EROAD reports revenue increase, confirms 2024 guidance

Transportation technology services company, EROAD, has released its financial results for the six months ended 30 September 2023.

The company reported a 13% increase in revenue, reaching $88.9 million, compared to $78.4 million in the same period last year.

However, its earnings before interest and taxes (EBIT) declined to a profit of $400,000, down from $1 million in the previous year.

EROAD's annualised monthly recurring revenue also saw growth, rising by $10.8 million to $169.1 million.

The company attributed this growth to an increase in units and price hikes, offset partially by a foreign exchange loss.

EROAD said its asset retention remained high at 94.2% and highlighted key customer wins and expansions.

It also reconfirmed its guidance for the 2024 financial year, expecting revenue growth between 6% and 9%, and EBIT of $0 to $5 million.

The company announced collaborations with Microsoft for product development using artificial intelligence and a partnership with Trane Technologies to expand into the cold-chain market.

EROAD expects to achieve positive free cash flow in the latter part of 2024.