Business
Karooooo achieves solid Q1 2024 results, delivering strong subscription revenue and subscriber growth
SINGAPORE--(BUSINESS WIRE)-- Karooooo, that owns 100% of Cartrack, a leading provider of insightful real-time data analytics and business intelligence,
About this update from Karooooo Ltd.
SINGAPORE --(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 View source version on businesswire.com : https://www.businesswire.com/news/home/20230719788271/en/ Investor Relations [email protected] +27 73 287 6064 or +65 6876 7900 Media [email protected] Source: Karooooo