Good afternoon, everybody. Good to see you. I guess before I dive in, just for those in the room, who doesn't know what Unity is, just so I can get a sense as to how well you follow the Powerfleet story? So hands up who doesn't know what Unity is. Okay, and it wasn't a trick question. So I'm just getting calibrated in terms of how deep to go into the story, but probably the lens I'll use is the lens that most of you care about, which is, how do I identify sort of alpha from beta, right? So how do I identify stocks that are going to outperform the sector no matter what happens from a trend standpoint? And if you think about your money and my time, my time is a proxy for your money.
And I want to put it to use where there is the highest probability of a spectacular outcome. And that is why I'm at Powerfleet. So what I'll do is walk you through the rapid transformation that's happening under the Powerfleet umbrella. So that'll be a key thing that I do. There's a couple of things to think about. Firstly, there is a public company in our space called Samsara that is one of two out of 300-plus public companies, public SaaS companies, who were able to achieve over $1 billion of revenue, grow at north of 30%, and be cash flow generative. So I'm sharing that tidbit because that just speaks to the fact you don't do that unless you're in a spectacular market. And they did it by doing a next-generation solution in a market that's growing rapidly. And you'll see that as you go through.
The other thing that I'll point out is you need to have a differentiated solution to compete with somebody like a Samsara as well. So in terms of the problem set that we solve for customers, it is an acute pain point. And it is one, for example, that Samsara doesn't solve. The market itself is big enough for three, four, five players. Samsara is the largest out there. It's maybe 2% market share. So it is highly fragmented. So again, that is a pretty interesting place to be. And there's a lot of legacy business there that I think is going to transition over time to next-generation providers. So there's opportunities to grow from both a greenfield standpoint and a brownfield standpoint too. So you'll see that as we go through. Okay. So with all that said. Any idea where this is?
So this is Powerfleet. Powerfleet is transformed from where it was 12 months ago. So March, sorry, April 2nd of last year, we merged with a company called MiX Telematics. And that basically doubled the size of the business from sort of $130 to $140 to sort of $280 to $285, and increased the EBITDA to sort of $43 + million. In October 1 of this year, we merged with a company called Fleet Complete. And that has basically transformed this business. So from $140 million of revenue, which is where Powerfleet started a year ago, we're now a $405 million run rate business exiting this year. We're an $85 million EBITDA business exiting this year. In terms of the makeup of the revenue, 75% of it is recurring services revenue.
Another key callout is we have 8,000 enterprise customers with a logo set to die for. The solution that we bring to the market is a land and expand solution. Over time, as the business evolves, we have the ability to build this business into a best-in-class net revenue retention business in the SaaS space. That is what Samsara did. Half of Samsara's growth comes from sales to their existing customers because that is the natural motion in the segment that we play. 2.6 million subscribers, the biggest global footprint, which I'll walk you through as well. Through M&A, we have expanded rapidly. In terms of a key reason I joined Powerfleet, I joined because the vision was always to do highly accretive M&A. I joined on the back of Steve Towe. Steve Towe is the CEO. He is the product strategist behind Unity.
He spent 16 years in the industry. He grew Masternaut between 2000 and 2016 to be the second largest telematics business in the world. That was a business that was compounding north of 30% per year, so he understands the space very, very well. He left Telematics. He joined a company called Aptos, which was a point-of-sale solution provider, private equity owned, did a lot of accretive M&A there, but during his time there, he saw that business really evolve rapidly from being a sort of a combination of hardware, connectivity, and software into an omnichannel SaaS business, and it was really that experience in terms of understanding how the data from a point-of-sale solution can be used more broadly within an organization to drive operational excellence. He took those lessons and wanted to apply them to the telematics space, so that's why he came back.
And he came back with a vision and a product vision in terms of what you could do. And I'll walk you through the benefits of that solution as we go through. So that's where we are today. In terms of the guidance that we have, so the goal is to become a Rule of 40 business within two years of closing the MiX transaction. That deal closed April 2nd of this year. In terms of what's driving it, it's coming in two waves. So one is an expansion in terms of EBITDA margins, sort of going from 15%, which was the trailing 12 when the deal closed, 20% this year to 30% next year. In terms of that EBITDA margin expansion, it's coming from two key sources. Firstly, it's coming from improving the cost structure. So realizing synergies is a major part of that EBITDA expansion.
