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 five months. We're going to walk you through today what we're calling PowerFleet Reimagined. PowerFleet, the data-driven SaaS IoT company. We're gonna 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 change journeys. Sit back and relax, and you'll have about 2.5 hours of content and get to meet the full leadership team.
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 all to Michael Brodsky, who is the Chairman of PowerFleet. Mike, would you like to join me?
Thanks, Steve. Welcome, everyone. Thanks so much for attending our first Analyst Day, hopefully many more in the future. Thanks, 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. 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. We'll start off by giving you a little overview in terms of the company. As many of you know, PowerFleet is a combination of two companies. One was I.D. Systems, a North American telematics company, very much focused on the logistics and industrial end, verticals within the market. 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 two businesses 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. 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 not only 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 the 20-year relationships with a lot of our customers and a huge amount of experience, and we're deploying to the four corners of the earth today. 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 2022. We have recurring revenues at 65%, which we believe we can improve on in terms of that overall percentage, and a service gross margin of 64%.
A very healthy company that has the capability to really drive to the next level across the global market IoT stage. Why is PowerFleet a good investment? 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. We very much focused on the land strategy of getting devices into our customers' estate. Now that we've done that, there's a significant opportunity for us to increase wallet share, to increase the role and 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 of 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 gonna 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.
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 full advantage of the integration synergy opportunities that came as part of the acquisitions, and rationalizing and being very focused as a company in terms of the technology that we're delivering today. We feel we have very good, solid, core ingredients of a company. We wanna grow sustainably, we wanna grow profitably, we want to be the trusted advisor 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. We feel that we have a lot of untapped potential to be realized in technologies that exist today.
This isn't vaporware that will come to fruition in four to five years' time. It's bringing PowerFleet together as one business, bringing our portfolio together as one 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. We very much feel we're in a market where, as we all know today, change is needed and needed fast, with tangible results.
I don't think this slide will be a surprise to anyone, but you know, 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 point solution systems are starting to get more value by being integrated with others, is exactly where we sit today. 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 and logistics end of the market, and that still remains very important for us today.
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's becoming more systems-orientated, then we feel there's a very strong opportunity for us across that connected car and vehicle space. 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 increase in fuel price, whether that's in having less skilled resources to undertake the tasks 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 that businesses are profitable so they can get through any storms that are ahead. 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. 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 in today. How do we bring this to light, and how does the combination that took place at the end of 2019 bring a large growth opportunity for the company?
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 brought to the North American market, whether that's car leasing, insurance, electric vehicles, connected car. 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 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 we know with Avis being one of our key partners, we believe those solutions are very much relevant to our other geographies, so that cross-sell or upsell opportunity is going to be key to our strategic value moving forward. Our Chief Revenue Officer will be talking about how we're going to really bring those together across all our geographies in the next weeks and months.
This chart's 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 differentiates 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.
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 gonna be a huge market advantage to us, and we're gonna take you through that. Where the magic happens is in the data brain, 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.
We'll show you just how we're gonna 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 make change. This will improve our ARPU. This will be far more digestible for a customer to take our solutions and make change in bite-sized chunks, which will make a difference to their organization. We're gonna 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. 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.
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 now for PowerFleet. We're super excited about what that opportunity is gonna 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 at 80 integrations of different business systems. We're now at 172. We're gonna continue that journey.
It's gonna 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. We'll talk about just how we can be flexible in that approach. That if one of our integrations doesn't match the system portfolio of our customers, we're able then to offer consultancy services to continue those, 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 lie ahead in certain marketplaces. We can be very agile in our go-to-market approach and make sure that we can continue on our revenue growth opportunity. You've met me already. You'll meet a lot of the other new team members today, that 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.
I'm delighted that we've got a new chief technology officer, 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 of this business. Really gets us energized. I think we've got something very, very special in terms of that bond, that mix, and that experience.
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. We're very fired up to go and make and realize and execute well on the plans that we have. What does this all mean? It's a change of emphasis. We have been a traditional telematics company. We've been at that traditional land strategy of getting devices into portfolios, selling into fleet.
