South Africa's Karooooo Q3 SaaS ARR rises 28%

Overview

• South African telematics firm's Q3 SaaS ARR in USD grew 28% Y/Y to $298 mln

• Cartrack subscription revenue increased 20% Y/Y to ZAR 1,236 mln

• Company saw record net Cartrack subscriber additions, up 29% Y/Y

Outlook

• Company expects ongoing investment in distribution capacity to create durable advantages

• Karooooo remains committed to disciplined capital allocation and strong unit economics

Result Drivers

• CUSTOMER EXPANSION - Significant customer expansion and increased adoption of Video and Cartrack Tag solutions drove ARR and subscriber growth

• SUBSCRIBER GROWTH - Record net Cartrack subscriber additions, up 29% Y/Y, supported by accelerated growth strategy

• GROWTH STRATEGY - Accelerated growth strategy involves upfront growth-related expenses with future revenue realization, supported by strong unit economics

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the it services & consulting peer group is "buy"

• Wall Street's median 12-month price target for Karooooo Ltd is $60.00, about 28.2% above its January 16 closing price of $46.80

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 26 three months ago

Press Release: ID:nBw4lG5C7a

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