And I'll walk you through in a couple of slides just our ability to do that and the fact that that is a core competency of the business. The other one is growing the top line. So you can see expectations, five percentage points of organic growth this year, which is relatively modest. And I'll walk you through just how well we're doing year to date. 10% next year. And then long term, we think this is a business that will grow north of 20%. And that is largely predicated upon Unity being a blueprint for best-in-class net dollar retention. I'll walk you through why that happens and what's driving that as we go through the presentation too. So that just gives you a sense in terms of where we're headed.
The expectation is we get to Rule of 40 as we exit next fiscal year, so March of 2026. Then long-term targets, you can see significant opportunity in terms of both margin as well as growth, so comfortably above that Rule of 40 performance. Now, in terms of doing it, you can bring these businesses together. To do accretive M&A, you have to demonstrate you can execute and you can do things that often work against each other.
So one of the comments we get in terms of the business is, "Okay, I see you're growing, but how much of that is really organic growth versus inorganic growth?" And the other one is, "Is this a team that's capable of really rationalizing the cost structure and still managing to grow the top line?" So what I'm sharing with you on this chart is a scorecard for our performance as a management team for the first six months following the closure of the MiX transaction. So you can see EBITDA within six months is up from a combined $11 million to $14 million. So that is largely driven by cost synergy realization in terms of what's been pushing that forward. We've been able to reduce the costs while simultaneously growing revenue organically. So the 6% revenue growth is only over six months.
Then on a year-over-year basis, revenue growth is 9% year-over-year versus guidance of 5%. You can see EBITDA up 31% in six months, but up 46% year-over-year. In essence, this is a team that knows how to radically change the cost structure but not lose sight of our ability to grow the top line. It's a testament to our ability to execute. In terms of EBITDA, expectation is we can treble EBITDA within two years of closing the MiX transaction. $43 million was the trailing 12-month EBITDA up through March 31, 2024. In terms of getting from 43 to 130, 70% of that growth is really driven by organic, with the other 30% being the contribution of EBITDA we get from the Fleet Complete transaction.
So $43 million was the trailing 12 for the combined MiX and Powerfleet, $25 million coming from the Fleet Complete transaction, and then you can see realization of cost synergies, so $35 million in total in terms of what we're coming through, $25 to $27 million coming out of the MiX deal. Of that, we had already achieved half of that within the first six months, and then you can see the remainder coming from the top line growth and the margin from the top line revenue growing both this year and next year as well, so that just gives you a sense in terms of line of sight, treble EBITDA, again, coming in two waves, the first one being directly within our control, which is our ability to realize cost synergies, so this gives you a sense in terms of the sources of EBITDA margin expansion.
So we were 15% on a trailing 12-month basis through March of 2024. Exiting this year, we should be at 20%. You can see the single largest driver of that is a 5% improvement in terms of the G&A E/R . So the G&A E/R today is sort of 32% in terms of where we are today. The expectation is we can drive that down to about 20%, which again is still high versus comparatives within a two-year period. So you can see in terms of driving the growth, 12% of the 15% EBITDA margin expansion comes from a reduction in terms of the G&A E/R . A major driver there is realizing cost synergies. Secondarily, is this ability to sort of grow the top line nicely while also not investing in terms of the OpEx side of things as well. So largely within our control.
As I said earlier, we had $27 million of cost synergies attached to the MiX transaction. We realized $13.5 million of that within six months of closing the deal. A key reason I joined was Steve had a track record of doing accretive M&A. He brought a team with him who knew how to do it and a playbook to go execute. Again, we've demonstrated we can take significant costs out of the business while still driving top line growth. That gives you a sense in terms of the sources of the EBITDA margin expansion. What is more interesting is top line growth. For this to become a spectacular outcome, it's a question of how do you really sort of accelerate top line growth and how do you do it at great operating margins. Firstly, it starts with the market.
As I said earlier, we are in the same market as Samsara. It's one of two public SaaS companies that have achieved 30% growth at north of $1 billion of revenue. That just speaks to the market that we're in. It is highly fragmented. There's a lot of businesses that were started in the late '90s, early 2000s that have found a lead that are not innovating. That is sticky revenue that will transition over time to next-generation solution providers. I'll walk you through why we're a next-generation solution provider. There's a lot of opportunity to see revenue shift over time. There's no big players who are going to dominate this space. The third one is in terms of the market itself. The market itself, based on input from Samsara, is growing sort of 25% plus.
