PowerFleet, Inc. (AIOT) Earnings Call Transcript & Summary

Good morning, good afternoon, good evening, everybody, and welcome to the inaugural PowerFleet Investor Day. I'm delighted that you could all join us today as we talk to you about the next evolution of PowerFleet the company. My name is Steve Towe, I'm the CEO of PowerFleet, and I've been with the business for 5 months. We're going to walk you through today something called what we're calling PowerFleet reimagined. PowerFleet the data-driven SaaS IoT company. And we're going to give you lots of information as to how we are driving transformation change within our own business, which is allowing our customers to go on their own digital transformations and trains journeys. So sit back and relax, and you'll have about 2.5 hours of content and get to meet the full leadership team. And we're very excited to present a lot of new technologies that PowerFleet is bringing to market. Their evolving story, both internally and externally and a lot of thoughts about our future company and the value that we're looking to create for our shareholders. Just before we do that, I'd like to introduce you to Michael Brodsky, who is the Chairman of PowerFleet. Mike, would you like to join.

Welcome, everyone. Thanks so much for attending our first Analyst Day, hopefully, many more in the future. And I thank Steve for inviting me here today. I'm the Chairman of PowerFleet. The most important thing that a Board of Directors does is recruit and hire a CEO and in hiring Steve, I think we've done a great job. The reason why we brought Steve on was we wanted somebody who could help the company to really realize the vision that we had when we completed the Pointer acquisition. The company had been doing so many terrific things in so many geographies combining both telematics and software and data, business intelligence, and we wanted a leader who could really help us to realize that vision. We had great people doing incredible entrepreneurial things across geographies. And we're grateful for the great things that they had done. But we wanted a leader to bring those possibilities and distribute that knowledge across the enterprise. The other thing that, as a Board, we've been thrilled about is the combination of the existing team with some of the new team members who you'll get a chance to meet today. Welcome again. Thanks so much for joining us.

Thanks, Mike, and thank you for the kind words. So we'll start off by giving you a little overview in terms of the company. So as many of you know, PowerFleet is a combination of 2 companies, 1 was ID Systems, a North American telematics company, very much focused on the logistics and industrial and verticals within the market, and Pointer solutions an Israeli headquartered business with multiple subsidiaries around the globe that was at the other end of the market in terms of connected car and light commercial vehicle solutions. The thesis to put those 2 business together came to fruition at the end of 2019, creating a true global leader with scale across multiple geographies with a solution set, which for any asset, any mobile asset that a customer has, we have the capabilities to drive performance of those mobile assets. And what we're doing now is really moving up the IoT stream to become a real mission-critical data insight company to create unified operations, seamless supply chains through the solutions that we only not deliver ourselves, but also with partners who are also part of that supply chain ecosystem that ultimately help to bring business performance to our end customers. We see ourselves as a pioneer. We have 600,000 subscribers with a 20-year relationships with a lot of our customers and a huge amount of experience, and we're deploying it to the 4 corners of the earth today. So we feel we're very well positioned to scale and grow with the opportunity that exists across the marketplace today and tomorrow. In terms of that scale, we have 8,000 enterprise customers. That's alongside some B2B2C customers and a large B2C base in some of our subsidiaries. Our revenue in 2021 was $126 million. The first quarter, we've had a very strong quarter from a revenue growth perspective in '22. We have recurring revenues at 65%, which we believe we can improve on in terms of that overall percentage. -- and service gross margin of 64%. So a very healthy company that has the capability to really drive to the next level across the global market IoT stage. So why is PowerFleet a good investment? So we have been, I would say, positioned as a hardware-centric company. The heritage of the company itself was very much looked towards data capture. And so we're very much focused on the land strategy of getting devices into our customers' estates. Now that we've done that, there's a significant opportunity for us to increase wallet share to increase the role in partnership that we play in the organizations within which we work. And we're doing that in a marketplace that is growing and experience a CAGR north of 20%. With the customer base that we have, with the breadth of portfolio we have across all of our geographies and all of the verticals within which we play, which you'll learn a lot about today, we feel that we can get high volume growth from our subscriber base -- we're very well positioned with our innovation to win new logos, and we're also going to be offering a lot more innovation to open new revenue streams and higher-quality revenue streams as we move forward. Ultimately, we can drive ARPU expansion. We can drive wallet share with our customers. And what we've got and you'll see a very different flavor from PowerFleet today is how we're managing our internal organization to really improve our profit to make sure we take the full advantage of the integration synergy opportunities that came as part of the acquisitions and rationalizing and being very focused on the company in terms of the technology that we're delivering today. So we feel we have very good solid core ingredients of the company. We want to grow sustainably. We want to grow profitably. We want to be the trusted adviser within our marketplace, providing business insights, critical data solutions, predictive, progressive information to allow our customers, to drive digital transformation, to drive change in their own businesses to improve their performance and keep their workforce safe. And we feel that we have a lot of untapped potential to be realized in technologies that have been -- that exist today. This isn't vaporware, that will come to fruition in 4 to 5 years' time. It's bringing PowerFleet together as long business, bringing our portfolio together as 1 business and making sure we maximize the opportunity across our customers' estate, whether that be at the logistics and industrial end of the market, their connected car, their light commercial vehicle fleets, but really working across the C-suite of our organization to solve their business problems. We feel that we've got the talent and leadership now in place to do that. We feel that we've got the combined experience from all of our innovation that's taken place around the world. And we very much feel we're in a market where, as we all know, today, change is needed and needed fast with tangible results. So I don't think this slide will be a surprise to anyone. But the need for digital transformation has never been more apparent than it is today. The growth and thirst for visibility for control, for improvement in business, the need and desire for change to rationalize employee bases to improve customer service to create competitive advantage to provide automation and make sure that all Pointer systems are starting to get more value by being integrated with others is exactly where we sit today. So we're very well primed to take advantage of the marketplace in the IoT world that exists today. Traditionally, I believe the investor base has heard an awful lot from PowerFleet about the industrial logistics end of the market. And that still remains very important for us today. But what you'll see as we talk about, particularly expansion in the U.S. market and in Europe, our connected vehicle solutions are really at the top and forefront of our strategy. And also, we believe, well positioned for high market growth as the thirst for connected vehicle data is at its highest that it's been to date. As everything is becoming more electrified, everything is becoming more systems orientated, then we feel that there's a very strong opportunity for us across that connected car and vehicle space. And we'll demonstrate to you today some of the solutions that are already out there from PowerFleet to make a change in this particular arena. We're all suffering, struggling, trying to understand how we deal with some of the challenges, the macroeconomic challenges in the world today, whether that's labor shortages, whether that's the increasing fuel price, whether that's in having less skilled resources to undertake the test that we have, whether it's actually just being able to get more efficiency and more effectiveness to ultimately improve bottom line performance, and make sure the businesses are profitable so they can get through any storms in a hand. This is a great time for a company like PowerFleet to really go upstream in terms of the partnership role that we play within our client base, and we're going to demonstrate some of those relationships today that are expanding dramatically off the back of those macroeconomic circumstances that we find ourselves today. So how do we bring this to life? And how does the combination that took place at the end of 2019, bring a large growth opportunity for the company. So as we talked about from our Pointer Israel perspective, there's a lot of capability today that is live and existing with customers and verticals which we haven't bought to the North American market, whether that's car leasing, insurance, electric vehicles, connected car. And we're very excited now to bring those relationships to the U.S. We're having some very exciting conversations with customers and partners, and we expect to take a much more aggressive stance in the market from these types of solutions. Conversely, as we talked about with our North American business, we have 20 years of experience of delivering solutions in the industrial warehouse space in the logistics trucking space. And we've done some very cool stuff with the likes of the rental fleets and with Avis being 1 of our key partners. We believe those solutions are very much relevant to our other geographies so that cross-sell upsell opportunity is going to be key to our strategic value moving forward. And our Chief Revenue Officer, will be talking about how we're going to really bring those to anchor across all our geographies in the next weeks and months. This chart is a bit of an eye chart, but ultimately, it's the part of our product and technology strategy that we feel is unique. We're most excited about and we think really puts us in a position where we become a true business insight, data-centric SaaS IoT company and differentiate ourselves from our competition. On the left-hand side, you'll see the fact that we're talking about data capture. We have some outstanding IP within our hardware from devices that we have manufactured ourselves. We're going to keep that heritage where we have for high volume and we make a difference and our IP makes a difference. But what we've done is really put some technology together, which allows us to integrate other devices in a very short space of time. So the data sources that we're able to bring into our data engine or our data brain is now increasing in volume dramatically. The ease with which customers can then migrate their hardware into our platform is going to be a huge market advantage to us, and we're going to take you through that. Where the magic happens is in the data brand and how we go to market in terms of taking that data and putting it into applications for usage and for revenue growth, we have different routes to market. First of all, you'll hear about our modular Enterprise application suite, which is designed for a solution consultancy selling opportunity across the whole business operation. Selling to CFOs, CEOs, COOs, HR officers, and we'll show you just how we're going to do that in a modular fashion, which allows the same pieces of data with different algorithms put on top of them in order to create different insights, which will help different parts of the business may change. This will improve our ARPU. This will be far more congestible for a customer to take our solutions and make change in bite-size chunks, which will make a difference to their organization. We're going to talk a lot about integration of other systems, unified operations, seamless supply chains and where we're playing a pivotal role in increasing our data's usage into those other operating systems, again, creating value-added revenue streams. And then thirdly, we'll talk about microservices and extensibility, where we will be able to provide big data services not only to end customers, but also wider industry organizations. So the ability for us to play as a larger role to be more sticky in the industry to go higher in the value chain is really here and it's here and now for powerfully. And we're super excited about what are opportunity is going to bring to the company, to our customers and to our shareholders. This is an example of some of the integrations and some of the value-add services that we're now lending ourselves to not only our customers, but also to third parties with their end customers. I talked on the last earnings call about us being 18 integrations of different business systems. We're now at 172. We're going to continue that journey. But it's going to allow our customers who partner with best-of-breed solutions to really get incremental value not only from our data, but also from those other systems that they use. And we'll talk about if -- just how we can be flexible in that approach that if 1 of our integrations doesn't match the system portfolio of our customers, we're able then to offer consultancy services to continue that system integration. We're doing this across a diverse customer base, 8,000 large enterprises best of breed in what they do. We're learning every day. Our customer community is a happy community, it's very engaged with us, it needs us to be successful to allow them to be successful. Part of our development budget every year, we're now embarking on customer councils, where our customers will actually spend some of our R&D dollars to improve and listen to the voice of the customer as we make these systems and solutions more intuitive. The diversity of our customer base also allows us to weather any storms that lay ahead in certain marketplaces. So we can be very agile in our go-to-market approach and make sure that we can continue on our revenue growth opportunity. So you met me already. You meet a lot of the other new team members today, but we've brought on in a short space of time. Experts in their field, who have all experience of creating highly valuable companies. They've all experience of growing to revenues of $300 million or more, and they've done that in a very profitable environment. So I'm delighted that we've got a new Chief Technology Officer, a Chief Revenue Officer and a Chief Transformation Officer, who's very much focused on the bottom line, while a lot of us are focused on the bright lights of the future and the revenue growth, we're making sure that we get our house in order, and we make sure that we have a very sustainable growth with great foundations, but ultimately with a very high profitable lens. The mixing of that team with some great individuals who have experience in this business really gets us energized. And I think we've got something very, very special in terms of that bond mix and that experience. So whether that's our Israeli CEO, whether that's our Head of Product Management, whether that's the business leader that we have for our Mexico division or our financial leader. We have a very, I would say, engaged integrated set of people who already have come on this journey with us. And we're very -- up to go and make and realize and execute well on the plans that we have. So what does this all mean? It's a change of emphasis -- so we have been a traditional telematics company we've been at that traditional land strategy of getting devices into portfolio selling into fleet. We're now able to take that to a different level, help digital transformations for success, unify operations for providing critical businesses manageable fashion sitting alongside the organization, giving them real-world experience on what's happening in their environment. And giving them key information that allows them to make quick business decisions to improve their top line, their bottom line and look after their workforce. And we're really doing that in a SaaS IoT environment, where recurring revenues where our ARPU increase, where we're very much looking to be the value-added partner working on return on investment programs to really create high-value revenue streams both at the customer level and an industry level. I think this information in terms of the target for our business was put into the marketplace in November 21. And Michael asked me to look at this and see whether it was credible. We think this set of metrics are highly relevant and remain very much credible for the future of the business over a 4-year horizon. We're confident that we can improve on some of the gross margin figures and the recurring revenue figures that we have in this business. And ultimately, we feel that we're putting at the team behind the business to be able to create the success that we want. We have a lot of hard work ahead of us. We remain very humble. We're very focused, I think this business has, over time, maybe got a little distracted. But now I think we're really on a great path to drive top line performance, but very sustainably with a very profit focus and making sure that as we grow, that we don't lose the values we have as an organization and the foundation to success, the relationships, the service, the team remain at the heartbeat of what we do. So to continue I'm now going to ask Jim Zeitunian, Our Chief Technology Officer, to give you more information about the product, software and AI strategy, Jim?

