Fleetmatics reports 30% jump in revenue as demand grows

Irish software group Fleetmatics saw revenue jump 30 per cent to $55.3 million in the secon quarter of this year.

The company, which develops fleet-tracking software that allows businesses manage their commercial fleets, said demand for its product continues to outstrip the market.

Vehicle subscriptions grew by 29 per cent to just over 499,000 during the period, the company said.

The Dublin-based company, which floated on the New York Stock Exchange in 2012 raising $125 million, said it added 25 customers that were 100-plus in fleet size.

Over 20 per cent of its new subscriptions came from existing customers adding on new vehicles.

This proved the increasing value Fleetmatics customers receive from its software, the company said.

Profit for the second quarter was $40.7 million, compared to $31.7 million for the same period in 2013.

As of the end of June, Fleetmatics had cash reserves of $155.5 million, an increase of $7.3 million on the previous quarter.

The company said it generated $13.6 million in net cash from operations and invested $11.2 million in purchases of property and equipment and capitalisation of its own software, resulting in free cash flow of $2.4 million.

The company said full-year revenue for 2014 was expected to be in the range of $228 million to $230 million, which would represent growth of just over 29 per cent.

"During the quarter, our ability to meet or exceed our revenue and profitability expectations was driven by solid execution by our team, particularly to small-to-medium-sized business customers," chairman and chief executive Jim Travers said.

“ The combination of the recent introduction of our new platform, new product offering, and our international expansion positions Fleetmatics to increase market share worldwide,” he added.