So the market is expected to double within sort of three years. So it's a rapidly growing market, AI cameras being the single largest source of growth. So we're in a great market. In terms of bringing these businesses together, we also have the broadest solution set in the market. If you're running supply chain, the fact that Powerfleet and Powerfleet only can actually cover the movement of goods from the shelf in the warehouse to the shelf in the retail store to your doorstep, we're the only provider that can do that. So nobody else has both the in-warehouse solution as well as the on-the-road solution. So we have the broadest set there. And if you're running logistics, you're running supply chain end-to-end, having a solution that covers things end-to-end, obviously that is a nice competitive wedge to have.
We also, through the Fleet Complete transaction, have access to the FC Hub solution. This is a high-velocity mid-market solution. Both MiX and Powerfleet traditionally played in the enterprise space. So it sort of expands the TAM. And that is a solution that we can export globally to our other regions as well. So there's a benefit there. Then in terms of the other key benefit we got from a product standpoint with Fleet Complete was access to their 15-minute self-install AI camera. The fastest growing piece of the market is AI in-cab solutions. It's about a two-hour install typically, for example, Samsara. This ability to do it within 15 minutes is, again, a huge source of competitive differentiation in the largest single growth sector in the market. You also need a winning next-generation product strategy.
So again, you can see from how successful Samsara has been, if you bring something that's differentiated, there's a real opportunity to grow rapidly with the market. In terms of the key competitive wedge that we have, if you want to get the full benefit of the Samsara solution, you have to rip and replace all of the Samsara devices. So Samsara is betting on customers having a homogeneous set of solutions within a customer's portfolio of assets. We believe the center of gravity is heterogeneous. So quite often there's M&A. Quite often decisions have been taken historically lower in an organization. It's not a sort of a top-down dictate. So an acute pain point that customers face is this data is sharded, is fragmented. And our ability through Unity to ingest, harmonize, and present the complete picture is a massive source of competitive differentiation versus Samsara.
It's a great competitive wedge to have. The other thing that you do with this data set is the data set can be egressed out of the Unity platform, and Samsara does this and others do it too in terms of solving a much larger, broader set of problems, so fitting it into a planning system, fitting it into an ERP system, fitting it into a payroll system. If you can capture the entire data set, the entire set of assets, it basically means you're able to solve and answer those questions in a holistic way, not a fragmented way, and we get to monetize both the ingestion of third-party devices as well as taking that data through egress and charge for integrations into other solutions within a customer's ecosystem, so there's a really nice way to expand share of wallet.
What Unity is, is a blueprint for driving towards best-in-class net revenue retention, which is 120 or above. And that's what Samsara enjoys today. And then you need expansive go-to-market reach. So we have the largest global footprint, so we can serve multinationals. Through the MiX transaction, we have a network of 130 resellers globally. So that works well for us. We also have a situation in terms of with the Fleet Complete transaction, we have access to AT&T, Telus, Telstra in Australia. We have phenomenal opportunities to really have asymmetry in terms of our ability to reach a much broader, larger set of customers through those channel relationships, which are very, very healthy. It's also a model that Steve knows very well. When he was growing Masternaut at 30% plus CAGR, most of that growth was coming from Telefonica.
So he understands that model, what it takes to succeed there. So well positioned there in terms of our ability to really sort of get massive reach both globally and also in a success-based basis into customers through the likes of a channel partner. So this is the market. So as I said earlier, it's a great market to be in. This is the sweet spot of the market. Forecast to grow at a CAGR of 25%, so double from $64 billion to close to sort of $120 billion over the next few years. In terms of penetration, in terms of North America vehicles, in terms of telematics devices, about 45% penetrated. In terms of AI cameras, which is the fastest growing piece of the market, about 10% penetrated.
So both brownfield opportunity in terms of taking revenue away from legacy providers who aren't innovating at the pace necessary, as well as really enjoying the wave in terms of the AI camera opportunity that is sourced about half of Samsara's growth traditionally. Again, the broadest solution set. So we're the only provider that goes from in the warehouse to logistics to last mile. So works well in terms of that. Also, if you look towards the bottom, this is a horizontal play. So you can see in terms of the dark green, just the number of different verticals that this solution is applicable to. Again, if you're going to grow and be one of the fastest growing businesses, being a horizontal play is absolutely critical, absolutely key.
