Vehicle telematics firm Cartrack on Wednesday (23 October) reported a huge milestone for the group – hitting over 1 million subscribers.
Cartrack is a global software-as-a-service provider of mobility solutions for small, medium and large fleets and an insurance analytics, security and safety provider for both businesses and consumers.
The group’s primary offering lies in data analytics, with a growing focus on artificial intelligence and value-added services.
On Wednesday the company published its interim results for the six months ended August 2019, reporting a 19% increase in revenue from the comparable period to R938 million.
Subscribers were up 22% to 1.04 million, with a net addition of 189,198 customers year-on-year.
This pushed subscription revenue up 26% to R897 million (from R710 million before), with subscription revenue accounting for 96% of the group’s total revenue.
Other salient features include:
- Cash generated from operating activities of R446 million (HY19: R262 million), up 70%
- EBITDA of R480 million (HY19: R376 million), up 28%
- EBITDA margin of 51% (HY19: 48%)
- Operating profit of R316 million (HY19: R255 million), up 24%
- Operating profit margin of 34% (HY19: 32%)
- Basic earnings per share (‘EPS’) of 72.3 cents, up 28%
- Headline EPS (‘HEPS’) of 72.2 cents, up 28%
The group declared a half-year dividend per share of 20 cents (HY19: 18 cents).
According to Cartrack CEO and founder, Zak Calisto, the group’s results show a continued demand for technology platforms and growing trust in Cartrack’s capabilities.
“We have consistently delivered double-digit revenue growth and our subscription revenue has now reached a record level of 96% of total revenue.
“This growth is driven by a vibrant customer-centric sales culture and the increased adoption of our platforms,” he said.
The company operates in 23 countries across Africa, Europe, North America, Asia Pacific and the Middle East, with South Africa accounting for 27% of the group’s revenue.
The South African segment delivered subscription revenue growth of 26% from R519 million to R655 million, while subscribers grew by 23%.
Hardware revenue decreased by 56% compared to HY19 while subscription revenue now accounts for 96% of revenue.
EBITDA of R386 million grew 18% which was slightly faster than total revenue growth of 16% from R587 million to R682 million.
“The South African business was able to effectively maintain its operating costs as a result of significant investment in back-office systems. These proprietary systems will enable Cartrack to continue to compete and trade effectively in an economy with many untapped opportunities despite significant economic headwinds,” the group said.
Looking ahead, it said it would continue to meet the growing demand for data analytics while driving new applications aimed at vehicle cost accounting, mobile workforce management and customer relationship management.
It said it will leverage growth in the connected vehicles market, which it believes is underpenetrated while investing in its technology and information management platforms.