We're now able to take that to a different level, help digital transformations for success, unify operations, providing critical business insight in a manageable fashion, sitting alongside the organizations, giving them real-world experience on what's happening in their environments, and giving them key information that allow them to make quick business decisions to improve their top line, their bottom line, and look after their workforce. 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 a customer level and an industry level. I think this, information in terms of the target for our business, was put into marketplace in November 2021, 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 four-year horizon. We're confident that we can improve on some of the growth margin figures and the recurring revenue figures that we have in this business. Ultimately, we feel that we're putting 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 foundations of success, the relationships, the service, the team remain at the heartbeat of what we do. To continue on, I'm now gonna ask Jim Zeitunian, our Chief Technology Officer, to come give you more information about the product software and AI strategy. Jim.
Thank you, Steve. Hi, all. My name is Jim Zaytunian. 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 I.D. Systems at the time was started, it was a project-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. 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 one pane of glass, enabling us to expand into new use cases with our existing customers and attract new customers as well. Data first. Data first capabilities-based architecture. What is it? 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. Why? Why, why does PowerFleet have the right to do this? Well, 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 someone stays at a particular distribution center, or where the traffic patterns are the worst, or what to expect in the weather out of 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. How do we do it?
We wanna 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 at various places throughout the globe. 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, in Q1 of 2023, we intend to release our first net new module in safety and sustainability.
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 and Head of Product, William Sandoval.
Thanks, Jim. Okay. 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 at PowerFleet. Just a little bit about background. I actually been in the industry approximately 25 years. I've been fortunate enough to have led many different transformations in some of the larger companies like Philips Electronics, Honeywell, and Ingersoll Rand. Before we jump into, you know, some of the new products here, I wanna kind of. I don't know. Something happened here. That's not my slide. Yeah. Okay. Let's go here. There we go. Okay. Thank you very much. Sorry about that.
Before we just jump into talking about the evolution of our products, I wanna 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. You know, product evolution for us is basically matching the technology as well as the solving the issues or the challenges that our customers have. You know, like, as Steve mentioned earlier, there is a lot of headwind that many corporations are dealing with, right? As an example, just, you know, the fact that there's a shortage of labor, the fact that we're trying to do more with less are major challenges that our organizations are having.
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. You know, when you go through this circle, you know, the thing that you will see is that any of these challenges are affecting multiple people and multiple parts of the organization, which are very difficult in many instances to bring together. Like I mentioned, you know, labor shortages might be something it's something that the HR group might be interested in, but there's a lot else going on there, right?
You might have, you know, the maintenance department who's really interested in understanding the vehicles, what are their vehicles doing, what are their assets are doing, and what level of emphasis do they need to pay into those. You know, we keep talking about the fuel costs and the volatility. That is something that is impacting every single one of us today, right? Every one of the companies, if not all of them, are looking for ways to maximize their costs or improve their cost position and manage the changes in fuel costs in real time. What is just really driving most organizations is to start to think about digital business transformation and being able to emphasize, you know, the solutions around this digital business transformation is something that we at PowerFleet are very interested and actually are moving towards.
With that, let's go to the next slide, and it's about, you know, our solution set and what do we wanna do there, right? You already heard the transformation of data. 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, you know, our view of our solution, and I wanna 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, PowerFleet was focused around bringing in 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 dataset 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, you know, information from vehicles and infrastructures as we start to see the changes that are going on in electric vehicles, and more importantly, being able to also bring in data from other sources like weather, you know, traffic, road 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 drive a business. 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 gonna show you an example of that.
We have built a library of over 700+ device types and devices from different manufacturers and different vendors globally. 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 through into our cloud. With that, let me move to the second level of this diagram, which is basically what, you know, we're calling the brain, right? This is a cognitive, you know, a platform that we are basically embarking ourselves on. The goal here, Steve already said this is where the magic happens, is 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 where we're going to take our smart algorithms that we already have, as well as apply AI and ML to build analytics and insights for our customers. Once we prepare that data, and we have that data available, we're gonna make it available in multiple forms to our customers for them to digest. 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 two forms of how this data is going to be, you know, 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.
I'm gonna go deeper into that and show you the modularity and the capability of some of those applications, as well as I wanna give you some ideas of what that is through a demonstration. The second piece around that is basically taking that enhanced data that we just 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, you know, their business. All right. Let's move on to a little bit deeper into the ecosystem of applications or our application suite.
