Karooooo achieves solid Q1 2024 results, delivering strong subscription revenue and subscriber growth
July 19 2023 - 4:53PM
Business Wire
Karooooo, that owns 100% of Cartrack, a leading provider of
insightful real-time data analytics and business intelligence,
reported solid results for its first quarter ("Q1 2024") ended May
31, 2023. These consistent results extend the group’s track record
of growth at scale, profitability and cash generation over more
than a decade.
Assessing the results, Zak Calisto, CEO and Founder,
said:
“Despite the difficult macro-economic environment in South
Africa, we achieved strong subscription revenue growth and met our
planned growth expectations for the quarter.”
In Q1 2024, Karooooo’s total revenue grew 24% to ZAR997 million
(Q1 2023: ZAR801 million). Subscription revenue grew 18% to ZAR836
million (Q1 2023: ZAR709 million). ARR grew 20% to ZAR3,401 million
(Q1 2023: ZAR2,845 million).
Cartrack grew revenue by 18% to ZAR853 million (Q1 2023: ZAR724
million). Subscription revenue of ZAR834 million (Q1 2023: ZAR707
million) equated to 98% of total revenue.
Despite the group’s upfront customer acquisition and expansion
costs, earnings per share increased to a record ZAR5.09 for Q1
2024.
Free cash flow for the quarter bolstered Karooooo’s strong
balance sheet. Free cash flow for Q1 2024 increased 39% to ZAR158
million (Q4 2023: ZAR113 million). This healthy cash generation
drove up net cash and cash equivalents and supported cash outflows
for future growth. A cash working capital investment of ZAR19
million was made for Carzuka in this quarter, and ZAR32 million (Q4
2023: ZAR 30 million) to develop the South African central office
in Rosebank, Johannesburg. Net cash and cash equivalents at the end
of Q1 2024 were 18% higher at ZAR1,137 million (Q4 2023: ZAR 966
million).
Karooooo’s robust earnings, free cash flow generation, strong
and unleveraged balance sheet enabled the group to pay shareholders
a record cash dividend of USD 26.3 million (USD 0.85 per share) in
July 2023.
Karooooo's leading Operations Cloud powers the digital
transformation of over 108,000 commercial customers. The group has
shown a high rate of successful implementation and have a 95%
commercial customer retention across businesses of varying sizes in
diverse geographical markets and industries, including logistics,
field-service-maintenance, transport, finance, mining, agriculture,
and emergency services.
Full earnings and webinar details at www.karooooo.com
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