Thursday 26th November 2020
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EROAD today released its financial results for the first half of the 2021 financial year.
• Revenue continued to grow to $45.8m, up 19% from H1 FY20 and 7% from H2 FY20 reflecting growth across all regions
• EBITDA of $15.3m was up 29% from H1 FY20 and flat on H2 FY20 reflecting accelerated R&D and spend-to-save initiatives
• EROAD grew contracted units by 5,705, while keeping ARPU and asset retention stable in the six months despite challenging macro-economic conditions
• Launched EROAD Day Logbook, EROAD Go and EROAD Clarity Dashcam which will support future growth
• EROAD listed on the ASX as a Foreign Exempt Listing and raised $53m to accelerate growth strategies
“EROAD delivered a 19% increase in Revenue and 29% improvement in EBITDA period-on-period. In a period of extreme uncertainty and operating restrictions across our markets, the continued growth in contracted units, stable SaaS Average Revenue Per Unit and asset retention rate is reflective of EROAD’s strong customer value proposition.” said Steven Newman, Chief Executive Officer.
H2 FY21 and FY22 Outlook
Looking ahead to the second half of the financial year, EROAD is anticipating a small increase in revenue compared to the first half. EBITDA is anticipated to be similar to the first half’s figure (adjusted for one-off items) reflecting the acceleration of product development and increased sales and marketing costs associated with the launches of key products.
For FY22, EROAD anticipates that the percentage revenue growth in FY22 will strengthen, but not be at the level experienced in FY20. As EROAD continues to accelerate new product delivery for future growth in FY23 and FY24, it anticipates spending 24-27% of revenue on R&D during FY22. However, the company anticipates EBITDA margin to be maintained but improving at the end of FY22, to provide further increased EBITDA margin.
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