As I already mentioned, you know, data is critical, and it needs to be delivered in 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 on 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 gonna be able to do and pick what they need when they need it, right?
As you move towards this ecosystems, you know, some of these applications might end up applying to certain parts of your business, and it might apply to others. The business optimization module might be something that the business managers might be interested in order to manage their sales force better, manage their assets better. We also have built a, you know, regulatory management application, which might be more about certifications and trying to drive, you know, the needs to maintain sustainability across your business and maintain consistency 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.
We're gonna give you an example of some of these applications very shortly here, you know, through a demonstration. As we move forward, you know, 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 other systems through seamless integration. Like Steve mentioned, this is an area that we're focusing a lot of time and effort into at this point. Over the last three months, we have completed 172 different integrations to multiple systems, you know, 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 organizations are taking our enhanced data, and they're using it in real-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. You know, when we look at our data, it's a source of truth, it's real-time, it has value, and we wanna be able to utilize it, not only to deliver our own applications, but we wanna be able to make it available to enhance other systems within the organization to optimize operations.
With that, I wanna 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. Let's start by talking about the data, right? I spend 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 wanna bring our own data, we also wanna extend that to other data types as well as other devices. One 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 and 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. You know, 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. It's 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+ devices, 70+ manufacturers with the goal of being able to process that data as quickly as possible. With that, we're gonna show you a quick video of 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 two 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've put this data to good use. Let's get started. I wanna 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 a name and move on to the next screen. Now let's transition to the Settings screen. The main purpose of the Settings 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. 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 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 it can be shared externally to systems that drive operational awareness. Now the question is: How does this data actually help solve customer problems? Well, let me go ahead and walk you through an example where one of our customers in Mexico City had a mixed fleet. They had all different types of devices from 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 two different portals.
This was an operational nightmare, costing 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 one single solution and one pane of glass. By providing the ability to log into one 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. 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 one example. Again, our goal is to be able to extend the data sets, create that rich ecosystem that I already mentioned, and the easiest way to be able to do that is to have the right tools and the right capabilities and 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, and 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. Let's move on to the next. You know, I wanna 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. This is right here, what you're seeing is what we call our insurance claim management module, or basically part of our security and safety and security offering.
The goal here is to actually be able to focus around risk management. It's giving the datasets and putting the datasets 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 a 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. 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 risk that a customer might have, and more importantly, allow them to set a higher level of safety standards in their organizations and in the industry as well. On top of that, you know, 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. 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 around a crisis, right?
In this case, when an accident occurs or an incident or a collision occur, we're able to immediately take the data that we're collecting, whether from our device or others, take it through our smart algorithm and be able to tell them, is there, you know, the severity of the type of accident, the vehicle status, as well as, you know, 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, you know, exactly the level of damage that that vehicle might have. Why is that important? That's gonna tell them exactly, hey, do I need to send a tow truck?
More importantly, 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 one 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, you know, integrating into such a module allows us to collect evidence that could be utilized for insurance companies, that could be utilized, you know, for an emergency crew.
In this scenario, we're able to replay the event if you wanna see it. 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 just 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. Okay. Let's move to advanced fuel management module and the impact of this module. You know, 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.
just knowing what the fuel cost is and how, you know, affects your operations is just one 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, you know, capability of your vehicles or the efficiency of your vehicles in order for you to make decisions around what vehicle is the right, you know, vehicle for that job, when the pricing is going up, and how to actually fuel them properly.
One of the things we're gonna show you here is how we've taken this module and applied it in, you know, to one of our customers in order to create a better efficiency capability for them in their business. 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 have integrated data from vehicles, drivers, fuel stations, and external fuel card providers to analyze real-time spending, savings, efficiency, and fueling trends for our customers. I will be focusing on three 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 the specific fuel cost 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. Next, let's talk about the gas station convenience screen. This tab 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.
