing of the transaction.

我們對於合併後的團隊有著清晰的願景和使命，具有顛覆性和引人注目的數據主導軟體策略，並且擁有大大改善的全球市場機會，可以建立以高度差異化、黏性、經常性 SaaS 收入為中心的業務，這使我們能夠預期在交易結束兩年後達到並超越 40 規則的表現。

As we begin to put a sharp focus on executing the next phase of our strategic plan to the highest level in the next two year period. We anticipate rewarding our shareholders over time through a significant rerate in our trading value from today's pro forma valuation of approximately 1.5 times revenue towards the 5 times to 8 times revenue valuation more typically enjoyed by a rule of 40 public class company.

我們開始將重點放在在未來兩年內以最高水準執行策略計畫的下一階段。我們期望隨著時間的推移，透過大幅提高交易價值來回報我們的股東，從今天的預期估值（約為收入的 1.5 倍）提高到 40 家上市公司通常享有的 5 倍至 8 倍的收入估值。

The commencement of the new combined business is set to formally go live on April 2. We naturally need some time to fully take control and fly the plane for ourselves in the coming months, with the mission to successfully land the combined organization with a highly effective operating rhythm within six months. It is crystal clear we now have all the ingredients we need to drive a very compelling value proposition for the near and long-term for our shareholders, our customers, and our colleagues.

新的合併業務將於4月2日正式啟動。我們當然需要一些時間來在未來幾個月內完全掌控並駕駛飛機，我們的任務是在六個月內成功讓合併後的組織以高效的營運節奏落地。顯然，我們現在擁有為股東、客戶和同事提供近期和長期極具吸引力的價值主張所需的一切要素。

I'll now turn it back over to the operator for Q&A. Operator?

現在我將把問題交還給操作員進行問答。操作員？

At this time, we will be conducting a question-and-answer session. (Operator Instructions).

此時，我們將進行問答環節。（操作員指令）。

Scott Searle, Roth MKM

史考特‧塞爾，羅斯 MKM

Hey, good morning. Thanks for taking the questions. Nice job on the fourth quarter. It's nice to see the continued integration efforts seem to be tracking and everything as we go to, I guess, an April 2 launch. Maybe for starters, Dave, wanted to get a little bit of color in terms of what you're seeing sequentially into the March quarter. It sounds like Israel continues to be some headwinds, but just kind of directionally how you're thinking about things.

嘿，早安。感謝您回答這些問題。第四季做得很好。很高興看到持續的整合工作似乎進展順利，我們預計將於 4 月 2 日發布。首先，戴夫，也許您希望對三月季度的連續表現有一個大致的了解。聽起來以色列繼續面臨一些阻力，但這只是一個方向性的觀點。

And then from a broader picture, Steve, what are you seeing in terms of the total contract value, the opportunity pipeline, kind of ARR growth? What should we be thinking about going forward over the next couple of quarters here, and how are sales cycles looking? It sounds like things are filling up in the industry broadly speaking looks to be very healthy right now, but how are you seeing that reflect itself in the current pipeline?

然後從更廣泛的角度來看，史蒂夫，您看到了總合約價值、機會管道、 ARR 成長方面的情況如何？我們應該如何考慮未來幾季的發展，銷售週期狀況如何？聽起來整個行業的情況都很好，總體來說現在看起來非常健康，但是您如何看待這種情況在當前的管道中得到體現？

Great. Thanks, Scott. I'm happy to start in terms of just some insight in terms of Q1. Clearly, there's a huge opportunity set that we have. We're focused in terms of making sure we're building up a great head of steam in the first half of calendar year next year. A lot of our energy's really going in just to make sure things click into place, so we have a running start for April.

偉大的。謝謝，斯科特。我很高興就第一季度的情況提供一些見解。顯然，我們擁有巨大的機會。我們重點關注的是確保我們在明年上半年累積強大的動力。我們投入了大量的精力只是為了確保一切順利進行，這樣我們才能在四月有一個好的開始。

So, I would definitely view Q1 as a bit of a stub period in terms of where we're focused. There were also some benefits in the fourth quarter in terms of just lower expenses as we reacted to the events in Israel. So, we're very much focused in terms of making sure we're in control that. So, there will be some sort of reinvestment back into the business from an OpEx standpoint, some of it just things that we just delayed doing.

因此，就我們的重點而言，我肯定會將第一季視為一個短暫的時期。由於我們對以色列事件做出了反應，第四季度在降低開支方面也取得了一些好處。因此，我們非常注重確保我們能夠控制這一點。因此，從營運支出的角度來看，我們會對業務進行某種形式的再投資，其中一些只是我們推遲做的事情。

Others, there were certain savings in terms of people being called, for example, to the front line. So, there were certain costs in Israel that we avoided and that certainly contributed to a pretty healthy EBITDA in the fourth quarter. But again, the goal is to really sort of get things in place in Q1. Obviously, we're focused on managing multiple things, including financial performance, but the overriding focus is really on getting off the running start from April.

