Third quarter revenues soar at Dublin-based Fleetmatics

Fleetmatics, a Dublin-based provider of GPS-based fleet management systems, has reported revenues of $60.4 million for its third quarter, up 30.5 per cent when compared to the same quarter a year earlier.

Net income increased to $8.20 million or $0.21 per share from $5.58 million or $0.15 per share.

Adjusted earnings before interest, taxes, depreciation, and amortization (ebitda) for the third quarter of 2014 was $21 million, up 39.3 per cent versus compared to the $15.1 million recorded for the third quarter of 2013.

As of September 30th, the company had cash of $161 million, an increase of $5.5 million from the end of the second quarter.

Fleetmatics said it generated $13.7 million in net cash from operations and invested $11.7 million in purchases of property and equipment and capitalisation of internally developed software, resulting in free cash flow of positive $2 million during the third quarter.

"We are delighted to be reporting strong third quarter results highlighted by record revenue and earnings," said Jim Travers, chairman and chief executive of Fleetmatics.

“Our results reflect strong new customer adoption of our software platform particularly among mid-market fleet operators, continued progress in new international markets, and cross selling of complimentary products such as Fleetmatics WORK. Looking ahead, we remain focused on increasing our penetration in North America, driving continued growth in international markets and delivering additional value to our customers with our growing portfolio of products,” he added.

Fleetmatics ended the quarter with approximately 523,000 active vehicles under subscription, up 25.4 per cent compared to over 417,000 during the third quarter of 2013.

The company develops and sells fleet-management software to some 24,000 small and medium-sized businesses across multiple industries. Its technology tracks the location of vehicles and gives fleet operators a host of information on fuel use, speed, mileage, delivery times and so on.

The Tallaght-based company successfully floated on the New York Stock Exchange in an initial public offering (IPO) that raised $132 million two years ago. It currently employs more than 600, about 100 of which are based in Dublin, where the firm maintains its core intellectual property development.

In Ireland, clients include DHL, Sierra Communications, Munster Joinery, KN Networks, South Dublin County Council and UPC. Further afield, Fleetmatics has scored particular success in the telecoms field, with companies such as Comcast and Time Warner Cable among its customers in the US.

The company said it expects adjusted earnings in a range of $0.29 to $0.30 per share, on projected revenues between $63.5 million and $64.5 million. For fiscal 2014, Fleetmatics raised adjusted earnings guidance to a range of $0.95 to $0.96 per share from the prior range of $0.82 to $0.87 per share. Revenue is currently forecast between $231 million and $232 million, up from the previous guidance of between $228 million and $230 million.

"We remain on track to deliver strong results across the company as we close the year," said Steve Lifshatz, chief finance officer of Fleetmatics. "Looking ahead to 2015, our preliminary estimates call for full-year revenue growth in the range of 25 per cent. While we will continue to invest for growth in 2015, we do not expect to do so as aggressively as in 2014," he added.