Karooooo, which owns 100% of Cartrack, is a leading provider of insightful real-time data analytics and business intelligence reported solid results for its third quarter ("Q3 2023") ended November 30, 2022. This performance continues the Group's more than ten-year track record of strong growth, profitability and cash generation in diverse macroeconomic environments.
Assessing the Q3 2023 results, Zak Calisto, CEO and Founder, said:
"We now have over 100,000 active commercial customers digitalizing and optimizing their operations on Karooooo's Operations Cloud. We have minimal customer or industry concentration risk and pride ourselves on consistent and strong subscription revenue growth.
We believe our vertically integrated business model and constant focus on product improvement and innovation differentiates us markedly from our peers. This should keep us competitive and reinforce our long-term success."
In Q3 2023, Karooooo's total revenue increased by 29% to ZAR930 million (Q3 2022: ZAR720 million). Following significant investments for future growth in all segments, earnings per share for the period were similar to last year, at ZAR4.70 (Q3 2022: ZAR4.72). Strong and record free cash flow generation from the company's profitable SaaS business model further strengthened the quality balance sheet, with net cash and cash equivalents at the end of November 2022 at ZAR819 million (Q3 2022: ZAR799 million). A cash dividend of USD18.6 million (USD0.60 per share) was paid to shareholders during the quarter.
Strong demand from small to large enterprises supported growth in subscribers (connected vehicles and equipment on the platform). Cartrack saw record growth of over 78,000 new subscribers in Q3 2023.
Full earnings and webinar details at www.karooooo.com
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