另外，在人員調動方面，例如，在前線，也有一定的節省。因此，我們避免了在以色列的某些成本，這無疑有助於第四季度實現相當健康的 EBITDA。但再次強調，我們的目標是在第一季真正實現目標。顯然，我們專注於管理多項事務，包括財務業績，但最重要的重點是從四月開始順利運作。

Yes, and to answer your questions, Scott, about pipeline and market, so both the quantity and quality of pipeline is increasing. I think if you look at the trajectory where we took out the product revenue and pivoted very quickly back to growth with much improved output in recurring SaaS revenue, then that's a testament to the quality of the pipeline that's coming through.

是的，斯科特，回答你關於管道和市場的問題，管道的數量和質量都在提高。我認為，如果你看一下我們拿出產品收入並迅速恢復成長的軌跡，並且經常性 SaaS 收入的產出大幅提高，那麼這就證明了正在流經的管道的品質。

And also, as well, the improved gross margins in terms of better deal discipline and just overall higher quality deals that we are working through. So, that trajectory will continue. Obviously, on top of that now we are starting to have very early conversations with MiX clients and PowerFleet clients about the combined portfolio which is opening further doors.

此外，我們還透過更好的交易紀律和我們正在進行的整體更高品質的交易來提高毛利率。因此，該軌跡將會持續下去。顯然，除此之外，我們現在開始與 MiX 客戶和 PowerFleet 客戶就合併後的投資組合進行早期對話，這將打開更多大門。

So in general terms, I think the market is strong. I think we have an ability to take advantage of that one stop shop capability I discussed earlier in terms of in warehouse and over the road. And I think underpinning that, the kind of unity strategy where we're able to take multiple data sources and provide holistic inputs and outputs for customers is only driving that further attractive pipeline for us in the future.

所以整體來說，我認為市場是強勁的。我認為我們有能力利用我之前討論過的倉庫和公路一站式服務能力。我認為，在此基礎上，我們能夠利用多種資料來源並為客戶提供整體輸入和輸出的統一策略，只會在未來推動我們推出更具吸引力的產品線。

What we have to do is invest as much as we can to develop sales and marketing, which is a part our key strategies to unlock the ability to put more investment and more feet on the street. But the vectors are good and we feel really positive about the future trajectory of the company. What we have stated in terms of revenue growth, short and medium-term, the first couple of quarters is very much around the synergy unlock on the cost side, integrating the business and giving us that oxygen into the P&L. And then as we start to kind of come through that, we get into the operating rhythm, then we'll see the revenue growth tick up over time.

我們要做的就是盡可能多地投資以發展銷售和行銷，這是我們釋放更多投資和更多人流能力的關鍵策略的一部分。但前景很好，我們對公司的未來發展方向充滿信心。就短期和中期收入成長而言，我們已經提到，前幾季主要圍繞成本方面的協同效應釋放、業務整合以及為我們的損益表注入活力。然後，當我們開始實現這一點，進入營運節奏時，我們就會看到收入成長隨著時間的推移而上升。

Good. Very helpful. And two questions if I could to follow up and I'll get back in the queue, but Steve, David, is there any change in terms of how you're thinking about the long term targets at this point in time, I know it's not that far beyond the November Analyst Day, but you guys are hitting the ground with the running start here as we get close to, I guess, the launch in early April. Is there any change of thought on that front?

好的。非常有幫助。如果我可以跟進的話，還有兩個問題，我會回到隊列中，但是史蒂夫、大衛，你們現在對長期目標的看法有什麼變化嗎？我知道距離 11 月分析師日不遠了，但隨著我們接近 4 月初的發布，你們已經開始著手準備了。您在這方面的想法有什麼改變嗎？

And then Steve, just to follow up on the Unity platform, I just wanted to get my hands around a little bit the integration timelines of when you can really start getting out there and hitting the installed MiX customer base, and you also referenced more IoT applications being incorporated into the Unity platform. I'm wondering if you could expand a little bit on that. Thanks.

然後史蒂夫，只是為了跟進 Unity 平台，我只是想稍微了解一下整合時間表，即何時可以真正開始推出並接觸已安裝的 MiX 客戶群，並且您還提到了更多 IoT 應用程式被整合到 Unity 平台中。我想知道您是否可以對此進行一些詳細說明。謝謝。

So in terms of your first question, I think we remain confident, and we've had another 2 or 3 months to get under the skin of the combined business. We feel confident in the numbers and projections we put forward at Investor Day. We don't see any change to that. Obviously, when we fly the plane for ourselves, then we'll fully see the landscape that's in front of us.

因此，就您的第一個問題而言，我認為我們仍然充滿信心，而且我們還有另外 2 到 3 個月的時間來了解合併後的業務。我們對投資者日提出的數字和預測充滿信心。我們沒有看到任何變化。顯然，當我們自己駕駛飛機時，我們就會清楚地看到眼前的風景。

But overall, the indications remain strong, and we think we put together a credible plan and overview for our shareholders of the journey that we're going to go on. In terms of MiX customers being able to enjoy Unity, within three to six months maximum, the customers will have the ability to utilize the Unity services. We are obviously working hard as well to ensure that hardware and devices are already installed, can communicate bidirectionally.