Thank you, Steve. My name is Jim Zeitunian. I'm the Chief Technology Officer here at PowerFleet. I'm excited to be here today working with a very talented team. And I'm also excited to share with you some of the things that we've been doing here. The PowerFleet evolution, when PowerFleet or IT systems at the time we started, it was a product-based business focused primarily on Industrial Solutions, driving hardware as the value proposition. From this, we expanded capabilities organically and through acquisition adding in fleet and logistics into the mix. And in 2019, as Steve already said, we acquired Pointer, which rounded out our platform to all vehicle types. This left us with multi-point solutions, serving our customers in a very vertical fashion. Today, we're bringing all of this together, unifying them under a single pane of glass throughout the remainder of this year. We'll be delivering our modular strategy, and bringing depth and breadth of all of our products and devices together under 1 pane of glass, enabling us to expand into new use cases with our existing customers and attract new customers as well. Data First capabilities-based architecture, what is it? So today, we've got a rich set of diverse data across all of our product offerings. By taking a data-first approach, we want to expand our focus on the delivery of this data in new and powerful ways. By developing relationships with a broader audience within our customers, we're engaging across business challenges. Such as supply chain, purchasing, inventory, demand, integrating with ERP systems. So why -- why does PowerFleet have the right to do this? The answer is because we have the real data. We can provide deep insights and integration into these ERP systems, and we can provide that as actuals according to the plan. Oftentimes, or all times, our customers are doing planning, operationalizing and eventually executing these plans. With our data, we can bring those insights back into this plan for revision, for optimization, for making critical business decisions by sharing how long, how long someone stays at a particular distribution center or where the traffic patterns are the worst or what you expect in the weather in any given day across the breadth of their fleet-based solutions. We provide the opportunity for customers to model and execute their plans, and then refine with the data that we provide, improving their decisions and insights on a daily basis. Effectively, the data is the nexus of our integration story. So how do we do it? So we want to deliver value now. And by delivering value now -- you'll see in a few minutes some of the things that we're already doing that are in place, various places throughout the globe. So the first matter of business, the first course is to get those brought to everyone, globalize the great innovative ideas that we brought forward and share those with the rest of our customer base. From an execution standpoint, that's our primary driver and secondary to this, bring in all of the component parts of the various point applications. To facilitate a modular approach to our products. In 2023 and Q1 of 2023, we intend to release our first net new module in safety and sustainability. And as we move through and continue to grow, we intend to build new and innovative IoT verticals, reach IoT verticals from the world-class hardware and footprint that we already have. With that, without further ado, I'd like to introduce our SVP, head of product William Sandoval.