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 versus 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 shift 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 is compared to a telematics device's 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. Hopefully you got to see some of the capability that we have in our advanced fuel module. Just a couple of things that I want to point out on this. You know, when it comes to fuel management, it's not necessarily just knowing what is going on, you know, in the marketplace. The effect of your drivers and how your driver behavior on how they drive a vehicle creates a major impact, right? But also knowing, you know, the efficiency on how vehicles are able to operate and the efficiency that they provide is absolutely critical in this day and age. That is actually taking us into the next level, which is, you know, are we ready to move into electric vehicles, right? Do we need to actually make that investment right away?
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. You're gonna hear a little bit more about it from one of our colleagues. 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 gonna 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, you know, 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 my perspective at PowerFleet, is that when it comes to electric vehicles, they're no 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? Part of what you're gonna 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 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.
We're gonna give you a quick, you know, 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. With that, let's go into a demo.
Hello again. Let's talk about PowerFleet sustainability solutions, but more specifically, electric vehicle 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 cared for 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. 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 at 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 a 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 that 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 datasets 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 per 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.
Okay, great. Hopefully, that gives you also another view of our capabilities on how we're moving into the electric vehicle, you know, arena, right? This is not a trend, this is reality, and we are set up to be able to handle that. One of the questions that I always get that I don't wanna gloss over that is, what about the data from the PowerFleet devices? You know, what are you guys doing in, you know, with the devices and the centricity around that data? You know, one of the things that we are embarking on is what we call the single box or the advanced ecosystem box for data.
The goal of that is to actually have the capability to bring all of this data to life through a single entity and a single device, giving us that capability to upgrade and open new feature sets as we see for customers, but more importantly, we're able to upgrade them in the future and make it future-proof. With that, hopefully you have enjoyed, you know, some of the material that we have covered in the product side. Very exciting. You know, we got a lot of work ahead of us like it was mentioned, but some of that is already in motion. Some things are already available, some things are coming here pretty shortly, and again, some are gonna come in the future.
With that, thank you very much, and I'm gonna hand it over to Patrick Maley, our CRO.
Great. Thank you, William. It's hard to follow the big brains. Great job, guys. Hello, everyone. My name is Patrick Maley, and I'm the Chief Revenue Officer here at PowerFleet. I joined three months ago, and I'm thrilled to be a 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 at BluJay Solutions, where I led the rebranding of the company and its new global go-to-market strategy. The team we assembled at BluJay doubled the revenue and took the valuation from just over $200 million to a recently closed transaction with E2open at $1.7 billion.
The last 12 years of my career, I 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. I joined PowerFleet for three 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.
Number three, the team that our CEO, Steve Towe, has been building is purpose-built for helping transform PowerFleet to a global market IoT SaaS leader. You heard Steve articulate the vision for PowerFleet, so suffice it to say, Steve himself is another reason I joined. I joined for those three 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 there 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 here 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. 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.
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. Today I want to discuss four 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.
Number four, recruiting top commercial talent to help us drive our vision, build pipeline and close more deals. All right, 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 so 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 our 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. We will be working to tighten and streamline it so it can scale and fuel our global tactical lead generation and sales engine. Very exciting. Cross-sell and upsell. We have 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, one which clearly lends itself to cross-selling and upselling. 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 move up the chain in terms of our mission-critical importance to our customers. Let me give you an example so you know how this 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. 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. What a lot of organizations miss when done properly is the orchestration between sales and marketing that happens when this is done right. It results in a more effective team and stronger pipelines that 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 the 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.
If you're an investor in this market you know no strategy goes anywhere without the right talent to make it go. 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.
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. Finally, I'd like to share some of these 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. FlexiVan. 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.
If there's any company that illustrated just how important a chassis is to global trade, it's FlexiVan. FlexiVan went from a startup five 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. They use real-time data to create a better customer experience, drive high levels of efficiency, and ensure their customers can move their goods through the supply chain. 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.
As you might expect, they have big plans for the future, and we look forward to supporting them along the way. 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 'cause I love the words. "We've been working with PowerFleet since 2016 and consider them a critical partner. We like where they're 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 define 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 launch 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 PowerFleet. 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 costs at the same time.
To augment, to help you know, kinda 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. His quote is, "Due to 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 their car, and then utilize a QR code to exit via our automated express 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.
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 two very important key customer stories from Mexico. Eduardo?