但總體而言，跡象仍然強勁，我們認為我們為股東制定了可靠的計劃和概述，概述了我們將要走的旅程。就 MiX 客戶能夠享受 Unity 而言，最多三到六個月內，客戶將能夠使用 Unity 服務。我們顯然也在努力確保硬體和設備已經安裝完畢，並且能夠雙向通訊。

So we can also from a PowerFleet perspective, utilize the MiX capabilities that don't exist, which we are obviously building into the overall Unity proposition. Then in terms of kind of broader IoT, we're looking at all asset types. So that can be temperature and humidity. It can be things from, as we've talked about previously, defibrillator solutions and just different monitoring systems that exist, in order to provide a customer with a holistic view of data that is relevant to their organization.

因此，從 PowerFleet 的角度來看，我們也可以利用不存在的 MiX 功能，我們顯然正在將其建置到整體 Unity 主張中。然後，就更廣泛的物聯網而言，我們正在研究所有資產類型。這可以是溫度和濕度。正如我們之前討論過的，它可以是除顫器解決方案和現有的不同監控系統，以便為客戶提供與其組織相關的數據的整體視圖。

So we'll expand those as we go. We have our core offerings right now, but I think what we are seeing is customers saying to us, look, can you take data from this type of asset, from this type of sensor, and can you make sense of it for us, and that's all part of the strategy that we are undertaking.

因此，我們會逐步擴大這些範圍。我們現在有核心產品，但我認為我們看到的是客戶對我們說，看，你能否從這種類型的資產、從這種類型的感測器中獲取數據，你能否為我們理解這些數據，而這都是我們正在採取的策略的一部分。

Scott, just a, a quick add, sorry, on the Analyst Day numbers, just to confirm, I know we said it on the day, you need to think about those numbers as being the first four quarters after close. So it is not a calendar year projection. It's really for the 12 months after close. So those numbers should be thought of in terms of the year ending March 31, not December 31.

史考特，抱歉，我只是想快速補充分析師日的數據，只是為了確認一下，我知道我們當天就說過了，你需要把這些數字看作是收盤後的前四個季度的數據。所以它不是日曆年的預測。這實際上是針對收盤後的 12 個月。因此，這些數字應該以截至 3 月 31 日而不是 12 月 31 日的年份來考慮。

Great. Thanks so much. Great job on the quarter and looking forward to the combined entity.

偉大的。非常感謝。本季表現出色，期待合併後的新實體。

Thanks, Scott.

謝謝，斯科特。

Mike Walkley, Canaccord Genuity

麥克沃克利（Mike Walkley），Canaccord Genuity

Great. Thanks for taking my question and congratulations on all you achieved in 2023. I guess first question just for David, on the gross margin and services, quite strong this quarter. Is this a good way to think about where it should go going forward, or is there a mix shift in the quarter? And then also on hardware, should be expected to sustain around that 30% level given the new mix of hardware?

偉大的。感謝您回答我的問題，並祝賀您在 2023 年取得的所有成就。我想第一個問題只針對大衛，關於本季的毛利率和服務，表現相當強勁。這是思考未來發展方向的好方法嗎，還是本季會出現混合轉變？那麼在硬體方面，考慮到新的硬體組合，是否應該維持在 30% 左右的水平？

Yes, so you're right. Obviously, services gross margin was strong at 67%. It was unusually low in Q3. It ran about 60% and normalized it was sort of closer to 64%. So, what I think is most important is that we are seeing gross margins at service level expand over time. But just a comment on the Q4 performance. As I mentioned earlier in the earlier questions, there was a benefit in Israel in terms of being able to pull costs out.

是的，你是對的。顯然，服務毛利率高達 67%。第三季這數字異常低。它的運行率約為 60%，而標準化後則接近 64%。因此，我認為最重要的是我們看到服務水準的毛利率隨著時間的推移而擴大。但這只是對第四季表現的評論。正如我之前在回答問題時提到的那樣，以色列在降低成本方面具有優勢。

There were fewer shifts, for example, working at a call center level. So, there's probably sort of over a percentage point of benefit there. So, I would say on a go forward basis, 65% is probably the right way to think about it from a services standpoint, again, with headroom to expand over time. And then in terms of your question on hardware margins, yes, 30% is a good sort of baseline to look at. The thought and the goal is to expand that over time, but as of now, I think 30% is the right sort of base to build from.

輪班次數較少，例如在呼叫中心層級工作。因此，那裡的收益可能超過一個百分點。因此，我想說，從未來來看，從服務的角度來看，65％可能是正確的選擇，隨著時間的推移，還有擴大的空間。然後關於硬體利潤率的問題，是的，30％是一個很好的基準。我們的想法和目標是隨著時間的推移而不斷擴大，但截至目前，我認為 30% 是正確的基礎。

Great. Thanks. And just with the $8 million in annual revenue pulled out, perhaps should we think about, just in terms of comparables, when you're lapping that, is it setting up for easier growth trends on the standalone PowerFleet business as the year plays out? Or was it mostly pulled out at the beginning of the year, end of 2022?