good afternoon, good morning, good afternoon and good evening to all of you. Like Jim mentioned, I'm WIlliam Sandoval. I'm the Senior Vice President and Head of Product here PowerFleet. Just on a bit of our background. I've actually been in the industry approximately 25 years being fortunate enough to have led many different transformations in some of the larger companies like Philip Electronics, Honeywell and Ingersoll Rand. Before we jump into some of the new products here, I want to kind of, I don't know, something happened here. That's not my slide. Okay. So let's go here. Okay. Thank you very much. Sorry about that. So before we just jump in into talking about the evolution of our products. I want to spend a little bit of time to talk about the foundation of all of the development that we're currently involved with and some of the solutions that we're bringing to market, and it has to do with solving business challenges, product evolution for us is basically matching the technology as well as solving the issues or the challenges that our customers have. And like as Steve mentioned earlier, there is a lot of headwind that many corporations are dealing with, right? As an example, just the fact that there's a shortage of labor, the fact that we're trying to do more with less or major challenges that our organizations are having -- and we took the time over the last several months to really understand those problems and basically match them to some of the solutions that I'm going to be able to talk to you guys about. But when you go through this circle, the thing that you will see is that any of these challenges are affecting multiple people on multiple parts of the organization, which are very difficult in many instances to bring together. Like I mentioned, labor shortages might be something that is something that the HR group might be interested in. But there's a lot else going on there, right? You might have the maintenance department who's really interested in understanding the vehicles, what are the vehicles doing, what other assets are doing and what level of emphasis do they need to pay into those. We keep talking about the fuel cost and the volatility -- that is something that is impacting every single 1 of us today, right? And every 1 of the companies, if not all of them, are looking for ways to maximize their cost or improve their cost position and manage the changes in fuel costs in real time. What is really driving most organizations structure think about digital business transformation, and being able to emphasize the solutions around this digital business transformation is something that we, at PowerFleet, are very interested and actually are moving towards. So with that, let's go to the next slide, and it's about our solution set and what do we want to do there right? And -- you have heard the transformation of data. So data is data. Data is valuable, but more importantly, data needs to be transformed into the business insights in order to be able to create actionable changes within an organization. The slide that you're seeing here is our view of our solution, and I want to kind of give you a walk-through of that from left to right about the things that we're doing and the things that we're going to do in the future. In order to start moving into this data transformation, the first thing that we need to be sure of is bringing in the data in order to be able to understand it and be able to do something with it. In the past, powerfully was focused around bringing data from our own devices, and we will continue to do that over time. One of the biggest changes for us is that in order to be able to provide the best insights, the more granular insights to our customers, we need to extend that data set by other devices and by other different types of sources, which is actually moving us into being able to bring third-party devices and sensors into that ecosystem. -- being able to take information from vehicles and infrastructure as we start to see the changes that are going on in electrical vehicles and more importantly, being able to also bring in data from other sources like weather, traffic growth conditions, et cetera, the more data you have, the richer that ecosystem is going to be for us to be able to process and be able to capture the gaps and faults and the insights that are needed to grow the business. So from a perspective of openness, the takeaway here is that we are moving up in our integration capability where we are not only going to work with PowerFleet devices but we're very open to start working with other types of devices as well as other data sources. Today, we actually have built, and I'm going to show you an example of that. We have built a library of over 700-plus device types and devices from different manufacturers and different vendors globally. And the goal there is to be able to capture the data from those devices and help our customers maintain their capital investment by moving them up into our cloud. So with that, let me move to the second level of this diagram, which is basically what we're calling the brain, right? This is a cognitive a platform that we are basically embarking ourselves on. And the goal here, and Steve already said, this is where the magic happens, it's about the data processing. It's taking that rich ecosystem of data normalizing it and being able to convert it into true insights that our customers could use -- this is when we're going to take our smart algorithms that we already have as well as apply AI to an ML to build analytics and insights for our customers. Once we prepare that data and we have that data available, we're going to make it available in multiple forms to our customers for them to digest. And as you see on my right-hand side, basically, we are actually going to be delivering, and we already are delivering some portions of this is 2 forms of how this data is going to be used by our customers. One of them is what we're calling our PowerFleet solution ecosystem, which is composed of a set of applications that the customers are able to use, and I'm going to go deeper into that and show you the modularity and the capability of some of those applications as well as I want to give you some ideas of what that is through a demonstration. And the second piece around that is basically taking that enhanced data that we already talked about and making it available to all of their customers through a mechanism that they could actually integrate it into their own systems. The goal there is to take the actual data, the real-time data that we already have and bring that data to enhance their systems so they could make better decisions around their business. All right. So let's move on to a little bit deeper into the ecosystem of applications or our application suite. As I already mentioned, data is critical, and it needs to be delivering a form that is easy for customers to digest -- in the past, many of the companies that we have dealt with or that are out in the market, take all of this data and they basically just make it available as a single entity, which makes it very difficult for customers to understand. It makes it very challenging for them to actually upgrade or makes it very difficult for them to do something with. Our goal here is to deliver a set of applications, which are seen in the screen at this point. That are matching those business problems, right? The goal here is to make it modular in nature, scalable in nature and more importantly, customers are going to be able to do and take what they need, when they need it, right? So -- as you move towards these ecosystems, some of these applications might end up applying to certain parts of your business, and you might apply to others. The business optimization module will be something that the business managers might be interesting in order to manage their sales force better, manage their assets better. But we also have built a regulatory management application, which might be more about certifications and trying to drive the need to maintain sustainability across your business and maintain consistently across your business. These applications are something that is moving us closer to the world that we all have dealt with, which is actually buying applications as we need them and upgrade as we see in the future. And we got to give you an example of some of these applications very shortly here to demonstrate -- as we move forward, the second way of customers being able to access these applications is by taking the data that we already have collected, normalizing it, enhancing it, and make it available to all of their systems through things less integration. Like Steve mentioned, this is an area that we're focusing a lot of time and effort into at this point. And over the last 3 months, we have completed 172 different integrations to multiple systems for operational improvements. Many of those systems include anything from a fuel card system all the way to finance and ERP systems, where the operations and the organization are taking already enhanced data and they're using it a very long time to actually make immediate decisions that could affect their cost performance and their operations in their organizations. Our goal is to continue to build this ecosystem with the goal of driving greater operational awareness across the organizations as well as enabling the sharing of information across the multiple functional areas. When we look at our data, a source for truth, it's real time, it has value, and we want to be able to utilize it not only to deliver our applications, but we want to be able to make it available to enhance other systems within the organization to optimize operations. So with that, I want to spend a few minutes to kind of walk you through some product demonstrations and to give you an idea of the work that we have already done and the work that we are going to be doing in the near future. So let's start by talking about the data, right? I spent a lot of time mentioning the fact that we are expanding our capabilities to not only integrate the PowerFleet side of the equation, right? Not only do we want to bring our own data, we also want to extend that to other data types as well as other devices. So 1 of the things that we have done is we have built what we call our IoT data unification tool set, which is actually taking the data and democratizing it. What it does is it takes any device from any vendor on any data type, and it brings it in very quickly and allowing us to access that data at any point. One of the important things about this as well is that it gives our customers the flexibility of choice. If you have an operations where you already have invested a lot of capital in vendors of devices that are non-PowerFleet or if you feel that you need a different vendor or a different data set to make your operations more efficient, now you have that flexibility of choice is about openness. It's about being able to bring the data very rapidly and onboarding it into the system. Like I had already mentioned, we have a library of over 600-plus devices, 70-plus manufacturers with the goal of being able to process that data as quickly as possible. And with that, we're going to show you a quick video on the capabilities that we have with this tool.

Thanks, William. Hi. My name is Eric Frey, and I'm the Director of Product Management for software here at PowerFleet Today, I'm excited to be able to talk to you about our IoT data unification solution. We'll be covering 2 topics today: the first, a very rich tool set that we've created that allows us to quickly configure and migrate device types no matter what the vendor into our platform. Second, I'll give you a real-world example of how we put this data to good use. Let's get started. I want to start by highlighting the edit screen. Here, you'll see the main purpose is to provide a simple interface for you to select the correct device type from our library. Our library includes over 60 vendors and 700 device types. Once the device type is selected, we can give our device name and move on to the next screen. So now let's transition to the setting screen. The main purpose of the setting screen is to prepare the different devices and data types to allow them to communicate to our platform. Here, we can configure the communication settings set different actions and create profiles that are different per vendor. This greatly reduces the integration time and cost. Basically, data integration can be done in hours and days versus weeks and months. So finally, let's move on to the logs and messages screen. The main purpose of our logs and messages screen is to validate and unify the data from each device type, resulting in a rich data ecosystem that can help power business insights. The top portion of the screen shows that the device is successfully connected and is ready to start communicating. This helps us validate the work we've done on the previous sections. The bottom portion shows the complementary data created by the device. This rich data ecosystem can be applied to any type of application within our platform or can be shared externally to systems that drive operational awareness. So now the question is, how does this data actually helps solve customer problems. But let me go ahead and walk you through an example where 1 of our customers in Mexico City had a mixed fleet. They had all different types of devices for multiple vendors, and they had all different types of data pouring in. This became especially difficult for them to manage. Sometimes they were required to log into 2 different portals. This was an operational nightmare, causing them tons of money, additional resources and time. They were growing very rapidly and this was not a sustainable solution to their problems. With our IoT data unification, we were able to bring together all the data from all the different device vendors into 1 single solution and 1 pane of glass. By providing the ability to log into 1 portal where they can easily track and trace all of their fleet, we were able to make this customer much more efficient and give them the future flexibility to choose the best device provider to meet all of their future business needs. So thank you for joining me today, and I look forward to the next opportunity to tell you about new and exciting ways PowerFleet is bringing data to drive efficiencies and optimizations.

Okay. Great. Hopefully, that demonstration showed you some of the capabilities that we have actually brought to market. This is not something that we're thinking for the future. This is something that we're doing as we speak. As you can see, we actually have deployed this in many customer sets. This is just 1 example. But again, our goal is to be able to extend the data set, create that reach ecosystem that I already mentioned. And the easiest way to be able to do that is to happen to the right tools and the right capabilities in the right library of devices. One of the questions that I always get is what happens if you don't have a device that is in that library? Well, we also thought about that our tool set is able to be extended to develop the necessary protocols in order to bring that data. Does it take a little bit more time? Yes, it does, but we're still driving to development within days. and integration within days as opposed to weeks and months, which is the typical way of doing integrations. So let's move on to the next. I want to kind of show you a little bit about some of the stuff that we have done on our safety and security portion of our software modules. Again, bringing in the data is the first thing, and this is here what you're seeing is what we call our insurance claim management module, are basically part of our security safety and security offering. The goal here is to actually be able to focus around risk management. Is giving the data sets and putting the data sets in a way that our customers are able to utilize it immediately, very easy to navigate and more importantly, that they could do something with it. In this case, we have taken the data from devices that are ours as well as others, and we've been able to create an application that shows them the accidents by type, okay, so that they're able to know exactly what happened when it happened. But more importantly, it's actually giving them a risk prevention scoring system so that they're able to see what type of accidents were possibly preventable, what are not preventable? I mean in many cases, maybe they just need more data or they need further analysis. Our goal around this is to reduce the cost, reduce the profile of risk that a customer might have and more importantly, allow them to set a higher level of safety standards in their organizations in the industry as well. On top of that, knowing that risk and reducing the risk profile is something that we're shooting for. We also understand that the world is not perfect and that things are going to happen. So as part of our safety and security module, we have created an incident response capability where we're able to actually provide real-time information in order for our customers to react as quickly as possible in a crisis, right? In this case, when an accident occurs or an incident occur, we're able to immediately take the data that we're collecting, okay, whether FEMA device or others take it through a smart algorithm and be able to tell them is the severity of the type of accident the vehicle status as well as what are the other different levels of information that is critical for them to know. But more importantly, how is the driver doing -- when it comes to the vehicle damage analysis, we're able to take the G forces that have occurred with that vehicle and determine exactly the level of damage that, that vehicle might have -- why is that important? That's going to come on exactly, hey, can I send do I need to send a to truck or more important, I need to get that truck back or that vehicle back on the road, that gives us information about the cost structure and the level of components that might be needed for them to order to get that vehicle back out into the market. Now the biggest aspect and 1 of the things that gets -- and 1 of the things that gets me excited about this module is that we've been able to integrate video capability as well, right? We continue to hear about AI and ML and the video capability, but the reality of it is that integrating into such a module allows us to collect evidence that could be utilized for insurance companies that could be utilized for an emergency group. In this scenario, we're able to replay the event, if you want to see it. But more importantly, in my opinion, is the fact that you could do live video and see exactly what is going on, so that if the driver needs help, we're able to attend to them. This is some of the data that we collect, how we've been able to actually filter it, bring it back into a single location and give access to our customers for that. So let's move to advance our advanced fuel management module and the impact of this module. We continue to hear about the volatility and the pricing that is going on and having a tool to be able to manage the fuel cost is critical. But just knowing what the fuel cost is and how it affects your operations is just 1 part of it. One of the things that we have done is we've been able to take data from drivers, vehicles, service stations, fuel card stations. And the goal here is to match it and mix it together in order to be able to give you a good profile about what is going on in the market in real time versus the capability of your vehicles or the efficiency of your vehicles in order for you to make decisions around what vehicle is the right vehicle for that job when the pricing is going up and how to actually fuel them properly. So one of the things we're going to show you here is how we've taken this model and applied it to 1 of our customers in order to create a better efficiency capability for them in their business. So let's go to the demo.