Thank you, Patrick. 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 six years. I have a lot of experience working with key accounts and B2B. I will run you through two very interesting stories that are key for our success in the country. The first one, I will start with AXA Seguros, the Mexican branch of one of the largest insurance companies in the world. 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 fleet segment. They found out that a telematics company would be helpful.
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 providing 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 focused intended to improve the driver behavior. This alliance is a real win-win situation for both companies.
We're constantly working together in order to reach two objectives. One is reduce risk level management. This is the name of the business in insurance, risk management. Secondly, we both companies want accelerated growth. We're planning to triple the size of the users only for this program in the next three years. Let's move on to Kavak. Kavak is probably one of the most successful startups in Latin America in the recent years. They started in 2016, and nowadays they have a market valuation for more than $8 billion. 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 they were able to have a better collection of their leasing business. Also, we ensure them a high recovery rate of vehicles, so their business became feasible. 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 their customer retention strategy. Nothing is better than to hear this directly from the customer. I want you to hear what the CFO from Kavak has to say about their experience of working with PowerFleet.
Hi, everyone. Kavak, we are the largest vertically integrated used car marketplace of emerging markets. We've been on the market for five years, and today we're happy to say that we're worth $10 billion. We might be the largest and most valuable private company in Latin America. We've been partnering with PowerFleet for the last four years, and the relationship has been amazing. They are a key enabler for our financing business. Most of our recovery strategy is based off of that. We're working in different projects including analytics, data processing, hoping to develop our insurance capabilities in the near future. 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.
Thank you, Eduardo. 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. 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, all the TV speak about that Pointer saves lives.
This is a big transformation. We start in 2005 with 23,000 subscribers. The technology, all technology is radio frequency. The location is not so precise, between 100 to 200. Then we move to GPS units. We start also with fleet management, and now we also deal with the IoT solution, electric car, cybersecurity, and as I mentioned, they 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, we almost 40% market share. We have more than 201,000 subscribers. 70,000 from them with fleet management. Is a huge numbers.
If you consider we have 340,000 active telematics unit in Israel that we action. As I told you, we make some decision to move from RF to GPS. We make the decision to combine the technology, CAN bus for all the truck and the buses. To improve our information for the bus owners, the telematics unit, diagnostic unit, and then we add also accelerometer, small G-sensor that support all our customer with driver behavior and accident alarm. In the last three 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's effect.
From now on, we start to deal with the Ministry of Health. In the end of the process, we was the first company that validation by the Minister of Transportation in Israel. What is the meaning? One year later, the corona start. 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 a patients, chronic patients who stay at home, and they need their pills. The Minister of Transportation recommend on Pointer solution. Super-Pharm 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 over the country, pathological examination, blood examination to take from all over the country to the lab. Sometimes they make mistake with the cooling box. Now they have inside every cooling box, this sensor, the driver have the application that he can make handshake with the MultiSense with Bluetooth. In the car, there is a hub, nano 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 two weeks, from the biggest HMO in Israel. As you can see, we take part in the vertical fields. We talk about the light and the humidity inside.
We control all the vaccines in Israel for the Ministry of Health. We make some solution for a Milten company that deals with animal pharmaceuticals. Above the basics, we move from the aftermarket in Israel to the OEM, to the car importers. 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. Above this there are tenders. One of them is the Israel Police, 8,000 cars that we just finished a few months before.
The project is for eight years, 61 different car. Three years ago, 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. We develop 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.
Two 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 subsidiary companies and company in Netherlands, and it's very good position to lead this market. As well as with the private electric car importers like Lubinski. It was the best solution for connected car. We proved the electric car solution by application. Now we have more than 3,000 electric cars, a lot of experience. The driver, the first early adopters, the owners of the electric cars like our application, our solution, very much.