偉大的。謝謝。並且，僅從可比性的角度考慮一下，當您將其重疊時，它是否為獨立 PowerFleet 業務在今年的進展中更容易的成長趨勢奠定了基礎？還是大部分是在 2022 年初或年底撤出的？

Yes, so basically the lapping becomes easier from Q1 2024 onwards. It was really initiatives that took hold and impacted the P&L from Q1 2023 onwards.

是的，所以從 2024 年第一季開始，研磨基本上變得更容易了。這些措施確實生根發芽，並從 2023 年第一季開始影響損益表。

Great. Thanks. And just last question for me before I pass it on. Excited about the combined entities and those targets, but as you look at your standalone PowerFleet business and how much the margins have expanded, what do you think this business’s standalone area could reach in terms of adjusted EBITDA margins as the trends play out over the course of the year?

偉大的。謝謝。在我傳達之前，我還有最後一個問題。對合併後的實體和這些目標感到興奮，但是當您查看獨立的 PowerFleet 業務以及利潤率擴大了多少時，您認為隨著趨勢在一年內的發展，該業務的獨立領域在調整後的 EBITDA 利潤率方面可以達到多少？

Yes. So in terms of the standalone business, the expectation has always been on a standalone basis we can be a rule of 40 company. Again that would be EBITDA margins in the sort of the 30% range over time. There's a lot of efficiencies we think we can continue to drive from an OpEx standpoint. And to the earlier comments, we do see gross margins expanding over time.

是的。因此，就獨立業務而言，我們的期望始終是，在獨立的基礎上，我們可以成為一家 40 條規則的公司。再次，隨著時間的推移，EBITDA 利潤率將保持在 30% 左右的範圍內。從營運支出的角度來看，我們認為我們可以繼續提高很多效率。對於先前的評論，我們確實看到毛利率隨著時間的推移而擴大。

Two key drivers there. Firstly, from a services standpoint, the scale benefits as that grows. And also from a revenue MiX standpoint, the expectation is that services as a percentage of revenue will continue to grow as it has been growing.

那裡有兩個關鍵驅動因素。首先，從服務的角度來看，規模會隨著服務的成長而成長。而且從收入組合的角度來看，預計服務佔收入的百分比將持續成長。

So that's always been the expectation on a standalone basis. The joy of the MiX transaction is we get there a lot more quickly, and also we have certain elements of the P&L totally within our control, and obviously the cost base being the key one and the expectations, there's efficiencies we can harvest there.

因此，這始終是我們對獨立的期望。MiX 交易的樂趣在於我們可以更快地實現目標，而且我們可以完全控制損益表中的某些要素，顯然成本基礎是關鍵要素，而預期則是我們可以從中獲得效率。

And I think, Mike, just to add, so obviously, we've managed to make a huge technological transformation within the envelope that we had in terms of balance sheet and the restrictions. But what we committed to was getting through that getting those investments in place, but ripping out a bunch of costs and improving margins to move PowerFleet standalone to a path of profitability. And I think we can now -- we can all see those numbers start to flow and that will continue to grow as we go.

麥克，我想補充一點，顯然，我們在資產負債表和限制的框架內成功地完成了巨大的技術轉型。但我們承諾的是完成這些投資，削減大量成本並提高利潤率，使 PowerFleet 獨立走上獲利之路。我認為我們現在可以看到——我們都可以看到這些數字開始流動，並且會隨著我們的前進而繼續增長。

Great. No, that's very helpful. I guess one last question, then I'll pass it on. Just in terms of the deal closing, you have the debt in place. You have shareholder approval. Is there any other milestones that need to happen between now and then, or you think it's just smooth sailing from here until the closing date?

偉大的。不，這非常有幫助。我想還有最後一個問題，然後我會繼續問問題。就交易完成而言，您已經承擔了債務。您已獲得股東批准。從現在到那時，是否還有其他里程碑需要實現，或者您認為從現在到截止日期一切都會順利進行？

So -- I mean, all conditions have been met in terms of all the regulatory approvals required. Obviously, the funding is fully in place and the shareholder vote was resounding. So, now it's just a matter of time, and that is just time that has to pass under legislative terms out of South Africa. So we at this point are highly confident that the April 2 date will be the launch for the new combined company.

所以——我的意思是，所有需要的監管批准的條件都已滿足。顯然，資金已經完全到位，股東投票也十分正面。所以，現在這只是一個時間問題，而這只是根據南非立法條款必須經過的時間。因此，我們現在非常有信心，4 月 2 日將是新合併公司的成立日期。

Great. Thank you very much.

偉大的。非常感謝。

Jaeson Schmidt, Lake Street.

傑森‧施密特 (Jaeson Schmidt)，湖街。

Hey guys, thanks for taking my questions. I know you called out Israel, but just curious from a geographical perspective if there are any other areas that jump out, either positive or negative?

