Eroad Limited · NZX:ERD
Eroad — FY2025 Earnings Presentation
38 slides from Eroad's earnings presentation, May 26, 2025
Slide 1: Financial Results FY25
EROAD (NZX: ERD ASX: ERD) Financial Results For the 12 months ended 31 March 2025 (FY25) 26 May 2025
Slide 2: Important Information
Important Information The information in this presentation is of a general nature and does not Non-GAAP Measures constitute financial product advice, investment advice or any EROAD has presented certain non-GAAP financial measures as part of its recommendation. Nothing in this presentation constitut
Slide 3: Agenda
Agenda 01 Results Overview Highlights & Metrics Geographic 02 Financials Operations Cash Flow 4G Hardware Upgrade Program 03 EROAD Strategy Customer ROI Product driven growth Mark Heine David Kenneson Rebecca Lineham Co-CEO Co-CEO Interim CFO 04 Guidance EROAD FY25 Results | Page 3
Slide 4: FY25 Results Overview
01 FY25 Results Overview EROAD FY25 Results | Page 4
Slide 5: FY25 Financial Results
FY25 Financial Results Delivered to top-end or exceeded guidance on all key measures Free Cash Flow(1) Reported Revenue OUR PURPOSE Exceeded Delivering Expectations FY25 FCF Guidance set $16.0m $194.4m at Positive $1.3m FY24 +6.8% FY24 of $182m intelligence you Normalised for 4G Upgrade: $23.6m FY25
Slide 6: EROAD Evolution
EROAD Evolution Our journey from Regulatory Telematics in New Zealand, to global Fleet Operations Platform Regulatory Telematics Enterprise Fleet Platform Fleet Operations Platform Telematics focus with features to serve markets Shifted the business to enterprise SaaS – larger Building the future in
Slide 7: Positioned for Growth
Positioned for Growth Three priorities driving sustainable growth and deeper customer value EROAD FY25 Results | Page 7
Slide 8: Disciplined Delivery
Disciplined Delivery Focus on cost control and expanding with our customers has generated strong free cash flow CASH GENERATION DISCIPLINED INVESTMENT • Produced $16.0m of free cash flow or $23.6m normalised for the • Investing in customer-led innovation to derisk new development temporary impact of
Slide 9: Driving Efficient Growth
Driving Efficient Growth Enterprise Focus, Account Expansions, Cost Discipline & Cash Management FCF (NZ$m) >$100k ARR Customers Operating Cost vs Revenue Disciplined cost control continues Enterprise-led strategy is increasing Disciplined execution widened the to generate strong free cash flow, cus
Slide 10: New Zealand FY25 Highlights
FY25 HIGHLIGHTS New Zealand NZ $103.9m Ongoing solid growth and strong cash HIGHER VALUE Revenue 12.9% generation in a weak economy. FY24: $92.0m Generated $53.3m of free cash flow. Performance outpaced market conditions. FCF increased 15% YoY, ARPU increased 3%. $83.6m $89.0m NZ $70.0m CUSTOMER LOY
Slide 11: 4G Hardware Upgrade Program ANZ
4G Hardware Upgrade Program ANZ Unit upgrade program progressing with 76% of all units in ANZ 4G compatible 4G NETWORK UPDATE KEY POINTS Program progressing on track, with spend fully funded from operational cashflow. This one-time cost relates to the shutdown • 76% of ANZ units 4G compatible as at
Slide 12: New Zealand: market context and opportunities
New Zealand Current market context and future opportunities Product ROI & Value • eRUC returned $81M in customer value in FY25 including rebates, automation and admin savings • Clear cost-benefit drives high retention and Growth continues due to strong brand, high customer retention platform stickin
Slide 13: North America FY25 Highlights
FY25 HIGHLIGHTS North America NZ $81.2m Revenue 1.5% ENTERPRISE SALES CYCLES Controlled spend delivered modest growth and margin stability in soft market. FY24: NZ$80.0m Advanced late-stage opportunities Enterprise expansion progressing with creating healthy pipeline for FY26. late-stage pilots supp
Slide 14: Navigating geopolitical uncertainty in global markets
Navigating geopolitical Supply chains are shifting and EROAD is a long-term partner of uncertainty in global markets very large US enterprise customers EROAD is a SaaS company that adds value through services • We will continue to monitor the opportunity for EROAD arising from the onshoring of US su
Slide 15: North America: market context and opportunities
North America Current market context and future opportunities Compliance & Regulation • Insurance and regulatory momentum driving AI camera adoption • ELD requirements continue to anchor Freight market remains complex, but long-cycle platform presence enterprise strategy and compliance-driven demand
Slide 16: Australia FY25 Highlights
FY25 HIGHLIGHTS Australia NZ $13.7m Revenue 28.0% TRANS TASMAN ENTERPRISE Trans-Tasman enterprise win drove early momentum as strong growth FY24: NZ$10.7m Rollout of 5k units from existing NZ enterprise customer expansion partially outpaced a challenging freight market. reflected in ARR for the peri
Slide 17: Australia Market Transition & Opportunity
Australia Market Transition & Opportunity Current market context and future opportunities • Telematics market in transition, with consolidation of providers creating opportunity • EROAD’s footprint is small with a growing brand in the enterprise space, offering room for expansion Early enterprise tr
Slide 18: FY25 Financials
“How lucky he was to come out alive. All because of this technology” Genevieve Power National Health & Safety Manager, Booth’s Logistics Fatigue Detection EROAD Clarity Edge AI Dashcam As a long time customer, Booth’s utilise a wide range of EROAD products across their fleet, including new Clarity E
