Substantial Growth in Automotive and Transportation Segments Drive 1H ’18 Spireon Results
73 new franchise dealer customers signed in the first half of 2018, fueling 65 percent increase in device shipments versus 1H 2017
36 percent increase in revenues from trailer segment as Company exceeds 200,000 trailer telematics subscribers
45 percent increase in device shipments to SMB fleet market year over year
IRVINE, Calif., Aug. 22, 2018—Spireon, the vehicle intelligence company, experienced substantial growth in both Automotive and Transportation sectors, and achieved a number of corporate milestones in the first half of 2018. Product innovation, white-glove customer service and key industry partnerships contributed to increases in revenue, active subscriptions and customer service metrics.
“Results for the first half of 2018 show market demand remains extremely strong for our best-in-class connected vehicle solutions,” said Kevin Weiss, Spireon CEO. “Across the core markets we serve—auto dealerships, transportation companies and local fleets—a growing number of customers and partners are selecting Spireon based on the quality of our products and outstanding customer service. We have made significant investments to scale the business and those investments are paying off.”
In the franchise auto dealer segment, Spireon increased Kahu device shipments by 65 percent and boosted revenues by 38 percent during the first six months of 2018, compared to the same period in 2017. Kahu continues to attract large dealer groups for its ability to improve sales effectiveness, operational efficiency, risk management and customer service scores. In Q1 2018, the company showcased unique capabilities of Kahu, such as advanced analytics for test drives and aging inventory, car-sharing with Drive On Demand, and consumer mobile app features designed to grow service retention and add-on revenue. The significant, rapid business impact of Kahu to dealerships has gained 73 new dealer customers for Spireon in the first half of 2018.
Kahu generates meaningful profit for dealers while delivering compelling consumer benefits including Stolen Vehicle Recovery and connected car features. In 1H 2018, consumers used the Kahu app on average 11 times per month to locate their vehicle as well as set geofence and speed alerts. The Kahu app has maintained ratings of 4.6 out of 5, or higher, on both Apple and Google app stores, illustrating the high value of Kahu to car buyers.
The company continues to innovate and grow market share in the subprime sector as well, with device shipments to Buy Here Pay Here (BHPH) dealers growing 4 percent year over year. In June, Spireon released Quick Locate, a new feature for its GoldStar solution that provides dealers and lenders with instant visibility to vehicle location and status. GoldStar customers remain extremely loyal, with an average customer rating of 8.9 out of 10, and 94 percent likely to recommend GoldStar, according to a TechValidate survey of BHPH dealers published in March.
A leader in the trailer management space, Spireon achieved a significant milestone surpassing 200,000 trailer telematics subscribers for its FleetLocate asset and trailer intelligence solution. The rapid growth of Spireon’s market share in the trailer segment is due in part to continued innovations that streamline operations and increase profitability for customers. In the first half of 2018, the company introduced FL Flex, the industry’s first modular trailer tracker designed for mixed fleets. The compact, power-efficient tracker can be configured with a wide range of sensors, such as the new FleetLocate Cargo Sensor with patent-pending IntelliScan sensing technology, announced in early July.
In the first half of 2018, trailer revenues increased 36 percent versus 1H 2017, and Spireon secured or grew business with several notable enterprise customers including Transervices, Contract Leasing Corp. and Ryder System, Inc. (NYSE:R). Spireon’s fleet business in the small and mid-market segments also grew in 1H 2018, with 45 percent increase in device shipments year over year.
Partnerships with leading brands and resellers extended the reach of Spireon fleet solutions, and included:
GM – Spireon launched their FleetLocate Connected by OnStar solution in mid-2017, enabling customers with OnStar-equipped GM vehicles to gain instant access to the FleetLocate platform without added costs or installation time associated with aftermarket devices. In 1H 2018, the company achieved 27 percent growth in activations versus 2H 2017
Ford Commercial Solutions—In June, Spireon partnered with Ford Commercial Solutions for FleetLocate to access data through Ford’s Transportation Mobility Cloud. As a result, fleet operators with Ford vehicles will be able to utilize FleetLocate with no aftermarket hardware required
FleetLocate Resellers— In 1H 2018, Spireon experienced 53 percent growth in fleet channel revenue from its largest reseller partner, and 73 percent increase in active subscriptions year over year. Overall, device shipments through the Company’s reseller channel have increased by 39 percent versus 1H 2017
Spireon improved its Net Promoter Score (NPS), a key measure of customer satisfaction and loyalty, to 71, far surpassing the industry average of 21.4 for business-to-business technology companies. Reinforcing the company’s commitment to outstanding service and support, Rashid Ismail joined the company in March as senior vice president of customer success.
Ongoing third-party recognition continued to underscore the excellence of Spireon’s service, support and technology. Awards won in the first half of 2018 include:
Stevie® Awards for Sales & Customer Service—Silver Award for Customer Service Department of the Year in the 2018
Compass Intelligence Awards—IoT Vehicle Telematics Company of the Year in 2018
American Business Awards—Silver Award for Spireon’s NSpire version 3.0 IoT platform in the New Product of the Year category
“The Spireon team continues to raise the bar on achieving key business metrics—whether that is devices shipped, revenue, new customers or NPS scores—which is not an easy feat when looking at the company’s substantial transformation in recent years,” added Weiss. “Our unrivaled commitment to customer service, aggressive technology roadmaps and thriving partnerships have set us up for a strong finish to 2018.”
Spireon, Inc. is North America’s leading connected vehicle intelligence company, providing businesses and consumers with powerful insights to track, manage and protect their most valuable mobile assets. The award-winning Spireon NSpire platform supports nearly 4 million active subscribers across the company’s growing suite of products for new and used car dealers, lenders and financial institutions, rental car agencies, commercial and local fleet operators, and consumers. Learn more at www.spireon.com.
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