| Michael Levy, Funder News
Powerflit (TASE :), a dual company in the field of wireless solutions for subscribers, fleet asset management and continuous and trouble-free business operations, reported on Wednesday the fourth quarter and year financials ended on December 31, 2021.
Following the publication of the reports, Powerflight (NASDAQ 🙂 shares fell by 3.5% during trading on NASDAQ, after falling 36% since the beginning of the year and cutting 66% in the last 12 months.
The company’s market capitalization now stands at $ 104.2 million
| Financial highlights for the fourth quarter of 2021
Total revenue was $ 34.4 million, an increase of 17% over the same quarter last year
Revenue and income from services with a high profitability rate increased by 10.5% compared to the corresponding quarter last year and amounted to $ 19.1 million, 56% of total revenue
A strong balance sheet totaling $ 26.8 million in cash and cash equivalents and working capital of $ 43.6 million at the end of the quarter.
| Financial highlights for 2021
Total revenue was $ 126.2 million, an increase of 11% compared to 2020
Revenue and income from services with a high profitability rate increased by 8% compared to 2020 and amounted to $ 73.2 million, 58% of total revenue
| Key highlights for the fourth quarter of 2021 and recent operational highlights
Appointment of Steve Tuo (pictured above), an experienced leader in the software industry, for the position of CEO of the company. Tuo replaced Chris Wolf, who decided to retire after serving as CEO since December 2016
Kautex, a leading global provider of automakers, has expanded its use of Powerflit telematics solutions
Atlas Van Lines, one of the largest moving companies in the US, has chosen Powerflit to upgrade its trailer tracking solution
| Management response
“The fourth quarter was a strong end to 2021, with an emphasis on a 17% increase in revenue and an 11% increase in recurring revenue and revenue from services with a high profitability rate compared to the corresponding quarter last year,”
Said Powerflight VP of Finance Ned Ned Bromatis.
“Our strong quarterly growth was due to many sales in the domestic market along with continued demand from our international customer base. We ended the year with a strong balance sheet of $ 26.8 million in cash and $ 43.6 million in cash and working capital, providing us with enough resources to execute the strategy Our revolutionary growth in 2022. “
Powerflight CEO Steve Tuo said:
“It has been a busy and productive period since I was appointed CEO in January. Over the past two months, we have begun implementing the initial phase of our long-term and strategic roadmap, which is designed to establish Powerflit’s status as a critical software provider to the global $ 58 billion IoT market. The epidemic has accelerated the digital changes of our customers and the need for data-based solutions, which can be fully and easily integrated, which will unify all their business activities and provide full visibility across their supply chains. In 2022 we will focus on establishing a world-class SaaS and AI platform to maximize the impact we create for our customers and increase the profitability potential we can generate in the future. In the long run, we expect that the successful implementation of our strategy will translate into international revenue growth and our transformation into a thriving, growing and profitable global organization. “
| Results of the fourth quarter of 2021
A 17% increase in total revenue which amounted to $ 34.4 million compared to $ 29.4 million in the corresponding quarter last year.
Revenue from services totaled $ 19.1 million, 56% of total revenue, an improvement over $ 17.3 million, 59% of total revenue, in the same quarter last year. Revenue from the sale of products, which drives future revenue from services, totaled $ 15.3 million, 44% of total revenue, compared to $ 12.1 million, 41% of total revenue, in the same quarter last year.
Gross profit was $ 15.4 million, 45% of revenue, compared to $ 15.2 million, 52% of revenue, in the same quarter last year. Gross profit from services amounted to $ 12.4 million, 65% of revenue from services, compared to $ 11.2 million, 65% of revenue from services, in the corresponding quarter last year.
Gross profit from product sales totaled $ 3.1 million, 20% of product sales revenue, compared to $ 3.9 million, 32% of product sales revenue, in the same quarter last year.
Gross profit from product sales was also affected by the product mix, high costs associated with global supply chain problems and a lack of electronic components and inflation.
Selling, general and administrative expenses totaled $ 16.1 million, compared to $ 14.0 million in the previous quarter and $ 12.9 million in the corresponding quarter last year.
The increase in sales, administrative and general expenses was mainly due to commissions and costs related to the departure of the previous CEO. Research and development expenses amounted to $ 2.8 million, compared to $ 2.3 million in the corresponding quarter last year.
The net loss attributable to ordinary shareholders amounted to $ 7.9 million or 23 cents for a fully diluted ordinary share (based on a weighted and average stock offering of 35.0 million shares), compared to a net loss of $ 3.5 million or 12 cents for a fully diluted ordinary share in the corresponding quarter last year ( Based on a weighted stock offering and an average of 30.2 million shares).
The net loss on a non-GAAP basis attributable to ordinary shareholders amounted to $ 245,000 or 1 cent for a fully diluted ordinary share (based on a weighted and average diluted share offering of 35.1 million shares), compared to a net profit on a non-GAAP basis of 2 million USD or 7 cents per ordinary share and 5 cents per fully diluted share (based on a weighted and average stock offering of 30.2 million ordinary shares and a weighted average stock offering of 38.1 million fully diluted shares) in the corresponding quarter last year.
Adjusted EBITDA, on a non-GAAP basis, totaled $ 1.0 million, compared to adjusted EBITDA of $ 3.2 million in the same period last year.
As of the end of the fourth quarter, the Company’s cash and cash equivalents totaled $ 26.8 million and working capital amounted to $ 43.6 million.
| Annual results of 2021
Total revenue grew 11% to $ 122.2 million compared to $ 113.6 million in 2020.
Revenue from services totaled $ 73.2 million, 58% of revenue, an improvement over $ 67.9 million, 60% of revenue, in 2020.
Revenue from product sales, which drives future revenue from services, totaled $ 53 million, 42% of revenue, an improvement over $ 45.7 million, 40% of revenue, in 2020.
Gross profit amounted to $ 60.2 million, 48% of revenue, compared to $ 59.0 million, 52% of revenue, in 2020. Gross profit from services amounted to $ 46.6 million, 64% of service revenue, compared to $ 43.6 million, 64 % Of revenue from services, in 2020.
Gross profit from product sales totaled $ 13.5 million, 26% of product sales revenue, compared to $ 15.4 million, 34% of product sales revenue, in 2020.
Selling, general and administrative expenses totaled $ 57.1 million, compared to $ 51.9 million in 2020. Research and development expenses totaled $ 11.1 million, compared to $ 10.6 million in 2020.
The net loss attributable to ordinary shareholders amounted to $ 18.2 million or 52 cents for a fully diluted ordinary share (based on a weighted and average stock offering of 34.6 million shares), compared to a net loss of $ 13.6 million or 46 cents for a fully diluted ordinary share in 2020 (based on On a weighted and average stock offering of 29.7 million shares).
Net income on a non-GAAP basis attributable to ordinary shareholders amounted to $ 820,000 or 2 cents per ordinary share and 2 cents per share in full dilution (based on a weighted and average share offering of 34.6 million ordinary shares and a weighted and average weighted share offer of 42.7 million Shares), compared to a non-GAAP net income attributable to ordinary shareholders of $ 3.7 million or 12 cents per ordinary share and 10 cents per fully diluted share in 2020.
Adjusted EBITDA, on a non-GAAP basis, totaled $ 6.2 million, compared to adjusted EBITDA of $ 9.1 million in 2020.
The article was first published on the FUNDER website.