Financial Data and Key Metrics Changes - In Q3 FY 2026, Karooooo's ARR increased by 22% to ZAR 5,106 million, and on a U.S. dollar basis, it increased by 28% to $298 million [4][20] - Total revenue for Q3 increased by 22% to ZAR 1,410 million, with subscription revenue rising by 20% to ZAR 1,239 million [7][19] - Operating profit increased by 14% to ZAR 369 million, and earnings per share rose by 11% to ZAR 8.55 [19][24] Business Line Data and Key Metrics Changes - Cartrack's subscription revenue grew by 20% to ZAR 1,236 million, accounting for 97% of its total revenue [20][21] - Karooooo Logistics' revenue reached ZAR 135 million, an increase of 24% [15][20] - Cartrack's operating profit margin was 28%, while Karooooo Logistics had a 7% operating profit margin [7][15] Market Data and Key Metrics Changes - South Africa represented 72% of total Cartrack subscription revenue, with a subscription revenue growth of 21% [11][12] - Southeast Asia and the Middle East saw a 14% increase in subscription revenue, while Europe experienced a 24% increase [13][14][22] - The total subscriber count increased by 16% to approximately 2.6 million, with record net additions of 111,000 in Q3 [10][21] Company Strategy and Development Direction - The company aims to strengthen its leadership position in South Africa by increasing the adoption of video solutions and Cartrack Tag among existing customers [16][27] - Karooooo is focused on expanding its distribution capabilities in Asia and Europe, with a strong emphasis on capital allocation for organic growth and innovation [17][28] - The company is committed to maintaining strong unit economics and profitability while pursuing growth opportunities in under-penetrated markets [4][17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the market opportunity in South Africa, highlighting a long runway for subscription growth [12][13] - The company noted that the appreciation of the South African rand has created a currency translation headwind on reported revenue, but underlying operating momentum remains strong [25][26] - Management remains focused on long-term growth and shareholder value, prioritizing investments in sales capacity and customer acquisition [17][28] Other Important Information - The company reported a net cash position of ZAR 531 million and maintained healthy debtor collection days at 31 days [24] - Karooooo's LTV to CAC ratio remains above nine times, indicating strong retention and efficient distribution [5][11] - The company plans to return surplus capital to shareholders through dividends when growth opportunities are not available [17] Q&A Session Summary Question: How is the headcount increase in Asia progressing? - The company is currently at around 40% of the targeted 70% increase, with many hires expected in January and February [30] Question: When will the investment in sales and marketing stabilize? - The stabilization will depend on the efficiency of sales and marketing strategies, with plans to continue increasing investment given the large addressable market [31] Question: How far along is the cross-selling of Tag and video in South Africa? - The company is in the early stages of cross-selling and expects stronger momentum in the next financial year [32] Question: What drove the strong pickup in South Africa subscriber growth? - Subscriber growth is in accordance with the plan, driven by increased footprint and execution capabilities [36] Question: How does the Volkswagen OEM integration impact European growth? - The integration allows for quicker vehicle onboarding to the platform, although operational issues with OEM telemetry devices remain [40]

