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| Statement |
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| So this is a great proof point in terms of the newer pipeline that we've built, the execution of that new pipeline and our commitment to do higher-margin profitable business |
| I think in terms of customer sentiment towards the business, it's extremely strong |
| So safety solutions across the piece, we're seeing extremely strong traction pool, a lot in the warehouse in terms of The Pedestrian Proximity alert solutions that we have, and a strong kind of, I think, Sway towards video solutions as we talked about the ABI Research piece |
| Expect rapidly expanding adjusted EBITDA |
| Expect Unity to be an engine driving a steady quarterly climb of net dollar retention to best-in-class levels through the following areas |
| PowerFleet Solutions will also benefit from the global reach of MiX is 120 indirect channel partners |
| Q3 product revenue increased quarter-over-quarter by an impressive 19% at a much improved gross margin |
| Looking at financial performance, we expect to deliver accelerated revenue growth |
| Clear success here is evident in our Q3 numbers, with sequential adjusted EBITDA increasing threefold to $2 million |
| So the fundamentals are very, very strong, and we think we can absorb these ready headwinds |
| And as I said, the confidence and proof points are very strong to-date |
| Plus then the value-added modules with better, more predictive AI insights on top and making the business benefit case a lot smarter for customers |
| So that simplification that ease of use, that ability for us to really kind of take people on a digital transformation journey also is helping us to win new business |
| So it's significantly helping us in the race to win new business |
| Anticipated achievements of the transaction to support the combined strategy include annual revenues increasing from $135 million to $280 million |
| We will continue to strengthen and broaden the capabilities of Unity and demonstrate this is a true software platform capable of expanding wallet share with our existing customers as well as acting as a powerful magnet for new ones |
| So very confident again that as long as our sales team can deliver, then we'll be able to supply effectively in the coming quarters |
| Josh and his team have produced a successful and incredibly well-run business that has been steeped in the industry for over 25 years |
| The fact that they believe wholeheartedly that the Unity vision is the right one to take a leading position in our fast-evolving industry is a compelling validation for the unique Unity data highway and integrated ecosystem |
| Another proud achievement this year remains the Q1 acquisition of Movingdots, which secured some unique IP in the insurance space alongside a sizable team of data scientists and AI experts with deep domain knowledge |
| We believe that the combined engineering teams and data sets of PowerFleet and MiX will provide the strategic pillars for us to be a technological and market leader in the rapidly evolving Artificial Intelligence of Things or AIoT space, driven through the Unity platform |
| I shared at the start of this call, our progress against the strategy to evolve the P&L to successfully build a pipeline of strategic product sales, the pull through sticky, high-margin SaaS revenue, while shedding non-core and non-profitable product business and that we've reached the inflection point in our strong Q3 performance |
| But again, we very -- have very strong conviction in terms of the growth of EBITDA and the growth of revenue alongside it based on the quality of pipeline that we're delivering, and we think there's more than enough out there for us to be comfortable |
| We've got a nice pipeline building there, very confident in terms of our abilities to execute considering, particularly the background and experience that I and others that I bought into the business have of that market |
| Based on any measure, these are major accomplishments across all three areas, and this is a testament to the ability of the team to deliver compelling results against ambitious targets |
| As I approach my two-year anniversary, I'm proud to say that the prospects and the strategic potential of the business are transformed |
| So that's very strong |
| We signed a white label agreement creating a competitive advantage for MLA and an additional revenue stream for PowerFleet |
| We continue to gain strong traction |
| North America has been a strong business year-to-date |
| Statement |
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| So, again, from a total gross margin standpoint, this thing is neutral, but that was the pickup that sort of hindered service margins in the quarter |
| I know it's a difficult macro backdrop |
| Looking to the future, we recognize that the macro environment poses certain challenges in specific markets and regions |
| We have been clear that executing this transition would result in revenues coming down through early to mid-2023, before reaching an inflection point where higher product revenue would begin to flow through the P&L in the second half of 2020 |
| While these initiatives are major wins, they naturally created some headwind in our short-term financial results with $1.4 million in onetime transaction and rationalization expenses incurred in the quarter |
| As we signaled in terms of taking out the lower product margin business and unprofitable product lines that was the reason that we were down where we were |
| So, one is a one-time issue, which is this $400,000 out-of-period infrastructure cost that impacted margins |
| Specifically, the ongoing conflict in Israel has understandably got about temporary fluctuations in product demand and foreign currency challenges |
| I'm trying to understand what you -- you said that there was there was something that impacted the services margin because it was down year-over-year |
| There's always some -- and that when you use it mix, obviously, mix is a challenging way to use |
| Just on the pipeline of business sounds like, Israel as expected, products could be a little soft |
| Sorry, I had a slight audio problem there |
| I think our kind of Latin American business was naturally in a place of uncertainty |
| But within our business there's often sort of mix issues in terms of things that are highly differentiated, for example, like our industrial solution |
| So, no doubt, the pressure is out there |
| And you can appreciate that's a piece of the market that will be definitely sort of softened in terms of demand, just given what's going on in the country |
| So that's the sort of key headwind |
| If you've seen it get a lot more competitive? I know the telematics space is always fairly competitive |
| And then in terms of looking forward to future financial performance, the key issue is obviously Israel |
| But that is more kind of, as I say the lower ARPU revenue that we enjoy today |
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