So this just gives you a feel in terms of just the breadth and the depth in terms of what we bring to market from a solution standpoint, and nobody else covers it shelf to shelf. And then there's the product strategy, as I said earlier. So being data agnostic in terms of ingesting that data, that is an acute pain point. For those of you interested, we did do an investor day in November of last year. And we had a customer who used to be a massive Samsara customer who was never able to get all of his vehicles in with a single solution. So he constantly faced this situation where all the data was fragmented. That was a combination of both M&A. They were acquisitive. So he always bought a new set of assets that had a mixed bag of solutions.
And quite often, they will use owner-operators to cover the peak demand. And they too will have a different solution set. So our ability to take that headache away from him, ingest and present things holistically, has basically flipped him to be all in on Unity versus all in on Samsara. So that would give you a good idea there. And the last one is, again, if you gather all this data, this ability to really sort of take that through pre-built integrations to answer questions more broadly with an organization, if you capture the complete data set, that data set is much more valuable. So this gives you a sense in terms of the source of the revenue. So from a geographic standpoint, about 40% North America, 25% Africa, 20% Europe and Middle East, and then 10% Australia, 5% rest of the world, which is primarily sort of LATAM.
So that gives you a sense there. From a market segment standpoint, 65% enterprise, 20% mid-market, which is really the Fleet Complete customer base. Then we have 15%, which is a franchise business. These are highly cash-generative businesses. A good example would be, for example, Israel. We have a very good business in Israel. If you buy a vehicle in Israel, you have to have a telematics device to get car insurance. We are one of two providers to the car importers. So in essence, that is a regulated duopoly business that we play in. You want to do that all day long, but that isn't a business you can replicate internationally, but they are great franchise businesses. The other one would be the retail business in South Africa, where MiX is the premier brand. It is the one with the highest recovery rates.
If you think about South Africa, that ability to sort of manage that exposure is a necessary spend as opposed to a discretionary spend. That works well too. In terms of the source of the growth, it is primarily an expand go-to-market motion. Really landing and expanding is key. As Unity really evolves over time, we have that ability to really sort of garner, share, harvest dollars that are currently being spent elsewhere. The benefit we also get with Fleet Complete is our ability to really access decision-makers in a much more efficient way and a less speculative way. Today, if you're a Fleet Complete salesperson, you are plugged into 15 AT&T reps. What happens is you will school those 15 reps.
You'll make sure they're aware of the problem set that Fleet Complete solves, the ideal customer profile in terms of where that solution would fit well. And those 15 AT&T reps will go canvass their customers and identify people where there's a great fit and they have a propensity to buy, bring that back to the Fleet Complete sales rep. So if you're a sales rep, what you want is a whole bunch of hot leads coming off the conveyor belt. And what this does is by getting access to 15 AT&T reps, they are the source of those inbounds. You get to close those opportunities. And because so much of the growth in the future is the expand piece, the fact that you have a direct relationship with the end user positions you ideally to go expand that account over time.
As we move up market in terms of enterprise solutions, then it's probably going to be one of our sales guys will be plugged into five AT&T enterprise sales reps, and they too will bring those opportunities in. We had a customer panel November last year. There was a gentleman called Hardman from AT&T who was on that panel. He reports into the CEO of AT&T. So in terms of our ability to address a strategic imperative for someone like AT&T, it just shows you the level of mind share that we have there. They have a desire, a need to rapidly expand the utilization of their 5G network. If you are doing over-the-road video in terms of AI diagnostics using, obviously, the biggest sort of driver of bandwidth, that is a solution that resonates very loudly with them.
They also look at someone like a Samsara in terms of how rapidly they're growing. It speaks to the fact this is a really interesting market to be participating in, and it is one step up from core connectivity. So there is a huge lean-in from AT&T to get our enterprise solutions qualified. That's something that typically takes six months, but again, this is another proof point that what we are bringing to market, the access that we have through an AT&T, it is something that they want. There's a huge amount of self-interest there, and we're working diligently to get that turned up so we can start seeing the flywheel spin as we get into fiscal 2026 from April onwards, so again, great mind share, great fit, and this is a healthy channel that exists today.