Slide 19: Revenue & EBIT
Revenue & EBIT Financial results delivered to top end or exceeded guidance, demonstrating our commitment to deliver on our promises Total Revenue Reported Operating Costs Reported EBIT Revenue of $194.4m is up 7% on Operating costs increased 5% EBIT of $5.9m reflects the positive FY24 reflecting the
Slide 20: Operating Costs
Operating Costs Cost-out program continues to deliver cost base for profitable growth Operating cost as a % of revenue by segment Operating costs as a % of revenue stabilised Operating cost control has been maintained with higher Operating costs as a % of revenue have now flattened personnel costs b
Slide 21: Operational Efficiency
Operational Efficiency Management focus on gaining efficiency across all cost measures Cost to acquire customers Cost to service & support as a % of revenue as a % of revenue Customer acquisition costs remain Costs to support has increased slightly steady. Capitalised costs were higher to build capa
Slide 22: Research & Development
Research & Development R&D % of revenue being held firm as re-focusing initiatives drive ROI and speed to market NZ$m R&D as % of revenue 60.0 30% • Total R&D spend of $35m in 50.0 23% 25% FY25, 18% of revenue. • Compares to $32.8m, or 18% of 40.0 18% 18% 20% revenue, in FY24. 30.0 11.7 15% • Opex i
Slide 23: Free Cash Flow Growth
Free Cash Flow Growth Strong cash flow generation to further accelerate post 4G hardware upgrade NZ$m STRONG FCF GENERATION Normalised for the temporary impact of the $30.0 EROAD’S core operations generated 4G upgrade program $23.6m of normalised free cash flow over the last 12 months. $17.4 $20.0 C
Slide 24: Strategy Update
03 Strategy Update EROAD FY25 Results | Page 24
Slide 25: Customer ROI
EROAD processed Customer ROI $927 million Long term resilience through clear value delivery to customers in Road User Charges (RUC) Cold Chain Industry Challenge High diesel costs, food safety compliance (FSMA), and $26.8m $29.2m unplanned reefer faults impact operational risk and inefficiency. in a
Slide 26: Regulatory-led land & expand
Regulatory-led land & expand New product Proven ROI accelerates platform adoption and ARR expansion adoption Customers add additional products and features over time Enabler for growth Regulatory or mandated requirements like ELD and eRUC provide low-friction entry points into fleets. 5x ARR increas
Slide 27: FY25 Product Investments to Drive Growth
FY25 Product Investments to Drive Growth We invested to capture market growth in all markets while deepening customer value. Smart, Automated Safer Fleets With Real-Time Productivity Tools for Compliance Risk Management Smarter Fleet Operations Streamlining regulatory obligations with Integrated fea
Slide 28: Guidance
04 Guidance EROAD FY25 Results | Page 28
Slide 29: Guidance
Guidance Committed to continuing to delivering sustainable, profitable growth Strategic plan continues to produce strong financial results FY26 Guidance • We continue to adhere to the principles of this plan – producing increasing levels of free cash flow, growing the business through a focus on ent
Slide 30: Q&A
Q&A EROAD FY25 Results | Page 30
Slide 31: Appendix
Appendix EROAD FY25 Results | Page 31
Slide 32: Glossary
Glossary ANNUALISED RECURRING REVENUE (ARR) COSTS TO SERVICE & SUPPORT (CTS) FREE CASH FLOW TO THE FIRM SAAS A non-GAAP measure representing monthly A non-GAAP measure of costs to support and A non-GAAP measure representing operating Software as a Service, a method of software subscription revenue i
Slide 33: Statement of Income
Statement of Income NZ$m FY25 FY24 Change ($) Revenue 194.4 182.0 12.4 Operating expenses (134.8) (128.7) (6.1) Reported Revenue increased $12.4m primarily due to subscription revenue Earnings before interest, taxation, depreciation and amortisation 59.6 53.3 6.3 increasing $11.4m (including $2.2m g
Slide 34: Cash Flow Statement
Cash Flow Statement NZ$m FY25 FY24 Change ($) Cash received from customers 199.8 186.3 13.5 Payments to suppliers and employees (141.3) (117.0) (24.3) Investment in contract fulfilment assets (9.8) (10.0) 0.2 Operating Cash Flow decreased $9.7m primarily due to a reduction Net interest (3.7) (5.8) 2
Slide 35: Balance Sheet
Balance Sheet NZ$m FY25 FY24 Change ($) Cash 13.8 14.5 (0.7) Restricted bank accounts 26.1 17.8 8.3 Cash decreased $0.7m from cash generated Costs to acquire and contract fulfilment costs 9.4 8.2 1.2 from operations partially offset by the paydown of debt. Other 35.4 33.2 2.3 Total current assets 84
Slide 36: Free Cash Flow to the Firm by Region
Free Cash Flow to the Firm by Region 14.7 75.7 70.0 17.7 3.5 Inflows (6.3) (0.7) (0.1) Outflows (6.1) (0.3) Total (15.2) (1.5) (31.7) (0.4) (14.5) (0.4) 16.0 (12.7) Other PPE Other PPE Other PPE Other PPE CA Assets CA Assets CA Assets Software Assets H&A Assets H&A Assets H&A Assets non-cash movemen
Slide 37: Unit Count
Unit Count 253,930 255,845 250,890 242,884 106,494 104,386 106,860 227,149 103,393 217,519 208,697 95,058 New Zealand 90,596 Australia 87,682 North America 132,703 24,515 21,391 126,203 18,008 19,613 122,193 116,488 33,992 15,636 35,437 14,643 126,045 126,944 108,414 35,294 14,099 121,483 124,417 34
Slide 38: Data Rich Fleet Operations Platform
Data Rich Fleet Operations Platform EROAD FY25 Results | Page 38 EROAD FY25 Results | Page 38