Hello again. All right. So let's talk about PowerFleet's advanced fuel management solution. As previously discussed, fuel is at an all-time high and managing cost volatility is challenging for most, if not all, organizations. In this demo, I plan to highlight how we've integrated data from vehicles, drivers, fuel stations and external fuel card providers to analyze real-time spendings, savings, efficiency and fueling trends for our customers. I will be focusing on 3 areas of the advanced fuel module. We'll start with fuel efficiency, work our way to gas station convenience and finally, fuel card information. Let's start with the fuel efficiency screen. This screen shows the efficiency of a fleet by vehicle type, knowing which vehicles are more effective and efficient is critical to determining what and when to use a specific vehicle type based on specific fuel costs and the job requirements. In addition, the information shown allows a business to set fuel budgets based on efficiency trends, while keeping track of real-time spend against forecast. So next, let's talk about the gas station convenience screen. This cap provides real-time fuel cost data at multiple service locations. Customers can get visibility to the cost of fuel as it changes. This information is available in real time and is part of our data unification capability. Using this information, we can enable our customers to decide when to send vehicles for refueling and to what locations. More importantly, though, we've been able to use all this information to develop a smart algorithm that's able to correlate vehicle efficiency and fuel costs, allowing our customers to have further visibility into the best fueling options and the effect this will have on their cost models. So last but not least, let's talk about the fuel card information screen. This screen is a consolidated view of fuel card data integrated from external providers. It shows actuals first budgets as well as spend trends for forecasting. In this particular use case, a customer would prepay for gas to reduce the cost fluctuations. Using the aggregated data, customers can ship budgets or determine where most of the spend is taking place. In other parts of the world, this same information is used to help detect fuel fraud. The location of the transactions as compared to a telematics devices GPS location. And when those locations do not match -- it is considered an unauthorized purchase of fuel. In summary, fuel is a critical commodity that requires surgical oversight to prevent cost overruns. Data must be unified and collected from multiple data sources to get true visibility and understand current and future cost issues. PowerFleet is facilitating the data acquisition analysis and presentation to help customers run a more effective and efficient business. Thank you for your time, and I look forward to the next opportunity to showcase to you how PowerFleet is innovating through the use of data.

Okay. Great. So hopefully, you got to see some of the capabilities that we have in our advanced fuel module. There's a couple of things that I want to point out on this. When it comes to fuel management, it's not necessarily just knowing what is going on in the marketplace. The effect of your drivers and how you drive our behavior and how they drive a vehicle creates a major impact, right? But also knowing the efficiency on how vehicles are able to operate and the efficiency that they provide is absolutely critical in this day and age. That has actually taken us into the next level, which is are we ready to move into electric vehicles, right? Do we need to actually make that investment right away? And knowing that that's a major part of the decision-making that our organizations have to make, we have created a sustainability module around EV connectivity, right? This is something that we have done in Israel and you're going to hear a little bit more about it from 1 of our colleagues. But more importantly, we have taken a lot of the learnings over the last several years, and we're basically bringing it in into a new capability that we're going to be deploying here globally very shortly. The concept here is that when it comes to electric vehicles, having the driver information and knowing how a driver interacts with the vehicle and how they drive is extremely critical to being able to manage this new fleet. One thing that's important to know, at least from our perspective, our PowerFleet is that when it comes to electric vehicles, they're not longer a vehicle. They're a computer, they're actually a bucket of data and being able to access that data is extremely critical to us, right? So part of what you're going to see here in a second is how do we take that data? How do we combine it with the right set of information from a driver the cost of electricity, et cetera, to give you a true efficiency costs and know when to move into that direction. More importantly, we're able to take that set of data, transform it into immediate actionable insights in order to optimize the total cost of ownership of these vehicles. So we're going to give you a quick demonstration around that capability. I'm very excited about this. because we have over 27 different manufacturers that we've been able to integrate as well as charging station information, and we have combined it into this new module. So with that, let's go into the demo.

Hello again, so let's talk about Power Sleet sustainability solutions, but more specifically, electric fecal connectivity. As previously discussed, the transition from gas to electric vehicles continues to accelerate, creating new challenges for businesses globally. Electric vehicles are computers on wheels with large amounts of data, but they have to be managed and carried forward differently. In this demo, I will introduce to you our electric vehicle connectivity solution. This solution is focused on connecting, integrating and visualizing electric vehicles along with their charger data, so that organizations can get immediate visibility into battery health and correlate driver behavior with vehicle efficiency to meet sustainability goals. So let's start with the overview screen. One of the things I'd like to point out is the transition to a new look and feel to deliver ease of use and navigation. The overview page is completely configurable by user and delivers a quick glance of critical information for every vehicle. In this case, we've chosen to show the state of charge, the range, charger status along with the time to charge completion. As previously mentioned, these data elements can be added and removed to make for more personalized selection. Next, let's move to the vehicle detail screen. The purpose of this screen is to capture and view any of the data provided by the electric vehicle or charging station. This page is configurable as well due to the number of data points that we're capturing from electric vehicles and the variance of each EV may supply. In this case, we're displaying the battery information, system information and driver information. More importantly, in this page, you can select multiple data sets to analyze, compare and visualize data over time. Let's take a look at the gas pedal and the battery state. So we can understand how a specific driving style impacts the charge over time. In this particular case, you can see that acceleration has a dramatic effect on the battery level and the state of charge, this may seem pretty simple, but it can have a massive impact on charging time and charging costs and therefore, the total cost of ownership for the vehicle. Next, I'd like to talk about how our smart algorithm takes data previously shown and creates a scoring system outlining how driver style affects the efficiency and cost of your fleet by analyzing power consumption for mile driven. A score ratio above 0.93 is considered bad. A score below 0.93 is considered good. Scores are generated in real time, but consider driving history over a time range to minimize false scoring. The more you drive or the longer you drive, the smarter the algorithm is in return. This information can help organizations provide coaching and implement reward systems through gamification. In summary, as technology continues to evolve, so too do the ever-changing needs of businesses. PowerFleet is committed to providing the right analysis and data insights to help empower companies looking to tackle sustainability and manage the complex cost and logistics that come with the adoption of EVs. Thank you for your time today, allowing me to help explain how PowerFleet is continuing to innovate by using data to help make better business decisions.

Great. Hopefully, that gives you also another view of our capabilities and how we're moving into the electrical vehicle arena, right? This is not a trend. This is a reality, and we are set up to be able to handle that. One of the questions that I always get that I don't want to gouge with that is what about the data from the power fleet devices? What are you guys doing with the devices and the centricity around that data? One of the things that we are embarking ourselves on is what we call the single box or the advanced ecosystem box for data. And the goal of that is to actually have the capability to bring all of this data up to life through a single entity on a single device, giving us that capability to upgrade and open new feature sets as we see for customers from going prone, we're able to upgrade them in the future and make it future proof. So with that, hopefully, you have enjoyed some of the material that we have covered in the product side. Very exciting. And we got a lot of work ahead of us, like was mentioned, but some of the in motion. Some things are already available. Some things are coming here pretty shortly. And again, some are going to come in the future. So with that, thank you very much, and I'm going to hand it over to Patrick Nally, our CRO.