嘿夥計們，謝謝你們回答我的問題。我知道您提到了以色列，但我只是好奇從地理角度來看是否還有其他地區脫穎而出，無論是積極的還是消極的？

I think if you look at the positive growth of North America in the last 12 months, that's where we focused our enterprise sales efforts. It's where we launched Unity, and the response that we're seeing is super positive, with proof points in terms of new logos, customer commitments. We are shortly embarking on heart beats in May, which is our second annual customer conference where there'll be a bunch of customers talking about Unity and its effect on their business.

我認為，如果你看看過去 12 個月北美的積極成長，你會發現那裡就是我們企業銷售工作的重點。我們在這裡推出了 Unity，我們看到的反應非常積極，新標誌、客戶承諾等方面都有證明。我們將於 5 月開始舉辦第二屆年度客戶會議，屆時將有許多客戶討論 Unity 及其對他們業務的影響。

So I think overall, we're seeing strong vectors, and that's also considering in the US, we've seen some headwinds in terms of the supply chain industry, with some of the traditional PowerFleet revenues. So the overriding, I think growth in our safety solutions, the combined solution of in warehouse and over the road, is really kind of coming to bear, but that's where we see kind of real strength.

因此我認為總體而言，我們看到了強勁的成長勢頭，考慮到在美國，我們看到供應鏈產業面臨一些阻力，影響了一些傳統的 PowerFleet 收入。因此，我認為最重要的是，我們的安全解決方案、倉庫和道路的綜合解決方案的成長確實正在發揮作用，但這才是我們看到的真正優勢所在。

We're starting to plant some seeds, as we've talked previously in the European region. That's a midterm burn, but we're seeing some good pipelines starting to build out of Europe. And I think we have a new lease of life coming for our Brazil, Argentina, and South African businesses, which obviously we put into almost maintenance mode.

正如我們之前在歐洲地區談到的那樣，我們開始播下一些種子。這是中期的燒錢行為，但我們看到一些優質的管道開始在歐洲建造。我認為，我們在巴西、阿根廷和南非的業務即將迎來新的生機，顯然，我們目前已將這些業務置於幾乎維持的模式。

And we kind of killed any growth pipeline with the decisions that we made when we look for strategic alternatives for it. So that region's got new life. And if you look at the fact that we've been able to grow this quarter considering the challenges faced in Israel from October 7 onwards, gives us a real strong indication in terms of the overall growth potential for the business.

當我們尋找策略替代方案時，我們所做的決定扼殺了任何成長管道。因此，該地區煥發了新的生機。考慮到 10 月 7 日以來以色列面臨的挑戰，我們本季仍能實現成長，這為我們提供了業務整體成長潛力的真正有力證明。

And I would say a big thank you as well to our Israeli team who have done a tremendous job to protect revenues and find alternative revenue streams to continue that support moving forward during obviously what is challenging times.

我還要向我們的以色列團隊表示衷心的感謝，他們做了大量工作，保護了收入，並找到了替代收入來源，以便在顯然充滿挑戰的時期繼續提供支持。

Got it. That's helpful. And Steve, I know you just mentioned new logos in North America. When you look at that pipeline expansion in aggregate across your business, is that expansion early being driven by these new logos, or are you still expanding pretty significantly at existing customers?

知道了。這很有幫助。史蒂夫，我知道您剛才提到了北美的新標誌。當您從整體上看整個企業的管道擴張時，這種擴張早期是由這些新標誌推動的，還是您仍在對現有客戶進行大幅擴張？

It's a mixture of both. So I think we are, even in PowerFleet standalone, doing a much better job of cross-selling and upselling where we had customers in the warehouse that we're now starting to get into their assets that are on the road and vice versa. But what I think is particularly intriguing and exciting is the view that we have as this kind of data highway play where customers, large enterprises in the US have multiple providers.

這是兩者的混合。因此，我認為，即使在 PowerFleet 獨立運營的情況下，我們在交叉銷售和追加銷售方面也做得更好，我們擁有倉庫中的客戶，現在我們開始進入他們在路上的資產，反之亦然。但我認為特別有趣和令人興奮的是，我們有這樣的觀點，這種數據高速公路讓美國的客戶、大型企業擁有多個供應商。

They're struggling to make sense of the data and get it in a meaningful format and are looking for more of a mission critical partner. I think that's the role that we're starting to play, and that's what is bringing new logo growth where maybe there's some frustration in key verticals with some of the more tactical competitors out in the market.

他們正在努力理解數據並將其轉化為有意義的格式，並正在尋找更重要的任務合作夥伴。我認為這就是我們開始扮演的角色，這也是帶來新標誌成長的原因，也許在關鍵垂直領域，市場上一些更具戰術性的競爭對手會給我們帶來一些挫折感。

Okay. And then just the last one, and I'll jump back into queue, I don't know if you disclosed ARPU, but at least directionally, is it trending in how you expected it to?

好的。然後是最後一個，我會跳回隊列，我不知道您是否披露了 ARPU，但至少從方向上看，它的趨勢是否如您預期的那樣？

Yes, again, ARPU is not a metric that we're overly focused on. We're increasingly focused on sort of the book of business, the annual recurring book of business, but the benefit of Unity is it really is adding an extra layer of value from a customer standpoint, and clearly we get to earn our share of economic rent for that value delivered.

