EROAD has released its financial results for the first half of the 2020 financial year.

All numbers relate to the six months ended 30 September 2019 and comparisons relate to the six months ended 30 September 2018.

Key highlights:

• Revenue increased 35% to $38.5m with strong contributions from the New Zealand and North American markets

• Achieved 27% annualised growth in new contracted units during the first half of the year

• EBITDA increased 92% to $11.9m and reported loss after tax improved by 97% to $106.4k

• Completed deployment for two large enterprise customers in North America

• Continued investment into R&D and new business systems to support future growth and scalability

The first half saw a revenue increase of 35% to $38.5m, up from $28.5m in the first half of the prior financial year. Average Revenue per Unit (ARPU) increased from $56.00 to $57.60 and Future Contracted Income increased by 14% to $130.9m from $115.1m.

“EROAD delivered a 92% increase in EBITDA and a 97% improvement in reported after-tax loss over the period demonstrating our increasing scale and improving operating leverage. At the same time, we continued investing significantly in developing new markets and products which will help realise the growth potential of EROAD,” said chief executive officer Steven Newman.

“Our customer value proposition has enabled us to capitalise on our large addressable market, growing our contracted units by an annualised growth rate of 27%. The quality of our products and services is reflected in a consistently high asset retention rate of 94.9%.”

EROAD chair Graham Stuart said the board was pleased to see EROAD deliver yet another period of strong growth.

“In only six months, EROAD has added 12,990 new contracted units across New Zealand, North America and Australia, renewed 355 customers in New Zealand and Australia of which 147 upgraded to EHubo2, launched four new SaaS products and upgraded a range of existing products. We continued to demonstrate industry leading system uptime of 99.9% and to invest heavily in our reliability, scalability, quality and growth. The company is well positioned as we head towards our next major goal of 250,000+ contracted units.”