Hello, everyone. My name is Patrick Maley, and I'm the Chief Revenue Officer here at PowerFleet. I joined 3 months ago, and I'm thrilled to be part of this reimagined PowerFleet. I've been in the enterprise software industry for the last 25 years working in sales, marketing and leadership roles at companies like Manhattan Associates,Kinaxis, RedPrairie and most recently, BluJay solutions. -- where I led the rebranding of the company and its new global go-to-market strategy. The team we assembled a BluJay doubled the revenue and took the valuation from just over $200 million to a recently closed transaction with Eaton at $1.7 billion. The last 12 years in my career, a really specialized in transformational projects, taking companies with strong solutions and people, but not yet hitting their potential and combining strong brand and messaging work with scalable commercial excellence programs to drive higher sales and profitability. So I joined PowerFleet for 3 reasons. Number one, I love the IoT space. The explosive growth and potential is fantastic. The innovation and creativity is inspiring and world changing, and we are right in the thick of it here at PowerFleet. Number two, the intellectual property we already have and successfully deployed around the world. We'll be talking a lot about the stories that many people do not know about PowerFleet, but they will know soon enough. It's an opportunity to bring this IP to new growth regions. And number three, the team that our CEO, Steve Towe has been building, is purpose-built for helping transform powerful to a global market IoT SaaS leader. The art articulated division for power fleet. So suffice it to say, Steve himself is another reason I joined. So I joined for those 3 reasons, but it's now been 90 days, and I can report I am as thrilled as ever about the prospects for PowerFleet. As many of you know, despite some integration challenges Steve mentioned, this business is already growing. In addition, the current global PowerFleet team has been fantastic. They're embracing the vision and are excited about the journey ahead. Also, I had a chance to visit our innovation center in Israel a month ago and left are even more excited about our potential. You'll hear a lot more from Ilan Goldstein, soon enough, but I will tell you the exuberance and dynamic culture of our 240 associates on our Israeli team will get anyone excited about our future. What global proving ground for IoT, connected car, security, tracking is more challenging than Israel. With a 20-year history, tens of thousands of subscribers and a 40% market share in Israel, we're doing things that no one is doing anywhere else in the world. Our Israeli Innovation Center will be the creative and innovative heart to the operational body we drive in other key geographies. So now I want to talk to you today about our go-to-market approach. And I'll finish with some customer stories that highlight the success and value we're driving today. So regarding our go-to-market approach, it's a process and approach I've been using over the last 15 years. It's focused and it's disciplined and it works. So today, I want to discuss 4 key parts of this approach. Number one, our messaging framework and brand. We need the global PowerFleet brand to reflect who we are, what we're doing in the real world for real customers and where we want to go in the future. Number two, leveraging our massive customer base to cross-sell and upsell our solutions. We have a large opportunity to position and sell additional mission-critical solutions as a trusted partner. Number three, a disciplined approach to building brand awareness leads and streamlined sales operations to win business. It's built on an approach called account-based marketing or ABM. But we call it account-based everything or ABX because we do it a bit differently. And number four, recruiting top commercial talent deeps drive our vision, build pipeline and close more deals. All right. So let's talk about the brand and messaging framework. The foundation for our go-to-market efforts will be a strong brand and a global messaging framework that works together to our targets and customers understand what we do, where we're going and how we drive value. It starts at the top with a strong and unified global brand message and visual identity. It's combined with a technology framework position that becomes foundational for a global solutions offering. You heard a lot about that framework from Jim and William. And that framework connects to all of our regional or localized messaging for each region's key solutions. Now a lot of this material and content exists today. After all, we are growing and currently successfully selling a lot of solutions and hardware around the world. But we will be working to tighten and streamline it so I can scale and fuel our global tactical lead generation and sales engine. Very exciting. So cross-sell and upsell. We had a great customer base with over 8,000 enterprise customers around the world. Our NPS scores are very high with our customer base, but with the exception of Israel and Mexico, we have not effectively capitalized on the opportunity to cross-sell and upsell. You heard a lot about how we plan to build a powerful platform, 1 which clearly lends itself to cross-selling and upselling. And we will use our current strong relationships where we have a trusted advisor-type relationship to move into the C-suite and position and sell the value of our platform. This will drive higher ARPUs, increase margin and have us be the chain in terms of our mission-critical importance to our customers. So let me give you an example so you know how it works. Typically, we engage customers who are searching for asset tracking and visibility solutions for their assets, which could be containers, chassis, trucks or other vehicles. We have hundreds of thousands of devices we track every day, throwing off valuable real-world real-time data. The solutions we're developing will be leveraging that data, which will be coupled by our ability to take in third-party data as you heard earlier. So in effect, when we sell the asset tracking solutions we do today, we're not only selling our advanced hardware, but we're laying the data foundation to sell them our additional solutions that will drive worker safety, lower risk, improve sustainability and enhance productivity. Okay. Let's talk about account-based everything. Driving new logos is critical to our growth and success. Account-based marketing is a fairly well-known process and approach to building awareness and building pipeline. But what a lot of organizations miss [ when done ] properly is the orchestration between sales and marketing that happens as this is done right. It results in a more effective team and stronger pipelines to deliver higher quality leads and higher win rates. We will focus on key target markets around the world. We will build strong and focused content, using a compelling messaging framework I mentioned earlier, for those targets and deliver it through a creative and effective inbound platform. We will combine it with an inside business development team that will help build consistently high-performing pipelines in all the markets where we compete. Again, very exciting stuff. So if you're an investor in this market, you know no strategy goes anywhere without the right talent to make it go. And we have already started the process of bringing top talent to PowerFleet, to augment the great existing team we have. We will be adding new sales and marketing talent in all regions with an early emphasis on North America and our digital content and account-based marketing efforts. We'll be adding SaaS experience inside and outside sales talent to position and sell the additional solutions we are bringing to market. We expect to have a good portion of the expanded team in place by the fall and be fully staffed to start the new year. So in summary, we are reimagining the way we go to market with a new platform that allows us to move up the IoT chain into the C-suite and help companies with intractable problems such as sustainability, EV fleet conversions, risk, fuel management, worker safety and the labor crunch. We're focused on hiring a high-energy commercial team to attack key targets with sustained geographic expansion. It's an exciting time for PowerFleet. So finally, I'd like to share some of the stories that really bring this all to life. These are high-growth and influential customers where we're driving value today as strategic partners. They contain the customer testimonials we need to drive future success. So FlexiVan story. FlexiVan is one of my favorite stories of PowerFleet. It's not often you see a company redefine and dominate a sleepy business like the chassis industry. But if there's any company that illustrated just how important a chassis is to global trade, it's FlexiVan. Flexi went from a startup 5 years ago and is now the third largest player in the chassis space, and they did it through data. These guys are data scientists at heart, it is real-time data to create a better customer experience, drive high levels of efficiency and ensure that customers can move their goods through the supply chain. And in this market hats off to the work they've done for all of us, right? We partnered with them from the early days and learned quite a bit over the years. I had a chance to meet them a few weeks ago and came away thrilled that they are our partner. And as you might expect, they have big plans for the future, and we look forward to supporting them along the way. And last week, we had a chance to connect with their COO, Than Seeds and he had this to say about our partnership. I know you guys can read, but I'll just read it because I love the words. "We've been working with PowerFleet since 2016 and consider them a critical partner. We like whether going regarding a unified IoT perspective and look forward to using our data to drive deeper insights into our business." So that's Flexi. Now let's move on to Walmart. We partnered with Walmart for many years. I mean these guys defined the term high-performance logistics and have set the standard around the world in many respects. The importance of tracking containers and assets has never been more critical in today's supply chain, and we are thrilled to be able to continue to serve them. It points to our ability to serve the most advanced and high-scale organizations in the world. All right. So let's go with Avis. We helped Avis launched their connected car program almost 10 years ago. Our partnership with them continues to be an important part of our overall strategy and fits in perfectly with the reimagined power fleet. In today's environment of labor shortages and redefined customer experiences, we know the critical role our technology plays in enabling companies to create new contact-free experiences that allow companies to serve increased demand and lower cost at the same time. And to augment to help you kind of digest that, I thought you might like this recent quote from Avis CEO, Joe Ferraro, during the last earnings call regarding their QuickPass program. Again, I know you can read, but I love this quote, so it just really highlights. So his quote is "Due to get strong consumer feedback and efficiency we've seen in our workflow, we're dedicating additional resources to expand our Avis QuickPass offering. For those unfamiliar with this product, it enables our preferred customers upon arrival to select from a choice of vehicles on their phone, proceed directly to the car and then utilize a QR code to exit via our automated expressed exit for a completely contactless experience." It points to great things to come for Avis and we're honored to be a part of that journey. So thanks for your time. And now I'd like to hand it over to the leader of our Mexican operation, Eduardo Chavez, who will take you through 2 very important key customer stories from Mexico. Eduardo?

Hi, everyone. My name is Eduardo Chavez. I'm the General Manager for the PowerFleet operation in Mexico. I've been in the company the last 6 years. I have a lot of experience working with key accounts and B2B. And I will run you through 2 very interesting stories that are key for our success in the country. The third one, I will start with AXA, AXA Seguros, the Mexican branch of the -- of one of the largest insurance companies in the world. And also, AXA Seguros is the second largest insurance firm in Mexico. They were looking for a company to help them to improve their value proposition into the commercial flex segment. And they found out that a telematics company will be helpful. So after several trials, they select us as their partner, and we start working with them since then to start converting some customers into both of our services. We are able to provide high-quality and reliable services for recovery, but we do not only provide recovery. Nowadays, we are using real-time data in order to prevent accidents, prevent robbery events, but also to provide some insights in terms of reducing the risk of having accidents. Also, we provide a lot of -- depending on the customer needs, we provide fleet management services that includes fuel management, routing or even in the last days, we have introduced our video solution that is a focus in to improve the driver behavior. This alliance is a real win-win situation for both companies. Constantly, we're working together in order to reach 2 objectives. One is reduce risk level management. This is the name of the business in insurance, risk management. And secondly, we bought companies who want accelerated growth. We're planning to triple the size of the users only for this program in the next 3 years. So now move on to -- let's move on to KAVAK. KAVAK is probably one of the most successful start-ups in Latin America in the recent years. They started in 2016 and nowadays, they have a market valuation for more than $8 million. We were there since the beginning. I had the chance to meet some of the founders and we were instrumental for them when they launched their financing business. We were able to provide with security features so that they were able to have a better collection of their leasing business, and also, we ensure them a high recovery rate of vehicles. So their business became feasible. But that was the beginning. Nowadays, we're using all the data, all their knowledge and we're team working with them in order to get a lot of insights from the vehicle. And we're turning that into customer behavior, driving patterns, driving behavior and that they are using -- all this information is being used by them in order to -- for the customer retention strategy. But nothing is better than to hear this directly from the customer. So now I want you to hear what the CFO from KAVAK has to say about their experience of working with the PowerFleet.

Hi everyone. KAVAK, we are the largest vertically integrated used car marketplace of emerging markets. We've been in the market for 5 years. And today, we're happy to say that we're worth [ $10 million ], we might be the largest and most valuable product company in Latin America. We've been partnering with PowerFleet for the last 4 years, and the relationship has been amazing. They are a key enablers for our financing business. Most of our recovery strategy is based off of that. And we're working in different projects, including analytics, data processing, hoping to develop our insurance capabilities in the near future. And as we look forward, perhaps the most interesting thing is how do we exploit the data that we're collecting to develop new data streams and new revenue streams for our business.

Okay. Great. KAVAK's exponential growth and geographical expansion represents a huge opportunity for our company. Now I'll pass to -- the mic to Ilan Goldstein, so he can tell us a little bit more about our business in Israel. Thank you.

