Quarterly Operational Update

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Quarterly Operational Update 28 October 2020
Transport technology services company EROAD today released its quarterly update for the three
months ended 30 September 2020. Key points include:
• EROAD continued to grow despite a difficult operating environment due to COVID-19
• EROAD listed on the ASX listing and raised NZ$53m to accelerate its growth strategies
• EROAD successfully launched its EROAD Day Logbook in New Zealand and EROAD Go mobile
workflow application in North America
• EROAD expects to report H1 FY21 financial results at the upper end of its guidance range for
Revenue and EBITDA
Growth continued in Q2, despite continuing COVID-19 restrictions
EROAD grew by 3,379 units for the three months ended 30 September 2020, ending the quarter at
122,193. This is slightly higher than the guidance provided at the time of EROAD’s capital raise.
Across all markets, customers continue to be impacted by COVID-19 operating restrictions, which is
continuing to translate into suppressed demand and longer sales lead-times. However, EROAD
continues to progress its pipeline of Enterprise opportunities in Australia and North America.
In New Zealand, EROAD’s growth was 2,222 units for the quarter. This was driven predominantly by
new customers across a range of industries with medium sized fleets as well as further extension
into the fleets of several larger existing customers.
The North American business added 1,036 contracted units through new customers in freight & road
transport and construction industries, combined with expansion within existing customer fleets.
Growth in Australia continued in the small and medium customer segment through predominantly
new customers across a range of industries. Growth in this quarter decreased slightly on the prior
quarter due in part due to the lockdown in Victoria.
EROAD’s Total Contracted Units* as at 30 September 2020 are as follows:

Quarterly Units
Total at
30 June 2020
Total at
30 September
2020
Units added in
quarter
Total Contracted Units*
118,814
122,193 3,379
New Zealand 82,304 84,526 2,222
North America 34,258 35,294 1,036
Australia 2,252 2,373 121


* 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.

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Accelerating our growth strategies
Launching new innovative products to solve our customers’ problems is the cornerstone of growing
unit numbers, increasing ARPU and retaining customers.
EROAD launched its new EROAD Day Logbook for New Zealand, which simplifies fatigue
management by enabling drivers to capture work and rest hours via a smart phone or tablet. Since
the launch in Q1 FY21, EROAD has sold 1,070 logbook subscriptions to 30 September.
In September 2020, ‘EROAD Go’, a mobile workflow application that connects with customers’
transport management systems, was launched. This, together with the Q3 release of EROAD Clarity
Dashcam, are considered critical steps in further expanding the North America addressable market
and being able to win more Medium and Enterprise customers.
Once uncertainty around the ongoing impacts of COVID-19 subsides, EROAD considers that growth
will continue through businesses embracing telematics to reduce costs and improve efficiencies in
their business. Accordingly, EROAD considers that now is the time to extend its platform further and
increase its focus on growing its market share in particularly in North America and Australia. EROAD
raised $53 million through a capital raise during September to support this ambition.
H1 FY21 Guidance
EROAD remains confident in the guidance provided at the time of the capital raise on the 17
September 2020 of H1 FY21 Revenue between $43.5m - $44.5m and EBITDA between $12.0m -
$14.2m and currently expects to report at the upper end of these ranges. EROAD will release its
financial results for the six months ended 30 September 2020, on 26 November 2020.
Ends

Contact: Alex Ball, Chief Financial Officer
email: alex.ball@eroad.com

About EROAD
EROAD Limited (ASX: ERD; NZX: ERD) (“EROAD”) purpose is safer, more productive roads. EROAD
develops and markets technology solutions to manage vehicle fleets, support regulatory compliance,
improve driver safety and reduce the costs associated with operating a fleet of vehicles and
inventory of assets. EROAD has a proven SaaS business model and is experiencing continuing growth
in installed units and revenue. EROAD has operations in New Zealand, North America and Australia
with customers ranging in size from small fleets through to large enterprise customers. For more
information visit https://www.eroad.co.nz/global/investors.