Financial Data and Key Metrics Changes - In Q3 FY 2026, Karooooo's ARR increased by 22% to ZAR 5,106 million, and in U.S. dollars, it increased by 28% to $298 million [4][20] - Total revenue for Q3 increased by 22% to ZAR 1,410 million, with subscription revenue rising by 20% to ZAR 1,239 million [7][19] - Operating profit increased by 14% to ZAR 369 million, and earnings per share rose by 11% to ZAR 8.55 [19][22] Business Line Data and Key Metrics Changes - Cartrack's subscription revenue grew by 20% to ZAR 1,236 million, comprising 97% of its total revenue [20][22] - Karooooo Logistics' revenue reached ZAR 135 million, an increase of 24%, with a 7% operating profit margin [15][20] - Cartrack's operating profit margin was 28% in Q3, reflecting strong financial performance [6][8] Market Data and Key Metrics Changes - South Africa represented 72% of total Cartrack subscription revenue, with a growth rate of 21% in Q3 [11][12] - Southeast Asia and the Middle East saw a 14% increase in subscription revenue, while Europe experienced a 24% growth [13][14][22] - The total subscriber base increased by 16% to approximately 2.6 million, with record net additions of 111,000 in Q3 [10][21] Company Strategy and Development Direction - The company aims to strengthen its leadership position in South Africa by increasing the adoption of video solutions and Cartrack Tag among existing customers [16][27] - Karooooo is focused on expanding its distribution capabilities in Asia and Europe, with a strong emphasis on capitalizing on the growing demand for video capabilities, including AI video [16][28] - The capital allocation framework prioritizes organic growth and innovation, with a commitment to returning surplus capital to shareholders when growth opportunities are limited [17][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the market opportunity in South Africa, indicating a long runway for subscription growth [12][27] - The company noted that the appreciation of the South African rand has created a currency translation headwind on reported revenue, but underlying operating momentum remains strong [25][26] - Management remains focused on long-term growth, emphasizing the importance of customer retention and service over strict adherence to contract terms [43][50] Other Important Information - The company reported a strong balance sheet with net cash and cash equivalents of ZAR 531 million [10][24] - Year-to-date adjusted free cash flow increased by 37% to ZAR 597 million, reflecting the strength of the operating model [23][24] Q&A Session Summary Question: How are we doing with the 70% increase in headcount in Asia? - The company is currently at around 40% and expects to reach the target by the end of Q4 as many hires are planned for January and February [30] Question: When will our investment in sales and marketing stabilize? - The stabilization will depend on the efficiency of sales and marketing strategies, which will continue to be increased given the large addressable market [31] Question: How far along are we in the cross-selling tag and video cycle in South Africa? - The company is in the early stages and anticipates stronger momentum in the next financial year [32] Question: How do you see market demand today relative to sales execution in key markets? - Sales and marketing have been substantially increased this year, and the company is seeing strong productivity in key markets [33] Question: Can you address adoption trends for AI camera penetration rates per region? - Adoption is strong in South Africa, but the company believes it is still early days for broader adoption [34] Question: Is the market saturated for Carelli in Europe or Southeast Asia? - The company believes it is early days in the e-commerce space and does not consider the market saturated [35] Question: How has the shift from used vehicle sales to new vehicle sales in South Africa impacted subscriptions? - The impact is considered insignificant as customer acquisition is based on existing vehicles [37] Question: How do you think about growth versus margin trade-off? - The company focuses on long-term value for shareholders, viewing upfront costs as temporary and necessary for future revenue [38] Question: What are the drivers for subscription ARPU growth in South Africa? - Continuous improvements in technology and service have been key drivers, with no significant changes in strategy [49]