是的，再次強調，ARPU 並不是我們過度關注的指標。我們越來越關注業務帳簿，即年度重複業務帳簿，但 Unity 的好處在於，它確實從客戶的角度增加了額外的價值，而且顯然我們可以從所提供的價值中獲得應有的經濟租金份額。

And just to add to that, kind of the stickiness of taking in different data sources, adds ARPU to your standard fee. Expanding the enterprise applications and the AI capabilities and delivering premium applications, adds more to your ARPU. And then finally, integrating into third-party business systems and sending our data into other solutions, allows us to do the same.

除此之外，採用不同資料來源的黏性也會將 ARPU 加入您的標準費用中。擴展企業應用程式和 AI 功能並提供優質應用程序，可增加您的 ARPU。最後，整合到第三方業務系統並將我們的資料發送到其他解決方案，使我們能夠做同樣的事情。

So I think if you look at kind of more of the commoditized revenue that PowerFleet had and some of the non-profitable stuff and all the stuff we've kind of taken out of the business that's now been replaced with stronger ARPUs and higher margin and better quality.

因此，我認為，如果你看一下 PowerFleet 擁有的更多商品化收入和一些非營利的東西，以及我們從業務中剔除的所有東西，現在它們都被更高的 ARPU、更高的利潤率和更好的品質所取代。

Okay. Perfect. Thanks a lot, guys.

好的。完美的。非常感謝大家。

Thank you.

謝謝。

Gary Prestopino, Barrington Research.

巴林頓研究公司的加里‧普雷斯托皮諾 (Gary Prestopino)

Hey, good morning, Steve, David. A couple of questions here. I guess that you just answered the one first one I was going to ask is in terms of, are you giving a subscriber count or that just is not a metric that you're going to be focusing on?

嘿，早上好，史蒂夫，大衛。這裡有幾個問題。我想您剛剛回答了我要問的第一個問題，即您是否給出了訂閱者數量，或者這不是您要關注的指標？

So I think we talked generically about the subscribers. We will provide subscriber numbers. For us, it's about quality of revenue and ARPU in terms of just the scale of revenue we're getting per subscriber, rather than just attracting subscribers. So I think that's - it's something that is important to us, but I would say it's not the number one vector. The number one vector is the profitability of the revenue and the growth that we can pull forward per customer. And improving that wallet share, I think is another key vector.

所以我認為我們只是泛泛地談論了訂閱者。我們將提供訂閱者號碼。對我們來說，重要的是收入品質和 ARPU，即我們從每個用戶獲得的收入規模，而不僅僅是吸引用戶。所以我認為這對我們來說很重要，但我認為這不是最重要的載體。最重要的因素是收入的獲利能力以及我們可以為每個客戶帶來的成長。我認為提高錢包份額是另一個關鍵因素。

Okay. So just on the legacy business alone, PowerFleet, can you give us some metrics of where you are with the Unity platform in terms of your legacy customer base or legacy revenues on the services side? I mean, what percentage of these revenues are now being derived through being a part of the Unity platform?

好的。那麼，僅就傳統業務而言，PowerFleet，您能否就您的傳統客戶群或服務方面的傳統收入，向我們提供一些有關 Unity 平台現狀的指標？我的意思是，這些收入中有多少百分比是透過成為 Unity 平台的一部分而獲得的？

Yes. So I mean, Unity is an ecosystem and a platform. So all of the previous heritage functionality from the previous platforms, reside in Unity. So it's not like we are migrating from platform A to platform B, and therefore there is Unity revenue shift from one platform to the other. It's all part of Unity.

是的。所以我的意思是，Unity 是一個生態系統和一個平台。因此，以前平台的所有繼承功能都保留在 Unity 中。因此，我們並不是從平台 A 遷移到平台 B，因此 Unity 的收入也從一個平台轉移到另一個平台。這都是 Unity 的一部分。

So it's difficult to break it out. What I would say is, if you look at the growth that we are achieving, then a strong proportion of that growth is coming from the fact of the capabilities of what Unity does today and what it's going to do in the future.

所以很難打破它。我想說的是，如果你看看我們所取得的成長，那麼這種成長的很大一部分來自於 Unity 目前所具備的能力以及未來將要實現的能力。

So I think that's where if you take -- if you see the fact we've taken out $8 million annualized revenue and now we're out tracking that in terms of growth, then I would say the majority of that is coming from the Unity play. And in line with that, I would say the safety solutions that we sell within Unity.

所以我認為，如果你看到我們已經獲得了 800 萬美元的年收入，而且現在我們的成長速度超過了這個數字，那麼我會說，其中大部分收入來自 Unity 業務。與此一致，我想說的是我們在 Unity 中銷售的安全解決方案。

Okay. And then what are -- as I recall, you said you were going to have 5 or 6 modules. Is that correct? Are they all out in the market now?