We're now, in essence, able to get AT&T to access a broader set of the market, access their enterprise customers, and it's their enterprise customers they care the most about. A huge amount of self-interest and a great opportunity for us to have a force multiplier so we can land new logos. Because we work directly with the end user, we can also expand that relationship over time. This just gives you a feel in terms of reach. Powerfleet itself probably had 50 quota carriers. By the time we joined with MiX, that doubled to 100, 110. In terms of what MiX also brought, it brought a relationship of 130 channel partners, so we had that benefit as well.
Now, with Fleet Complete, in terms of our ability to be a force multiplier with AT&T, with Telus, with Telstra, it really does give us an ability to punch way more than our weight in terms of accessing the market. This is also success-based. So AT&T enjoys a revenue share if we land the business. It means we don't have to do a lot of speculative spend to generate the demand. We work hand in glove with AT&T. They source the demand on our behalf, and it's up to us to go close it. So it's super efficient from a go-to-market standpoint. And if you think about being a primary driver of growth through expand, typically to earn a dollar of recurring revenue from a new logo, it's $2 plus. With this model, it'll be a little bit different, but $2 plus.
If you're expanding in terms of with an existing customer, normally you pay $0.50 to get a $1 annuity. It is a much more efficient way to go access demand, to go grow the business. So again, huge benefit for us in a model that we understand well. So in terms of the expand opportunity, this will give you a sense in terms of how much of the wallet opportunity exists today with our existing customers. If I were to show you a set of logos in terms of the Fortune 500 customers we work with, you'd be very impressed. What's also true is there's other players in this industry that could show you the very same sort of set of Fortune 500 and say they too participate.
That speaks to the fact that there are multiple providers of telematics solutions to the largest logos you are all familiar with. That is a pain point for the customer. So they struggle because, in effect, this data is sharded, and they want to get it harmonized and present it holistically. So we are probably maybe 20% penetrated in terms of a large enterprise customer in terms of what we can do. For every $1 we earn, there's probably $4 earned by the telematics providers, right? And that's just an accident of history. It's an accident of M&A. This is the world that we live in. So there is an opportunity of you to win everything that we could be four times larger with our existing customers. So that just gives you a sense into, I guess, five times larger, four times more revenue, five times larger.
If you look at the AI camera space, that is the space that is growing the quickest and that sort of size is maybe 40 cents on the dollar versus sort of core telematics, so again, that is a nice source of new growth, new demand. That is the fastest growing piece of the market, so you have that benefit as well. You also have the fact that in terms of the benefit we have in terms of being both in the warehouse and on the road, there is a meaningful portion of customers with a large fleet that have a large warehouse operation as well.
So our ability to really sort of cross-sell that to allow someone who's managing end-to-end logistics to go through that, someone who's managing safety globally, someone who's managing regulatory requirements globally, our ability to present that holistically from both the shelf in the warehouse, the shelf in the retail store, that again is a nice complementary sale opportunity for us. Then the final two would be our ability to solve a broader set of problems within Unity. So advanced modules in terms of safety, advanced modules in terms of ESG reporting, advanced modules in terms of maintenance, fuel efficiency, those types of things. There's additional ways we can sell and monetize. And then the final one is capturing all of that data and monetizing the egress out through pre-built integrations.
So if you layer all of those up, there's probably over time a 10 times sales opportunity within our existing customers. This is the opportunity to be a net revenue retention business north of 120%. There is that much opportunity out there with our existing customers. And the benefit we get with AT&T is we're constantly adding new logos to go harvest, to grow, grow with it. So in terms of the art of the possible, so let me walk you through this chart. This gives you a sense in terms of based on reasonable assumptions of penetration, what could actually happen in terms of how much growth could you actually secure with your existing book of business. So the current customer penetration, 20% penetrated, right, as I said earlier. If you look at that blue bar, the blue bar is the revenue we earn today.
This is 100 cents of the revenue that we earn today. As you go down this opportunity stack, you can see through increased penetration how much more revenue can we earn? So to the extent we could go from 20% penetrated to 30% penetrated with our existing solution set, that gets you another sort of 50 cents on the dollar. If we were to do that through ingesting third-party data through third-party devices, get another 10% there, that would be a smaller dollar number over time. But it would be a differentiated way to go solve that customer headache. So that gets you another sort of 25 cents on the dollar in terms of what's possible there. What this also does is you solve this issue in terms of being the provider of consolidating all that data.