Financial Data and Key Metrics Changes - In Q3 FY 2026, the company's Annual Recurring Revenue (ARR) increased by 22% to ZAR 5,106 million, and on a US dollar basis, it increased by 28% to $298 million [4][22] - Total revenue for Q3 increased by 22% to ZAR 1,410 million, with subscription revenue rising by 20% to ZAR 1,239 million [8][21] - Operating profit increased by 14% to ZAR 369 million, and earnings per share rose by 11% to ZAR 8.55 [21][24] Business Line Data and Key Metrics Changes - Cartrack, the primary operating segment, generated approximately ZAR 1.2 billion in subscription revenue, reflecting a 20% increase or 27% on a US dollar basis [6][22] - Karooooo Logistics reported Delivery-as-a-Service revenue of ZAR 135 million, an increase of 24% or 31% on a US dollar basis [8][17] - Cartrack's operating profit margin was 28% in Q3, while Karooooo Logistics had a 7% operating profit margin [8][17] Market Data and Key Metrics Changes - South Africa represented 72% of total Cartrack subscription revenue, with subscription revenue growth accelerating to 21% [12][23] - Southeast Asia and the Middle East saw a 14% increase in subscription revenue, while Europe experienced a 24% increase [15][16][24] - The company ended Q3 with approximately 318,000 subscribers in Southeast Asia and the Middle East, a 20% increase [15] Company Strategy and Development Direction - The company aims to strengthen its leadership position in South Africa by driving the adoption of video solutions and Cartrack Tag within its existing customer base [18][30] - There is a focus on expanding distribution capabilities in Asia and Europe, with ongoing investments in sales capacity expected to yield positive results [18][30] - The capital allocation framework prioritizes organic growth and innovation, with a commitment to returning surplus capital to shareholders when growth opportunities are limited [19][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the market opportunity in South Africa, indicating a long runway for subscription growth [15][30] - The company noted that the appreciation of the South African rand has created a currency translation headwind on reported revenue, but underlying operating momentum remains strong [28] - The outlook for FY 2026 Cartrack subscription revenue has been revised to between ZAR 4,785 million and ZAR 4,900 million, implying growth between 18% and 21% [29] Other Important Information - The company reported a strong balance sheet with net cash and cash equivalents of ZAR 531 million [11][26] - The subscription gross margin was 73%, and the lifetime value to customer acquisition cost (LTV to CAC) ratio remained above nine times [12][25] - The company has a disciplined approach to capital allocation, focusing on sustainable growth and shareholder value [19][20] Q&A Session Summary Question: How is the headcount increase in Asia progressing? - The company is currently at around 40% of the targeted 70% increase, with many hires expected in January and February [32] Question: When will investment in sales and marketing stabilize? - The stabilization depends on the efficiency of sales and marketing strategies, with plans to continue increasing investment given the large addressable market [32] Question: How far along is the cross-selling of tag and video in South Africa? - The company is in the early stages of cross-selling and expects stronger momentum in the next financial year [33] Question: What are the drivers of acceleration in subscriber growth? - The acceleration is attributed to increased sales and marketing efforts, with strong productivity in key markets [34] Question: How does the company view the competitive landscape for AI camera adoption? - The company feels comfortable competing with peers and believes adoption will strengthen over time [36] Question: What impact does the strong South African rand have on operations? - The strong rand has a mixed impact, positively affecting production costs but negatively impacting reported revenue in rands [43] Question: Is the subscriber growth in South Africa diluting ARPU growth? - On a group level, ARPU growth remains on track, with slight lagging expected but overall performance is largely on target [51]

Q3 2026 Earnings Presentation January 21, 2026 1 Today's Presenters Zak Calisto Group CEO & Founder Goy Hoeshin Group CFO All information provided in this presentation is as of the date of this presentation, and we do not undertake any duty to update such information, except as required under applicable law. Non-IFRS Financial Measures This presentation includes certain non-IFRS financial measures, including ARR, ARPU, adjusted EBITDA, adjusted EBITDA margin, adjusted free cash flow and adjusted EPS. These ...

Core Insights - Karooooo Limited reported strong financial results for Q3 2026, highlighting a positive outlook and consistent growth in subscription revenue and net subscriber additions [1][2] Financial Performance - Cartrack's quarterly subscription revenue increased by 20% year-over-year to ZAR1,236 million, while annualized recurring revenue (ARR) grew by 22% to ZAR5,106 million, marking an acceleration from the previous year's growth rates of 14% for both metrics [3][6] - The ARR in USD also saw significant growth, increasing by 28% year-over-year to USD298 million [3][6] - The number of Cartrack subscribers rose by 16% year-over-year to 2.6 million, with net subscriber additions reaching a record of 111,478, up 29% year-over-year [6] Growth Strategy - The acceleration in growth was driven by significant customer expansion and increased adoption of Video and Cartrack Tag solutions [4] - The company emphasizes the importance of efficient execution of growth strategies supported by strong unit economics and a healthy balance sheet to enhance long-term shareholder value [4][5] Future Outlook - Ongoing investments in distribution capacity are expected to create sustainable advantages beyond the current financial year [5] - The company remains committed to disciplined capital allocation and maintaining a vertically integrated and open operating culture [5]

