Karooooo Demonstrates Its Ability to Grow at Scale, Expand Margins and Deliver Record Earnings

“These results extend the group’s track record of robust growth at scale, profitability and cash generation over more than a decade.

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Provider: 
Business Wire, Inc.Business Wire, Inc.
Retrieved on: 
Monday, January 22, 2024
Information
Tags: 
Technology, Automotive, Professional Services, Software, Transportation, Data Analytics, IOT (Internet of Things), Artificial Intelligence, Travel, Fleet Management, Cloud, Temperature, ETAS, YTD, AI, ARR, Carbon, Acquisition, Safety, Internet of things, Growth, Video game
Geotags: 
ASIA PACIFIC, SINGAPORE
Stock Symbol: 
NASDAQ:KARO
Summary
Key Points: 
  • “These results extend the group’s track record of robust growth at scale, profitability and cash generation over more than a decade.
  • The group’s success is underpinned by an entrepreneurial, innovative, agile and customer-centric culture with a prudent capital allocation strategy focused on growth.
  • In Q3 2024, our subscription revenue grew 17% to ZAR904 million (Q3 2023: ZAR772 million) and ARR grew 20% to ZAR3,711 million (Q3 2023: ZAR3,097 million).
  • Cartrack continues to build on its track record of growing at scale and experienced strong customer acquisition in the quarter.


Karooooo, that owns 100% of Cartrack, a leading provider of data analytics and business intelligence, reported solid results for the third quarter ended November 30, 2023 (“Q3 2024”).

Zak Calisto, CEO and Founder:

“These results extend the group’s track record of robust growth at scale, profitability and cash generation over more than a decade. The group’s success is underpinned by an entrepreneurial, innovative, agile and customer-centric culture with a prudent capital allocation strategy focused on growth.

We remain confident that our track record of customer retention and our ability to continuously increase our value proposition puts us in a unique position to continue to increase our market share.”

Cartrack’s total subscriber base increased by 14% to 1,908,192 at November 30, 2023 (Q3 2023: 1,678,606), with net subscriber additions for the year-to-date up by 25% to 191,115 (YTD Q3 2023: 152,634).

In Q3 2024, our subscription revenue grew 17% to ZAR904 million (Q3 2023: ZAR772 million) and ARR grew 20% to ZAR3,711 million (Q3 2023: ZAR3,097 million).

Cartrack grew revenue by 14% to ZAR919 million (Q3 2023: ZAR804 million). Subscription revenue equated to 98% of total revenue. Cartrack continues to build on its track record of growing at scale and experienced strong customer acquisition in the quarter.

Despite making provisions in the quarter for Carzuka (with little to no impact expected on Karooooo’s operating profit and earnings per share going forward), Karooooo’s operating profit grew to ZAR275 million (Q3 2023: ZAR209 million), and earnings per share grew 35% to ZAR6.34 (Q3 2023: ZAR4.70).

Cartrack delivered a record operating profit of ZAR295 million, up 33%, in Q3 2024 (Q3 2023: ZAR222 million) with gross profit margin expansion to 73% (Q3 2023: 70%) and operating profit margin expansion to 32% (Q3 2023: 28%).

Cartrack’s Operations Cloud drives digital transformation for over 113,000 commercial customers with a 95% retention rate across diverse markets and industries. Before the day starts, Cartrack optimizes routes to slash daily mileage, and employees are enabled to succeed with app-based digital inspections and work schedules. For every kilometer travelled, AI cameras detect high-risk driving behaviour; IoT sensors track fuel, cargo weight, and temperature changes; ETAs are updated in real-time, and carbon emissions and maintenance timelines are automated. Karooooo's platform delivers elevated safety and compliance, with uncompromised productivity.

Full earnings: www.karooooo.com

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