Spireon announced today their financial and operational performance from the second half of 2016, marking 14 consecutive years of top line growth. Now, with over 3.75 million active customers, Spireon connects individuals and businesses to their vehicles and assets and processes more than 1 billion data events per quarter on the Company’s NSpire platform, providing critical productivity improvements and asset protection for consumers, dealers, lenders and fleet managers of all sizes.
During the second half of 2016, Spireon experienced solid revenue growth while increasing profitability by 150 percent. 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 percent increase in total contract value
- 62 percent increase in recurring revenues
- 56 percent 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 percent unit growth
The Company’s Automotive and Telematics business also gained significant traction, including:
- 56 percent growth in new customer acquisitions in the Buy Here Pay Here (BHPH) space
- 100 percent 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 percent within new car dealerships
- Typical savings of over $100K in insurance costs for new car dealers based on highly reliable asset protection and 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.”
Spireon’s focus on superior value and white-glove customer service are reflected across the Company’s operations, including the following notable achievements in 2H’16:
- Spireon received a Net Promoter Score of 50, compared to an industry average of 29.9 for B2B technology companies
- Over 95 percent of product orders shipped to customers within 4 hours on the same day the order was placed
- Spireon’s NSpire platform maintained 100 percent availability for 5 consecutive months, and 99.999 percent all year
- The Company’s nationwide network of more than 250 certified installers surpassed 750,000 on-site device installations
In September, Spireon was honored as “Vehicle Telematics Company of the Year” as part of the 4th annual Compass Intelligence Awards program. Later in the year, the Company prepared for a new phase of growth with the addition of several seasoned executives in sales, marketing, engineering, and product management, bringing extensive industry experience to drive product innovation, sales momentum and marketing presence for the Company in 2017 and beyond.
2017 Momentum Builds
Spireon kicked off 2017 by introducing Kahu, the first connected car solution specifically designed for dealers. Launched at NADA 2017, Kahu allows auto dealers to easily manage inventory and increase efficiencies in their lot management processes, as well as increase revenue and profitability by offering car buyers new connected car services, such as stolen vehicle recovery, geo-fencing for location management, and alerts for speeding and other behaviors. Additionally, Kahu enables a dealership to accurately provide service reminders and increase service retention of their customers.
Next week Spireon will showcase its innovative Fleet and Asset Intelligence solutions at the American Trucking Association’s TMC Annual Meeting & Transportation Technology Exhibition, including a new solar-powered trailer and asset telematics solution that will be announced at the event. The Company is currently preparing for more new product announcements in 1H 2017, and is securing several key partnerships that will extend the Company’s solutions to incorporate more telematics data, and accelerate growth in all areas of the business.