Leadership and Quarterly Operational Update
13 April 2022
https://www.asx.com.au/asxpdf/20220413/pdf/457z7dhgt2g2r0.pdf
- Chief Executive Officer search well advanced with an appointment expected in the next few months;
- EROAD grew by 5,258 units (annualized growth of 10.3%) during the fourth quarter of FY22 reflecting growth in all markets, in particular North America and New Zealand;
- Strong Enterprise pipeline in North America, with eight pilots underway representing close to 26,000 units; and
- Coretex integration is on track with sales activities for the Coretex 360 platform and Corehub hardware solutions underway in North America.
Leadership Update
As announced on Friday, Mark Heine, EROAD’s General Counsel and Company Secretary, has been appointed as Acting Chief Executive Officer while the EROAD Board concludes the final stages of the process to appoint a new Chief Executive Officer. The Board restarted the search process last year which had been paused due to COVID travel restrictions and while the Coretex acquisition was being negotiated. This process is expected to complete within the next few months.
Steven Newman founder, former Chief Executive Officer and Board member said:
“It has been a great privilege to lead and grow EROAD for 14 years from pre-revenue to annual recurring revenues of greater than $100 million. Providing world class transportation telematics solutions to more than 200,000 connected vehicles used daily by over 8,000 customers across New Zealand, North America and Australia.”
“EROAD is well set up for an incredible future having recently acquired Coretex, another great Kiwi company. The EROAD team is over 650 strong, and together this incredibly talented team is capable of driving the company forward to accelerate EROAD’s rate of growth and emerge into a major player in global transportation telematics.”
“I wish the new Chief Executive who is expected to be announced in the coming months the very best and will support their transition into the role. Colette and I remain committed and confident significant shareholders.”
Quarterly Operational Update
EROAD grew by 5,258 units in the three months ended 31 March, ending the quarter at 208,697 units reflecting growth in all markets, particularly in North America and New Zealand. The integration of the Coretex business remains on track with sales activities for the Coretex 360 platform and Corehub hardware solutions underway in North America as EROAD’s next generation product platform. EROAD is confident that the advantages of the transaction identified through due diligence remain as evidenced by the quality of the North American enterprise sales pipeline that the company anticipated at the time of the acquisition.