It means, for example, we have customers today who are Samsara, who were initially Samsara customers, were ingesting that data. The customer is paying both Samsara and us for that data. When that device is up for renewal, that customer is more likely to buy with us as opposed to buy through somebody else. So over time, you actually get more of the device sales as well. So that gives you a sense there. AI camera opportunity, if we were 25% penetrated, you know, that's another 40 cents plus on the dollar. In warehouse penetration, if we did 40% of the addressable market there, again, that's another 40 cents on the dollar. And then you get the benefit of penetration of the integrations plus the AI modules. If we're 30% penetrated there, again, they'll both give you another 20% or so on the dollar.
If you were to do this level of penetration over five years, that would give you a CAGR of 25% over those years. So in essence, it's a way to sort of increase your ARR by 3x over five years based on these levels of penetration. Again, this is an illustrative worked example, but what it speaks to is this ability to land and expand with the broadest set of solutions that exist in the market today and also address acute pain points, not the least of which is how do you actually address head-on this sharding of data and the acute pain and suffering customers get on the back of that. So final slide from a wrap standpoint in terms of why would you choose to put your money to work in Powerfleet. You're looking for asymmetry.
So you're looking for a real opportunity where the downside is protected and the upside is significant. So if you give us just credit for our ability to go realize cost synergies, again, we realized $13.5 million in six months out of the MiX transaction. We have another 24 plus to go harvest from the additional transactions that we've done. If we were to do that and drive modest growth and we're growing sort of 9% organically on the first six months out of the gate from Powerfleet from the MiX merger, that gives you significant upside opportunity versus the 2.5 x we trade today.
If you believe through the combination that we have in terms of the solution set, if you believe we can turn up an AT&T to start selling into the enterprises, if you believe that Unity over time can build towards a best-in-class net revenue retention model, then there's an opportunity for this thing to be growing 10%, 20% plus with really good EBITDA margins. And if you can do that, then all of a sudden you're on a much larger revenue base and your multiple is more in the seven-to-nine range. So that's the asymmetry that's there. There's not a huge amount of downside in terms of our ability to go realize the cost synergies larger within our control. We have a playbook, we have a dedicated team who can do that.
But if we can really get the top line to hum, the top line to grow, then there's a significant opportunity in terms of really outsized returns in terms of the opportunity set that we have at our disposal. So that's a wrap. Just to close with, this was by design. This M&A didn't just happen just because it landed on our laps. The intent was always to do this. The intent was to use Powerfleet as a roll-up vehicle. The intent was to build up internally the ability to go do a creative M&A. And we think based on the first six months of the numbers we've reported publicly coming out of the MiX transaction, we believe we have foundation to say we're doing what we said we would do. So that is it.
I am happy to answer any questions that may have triggered, and I appreciate your interest. Yes.
Yeah. [audio distortion]
Yeah. So you have to be ruthless from a prioritization standpoint. So there's the near term and then there's the longer-term opportunities. Near term, our ability to sell our in-warehouse solution to on-the-road customers, especially post-merger, that is a very natural fit for us. That is where we have comparative strength. So that is an area of focus. The other one would be the AI camera opportunity. It is the fastest growing segment in the market. A 50-minute install will sing well and resonate with enterprise customers. So there's that opportunity as well. And then the third one, to your point, is getting the channel partners up and running and qualified to sell our enterprise solutions. So they're all sort of the near term can have a major impact.
The other thing that we're focused on, we now have in effect gone from 85 software engineers to 400 after these two transactions. We can really burn down the product roadmap for Unity in terms of making it bulletproof, enterprise grade. So in essence, we can really get the largest businesses in the world on it, get the largest businesses referenceable. That is really the sort of the longer-term play in terms of making this a really interesting place to put money to work. Yes.
[audio distortion] I mean, telematics is a very mature market.
Yes.
[audio distortion] Talk about the innovation on the product side that actually drives the TAM and the growth.
Yeah. So from an AI camera standpoint, there's a hard saving there in terms of insurance savings. So that's the obvious one. So if you get it installed, there's a very obvious return there.