Hi, everybody. First, I came with this multisense. Now they give me other remote control, and I hope that I push the correct button. I start working in Pointer in 2005 before I was the manager in the biggest optical net in Israel. And I was the manager of SEAT from Volkswagen Group. I start in 2005, when all my best team, I ever dream about them, was younger -- they are still now 20 years in Pointer, and we make together amazing jobs. We made a lot of transformation since 2005 till today. But if I need to say only one sentence about the transformation, we start -- and we very appreciate to catch car thieves. In the last week, all the news in Israel or the TV speak about the Pointer, saves lives. And this is a big transformation. We start in 2005 with 23,000 subscribers. The technology is -- our technology was radio frequency. The location is not so [ property ], it between 100 to 200. Then we moved to GPS units. We start also with fleet management. And now we also deal with the IoT solution, electric car, cybers, and as I mentioned, saves lives. 2005, Pointer is 10% market share. 23,000, as I say, SVR, stolen vehicle recovery. Only 11 cars with fleet management, all of them, the cars of our employee. 2021, with almost 40% market share. We have more than 201,000 subscribers, 70,000 from them with fleet management is a huge number. If you consider we have 340,000 active telematics unit in Israel that we action. So as I told you, -- we make some decision to move from RF to GPS, then we make the decision to combine the technology combat for all the truck and the buses to improve our information for the bus owners, the telematics unit, diagnostic unit. And then we had also accelerometer, small G sensor that support all our customers with driver behavior and accident alarm. And in the last 3 years, we penetrate for the IoT. What is the IoT? We start to deal with some sensors like this, that they can check temperature, humidity, black -- dark and light, accelerometer that we can feel if there is any G effect. And from now on, we start to deal with the Ministry of Health. And in the end of the process, we were the first company with validation by the Minister of Transportation in Israel. What is the meaning? One year later, the corona started. There is a lot of needs for transportation of cooling box process for medicine. The pharma network, the biggest one closed because it's a closure. And now there is patients, chronic patients, who stay at home and they need their pills. The Ministry of Transportation recommend on Pointer solution, [indiscernible] come to our company. And the next day, they have 30 different cars with 150 cooling box that they can take the pills to the patient's house. Maccabi HMO 2,000 cooling box, they have from all the country, pathologic examined, blood examined, to take from all the country to the lab. Sometimes they make a mistake with the cooling box. So now they have every -- inside every cooling box, this sensor, the driver of the application that we can make can check with the MultiSense with [ Brutus ]. In the car, there is a [indiscernible] that can make contact with the cooling box and know that the cooling box is in the car. If by mistake, it's going out, there is a red flag. When we finished with Maccabi, that's our customer, now we have the new order from the last 2 weeks from the biggest HMO in Israel. So as you can see, we take part in the vertical fields. We take about the light and the humidity inside. We control all the vaccine in the school for the Ministry of Health. We take -- we make some solution for [ Milton ] company that is the company deal with Animal Pharmaceutical. Above the basic, we move from the aftermarket for -- to consider in the aftermarket in Israel to the OEM, to the car importers. So if in the beginning, we drink the water that's going out from the glass, I prefer to go direct to the tap. Today, 60% of our installation every month is in car importers and the aftermarket, it's 40% of the rental car company, the fleet owners, et cetera. So above this, there is tenders. One of them is the Israeli police, 8,000 cars that we just finished a few months before. The project is for the 8 years, 61 different cars. 3 years ago, there is -- we start with the electric car. I thought that the electric car will be the future, and I was right. Instead of making a big competition in the diesel buses, we go directly to the bus importers, the electric bus like BYD, like Golden Dragon, Higer, Isuzu, Zhongtong and we developed a very good solution, diagnostic, that all these car importers recommend on our solution. In the last few months, the biggest company -- transportation company in Israel, Egged test all the market, and they choose us and 2 weeks ago, they call us into a meeting and say, "You are absolutely the best from all the others, and we choose you to make the installation for all the electric buses." There are 3,000 buses in Israel, also sub companies and the company in Netherlands and it's very good position to lead this market. As well as with the private electric current projects like Lubinski we were the best solution for connected car, then we prove the electric car solution by application. So now we have more than 3,000 electric cars, a lot of experience the driver, the first -- the early adopter, the owners of the electrical, like our application, our solution very much. They use us daily 100% from that time, and we look at them as a community to take them to the future together with us. Industry -- food industry, one of the biggest food manufacturer Strauss. We start with the factory in the chocolate and candies. Now there is other 500 -- 5 other factories. And in the end, I hope that we can reach Danone. We sit on every place in the factory. We sit on the trailer for milk. We make very nice, very good jobs. And this is the defibrillator. Together with MDA. MDA is the ambulance company in Israel, they are our customers from few years from all their 2,000 ambulances. And now we made a new solution for the defibrillator, very smart one. Till now, we have about 4,000 units all over Israel, especially in the lottery in Israel, 600, and we save life. As I mentioned before, last week, some parents left their children. 1.5 years old in the car, open engine, open air condition and going to a coffee shop. The thieves enter to the car, take it to the West Bank, 31 minutes from the beginning, Pointer lead the army to the car and to save the children. Other situation, one sportsman, in the canoe river have a heart attack. His friends took him to the beach, near to the place there is defibrillator, which controls through our telematics unit from the center of MDA. They open the box, the yellow box at night, you can see the flash, the flipper siren that you can run to this direction, electric lock, took the defibrillator, saves lives. The ambulance will come later. So you can see some options for the IoT that we develop, and we are going to continue with this with the electric car. And of course, with export for the UAE. So now I want to invite Mr. Steve to say hello. Sorry about my English, but I think in Hebrew.

Many thanks, Ilan. And next time, we'll do this in Hebrew. So we'll be the ones under the pressure. So look, we've given you, I think, some great insight into some amazing technology that we have as part of our portfolio. And we're very excited around our growth opportunity. As I said at the start, we very much want sustainable profitable growth. And when I talk to the board and talk to investors, they say, Steve, this all sounds wonderful, but also could be very expensive. What I want to later rest is that we are going to work within our cost envelopes to make the changes and the augmentations that we need to make. As part of our thesis, our strategy as part of our organization and our change program, we're just as focused on improving our business internally, maximizing the opportunities for synergy, efficiency and effectiveness. And this is something that the management team as a whole have used successfully as a dual strategy to really create value and output for our investors and the overall valuation of our company. So we're going to be very transparent with you today, and I'm going to introduce you to our Chief Transformation Officer, who works alongside the executives within our business focused totally on margin expansion, profit improvement and business performance. And we're going to tell you the areas that we're improving, how tangibly we're going to reduce costs, which allow us to maneuver those costs around the business to focus and concentrate on what we want to and make sure we underpin that revenue growth. I think it's fair to say, and I think we said it before. The integration that took place in 2019 could have been better. There are many reasons for that. There's COVID, there's been business distractions. But ultimately now, we've put together a very robust plan in order to improve our internal business. This will drive profitability and value. And we just have as much laser focus on this as we do on the top line. So with that, I'd like to introduce to Melissa Ingram who is going to talk you through very candidly, the some of the challenges and opportunities we have and what we're doing to address them over the next period. Melissa.

