EROAD Delivers Continuing Growth for Q3 FY20

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Quarterly Operational Update
23 January 2020
EROAD delivers continuing growth for Q3 FY20
Transport technology services company EROAD today released its quarterly update for the three
months ended 31 December 2019.
Growth during the quarter resulted in 4,123 units being added at an annualised growth rate of 15%.
This builds on the strong platform of existing users that EROAD has previously established. Third
quarter highlights include:
• Double digit annualised growth rates in total contracted units across all EROAD’s markets;
• Continued robust growth in EROAD’s home market of New Zealand; and
• Sold 1080 EROAD Where location tags to customers in December in advance of the full
launch in Q4.


Quarterly Units
Total at
30 Sept 2019

Total at
31 Dec 2019
Units added in
quarter
% Growth
annualised
Total at
30 Sept 2019
(restated)**
Total Contracted Units* 109,380 109,096 113,219 4,123 15%
New Zealand 75,674 75,674 78,229 2,555 14%
North America 32,193 31,909 33,307 1,398 18%
Australia 1,513 1,513 1,683 170 45%



YTD Units
Total at
31 Dec 2018

Total at
31 Dec 2019
Units added in
12 months
% Growth
annualised
Total Contracted Units* 90,615 90,331 113,219 22,888 25%
New Zealand 67,285 67,285 78,229 10,944 16%
North America 22,059 21,775 33,307 11,532 53%
Australia 1,271 1,271 1,683 412 32%
* Total Contracted Units is a non-GAAP measure used by EROAD which represents the total units subject to a customer contract and includes
both Units on Depot and units pending instalment.
** North American units have been restated for data cleansing adjustment identified as part of pre go live migration work for new ERP
systems implementation. Adjustment relates to the cumulative effect of the misclassification of 284 Ehubo 2.0 units in Depot platform. Full
system go live will occur in Q4 and accordingly potential further one-off adjustments may occur for New Zealand and North America markets.
EROAD continues to grow in New Zealand as the expansion into existing customer fleets continues
together with a solid underlying new customer run rate. Over the quarter, New Zealand added 2,555
units, an annualised YTD growth rate of 16% which is in line with the company’s expectations.
As foreshadowed during the presentation of the HY20 results, the North American market delivered
a subdued level of growth in Q3 compared to the strong growth in the previous two quarters. These
previous quarters included a sizable lift in sales due to the onboarding of the majority of the two

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large ent erprise customers. However, Q3 saw some growth in the small-to-medium business run-
rate. Net of 226 deployments to the two enterprise customers in Q3, the underlying average
monthly run rate for small to medium business customers was 391 compared to 328 for the first half
of FY20. This run rate continues to be below EROAD’s expectations. Work is underway to improve
the run-rate with focus on better targeting of potential customers. Given the longer-lead times for
Enterprise customers, we do not expect any new North American enterprise customers during the
remainder of FY20.
EROAD continued to build its presence in the Australian market, with further steady growth of 11%
in the quarter reflecting continuing gains of small-to-medium business customers.
Despite the improvement quarter on quarter, this continues to be below EROAD’s expectations, and
it continues to have greater ambitions for the Australian market. As previously disclosed, the
pipeline of enterprise customers with fleet sizes of 500 – 1,000 remains encouraging and above
original expectations. EROAD anticipates at least one of these enterprise customer opportunities to
be won in Q4.
Ends
Contact: Alex Ball, Chief Financial Officer
Ph +64 29 772 5631 email: alex.ball@eroad.com
About EROAD
• EROAD believes every community deserves safer roads that can be sustainably funded. This is why
EROAD develops technology solutions (products and services) that manage vehicle fleets, support
regulatory compliance, improve driver safety and reduce the costs associated with driving. EROAD
also provides valuable insights and data analytics to universities, government agencies and others
who research, trial and evaluate future transport networks. This data enables those who use the
roads to influence the design, management and funding of future transport networks.
• EROAD launched with the purpose of modernizing New Zealand’s paper-based road user charging
system. By 2009 EROAD had introduced the world’s first nationwide electronic road user charging
system and now around 46% of collected heavy vehicle road user charges in New Zealand are being
collected using EROAD technology. By March 2019, this had delivered NZ$2.5B to NZTA for the
sustainability of the NZ transport network. In the USA, EROAD introduced the first electronic Weight
Mile Tax service (2014) and the first independently verified Electronic Logging Device service (2017).
• EROAD (ERD) is listed on the NZX, and employs over 280 staff located across NZ, Australia and
North America.