The other thing that is true is in terms of just the turnover in terms of the employee base, you know, coming out of COVID especially has been accelerant in terms of just the skill level that's available. And this applies both on the road where there's a massive shortage of people as well as in the warehouse too. So that is why safety and compliance is a massive driver of demand in terms of if you can have solutions that address that with the turnover in terms of the workforce, that is something that works very, very well in terms of OSHA compliant, all those other things. So we're focused on where there's both a hard saving and there's a compliance need. So both of those things make it not a discretionary spend, it makes it a must spend with good hard ROIs.
[audio distortion] The rollout of Unity, just to what are the milestones that we should anticipate from the OSC?
Yeah. So it's in the P&L today. But what I would say is it's your classic sort of early adopter of technology, right? So for example, the intermodal example, that is somebody who was willing to sort of lean in just because he understood the value of what we're bringing and address it as acute pain point. In terms of longer-term industrializing it, it's only in the last sort of six to nine months that we've really expanded the engineering capabilities. And so much of it early on was sort of ingesting all of the MiX technologies into Unity. We now are freeing up capacity so we can really sort of double down in terms of automating both the ingestion as well as making the integration, third-party integrations highly repeatable.
So it's that automation and also building to make sure it can sort of withstand significant scale. That's what the engineers will be focused on here on it.
[audio distortion] So the 2.5 million vehicles tracked later, is it just on the incremental that we should?
Yeah.
[audio distortion] It's not on the new Unity.
Yeah.
[audio distortion] How does it matter into the build?
Yeah. So if you look at the makeup of the revenue I said earlier, that 15% that's sort of the franchise business, that's never going to be on Unity. We have a business in Israel. We're never going to put it in Hebrew and read right to left. That's never going to be on Unity. But anything that is industrial, sorry, that is enterprise or even on the Fleet Complete mid-market side, that will end up in Unity. So MiX is already having access to Unity.
Fleet Complete will be done probably by the end of March of this year, and then you then open up the opportunity for them to ingest third-party devices as well as egress out and get access to the value-added modules. So all of that is in place, so by the end of March of this year, basically all of the Fleet Complete customers, all the MiX customers outside of places like Israel and elsewhere will be on the Unity platform. And it's not disruptive from a customer standpoint. It doesn't require a hard migration because your API feeding into this overlay.
[audio distortion] How does it?
No, you go. I'll circle back.
[audio distortion] How do the truck OEMs fit into this model? Why don't you slow down this and say, "We're just putting devices in all your trucks"?
Yeah.
So increasingly, obviously, everything's getting digitized and the large manufacturers aren't sort of blinkered in terms of the opportunity. We view that as actually a benefit. We would quite happily not be in the hardware business, right? And people generally do not single source really expensive things. They're always multi-sourcing in terms of getting the best price. So anything that drives this heterogeneous sort of set of assets works well for us. And we talked a lot. I said telematics probably more often than I should just because it's the market that exists today. The idea is really sort of evolve in terms of being an AIoT platform. So we see the future in terms of ingesting data no matter the source, harmonizing and presenting it. So you sort of break away from this sort of hardware piece.
But no one's ever approached an OEM and said, [audio distortion] "Take all our business"?
The OEMs are developing themselves. So OEMs are increasingly sort of developing these capabilities because it's an add-on for them. Yeah.
[audio distortion] So that's not like a, how do you respond to that?
It works well for us because in essence, it's another different source of data. And typically people don't buy a single source. So yeah, exactly. You're always multi-sourcing and getting the best price. So you never want to be captive. So that works well for us.
[audio distortion] Give me a little bit about the qualification of the AT&T process. What were the mechanics of that? Is that a hard data? Is that maybe earlier, maybe later?
Yeah. They obviously have a very regimented playbook that they work their way through. I would say six months is a good gauge in terms of how long it takes.
They have a process. We're working through that process, but what I would say is there's huge desire and goodwill on both their side, and obviously, there's a huge self-interest on our side, so the risk is it takes longer because AT&T doesn't care and we do. The great news is they care. They're leaning in and they're going to be pushing us through aggressively. Any final questions?
MiX Telematics was heavily indexed to the oil and gas industry in town and then South Africa. That was like the only business. Any industries that you're more heavily indexed to?
No, it really is a horizontal play, so there's not huge concentration in any particular vertical. Yeah. Which is a blessing, right? Very good. Okay. Truly appreciate it. Thanks for your interest.