Auckland-based transportation technology services company EROAD reported a revenue lift of 13 per cent for the year to 31 March this morning.
Revenue grew to $91.6 million while earnings before interest, tax, depreciation and amortisation (EBITDA) also grew by 13 per cent to $30.7 million.
CEO Steven Newman said EROAD, which dual listed on the Australian Stock Exchange in addition to the NZX last September, accelerated its growth strategies in a year that presented challenging macro-economic conditions.
"EROAD is now stronger than ever before, better positioned to capture the increasing growth opportunities in telematics,” he said.
Contracted units grew across all of the company's markets, while average software-as-a-service (SaaS) monthly revenue per unit remained stable at $58.30 per month from $58.38 in 2020.
EROAD’s annualised monthly recurring revenue, which provides a forward view of sustainable revenue, increased from $84 million in 2020 to $88.4 million.
A total of $21.3 million was invested in research and development, up from $15.6 million, representing 23 per cent of revenue.
It was anticipated this will grow again, from 24 per cent to 27 per cent of revenue in 2022, to be able to appropriately capitalise on growth opportunities.
Chair Graham Stuart said this was "the time to be bold" and to prepare to take best advantage of growth opportunities when macro-economic conditions improved.
"For EROAD this meant increasing and accelerating its investment in its platform and products," he said.
"The ASX listing and simultaneous $53 million capital raise in September 2020 ensured we had the upfront funding to be able to begin this acceleration.
"We achieved what we set out to do. EROAD is now stronger than ever and ready to grow – and grow quickly.”
New Zealand is still a large part of EROAD's market. Local revenue increased by $6.4 million, or 12 per cent year-on-year, to $59.8 million.
EBITDA there was $38.8 million, up 11 per cent from $34.9 million, reflecting both increased contracted units as well as sales of add-on SaaS products.
Revenue for North America increased by $4.8 million, or 19 per cent, to $30.6 million, while revenue for the Australian business was $1.4 million, up from $0.7 million.
However, EROAD announced at the beginning of April 2021 that it had signed a contract with its largest Australian enterprise customer, Ventia, that almost doubled the size of the company's Australian presence with more potential business in the sales pipeline.