Mark Heine. Photo: Eroad / Supplied
Road transport software firm EROAD is planning to prioritise investment in Australia and New Zealand as the North American market disappoints.
In an investor day statement to the market, the company said the North America remained an important market, though had not been delivering to expectations.
"North American resources will remain focused on delivering for our customers and partners, deepening relationships, and exploring further growth opportunities in cold-chain."
Guidance for the year ending March 2026, versus earlier forecast:
- Revenue $197m - $203m vs $205m.
- Annualised Recurring Revenue (ARR) $175m - $183m vs $188m.
- Free Cash Flow Margin 5 percent - 8 percent v Free Cash Flow Margin 8 percent - 10 percent.
- Impairment up to $150m due to North America challenges.
"With governments in both New Zealand and Australia moving toward usage-based and time-of-use charging, EROAD is uniquely positioned to lead," it said.
"As a consequence of the challenging US market that led to a change in guidance and consistent with the strategic change in focus, EROAD expects to record an impairment to carrying value of intangible assets relating to the North American region of up to $150m."
The company also announced it was changing its governance and management structure.
The board appointed John Scott to the role of executive chair, with immediate effect.
Mark Heine was taking the lead as chief executive, while David Kenneson, appointed 18 months ago to lead the North American market, steps down as co-CEO from the end of the month.
"I am incredibly excited by the opportunities ahead at EROAD, as we focus on what matters most to our customers and our growth," Heine said.
"As the world continues to trend towards more fuel-efficient vehicles, the need to fund global infrastructure sustainably and more equitably creates significant opportunity for EROAD."
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