{"id":461038,"date":"2021-01-14T15:50:29","date_gmt":"2021-01-14T13:50:29","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=461038"},"modified":"2021-01-14T15:50:29","modified_gmt":"2021-01-14T13:50:29","slug":"a-south-african-tech-billionaire-is-plotting-european-and-us-domination","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/cloud-hosting\/461038\/a-south-african-tech-billionaire-is-plotting-european-and-us-domination\/","title":{"rendered":"A South African tech billionaire is plotting European and US domination"},"content":{"rendered":"

Cartrack, a global provider of vehicle telematics and recovery solutions, this week published a business update with solid performance for quarter three, despite the challenges of Covid-19.<\/p>\n

The company’s founder and group chief executive officer, is Zak Calisto, who still retains more than a two thirds shareholding in a company with a market cap that exceeds R15 billion.<\/p>\n

Cartrack has seen its share price double over the past year, and a lot more than that over a five year period, in which the company has increasingly targeted markets abroad. It employs over 2,500 people across 24 countries spanning five continents.<\/p>\n

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\u201cOur robust and predictable subscription-based business model, combined with our strategic broad industry approach and low customer and industry concentration risk has resulted in Cartrack delivering consistently strong year-on-year subscriber, subscription revenue and earnings growth,” said Calisto in a statement on Wednesday (13 January).<\/p>\n

He said that Cartrack experienced margin expansion as a result of lower than planned growth due to the pandemic-related constraints. “Though the business experienced strong free cash flows, management\u2019s preference would have been to invest significantly into higher growth.\u201d<\/p>\n

The group, Calisto said, is well positioned to weather the Covid-19 storm with 98% of revenues being recurring in nature, industry leading margins, strong cash flows and an unleveraged balance sheet.<\/p>\n

Cartrack delivered a strong performance across its key-growth-metrics, with subscription revenue growing by 18%, from R1.385 billion to R1.635 billion.<\/p>\n

Subscription revenue now represents 98% (97%) of total revenue as the trend of customers choosing the bundled SaaS platform contracts with no up-front fees continues.<\/p>\n

The number of total subscribers increased by 14% from 1,088,745 to 1,246,089 despite the distribution challenges that the Covid-19 pandemic posed.<\/p>\n

Regional results<\/strong><\/p>\n

South Africa reported subscription revenue growth of 17% from R1.013 billion to R1.182 billion and a subscriber growth of 14%.<\/p>\n

Asia Pacific is the second largest revenue contributor and the fastest growing segment in the group, with subscription revenue up by 26% from R167 million to R211 million and a subscriber growth of 25%.<\/p>\n

The European segment delivered subscription revenue growth of 32% from R124 million to R164 million with a subscriber growth of 13%.<\/p>\n

Cartrack, Calisto said, continues to evaluate its strategy to expand into the rest of Europe. Cartrack\u2019s investment in the US\u00a0 remains strategic in nature.<\/p>\n

Last week, the company announced that it plans to delist from the JSE and file for an initial public offering on the Nasdaq in the US.<\/p>\n

Cartrack said it had reached agreement with Karoooo, a company owned by Calisto, for Karoooo to acquire all Cartrack shares by way of a scheme of arrangement.<\/p>\n

The US listing, the company said, would:<\/p>\n