Fleetmatics sees revenues jump 21%, signs deal with An Post

Fleetmatics, the Dublin-based provider of GPS-based fleet management systems, saw first quarter revenues jump by 21 per cent as it announced a new deal with An Post

The Nasdaq-listed company saw turnover rise to $78.9 million (€69.2m) as against $65.5 million last year as the number of active vehicles under subscription rose to 737,000.

Adjusted earnings before interest, taxes, depreciation and amortisation (ebitda) totalled $24.3 million, an increase of 15 per cent compared to the $21.2 million recorded a year earlier.

Fleetmatics develops and sells fleet-management software to 37,000 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 company said it had signed a four-year deal with An Post to support its entire fleet of more than 900 vehicles. Financial details were not disclosed.

Fleetmatics said it had cash of $186.2 million at the end of the first quarter, compared to $177.1 million at the end of 2015.The firm said it generated $23.5 million in net cash from operations and invested $9.8 million in purchases of property and equipment and capitalisation of internally developed software, resulting in free cash flow of $13.7 million.

The firm said it expects second quarter revenue to be in the range of $82.5 million to $84 million with adjusted ebitda in the range of $26 million to $27 million. For the full year, Fleetmatics is forecasting revenue of between $342 million and $346 million and adjusted ebitda in the range of $113 million to $117 million.

"Our results continue to reflect our expanding leadership position in North America, our growing presence in international markets and our ability to deliver innovative applications that meet the needs of our rapidly growing customer base. Looking ahead, we remain well positioned to execute on our strategic growth plans," said chairman and chief executive Jim Travers.