Spireon Grows Profit 150% in 2nd Half of 2016
During the second half of 2016, Spireon Inc. experienced solid revenue growth while increasing profitability by 150%, the company announced.
Customer satisfaction and operational metrics also increased, setting a new bar for B2B companies in the telematics industry. Further, Spireon’s direct relationships with all four Tier-1 wireless operators in the U.S. enabled the company to maintain more stable and higher quality services for their customers, while achieving greater economies of scale on wireless activations.
Spireon’s fleet and asset intelligence businesses saw significant growth in the second half of 2016, including:
- 50% increase in total contract value
- 62% increase in recurring revenues
- 56% increase in active subscribers
- More than 25 new trailer and asset customers, including Milan Supply Chain Management, Danny Herman Trucking, High Company, RJ & Sons, and H&M Trucking
- Increased breadth and size of new deals in the SMB Fleet market, covering state and local government, service and transportation industries, and driving 100% unit growth
The company’s automotive and telematics business also gained significant traction, including:
- 56% growth in new customer acquisitions in the Buy Here Pay Here (BHPH) space
- 100% adoption rate across the entire vehicle inventory for one of the largest BHPH franchise dealerships in the U.S., leading to an 800 percent increase in units sold per month
- More than 20 additional new car dealerships preloading their complete inventory of vehicles with the Spireon new car solution
- Consumer product sell-through rates exceeding 60% within new car dealerships
- Typical savings of over $100K in insurance costs for new car dealers based on reliable asset protectionand stolen vehicle recovery times of under 25 minutes
"2016 was a transformative year for Spireon, so it’s particularly rewarding to see such strong financial and business performance fueling our leadership position in vehicle telematics,” stated Kevin Weiss, Spireon CEO. “We’ve set aggressive goals for 2017, which we intend to meet through continued commitment to customer success, aggressive product innovation, and high-touch customer support that allows Spireon to stand out from competitors."