Cartrack owner Karooooo’s strong growth momentum in the number of subscribers continues.
The company, which owns 100% of the South African-based fleet telematics firm, says despite the disruption in sales caused by the social unrest experienced in July in SA and the global effects of the pandemic, its business model drove new customer additions, delivering growth in the total number of subscribers.
According to the company, it had 1 408 609 subscribers in total as of 31 August, up 20% (Q2 2021: 1 175 173). Its net subscriber additions increased 1% to 42 139 (Q2 2021: 41 626).
Total revenue increased 20% to R659 million (Q2 2021: R551 million), while subscription revenue increased 16% to R628 million (Q2 2021: R542 million).
Karooooo says, as planned, operating expenses increased 25% to R253 million compared to the second quarter of 2021 in preparation for future growth, with a significant recruitment drive focused mainly on sales, customer experience and research and development.
“We delivered consistent growth in the second quarter of 2022. Our growth momentum in the number of subscribers continued, translating into 20% growth in revenue in the second quarter of 2022, compared to the second quarter of our 2021 financial year,” says Zak Calisto, CEO and founder of Cartrack.
He notes that despite the ongoing pandemic, the social unrest experienced in SA in July and the currency headwinds, total revenue increased 24% on a constant currency basis (a non-IFRS measure).
“Our efforts and focus are to strategically build the leading mobility SaaS [software-as-a-service] platform that maximises the value of data. As the world evolves at pace, we believe that connectivity is the future and we now think beyond connected vehicles. We are investing for tomorrow in establishing a leading end-to-end all-inclusive mobility platform,” says Calisto.
“We believe there is a significant economic upside to the large data pool that we have built and continue to build. We contextualise billions of data points on a daily basis and contribute significant value to the day-to-day operations of our customers. Further, we believe there is significant untapped network effect value for other much-needed related services given the size of our subscriber base,” he adds.
Despite the significant strengthening of the South African rand (ZAR) in the first half of 2022 compared to the first half of 2021, which negatively impacted revenue earned given that the company reports in ZAR, “we are delighted that our growth expectations for 2022 remain unchanged”.
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