MiX Telematics Reports Mixed Q2 Results, Margins Contract, Dodges Outlook

MiX Telematics Ltd (NYSE:MIXT) reported second-quarter FY22 revenue growth of 16.6% year-on-year to $36.1 million, beating the consensus of $34.99 million.
Revenues from Subscription rose 11.8% Y/Y to $30.9 million, Hardware and other increased 56.1% Y/Y to $5.2 million.
The gross margin contracted 300 bps to 63.7% due to the increase in Hardware and other revenues, which carry lower margins than subscription revenue.
The operating margin contracted by 450 bps to 10.3%.
Non-GAAP earnings per ADS of $0.10 missed the consensus of $0.12.
The adjusted EBITDA margin contracted 680 bps to 21.9%.
MiX Telematics generated $5.9 million in operating cash flow and held $39.8 million in cash and equivalents.
Outlook: MiX Telematics suspended its practice of issuing financial guidance, citing uncertainty surrounding the level of business disruption due to the spread of COVID-19.
Price Action: MIXT shares closed lower by 0.69% at $12.86 on Wednesday.