They use us daily 100% from the time, and we look at them as a community to take them to the future together with us. Food industry. One of the biggest food manufacturer, Strauss. We start with the factory in the chocolate and the candies. Now there are 500 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 a very nice, very good jobs. This is the defibrillator together with MDA . MDA is the ambulance company in Israel. They are our customers for few years, from all their 2,000 ambulances. 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 luxury in Israel, 600, and we save lives. As I mentioned before, last week, some parents left their children, 1.5 years old, in the car, open engine, open air conditioning, 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 in the river, have a heart attack. His friends took him to the beach. Near to the place, there is a 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 flicker, siren that you can run to this direction. Electric lock. Took the defibrillator, saves lives. The ambulance will come later. 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 U.A.E. 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. Thank you. 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. When I talk to the board and talk to investors, they say, "Steve, this all sounds wonderful, but it also could be very expensive." What I want to lay to rest is the fact 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. 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. We're gonna be very transparent with you today, and I'm gonna 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. We're gonna 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. 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. With that, I'd like to introduce you to Melissa Ingram, who is gonna talk you through, very candidly, some of the challenges and opportunities we have and what we're doing to address them over the next period of time. 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's in excitement and enthusiasm 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.
I'll start with why we're talking about changing our approach to the management of our cost base. Well, from 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 I.D. Systems and Pointer, a great solution set, a committed team, and a huge potential to grow in new markets. I hope today has only solidified that in your own minds. These are all excellent foundations for growth. 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, you know, 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, honor our heritage, and get us ready for that next phase of scale and for growth. Next slide, please. Thank you.
What I wanted to cover here and give you a flavor of was six areas. 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 in execution right now, and the business has 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 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. 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 eight countries. You know, that's a huge plethora of systems for us to address as we go through this program. The CIO is doing a great job of unpicking all of that complexity, 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. 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 in 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 gonna 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. A recent example is in our communication spend in one of our regions, where we spend around about $2 million per annum. We're looking at a saving of 20%-30% by going through this process. There's definitely much more to come as we think and grow globally and strategically about our future partnerships. Another key focus is our freight spend.
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 via couriers, which is about 60%-70% more per kilo than if we had sent it by the non-urgent, more tailored option 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 a seventh of our air freight lists, and we'll do this wherever it makes sense for components and timescales.
Finally, on the freight side, we're looking at our opportunities to switch some of our manufacturing and our assembly of certain products away from some of our offshore suppliers and locally, which, you know, our assessment is that the net impact of this will be beneficial to the company. In short, freight's 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 sq ft 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 how components are used, if in fact they are used, and whether we can redesign the product with cheaper but 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 all the more important in today's current climate, where, like all companies, we're experiencing price inflation in our supply chain. 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 really becomes 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. 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 gonna 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. This is $5 million annualized plan that we'll start to see the effects as we run through the P&L in 2023. I think it's the first phase in a number of phases for us to really create a highly efficient business moving forward.
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. The really hard ones, I'll ask my esteemed colleagues to come and join us, as we go through the questions. 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 PowerFleet wins, or what you believe are PowerFleet's key competitive advantages?
By geography and even by vertical, there are numerous competitors, localized, centralized. 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 landscapes, the environmental landscapes of each of those different environments. 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. 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 and in our own emails 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. That's where I think PowerFleet is leading the way in that type of innovation.
Thanks, Steve. A follow-up from Michael Walkley. Steve, with the long-term strategic roadmap to establish PowerFleet as a fully mission-critical software provider for the IoT market, can you discuss changes in your go-to-market strategy and R&D roadmap? Will you continue to design your own hardware or more outsource and focus more on the software offerings?
I'll ask Patrick and Jim to come alongside me and add some value to this question, but I will start off. In terms of our own hardware, again, we offer some pretty unique IP that I think creates advantage competitively and creates 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 that I think our recurring revenues will drive over time. There's far more opportunity for us to become more software-centric, and our reliance on our own hardware will move over time. Right now, we feel that capability is another competitive advantage that we have.
In terms of that roadmap 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 roadmap 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 ARPU, 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. Again, a customer can make buying decisions on their current opportunity to spend. We can create value and improve our ARPU through multiple application spends, and we see this as a real unique opportunity for our salespeople to really grow within their accounts. Secondly, that 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 worlds better. 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 up 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.
Again, from a kickoff perspective from our sales team, you know, they'll have much more capability across all of our geographies to have a much broader business conversation with our customers. Jim, Patrick, would you add something to that?
He did pretty good. Yeah. Yes. In the modularity of the software, you have. What we're trying to do is having all the data that we have or having dashboards, those aren't necessarily differentiators unless they're very specific. The process of building out Pointer- or target-specific modules that allow the customers to focus on what they need, while at the same time leveraging the same code behind. 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 almost everything what Steve said. On top of that, a robust data ingestion system.
