ERoad posts first-half net loss of $1.5m, revenue up 8 percent

Transport software company ERoad's first half loss is slightly bigger than the year earlier, while revenue rose 8 percent.

The net loss for the six months ended September increased 6 percent to $1.5 million, against revenue of nearly $96m, with growth in each of its three markets.

"The half year results confirm that, despite macro-economic headwinds in New Zealand, Australia and the US, ERoad has now established a track record of disciplined operational cost management and consistent free cash flow generation," chair Susan Paterson said, adding the company expected to be cash-flow positive this financial year.

Annualised recurring revenue increased 5 percent, with underlying profit of $2.4m, compared with $0.1m the year earlier.

Co-chief executives Mark Heine and David Kenneson said they were confident in the outlook, with full-year revenue guiding to between $190m to $195m and underlying guidance of $5m to $10m, which includes costs associated with its 4G hardware upgrade program.

The company plans to spend $3m more on research & development to $35m.

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