SINGAPORE--(BUSINESS WIRE)--
Karooooo, which owns 100% of Cartrack, is a leading provider of insightful real-time data analytics and business intelligence. Karooooo maximizes the value of data through its IoT SaaS cloud, with an offering that extends beyond connected vehicles and equipment to assisting more than 95,000 diverse enterprise customers (Q2 2022: 83,000+) in solving their day-to-day challenges.
Assessing the Q2 2023 results, Zak Calisto, CEO and Founder, said:
“The solid and expected growth in both revenue and earnings in a challenging environment confirms our value proposition and cements our decade-plus track record of strategically investing for the future while scaling, growing and generating strong profits. Total revenue was up 30% to ZAR859 million for the quarter (Q2 2022: ZAR659 million). Revenue growth resulted in Adjusted EBITDA for the period increasing 27% to ZAR377 million (Q2 2022: ZAR298 million) and earnings per share increasing 28% to ZAR4.93 (Q2 2022: ZAR3.85).
Strong free cash flow generation bolstered our robust and clean balance sheet, with net cash and cash equivalents at an all-time high of over ZAR1 billion at the end of Q2 2023 (Q1 2023: ZAR854 million), a significant milestone. This high-cash generation places Karooooo in a unique position.
Cartrack’s total net subscriber additions for Q2 2023 was up 36% compared to Q2 2022 and well above that recorded for any prior full second quarter. The hard work in establishing the brand in Southeast Asia continues to gather momentum where we are continuously acquiring enterprise customers of various sizes and industries. In spite of current difficult trading conditions in South Africa, we experienced strong performance in the quarter which demonstrates resilience.
Looking ahead, we believe Karooooo is well positioned for growth operating in a growing and largely underpenetrated market, with strong demand from customers across diverse industries seeking software solutions to successfully digitalize their businesses and improve their operational performance. Our mission is to be the leading on-the-ground Operations Cloud.
Our proven, robust and consistently profitable business model, underpinned by a strong balance sheet and healthy cash position, gives us multiple levers for expansion. Our investment in marketing and sales, coupled with the realization of economies of scale across our business segments, is expected to generate robust results in the future.”
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