好的。然後是什麼——我記得，你說過你將有 5 或 6 個模組。對嗎？它們現在都上市了嗎？

No, we've not put out another module since the sustainability module. We've pivoted right now to ensuring that we can integrate MiX. So there are capabilities that will enhance the overall modularity that we have, that MiX has today. So that has been something that we've pivoted to obviously off the back of the transaction.

不，自從永續性模組以來，我們還沒有推出其他模組。我們現在已經轉向確保能夠整合 MiX。因此，這些功能將增強我們目前擁有的 MiX 的整體模組化。因此，這顯然是我們交易完成後要重點關注的事情。

And then secondly, the kind of, I think excitement and desire for the device agnostic piece of the platform has meant that we've accelerated our capabilities there to be able to do that at scale. So once those two things are done, then we'll start to release more and more AI capabilities and more modularity into the platform. But we think our near term bang for the buck is very much on focusing on the integration with MiX and this kind of device agnostic piece and being able to take multiple data sources into the platform.

其次，我認為，人們對該平台的設備無關部分的興奮和渴望意味著我們已經加速了我們在那裡的能力，以便能夠大規模地做到這一點。因此，一旦完成這兩件事，我們就會開始在平台上發布越來越多的人工智慧功能和更多的模組化。但我們認為，我們近期的投資回報主要集中在與 MiX 的整合以及這種與設備無關的部分，並能夠將多個資料來源納入平台。

Okay. Thank you. That's great.

好的。謝謝。那太棒了。

Matt Pfau, William Blair.

馬特普法、威廉布萊爾。

Hey, great, thanks. Nice results. Wanted to follow up on the comments around the MiX customer base and discussions with moving them over to the Unity platform. Maybe can you just remind us the strategy around that? How long is that going to take and how potentially disruptive is that to the existing MiX customer base?

嘿，太好了，謝謝。效果不錯。想要跟進有關 MiX 客戶群的評論以及將其轉移到 Unity 平台的討論。或許您能提醒我們相關的策略嗎？這需要多長時間？這對現有的 MiX 客戶群有多大的潛在破壞？

So it's only additive to the MiX customer base. So, we are implementing a strategy at the moment, like we did with PowerFleet platforms, to bring all of the current MiX platform capabilities into the Unity ecosystem and infrastructure. What it means within 3 to 6 months is that the customers will have the ability to utilize the value added services that Unity brings.

因此，它對 MiX 客戶群來說只是一種補充。因此，我們目前正在實施一項策略，就像我們對 PowerFleet 平台所做的那樣，將所有目前的 MiX 平台功能納入 Unity 生態系統和基礎設施。這意味著在 3 到 6 個月內客戶將能夠利用 Unity 帶來的增值服務。

So whether that is more data ingestion points, whether that is the advanced AI applications that we've delivered already, or the more scalable business system integration. So there is zero disruption to the customer base. And what we have seen already in the dialogue is a lot of, I would say, excitement and customers putting us under pressure to get that stuff delivered, which is great.

因此，無論是更多的資料提取點，還是我們已經交付的高級 AI 應用程序，還是更具可擴展性的業務系統整合。因此對客戶群不會造成任何干擾。我想說，我們在對話中已經看到很多興奮之情，客戶給我們壓力，要求我們交付產品，這很好。

And then I think secondly, the other thing that from a MiX perspective the customers have the ability to absorb is the in warehouse solution. So where we're focusing on safety and sustainability, the folks that are usually responsible for that in an organization are both responsible for it in the warehouse and over the road.

其次，我認為從 MiX 的角度來看，客戶能夠吸收的另一件事是倉庫解決方案。因此，當我們關注安全和永續性時，組織中通常負責此事的人員既負責倉庫中的事務，也負責道路上的事務。

So this gives the ability to go and sell to new people in on the organization and do broader propositions. And I think it's something that the MiX team are excited about that they didn't have that strong capability and therefore that was a bit of a gap. On the flip side, we also have some key MiX technologies that the PowerFleet customer base have been wanting and desiring. So there's a bidirectional move. So obviously, the PowerFleet customers can benefit from that MiX technology again within the same period of time.

因此，這使得組織能夠向新人推銷產品並提出更廣泛的建議。我認為這是 MiX 團隊感到興奮的事情，因為他們沒有那麼強大的能力，因此這是一個小小的差距。另一方面，我們也擁有 PowerFleet 客戶群一直想要且渴望的一些關鍵 MiX 技術。因此這是一個雙向的舉動。因此顯然，PowerFleet 客戶可以在同一時間內再次受益於 MiX 技術。

Great. And then, David, just wanted to follow up on the comments around the impact to top line growth from the integration efforts. How long should we expect that to continue? Is that something beyond Q1 and in any way to sort of quantify how you're thinking about that impact?