Yeah. I'll just emphasize something I said earlier about our go-to-market. Right now, you know, the big emphasis is on getting that right talent in place to augment the existing team. Getting a commercial team that knows SaaS and knows how to move up the IoT chain into the C-suite office. Right now we're heads down to making sure we build that right commercial go-to-market team.
Just to finish off on the hardware question, I think what we're 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, you know, come and take the benefit of the data solutions that PowerFleet is able to provide. We're very pumped up about that. Next question.
Thanks, Steve. As a reminder, if you'd like to submit a question, you can do so by typing your question in the ask a question box on the webcast player. Our next question is from Ryan Derone from Calo Capital Management. Ryan asked, "Which of the financial targets are you most worried about meeting within the four-year timeframe 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, you know, 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. We wanna 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, you know, the growth side is gonna come because we don't know what we're faced with.
What I would say is that, you know, we're providing technology solutions which are gonna enable people to keep afloat, to move forward in their environments during hard times. If you look at the industry in 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. 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, you know, 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. I think, you know, 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. We start to go on this journey, and you know, you've seen today some of the huge opportunities we have with the likes of a 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.
If we can capitalize on some of those opportunities that we have, then we're very confident we'll be in a good place. Next question, please.
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 is the team adopting the new go-to-market strategies? Within your 8,000+ enterprise customers based on a high level, could you share the upsell opportunity into that base from all the new modules on the roadmap?
I will ask Patrick to take that one.
The team has been absolutely excited about it. You know, it's the first thing Steve had kinda laid the groundwork before I came on board a couple months prior. 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 we're 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 gonna be great about where we're going. That part of the process has been. It's something I really enjoy, but it's been really fun and the team has engaged fervently with it.
Again, I'll go back to the important point of, you know, continuing to bring on strong talent to augment the great team that we have today, so.
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. What I mean by that was the capabilities that exist within the organization today. 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. I think we're earning the right.
I think the case studies, the references from our customers are really helping us to start on that journey. A long way to go, a lot more opportunity. As you've seen today, I mean, we're very much focused on the solutions that maybe even this investor base have not understood are live and available today. The breadth and power, forgive the pun, of PowerFleet, is far greater, and the influence we can provide on 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, you know, new CEOs come on board, they promise dreams, they provide vaporware that in five years' time, all these great things are gonna be at fruition. You've seen today the real-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. Next question, please.
We have another question from Mike Walkley. Many investors ask me about the competitive threat from Samsara and other larger companies. Can you address the threats from the likes of Verizon, Samsara and other companies?
Look, we respect our competitors in the marketplace. Firstly, some of those competitors have a far, 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. I'm gonna talk about PowerFleet and why our competitors, we want those guys to be thinking as much about us as we are as, about them. 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 assets types we have, we'll 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 perspectives, 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. 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, 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 advisor with sustainable, profitable growth that our customers can rely on when things are hard in their environments. We'll continue to respect those competitors. There are bigger guys out in the market than we are today. You know, 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 steal in the marketplace to be able to take first mover advantage in a lot of our territories, and we're really excited by that.
Thank you, Steve. That concludes our Q&A session. I'll hand it back over to you for closing remarks.
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 five 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. 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, 2024, 2025 and 2026. 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 I'm 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 it 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 gonna come to the U.S.
It's gonna come faster to the U.S. with all of the fuel challenges that we've got at the moment. We are ready to go and help provide those solutions. 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. 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. We believe we're on the journey.
For those of you that have been with us a while and you've seen already the transformation over five months, let's look out another five months, let's look out another two years and just imagine where this company can be at that stage. There's a lot of opportunity for us to do things better. We remain very focused on that. We remain very logical and very pragmatic in our approach, and we will always be putting our employees and our customers first. I think that's something that, you know, a lot of companies who chase the dreams lose sight of those core foundations of success. I would also say we're not gonna 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, are just, if not greater than they were this time last year. But the real opportunity is to augment that, to supplement that, to have the end-to-end 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. 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?" 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. 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. Thank you very much. Enjoy your day, and we'll speak very, very soon. Thank you. Take care. Bye-bye.