Thank you, Steve. Hi, everyone. I'm delighted to be here today joining remotely from London to talk to you about what we're doing in the company on our business improvement plan. As Steve said, I've very recently joined the business in the role of Chief Transformation Officer, having spent a number of years, working in high-growth software organizations and global companies that are doing exactly this, focusing forensically on profitable growth. My background is in creating true margin expansion in growing businesses as well as corporate development for highly acquisitive software companies that are global. I share Patrick and Jim in excitement and enthusiasm and in joining this organization, and I'm looking forward to spending some time with you today, sharing what I see as PowerFleet's focus areas as we try and drive some increased profit improvement into this business. So I'll start with why we're talking about changing our approach to the management of our cost base. While for my initial weeks at PowerFleet, I see a real opportunity here to focus on solidifying our foundations of this company as we prepare for that next phase and stage of growth. PowerFleet has a strong heritage to build on -- when we think about the coming together of ID Systems and Pointer, a great solution set, a committed team and a huge potential to grow in new markets. I hope today has only solicited that in your own mind. These are all excellent foundations for growth. But as the businesses came together, candidly, we didn't complete all of the activities that we would normally see in an integration of businesses that come together at this stage. We didn't necessarily always have common systems and platforms or think about efficiencies and visibility into our cost base. Secondly, today, we don't have an organization that's global. And we can do more to focus on creating a common culture and common goals and common ways of operating right across the business and thinking about how we're managing performance and how we're measuring our quality throughout the organization and throughout our partners. Also in recent years, I would say we absolutely have more of an opportunity than we have been doing to take advantage of our full global purchasing power. And there is an opportunity to consolidate partners that are providing common services across different parts of the business or even in different territories where essentially we have lots of partners doing very similar things. Finally, I think we're all aware that price inflation is a common theme across many of the markets that we operate in, and certainly, our business is no different. We need to find a way to address those pricing increases in the global supply chain in a way that will help create oxygen in our P&L, while still fulfilling the needs of our customers. Given my background and given my experience, I see all of this as just a huge opportunity for this company. Addressing some of these challenges is not just fundamental in driving true profit improvement now and creating some profit expansion within the business. But the task that we need to undertake will solidify our foundations on our heritage and get us ready for that next phase of scale and for growth. Next slide, please. So what I wanted to cover here and give you a flavor of course, 6 areas where -- these are just some of the areas that we're focusing on to achieve our initial goal of $5 million of cost savings. Work is underway across all of these areas. We've got programs of activity and execution right now. And the businesses really come together across the territories, across the organization in recent weeks and months to make cost consciousness a way of life and how we're choosing to operate. First, our aim is to complete the integration of our business with the common systems and platforms that we'd like to introduce. Our aim is to have really good cost of business visibility and strong controls and give us the ability to better forecast and think through the categories of spend that we've got and enable an efficient and effective team that are working on truly valuable activities for the company. So just to give you a flavor for our challenge, we've got 25 individual implementations across CRM, ERP, MRP, device management, payroll and lots of other areas in at least 8 countries. And that's a huge, huge plethora of systems for us to address as we go through this program. The CIO is doing a great job of unpacking all of that complexity and of what we have existing, and our aim here is to really prioritize where we should focus first to deliver a more cost-effective way to operate our business. I see this program really starting to change how we work as well as delivering some true material cost saving really within the next 18 months. So while some of the programs we're undertaking are more long term, we're also looking to deliver some quick cost improvement back into the business, too. A good example is our hosting costs and our use of software tools. Today, we have a number of different partners and multiple cloud instances. And we have essentially intermediary partners supporting us with all of our various operations. Internally we don't always have a consistent way of managing all of our hosting providers, but that's something that our new CTO, Jim has been working really hard to address and has made it a real key focus of his to consolidate all of our hosting into a smaller number of strategic partners, really reassessing our usage and thinking about how we optimize every instance and every core, essentially creating a forensic focus on how we're managing our costs. We're also phasing out reporting and BI tools where we had multiple instances and essentially doing very similar work. The focus here is about building the foundation. So making sure that we have strong and trusted partners with best in industry vendors in this space and making sure that we have the disciplines around cost controls. These are the foundations that are going to give us the ability to effectively scale as we pivot towards our next generation of SaaS products. On to our next space in global purchasing and third party. We have a huge opportunity here to think critically about all of our third-party spend across the business and how we can take advantage of our buying power as one PowerFleet. We've started to leverage our volume position with some of our biggest vendors, and we're renegotiating rates. So a recent example is in our communications spend in one of our regions where we spend around about $2 million per annum. We're looking at a savings of 20% to 30% by going through this process. There's definitely much more to come as we think grow globally and strategically about our future partnerships. Another key focus is our freight spend. So to give you a flavor of the types of areas we're focusing on. In one of our regions, 30% of our freight from our biggest air supplier is currently air transported urgently by couriers which is about 60% to 70% more per kilo than if we have sent it by the nonurgent more tail adoption of air freight. We're looking to stop as much as possible, if not all of our urgent air freight by the 1st of July. -- in this particular region, giving us a significant cost benefit into the business. Another area we're looking at is switching from air freight to sea freight, which on today's price list, the sea costs are about 7 of our air freight list. And we'll do this wherever it makes sense for components and time scales. Finally, on the freight side, we're looking at our opportunities to switch some of our manufacturing and our assembly, and of certain products away from some of our offshore suppliers and locally, which our assessment is that the net impact of this will be beneficial to the company. In short, freight is a huge opportunity for us, and we've begun to get really actionable on managing this portion of our spend. Moving on to facilities. Our focus here is to rightsize for the modern world. We have about 40,000 square feet of office and warehouse space, and that's in the U.S. alone. And some of it is underutilized. So there is an opportunity to look at what makes sense for our future. We're looking at options to sublet or reduce space as much as we can, but putting the needs of our staff and our customers at the center of those decisions that we make. The final area I'd like to cover is product value engineering. This is a huge part of our cost reduction strategy and is a key part of how we're thinking about our future product design. What we're essentially doing is looking at the design of our key components and our products, assessing which -- how components are used, if in fact they are used, and whether we can redesign the product with cheaper by quality components. We're also assessing which components are simply unused and can be removed from the product design entirely so that the product is more cost effective, but still fulfills our customers' needs. This program becomes although more important in today's current climate, where local companies were experiencing price inflation in our supply chain. So that in summary, there's a huge opportunity for profit improvement in PowerFleet. We're absolutely focused on creating improved margins now. But the plan here is that cost effectiveness is the backbone of our model as we scale our top and bottom line in the coming years. The plan we've got now is very much in execution, and we're continuing to uncover and work through opportunities really each week. That's it for me. Thank you, and back to Steve.

Thank you very much, Melissa. So that's pretty much all the content that we had for today. Just in terms of finishing off on the profit improvement side, I think there's a huge amount of work and effort going to take place and is already taking place to realize and to be able to enhance our abilities to improve margins and our bottom line. I would ask for patience. In some of that, if any of this was easy, I'm sure a lot of it would have been done by now. So this is $5 million annualized plan that we'll start to see the effects as we run through the P&L in 2023. But I think it's the first phase in a number of phases for us to really create a highly efficient business moving forward. So what we'd like to do now before we summarize and finish off the event, is invite you to submit questions that we will attempt to answer on the content that you've seen today. They're really hard ones, I'll ask my esteem colleagues to come and join us as we go through the questions. So we'll hand over to the moderator, who will go through the questions for us.

There are many competitors that differ by geography. Can you walk us through the competitive environment and why power fleet wins or what you believe or PowerFleet's key competitive advantages?

By geography and even by vertical, there are numerous competitors localized, centralized. But I think what we have is the experience of operating in those different territories with real-life people, who are business owners themselves and can understand the business landscape, the cultural landscape, the environmental landscapes of each of those different environments. So I think the global stage that we have where we are -- have boots on the ground. We have been performing change improvement plans for our customers for a number of years in a number of different verticals and different geographies, I think we're well placed to take advantage. I think secondly, in terms of some of those verticals, the expertise that we have within our existing teams, the knowledge to be able to actually consult with our customers to help them on their change programs is something that is highly effective within PowerFleet. I think to add to that as well, the scope of solutions across all of their assets to have one combined partner that they don't have to manage multiple relationships that their users have consistent views of the technology at which we are not only driving the implementation from the asset perspective, but also the implementation in the business to create that change, I think we're very uniquely positioned. I think as William alluded to earlier in terms of us being able to take other devices into our platforms to be able to have the unique AI and ML algorithms and the IP that we have to create that business value is something else that holds us in very high order in terms of being a true change partner to organizations. Where there are labor shortages, people need visibility and control. They need integration. They need time back in their day. They need intuitive responsiveness to be able to make decisions quickly without utilizing multiple reporting systems or having to look deeply into systems to get the key KPIs that they want to run their business with. So I think from an overall proposition perspective, from an experience and talent perspective from the number of verticals within which we play and the multiple asset types that we take data in today and how we're now moving to make that far more intuitive I call it almost the consumer way of working within business. We all know what we need in our own e-mails or in our own working environments. The apps that we like and we use because they're easy to use, they're simple, but they're focused. And that's where I think PowerFleet is leading the way in that type of innovation.

Thanks, Steve. Next is from Mike Walkley. Steve, with the long-term strategic road map to establish PowerFleet as a fully mission-critical software provider for the IoT market, you discussed changes in your go-to-market strategy and R&D road map. Will you continue to design your own hardware or more outsource and focus more on the software offerings?

So I'll ask Patrick to come alongside me and add some value to this question, but I will start off. So in terms of our own hardware, again, we offer some pretty unique IP that I think creates advantage competitively and create advantage for our customers. Where we are doing volume devices and people rely on PowerFleet for the quality and the output and feel very good about having us as hardware, then we will maintain that. What I would say is, is that I think our recurring revenues will drive over time. There's far more opportunity for us to more software-centric and our reliance on our own hardware will move over time. But right now, we feel that capability is another competitive advantage that we have. So in terms of that road map on hardware, as William alluded to you with our Smart Box, the customers will be able to buy different devices from us or our partners in terms of commodity boxes. If they want to truly come on the journey with us from a road map perspective, they'll be able to invest in the smart box, which will unlock all the applications. It will unlock all the data services that we need to take them on a long-term journey. If I'm faced with that as a buyer, and I know I'm future-proofing, then I will most likely make that decision. If you think about that modular approach that we talked about from a go-to-market perspective, improving ARPUs, improving wallet share, we will be charging base fees and entry fee to the platform for itself. But then each module will come with a different ARPU per module. So again, a customer can make buying decisions on their current opportunity to spend. We can create value and improve our ARPUs through multiple application spends. And we see this as a real unique opportunity for our salespeople to really grow within their accounts. Secondly, the opportunity to work across different business partners within a customer's environment, the CRO, the CHRO, the CTO, the CIO, the CFO, we can provide solutions that make their world better. It helps them to hit their objectives. The way that it's modularized means their team can use those solutions very intuitively in their daily life. That's a huge advantage for our sales teams to offer true solution selling, be very tangible in the return on investments that we are creating for our customers. What that does overall is really improve our relationship, it improves our stickiness within our customer base, and it really makes sure we're very at the forefront in a customer's mind of true strategic partnership. As we take over and we give more of that managed service to our customers, again, with customers who don't have so many people to focus on technology, we go of that value stream. With some of the IoT innovation that Ilan is talking about, a lot of that is greenfield for us in our marketplaces. We've tested it in Israel. We have paying customers at [ high ] scale, we can now take that to the other markets. So again, from a kickback perspective from our sales team, they will have much more capability across all of our geographies to have a much broader business conversation with our customers. Jim, Patrick, could you add something?

You did pretty good. So yes. In the modularity of the software, what we're trying to do is having all the data that we have are having dashboards, those aren't necessarily differentiators unless they're very specific. So the process of building out point or target specific modules that allow the customers to focus on what they need, while at the same time, leveraging the same code behind. So this isn't as though we'll consistently be writing all new applications all the time, but we'll build a reusable extensible microservice-based architecture to achieve a lot of -- or almost everything, what Steve said, on top of that, a robust data ingestion system.

