Thursday 30th July 2020
|Text too small?|
Transport technology services company EROAD today released its quarterly update for the three months ended 30 June 2020. Key points include:
• EROAD is continuing to operate and achieve growth across its three markets despite challenging operating conditions;
• EROAD’s New Zealand sales have returned to near normal growth levels across both the Small and Medium (SMB) and Enterprise growth segments;
• Delay in implementation decisions by customers and impacts of COVID 19 on businesses have largely contributed to suppressed growth in Australia and North America respectively;
• Continued investment in additional functionality and products during the quarter will help to extend EROAD North America product suite into larger fleet sizes; and
• EROAD’s FY21 outlook remains unchanged from the FY20 result announcement.
Business operations and growth continued during the quarter
EROAD continued to operate and grow during the quarter. During the lockdowns in its markets, operating conditions have been challenging and these remain in the North American and Australian markets where some element of restrictions due to lockdowns remain.
In New Zealand, where post lockdown economic activity has recovered somewhat, EROAD is operating normally, while in North America, many customers remain in lockdown. In Australia, the recent re-imposition of lockdown in Victoria has meant further restrictions for our Australian sales team and customers alike.
Growth continues in Q1, despite continuing COVID-19 restrictions
During the first quarter of financial year 2021, EROAD grew by 2,326 units. Although this is lower than EROAD’s usual growth rate, this reflects the COVID-19 lockdowns that have occurred, or are continuing to occur, across its three markets. While many of EROAD’s customers provide essential services that are keeping economies running, implementation decisions have been either deferred or have been slowed down by prospective customers.
In New Zealand, April’s growth was significantly suppressed by the Level 4 lockdown. However, during May and June EROAD experienced near normal growth levels across both the SMB and Enterprise growth segments. With a continued focus on growing ARPU, in July EROAD launched its new EROAD Day Logbook which supports drivers to keep on top of their work or rest hours, through either Android or iOS devices.
Unit growth in our North American business was generated from SMB customers and was in line with prior quarter’s level. The net growth consisted of sales of 824 units which was offset by returns of 568 units. 273 of these units were returned due to COVID-19 related impacts and 199 related to churn to competitors. While conditions in North America continue to be more challenging, EROAD continues to work to improve the SMB pipeline and close out sales despite the lockdown restrictions in many states. Additional functionality and product launches at the end of the first half of financial year 2021 will help to extend EROAD North America product suite into larger fleet sizes.
No comments yet
Reserve Bank of New Zealand Committed to Action as It Responds to Data Breach
MHM Automation Limited (NZX: MHM) Settlement of New Plymouth Building Sale
Napier Port Holdings Limited (NZX: NPH) First Quarter 2021 Trade Volumes
New Zealand Oil & Gas Limited (NZX: NZO) Mahato PSC Update - Oil Production
Michael Hill International Limited (NZX: MHJ) Update - Dividend/Distribution
Michael Hill International Limited (NZX: MHJ) Trading Update
Tilt Renewables Limited (NZX: TLT) Q3 December 2020 Quarterly Production Results
Mercury NZ Limited (NZX: MCY) Tiwai to continue operations through 2024
NZXO Announcement: Rollover of Fletcher Building Industries Ltd Notes - FBI150
Meridian Energy Limited (NZX: MEL) Rio Tinto confirms Tiwai Exit in December 2024