偉大的。然後，大衛，我只是想跟進有關整合工作對營收成長的影響的評論。我們預計這種情況會持續多久？這是超出 Q1 範圍的事嗎？您是否以某種方式量化了您對這種影響的看法？

Yes, so again, the businesses are growing nicely, both on their side and our side. So we're not expecting there to be sort of a pullback in terms of how we're performing there. Obviously, Israel is a headwind, so we have to work our way around that. So we do have those types of things. And as Steve said in his earlier comments, the logistics here in the US, there's certainly some sort of headwinds in terms of that piece of the market.

是的，所以，無論他們這邊還是我們這邊，業務都在良好發展。因此，我們並不認為我們的業績會出現回落。顯然，以色列是一個阻力，所以我們必須想辦法解決這個問題。所以我們確實有這些類型的東西。正如史蒂夫在他之前的評論中所說，美國的物流在這一領域肯定存在某種阻力。

But I think the essence of what we're calling out here is if we really focused on top-line, we would do better just because where we put our attention, we generally get to move the dial and we look to put our attention to the dials that are going to create the most amount of value. And I'd say over the next two quarters, it really is about getting this thing up and running.

但我認為，我們在此呼籲的本質是，如果我們真正關注營收，我們會做得更好，因為我們把注意力放在哪裡，我們通常就能移動撥盤，我們希望把注意力放在那些能夠創造最大價值的撥盤上。我想說，在接下來的兩個季度裡，我們真正要做的就是讓這個東西啟動並運作起來。

We have a massive focus in terms of expanding EBITDA through the benefits in terms of efficiencies from a cost standpoint. So we're going to put our minds and our efforts to work there, but obviously, we can keep more than one plate spinning at a single point in time. So we'll be looking to be effective across all fronts, but we're going to prioritize those things that matter the most.

我們非常注重從成本角度透過提高效率帶來的好處來擴大 EBITDA。因此，我們會全心全意地為此努力，但顯然，我們可以同時做多件事。因此，我們希望在各方面都取得成效，但我們會優先考慮最重要的事情。

Yes, and I'll just add to that, this is a big undertaking that -- and a brave undertaking that the two companies are doing. And the industry and broader industries are littered with integrations and combinations that fail. What we are highly confident about is we have a team with a track record of doing this really, really well.

是的，我還要補充一點，這是一項大事業──也是兩家公司正在進行的一項勇敢的事業。而該行業以及更廣泛的行業中充斥著失敗的整合和組合。我們非常有信心的是，我們擁有一支在這方面有著非常出色記錄的團隊。

I think even from Investor Day time, people saw the similar cultures of the teams and the teams are actively working together. What we want to do is make sure we land into a very, very strong operating rhythm fast. We've come out and made some bold statements in terms of projections over a two year period.

我認為，即使從投資者日開始，人們就看到了團隊相似的文化，而且團隊正在積極地合作。我們想要做的是確保我們能夠快速進入非常非常強勁的營運節奏。我們已經就未來兩年的預測做出了一些大膽的聲明。

And the key parts of moving that forward is, A, getting everybody aligned internally so that we can then focus externally as soon as soon as possible and we don't get that distraction. The ability for us to realize those EBITDA expansion programs, I think gives us everything we're going to need to propel top line growth.

而推動這項進程的關鍵部分是，A，讓每個人在內部保持一致，這樣我們就可以盡快專注於外部，而不會分心。我認為，我們實現這些 EBITDA 擴張計劃的能力為我們提供了推動營收成長所需的一切。

But we're going to make sure we don't dilute efforts on both of those by trying to do too much in one go. So that first six-month period is very much something that is key to us winning the hearts and minds internally and externally. I think we have a great plan to do that. And then once we're through that initial period, then we can start to put our foot on the accelerator.

但我們要確保不要試圖一次做太多事情，從而分散我們在這兩方面的努力。因此，最初的六個月對於我們贏得內部和外部的支持至關重要。我認為我們有一個很好的計劃來實現這一點。一旦我們度過了最初的階段，我們就可以開始加大油門了。

Okay, perfect. Appreciate you taking my questions.

好的，完美。感謝您回答我的問題。

Thanks, Matt.

謝謝，馬特。

We have reached the end of the question-and-answer session, and I will now turn the call over to Steve for closing remarks.

問答環節已經結束，現在我將把電話交給史蒂夫作結束語。

Thank you. I would like to say a sincere thank you once again for the trust and confidence shown by our shareholders and the outstanding contribution from so many of our colleagues in both the PowerFleet and MiX organizations that have allowed us to be able to complete a highly strategic and complex transaction so effectively and seamlessly.

謝謝。我想再次真誠地感謝股東們的信任和信心，以及 PowerFleet 和 MiX 組織中眾多同事的傑出貢獻，他們讓我們能夠如此有效和無縫地完成一項高度戰略性和複雜的交易。

We look forward very much to new beginnings for the evolved and highly energized PowerFleet family, and we look to continue to update our shareholders along the way. Thank you, everyone. Have a great day. We'll speak again soon.

我們非常期待不斷發展和充滿活力的 PowerFleet 家族的新起點，並期待在此過程中繼續向股東通報最新情況。謝謝大家。祝你有美好的一天。我們很快會再聯絡。

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

感謝您今天參加我們的演講。您現在可以斷開連線。