Quarterly Operational Update

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Quarterly Operational Update
30 July 2020
Transport technology services company EROAD today released its quarterly update for the three
months ended 30 June 2020. Key points include:
• EROAD is continuing to operate and achieve growth across its three markets despite
challenging operating conditions;
• EROAD’s New Zealand sales have returned to near normal growth levels across both the
Small and Medium (SMB) and Enterprise growth segments;
• Delay in implementation decisions by customers and impacts of COVID 19 on businesses
have largely contributed to suppressed growth in Australia and North America respectively;
• Continued investment in additional functionality and products during the quarter will help to
extend EROAD North America product suite into larger fleet sizes; and
• EROAD’s FY21 outlook remains unchanged from the FY20 result announcement.

Business operations and growth continued during the quarter
EROAD continued to operate and grow during the quarter. During the lockdowns in its markets,
operating conditions have been challenging and these remain in the North American and Australian
markets where some element of restrictions due to lockdowns remain.
In New Zealand, where post lockdown economic activity has recovered somewhat, EROAD is
operating normally, while in North America, many customers remain in lockdown. In Australia, the
recent re-imposition of lockdown in Victoria has meant further restrictions for our Australian sales
team and customers alike.
Growth continues in Q1, despite continuing COVID-19 restrictions
During the first quarter of financial year 2021, EROAD grew by 2,326 units. Although this is lower
than EROAD’s usual growth rate, this reflects the COVID-19 lockdowns that have occurred, or are
continuing to occur, across its three markets. While many of EROAD’s customers provide essential
services that are keeping economies running, implementation decisions have been either deferred
or have been slowed down by prospective customers.
In New Zealand, April’s growth was significantly suppressed by the Level 4 lockdown. However,
during May and June EROAD experienced near normal growth levels across both the SMB and
Enterprise growth segments. With a continued focus on growing ARPU, in July EROAD launched its
new EROAD Day Logbook which supports drivers to keep on top of their work or rest hours, through
either Androi d or iOS devices.
Unit growth in our North American business was generated from SMB customers and was in line
with prior quarter’s level. The net growth consisted of sales of 824 units which was offset by returns
of 568 units. 273 of these units were returned due to COVID-19 related impacts and 199 related to
churn to competitors. While conditions in North America continue to be more challenging, EROAD

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continues to work to improve the SMB pipeline and close out sales despite the lockdown restrictions
in many states. Additional functionality and product launches at the end of the first half of financial
year 2021 will help to extend EROAD North America product suite into larger fleet sizes.
Australia saw continued, but suppressed, growth levels in the SMB segment, but buying decisions by
potential Enterprise customers have continued to be deferred in the quarter due to the ongoing
impact of COVID-19 in that market.
Year to date asset retention rates are above 98% across all markets.
EROAD’s Total Contracted Units* as at 31 March 2020 are as follows:

Quarterly and YTD Units
Total at
31 March 2020
Total at
30 June 2020
Units added in
quarter
Total Contracted Units 116,488 118,814 2,326
New Zealand 80,366 82,304 1,938
North America 34,002 34,258 256
Australia 2,120 2,252 132






* 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.
FY21 Outlook remains unchanged
EROAD’s expectations for the FY21 financial results remain unchanged from the FY20 result
announcement. As anticipated, COVID-19 continues to have an impact delaying the finalisation of a
number of contracts with customers, and on new unit growth following lockdown restrictions in
EROAD’s markets.
Given the continuing uncertainties across these markets, EROAD considers that the quarter’s unit
growth result is not sufficiently indicative to definitively assess the impact on incremental growth for
the remainder of FY21. However, EROAD remains confident in continued unit growth across all
three markets, albeit it is likely to be lower than delivered in FY20 and previously anticipated for
FY21.
EROAD will also continue to focus on growing Monthly SaaS Average Revenue per Unit and investing
to improve operating leverage.

Ends
Contact: Alex Ball, Chief Financial Officer
Ph +64 29 772 5631 email: alex.ball@eroad.com