News

Market Update EROAD – Unit sales for the Quarter – Q1 FY19

Transport technology services company EROAD today released its quarterly update on unit sales numbers, for the three months ended June 2018.

 

Total
at Mar-18

Total
at Jun-18

Units added in Quarter

% growth
in Quarter

% growth Annualised

Total Contracted Units*

77,600

81,772

4,172

5%

22%

 Australia/New Zealand

59,843

62,434

2,591

4%

17%

 North America

17,757

19,338

1,581

9%

36%


*Total Contracted Units is a non GAAP-measure used by EROAD which represents the total units subject to a customer contract and includes both Units on Depot and units pending instalment.

The unit sales in the first quarter of FY19 has been much slower than we initially expected as many deals have been pushed out beyond the quarter.  While the annual unit sales cycle has always been seasonal, the expected delivery timeframe for units in the sales pipeline this year results in an expectation that quarterly unit sales will be much more lumpy in FY19 than prior years.

In the ANZ market we are still seeing strong demand and expect much stronger sales in future quarters, especially Q2 and Q3, with the deferral of a number of unit deals into these quarters.

In this quarter, the North American business has seen significant interest from prospective customers, especially those with “buyer’s remorse” from the acquisition of other ELD solutions that are not meeting their needs.  These customers, having been unhappy with their initial purchase, are looking to trial or pilot replacement solutions before agreeing to make a replacement purchase.  The caution taken in market decision making, along with the need for the prospects to exit existing contracts, is impacting the speed of the sales cycle.  Later in the financial year we expect to see increased demand due to intrastate trucking fleets adopting ELD solutions to meet State regulatory requirements and the larger fleets, with grandfathered solutions, looking to replace these with ELD solutions.

For further information please contact:
Steven Newman 
Chief Executive Officer 
steven.newman@eroad.com 
64 9 927 4713