Sharechat Logo

EROAD Limited (NZX: ERD) Continues to Grow, Despite Difficult Conditions

Thursday 26th November 2020

Text too small?

EROAD today released its financial results for the first half of the 2021 financial year.

Key highlights:

• 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.

See the links below for more details:

Market Release H1 FY21

Results Announcement H1 FY21

Investor Presentation H1 FY21

Interim Report H1 FY21

Source: EROAD Limited



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Chatham Rock Phosphate Limited (NZX: CRP) Chatham Successfully Completes Private Placement
Turners Automotive Group Limited (NZX: TRA) Upgrades FY21 Earnings Guidance
Blackwell Global Holdings Limited (NZX: BGI) Restructure of Business Operations
Vista Group International Limited (NZX: VGL) Vista Group appoints James Miller as Independent Director
Rakon Limited (NZX: RAK) Update of FY2021 Earnings Guidance
The a2 Milk Company Limited (NZX: ATM) Organisational Announcement
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

IRG See IRG research reports