We are a leading global provider of fleet and mobile asset management solutions
delivered as SaaS. Our solutions deliver a measurable return by enabling our
customers to manage, optimize and protect their investments in commercial fleets
or personal vehicles. We generate actionable intelligence that enables a wide
range of customers, from large enterprise fleets to small fleet operators and
consumers, to reduce fuel and other operating costs, improve efficiency, enhance
regulatory compliance, promote driver safety, manage risk and mitigate theft.
Our solutions rely on our proprietary, highly scalable technology platforms,
which allows us to collect, analyze and deliver information based on data from
our customers’ vehicles. Using an intuitive, web-based interface, our
fleet customers can access large volumes of historical and real-time data, monitor
the location and status of their drivers and vehicles and view a wide selection
of reports.
We have a global presence, with customers located in approximately 120 countries
across six continents. We currently serve a highly diverse customer base, including
approximately 6,000 fleet operators, which represented 73% of our subscription
revenue for fiscal year 2018. We target sales of our enterprise fleet management
solutions to customers who desire a premium solution, generally for large fleets,
which we define as fleets of 50 or more vehicles. Large fleets accounted for
87% of our fleet subscriptions at March 31, 2018. We believe we have a satisfied
customer base and, among our more than 800 large fleet operator customers, we
experienced an annual customer retention rate in excess of 95% in fiscal year
2018. We have multinational enterprise fleet customer deployments with companies
such as Baker Hughes, Bechtel Corporation, BP, Chevron, DHL, G4S, Halliburton,
LafargeHolcim, Nestlé, PepsiCo, Praxair, Scania, Schlumberger, Shell,
The Linde Group, Total and Weatherford. We also offer a range of subscription-based
fleet and vehicle management solutions to meet the needs and price points of
small fleet operators and consumers. Our safety and security features, including
driver performance and vehicle monitoring, are important attributes of our solutions
for these customers.
We have consistently grown our customer base. As evidence of this growth, subscribers,
one of our key operating metrics and a factor influencing our rate of subscription
revenue growth, increased at a compound annual growth rate of 13.5% from April
1, 2013, to March 31, 2018, and as of March 31, 2018, we tracked and managed
over 676,000 subscribers. As a further indicator of our scale, in fiscal year
2018, we collected data on an average of approximately 128 million trips per
month representing as many as 7.8 billion vehicle locations per month. The monthly
price charged per subscriber varies among our customers depending on the services
and features they require, hardware options, customer size, route to market
and geographic location of the customer. Consequently, our rate of subscription
revenue growth is influenced by not only the rate of growth in the number of
subscribers but also by the evolving mix of our subscriber base.
Fleet managers operate in an increasingly competitive and highly regulated
global environment. Timely and accurate decision-making enabled by solutions
that provide real-time visibility into vehicle location and driver performance
is critical to managing a safe, efficient fleet. In some developing areas of
the world, ensuring driver and vehicle safety and security is also particularly
challenging given high crime rates, which have resulted in automotive insurance
mandates and regulatory requirements for vehicle tracking. Consequently, fleet
managers and consumers demand solutions that promote driver and passenger safety,
mitigate risk, drive operational efficiencies, improve stolen vehicle recovery
rates and reduce automotive insurance rates. The business environment for fleet
managers is further complicated by the large number of transportation-related
regulatory and compliance requirements worldwide, and the frequency with which
rules and regulations change.
Legacy fleet management solutions inadequately address industry needs as many
businesses use discrete manual processes, such as spreadsheet and paper-based
systems and telephones, to monitor vehicle and driver activity. These approaches
are labor intensive, prone to error, do not provide continuous monitoring of
fleets, make it difficult to optimize fleet utilization, manage operating costs
and generate minimal business intelligence. Additionally, legacy fleet management
technology frequently provides limited functionality beyond basic location-based
tracking and makes it difficult for fleet operators to fully benefit from the
cost savings and efficiency improvements associated with more robust fleet management
offerings.
Fleet operators face many significant challenges, which can include:
Significant operating costs. Fuel costs represent a significant cost for fleet
operators. For example, the American Transportation Research Institute estimates
that fuel and oil, driver wages and benefits, repair and maintenance and truck
insurance premium costs collectively represented approximately 79% of total
trucking operational costs per mile in 2016. Certain driving behaviors, such
as speeding, harsh acceleration, harsh braking and excessive idling contribute
to poor fuel efficiency as well as increased wear and tear and maintenance costs.
Poor visibility into fleet operations. Fleet operators frequently maintain vehicles
across multiple geographic regions and often lack visibility into their fleets
and oversight of their drivers. Poor fleet visibility makes it challenging to
optimize fleet utilization, vehicle fleet size and miles driven while still
meeting core business and customer servicing requirements. Poor driver oversight
makes it difficult for operators to validate hours worked or customers visited,
incentivize greater efficiency and discourage unproductive, undesirable or dangerous
worker behavior.
Challenges in maintaining regulatory compliance. Internal compliance and reporting
is driven by legislative and regulatory requirements, which are often subject
to change, from regulatory authorities in nearly every jurisdiction globally.
This can be particularly burdensome for fleet operators managing large vehicle
fleets in multiple jurisdictions. For example, in the United States, fleet operators
can face numerous complex regulatory requirements, including mandatory hours
of service compliance and fuel tax reporting and more recently electronic logging
devices (“ELD”) legislation that requires truck drivers to log their
hours of service electronically.
Challenges in managing risk. Fleet operators are responsible for hiring, training
and identifying risks associated with their drivers. Vehicle crashes are a leading
cause of workplace injury and lead to significant costs for fleet operators,
including financial liability and increased insurance premiums. Fleet operators
need visibility into driving behavior to proactively identify and remediate
drivers with poor driving habits.
Inefficient data management. Fleet operators receive operational information
from many disparate sources, including communications from their technicians
and customers, paper-based reports, third-party receipts for items such as fuel
purchases, vehicle maintenance logs and customer invoices. While simply collecting
this unstructured data is burdensome, organizing and analyzing the data to identify
trends and other actionable business intelligence can be even more challenging.
Challenges Facing Fleet Operators and Consumers in Developing Markets
In certain developing regions of the world, driver safety and vehicle security
are significant concerns given high crime rates and the impact these higher
crime rates have on consumers, insurance costs and regulatory requirements.
More specifically, fleet operators and consumers often need to address challenges
including:
Managing the impact of crime. Vehicle crime rates in developing regions of the
world often far exceed those in the United States and Western Europe, resulting
in potentially significant costs for fleet operators and consumers. For example,
we estimate that the rate of vehicle theft in South Africa is more than double
than that in the United States.
Reducing insurance costs. In developed and developing regions, insurers often
provide incentives for fleet operators and consumers who subscribe to a safety
and security mobile asset management solution. Some insurance providers will
not insure vehicles that lack a tracking solution, or will make the insurance
premium cost prohibitive without one. Furthermore, insurance provider interest
in safety and security solutions has increased following the introduction of
driver performance monitoring solutions, which can enable innovative usage-based
insurance and claims management initiatives.
Complying with regulatory mandates. The growing introduction of stringent occupational
health and safety legislation in developing markets is adding pressure to fleet
operators, who need to fulfill their duty of care while also complying with
laws regulating driving hours, rest time, fuel taxes, etc.
2.74%