*Justin* schreef op 20 december 2014 13:02:
@beperktedijkbewaking
Investors may be tempted to compare TomTom Telematics with one of its largest listed FMS peers, Fleetmatics (Nasdaq: FLTX) in the USA. A comparison of the operating metrics shows that the two players are similar in size (450k–500k subs) and achieve similar growth rates (c. 30%), gross margins (c. 75%) and EBITDA margins (30–35%)
However, Fleetmatics displays an ARPU of USD40, twice that of TomTom Telematics, while its EBIT margins (20–25%) are roughly two-thirds those TomTom Telematics (30–35%).
Ultimately, the EBITDA/EBIT discrepancy boils down to D&A – c. 10% of revenue at Fleetmatics, vs only 2–3% at TomTom.
The main reason for the differences between the two resides in the differences in their business models. The two companies also pursue entirely different go-to-market strategies – which have significant P&L implications.
Fleetmatics offers multiple fleet management platforms as a full rental concept; this revenue model is perfectly adequate in the US market.
Fleetmatics thus pre-finances the hardware (hence significant capitalised hardware); its subscription price includes hardware rental, installation costs, sales costs and software (for a total ARPU of USD40). Consequently, the company has only one type of revenue (subscription), a high portion of which needs to be deferred. Pre-financed hardware needs to be amortised – hence the higher D&A (and lower EBIT margin) at Fleetmatics.
TomTom Telematics, on the other hand, has one legacy-free and fully scalable platform (WEBFLEET); it mostly sells the hardware upfront (i.e. receives the payment upfront) and charges the software subscription on a monthly basis. This explains the lower ARPU compared with Fleetmatics: TomTom’s ARPU refers solely to the SaaS component, whereas hardware has been paid upfront by the end-customer – a model favoured in Europe (TomTom now also offers a hardware rental model, that while still marginal is growing).
Finally, Fleetmatics has a different go-to-market strategy, with telesales out of several US-based call centres. TomTom’s Telematics relies on the indirect sales approach – i.e., selling through value added resellers and distributors (partners e.g., LoJack in the US and in markets outside of Europe).