COVID-19 lockdowns impacted NZ & Australia markets: ASX-listed EROAD

Highlights

  • EROAD shared an operational update for the three months ended on 30 September 2021, stating a consistent growth. 
  • ERD’s contract unit grew in the past quarter by 2,348.
  • ERD additionally expects its revenue to grow at least by 10-13% in the recent quarter.   

The ASX-listed transportation technology services company EROAD Limited (ASX:ERD) released its quarterly update for the three months ended 30 September 2021. It also shared that during the quarter, both New Zealand and Australia markets were impacted by COVID-19 lockdown restrictions. As a result, there was delay in installations due to access to worksites and supply chain issues.

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The key highlights of the FY22 operations include: 

  • ERD’s contracted units grew by 2,348 in Q2 FY22. It has reflected a consistent good growth in both New Zealand and Australia. This is partly offset by a fall in units in North America which is predominantly due to the loss of an enterprise customer who has aligned its technology with that of its acquirer.
  • The Company continued to accelerate growth strategies through increased sales in recently launched products and services and new strategic partnerships, growing addressable markets. 
  • EROAD now expects its FY22 stand-alone revenue to grow between 10 and 13% and continue to expect EBITDA margin to be at or around the levels delivered in FY21 With continued challenging macro-economic conditions, especially concerning North America and with the Coretex acquisition now expected to complete before the end of 2021. 

About EROAD: 

EROAD Limited is an Australia-based firm aiming to offer safer and more sustainable roads. EROAD is mainly involved in developing and marketing technology solutions to manage vehicle fleets, support regulatory compliance, enhance driver safety and reduce the costs of operating a fleet of vehicles and inventory.

Meanwhile, on the ASX, the ERD stock closed 7.387% lower at AU$4.890 per share today.

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