Yes. And I'll just emphasize on something said earlier about our go-to-market. And right now, the big emphasis is on getting that right talent in place to augment the existing team. So you're getting a commercial team that knows SaaS and those how to move up the IoT chain into the C-suite office. So right now, we're heads down to making sure we build that right commercial go-to-market team.

So just to finish off on the hardware question, I think what super excited about is our ability to ingest other third-party devices very quickly into our data streams. I think that gives us the ability to open up the market where customers have already made investments. They're not duplicating investments. They're not taking vehicles off the road in order to become -- take the benefit of the data solutions that PowerFleet is able to provide. We're very pumped up about that.

[Operator Instructions] Our next question is from Ryan Darrohn from Kalo Capital Management. Ryan asked, which of the financial targets are you most worried about meeting within the 4-year time frame stated? And do you see any of the targets changing in the future?

Well, I don't have a crystal ball. What I would say is we feel confident about the targets that we published in November. We are excited about a higher set of opportunities than we have in those numbers. but we have to earn the right. The company has been too lumpy in terms of its financials in terms of the growth and then stumbling growth and then stumbling. So we want to prove out our consistency in terms of our growth. I think, obviously, with all of the headwinds that facing the world, nobody can absolutely guarantee that the growth side is going to come because we don't know what we're faced with. What I would say is that we're providing technology solutions, which are going to enable people to keep a flow to move forward in their environments during hard times. If you look at the industry and some of the difficult times that have happened over the last 20 years, the telemetry companies who've really been able to get alongside their customers to add value to be able to be very agile and swift in providing those technological solutions, they've done really well in those particular times. So I think we have to execute really well. We have to be very focused. We have to not get disturbed by all the bright lights and shiny objects within which maybe the company previously has kind of diverted from that laser focus. We're very, very confident in terms of the trajectory that we're going. We now need to make sure we execute well. And I think keeping a world-class team really developing the excitement within our customer base within our investor base, making sure we don't lose sight of the foundations that have made us successful today and really importantly, focusing on our own sustainability, our own profitability our own agility will be hopefully a very successful recipe moving forward. As we start to go on this journey, and you've seen today some of the huge opportunities we have with the likes of KAVAK we all met with the CFO this week in New York City. Their growth plans are absolutely fantastic. That's one customer, whose thirst and excitement to work alongside PowerFleet for us to take some of their heavy lifting to be able to provide that still unique proposition in their market is absolutely intense. We can capitalize on some of those opportunities that we have, then we're very confident we'll be in a good place.

We have a follow-up question from Mike Walkley with Canaccord. Mike said, thank you for all the great details today and customer examples. How was the team adopting the new go-to-market strategies. Within your 8,000-plus enterprise customers based on a high level, could you share the upsell opportunity into that base from all the new modules on the road map?

I will ask Patrick to take that one.

So the team has been absolutely excited about it. It is the first thing. Steve had kind of laid the groundwork before I came on board a couple of months prior. But I will tell you, at every region, whether it's Israel or Mexico or Europe or the North America team, Brazil and Argentina, everyone is very excited about where going. It takes a lot of education. So there's a lot of internal education about people understand what we're doing and where we're going, who we were what was good about who we were and who we are today and what's going to be great about where we're going. So that part of the process has been -- it's something I really enjoy, but it's been really fun and the team is engaged fervently with it. And again, I'll go back to the important point of continuing to bring on strong talent to augment the great team that we have today. So...

And I think to answer the second half of the question, the response from the customer base has been terrific. I think it started with surprise. And what I mean by that was the capabilities that exist within the organization today. So we've been too siloed. We've been, in particular markets focused on individual verticals where the propositions that we have available today, there's a lot more opportunity for our customers to take that upsell and cross-sell to their different business issues. We're making our way, I would say, very successfully, and I've been very encouraged by the willingness of senior executives to engage with PowerFleet in our customer base that maybe haven't previously because they've seen us as a hardware vendor or seen us as a commoditized supplier, who ultimately is part of the transport organization. So I think we're earning the right. I think the case studies, I think the references from our customers are really helping us to start on that journey, a long way to go, a lot more opportunity. But as you've seen today, I mean, we're very much focused on the solutions that may be even this investor base have not understood are live and available today. The breadth and power, forgive the [indiscernible] of PowerFleet is far greater and the influence we can provide on our organizations is far greater than both our customers, our investor base and to be absolutely blunt some of our internal teams have known is available for us. That's what we're really excited about because new CEOs come on board, they promise dreams. They provide vaporware that in 5 years' time, all these great things are going to be a fruition. You've seen today the world examples. You've seen today the level of maturity of some of those solutions. We now need to execute in all of our territories and show the full power of our solution suite and make sure that the data that we're providing and the insights that we're providing, we become a very valuable friend to our customer base.

We have another question from Mike Walkley. Many investors asked me about the competitive threat from Sensera and other larger companies. Can you address threats from the likes of Verizon, Sensera and other companies?

So look, we respect our competitors in the marketplace. Firstly, some of those competitors have a far greater valuation than we do have today. That for us is the opportunity. I think some of those guys have understood the changes in the market and are adapting well to it. But I'm going to talk about PowerFleet and why our competitors, we want those guys to be thinking as much about us as we are as about them. So firstly, we'll repeat the fact in terms of the data implementation that we can have and the different sources of data from the different asset types we have will go up against anybody globally in terms of being able to take data from devices or assets and bring them into our data stream. Secondly, I think a lot of the IP that existed in PowerFleet from a software perspective, the AI and ML and algorithms and future insight that we're now putting together will lead us highly successfully to work inside our customers' organizations to drive tangible outputs themselves. I think we're very well placed, both from an end application direct sales perspective, indirect sales from data and integration perspective, and then really moving up the IoT chain with the level of innovation that we've got and the different revenue streams we have opportunities to, as Ilan alluded to, from the innovation center in Israel, we feel there's lots of opportunity for PowerFleet. So we will be a force to be reckoned with. We'll be a force to be reckoned with on a global stage. We have been undervalued, it is my belief, but that gives us a huge upside opportunity. We have to unlock that potential. And our strategy is to be very much a trusted adviser with sustainable profitable growth that our customers can rely on when things are hard in their environments. So we'll continue to respect those competitors. There are bigger guys out in the market than we are today. But we are very confident about our own abilities. And we believe there is a lot of space in the market to compete against those guys. -- and there's a lot of greenfield where we have a steel in the marketplace to be able to take first-mover advantage in a lot of our territories, and we're really excited by that.

That concludes our Q&A session. I'll hand it back over to you for closing remarks.

So look, first of all, thank you. It's a lot of time spent and concentration from our investor friends and our community on really hearing about PowerFleet reimagined. I joined the company 5 months ago, and people said, "Why did you choose this opportunity?" My belief at the time has not changed, and it's been completely strengthened. So first of all, from my diligence, I really understood the true capabilities that this organization has in terms of its technology today. That allows us to advance in 2022, advance in 2023 and then really scale that advancement in the outer years, '24, '25 and '26. And that's not by us having to recreate or build or do something completely different to what we already do today. Secondly, we have a world-class team. That world-class team needed some help and support from leaders who've done this stuff in other companies, particularly software-based enterprise companies to come and help on that journey. I'm humbled by the team that we've been able to attract and are even more humbled by the accepting nature of the executives and the broader team that we had in the business to combine as one team. I hope that our energy, our passion, our commitment, our focus comes across in this virtual environment. Please come and spend time with us face to face and you'll feel even more across our overall organization. Thirdly, we have the global presence to be able to affect multinationals to take lots of learning experiences from different industries and different regions where there's more maturity of different solutions, electric vehicles being one of them. That's going to come to the U.S. It's going to come faster to the U.S. with all of the fuel challenges that we've got at the moment. So we are ready to go and help provide those solutions. So that geographical scale, I think, will help us. We've got more opportunity on a geographical basis to grow and develop. We have a very loyal and highly engaged customer base, some great brands, some people who are willing to stand up and say just how important PowerFleet is to their organization. So we have a lot of the core foundations. Transparently, we also have internal opportunity to improve our financial metrics, to really move ourselves to higher recurring revenues, higher-quality revenues, to lose the reliance on hardware revenue over time and really try and move to that SaaS -- high-end SaaS valued company, and we believe we're on the journey. And for those of you that have been with us a while and you've seen already the transformation over 5 months, let's look out another 5 months, let's look out another 2 years and just imagine where this company can be at that stage. But there's a lot of opportunity for us to do things better. We remain very focused on that. We've remained very logical and very pragmatic in our approach. And we will always be putting our employees and our customers first. And I think that's something that a lot of companies, who chase the dreams, lose sight of those core foundations of success. I would also say we're not going to lose our heritage. A lot of the experience that we've got in the industrial and the logistics part of the markets, the opportunity there, again, with all the tailwinds adjust, if not greater, than they were this time last year. But the real opportunities to augment that, to supplement that, to have the end and end and story for our overall customer opportunity with the true breadth of solutions. And really be a world-class enterprise software partner that can really help businesses across their whole organization and across their whole asset type. So that's where we're at today. We wanted to be brave. I was asked by a lot of people, is it too early to do an Investor Day, but we very much wanted to show the change that we're making, the progress that we're making, and we want you guys to be excited about the opportunity and more excited about the future of PowerFleet than you ever have been before. So we'll keep talking. We believe in transparency. We want to keep updating on the performance of our business. We'll do more of these as we go forward. But hopefully, it's given you a lot of detail, a lot of confidence about the team, about our plans and strategies. So thank you very much. Enjoy your day, and we'll speak very soon. Thank you. Take care. Bye-bye.