Core Viewpoint - Karooooo Limited, which fully owns Cartrack and holds an 81% stake in Karooooo Logistics, is set to release its Third Quarter 2026 Financial Results on January 20, 2026, after 04:00 p.m. Eastern Time [1] Group 1 - The Company will host a Zoom webinar on January 21, 2026, at 08:00 a.m. Eastern Time to discuss the financial results [1]

Core Insights - Donovan Jones is an IPO research specialist with 15 years of experience in identifying high-quality IPO opportunities [1] - He leads the investing group IPO Edge, which provides actionable information on growth stocks through various resources including IPO filings, previews, calendars, and a comprehensive guide to IPO investing [1] Group 1 - IPO Edge offers a database of U.S. IPOs and tracks upcoming IPOs, providing investors with essential information throughout the IPO lifecycle [1] - The group emphasizes the importance of understanding the entire process from filing to listing, including quiet periods and lockup expiration dates [1]

Summary of Karooooo (NasdaqCM:KARO) Conference Call - December 09, 2025 Company Overview - **Company**: Karooooo, a SaaS platform specializing in telematics, fleet management, AI video, and logistics solutions - **Subscribers**: Over 2.4 million across 24 regions - **Recent Financial Performance**: 20% increase in subscription revenue with a 29% operating profit margin [2][37] Key Insights Market Position and Competition - **South Africa**: Largest market, generating nearly 70% of revenue; holds a 40% market share despite entering the market 10 years after competitors [2][3] - **Competitors**: In South Africa, competes with Powerfleet, Geotab, and local firms like Netstar, Ctrack, and Tracker [2][4] - **Asia**: Fastest-growing region with a focus on hiring and expanding sales teams; currently accounts for 20% of revenue and growing at mid-20% on a constant-currency basis [8][29] - **Europe**: Operates in Portugal, Poland, and Spain with healthy growth rates in the low 20s [9] Growth Strategy - **Sales Hiring**: Plans to increase sales headcount in Asia by 70% year-over-year; currently at 38% growth [10][11] - **Product Cross-Selling**: Focus on selling new products (Cartrack Tag and Video) to existing customers in South Africa, contributing to subscriber growth [8][50] - **ARPU Growth**: Targeting a 10% increase in ARPU in South Africa, with a consolidated goal of around 6% [23][25] Product Development - **Video-Based Safety Solutions**: Significant potential for ARPU uplift (2-4x) with a similar operating profit margin to conventional offerings; adoption is increasing among SMEs [17][18] - **Asset Management Solutions**: New product focusing on monitoring industrial equipment, expanding customer base beyond vehicles [20][27] Financial Performance and Projections - **Revenue Growth Guidance**: FY25 subscription revenue growth of 15%, with guidance for FY26 at 16%-21% [7][37] - **Operating Margins**: Current operating profit margins at 29%, with potential to reach 40% if growth stabilizes [18][38] - **Cash Flow Management**: Focus on reinvesting in the business, paying dividends, and considering M&A opportunities [39][40] Market Dynamics - **OEM Partnerships**: Engaging with 20 OEMs, primarily in early stages; potential for significant growth as OEM technology matures [44][46] - **Southeast Asia Market**: Under-penetrated market with rapid adoption of technology; aggressive marketing and sales expansion are key drivers [29][30][32] Investor Insights - **Unique Financial Profile**: 20% growth with 30% operating profit margin is rare among small-cap companies; this aspect is often underappreciated by investors [51][52] - **Long-Term Strategy**: Focus on cementing leadership in South Africa while exploring growth opportunities in existing markets rather than entering new geographies hastily [34][35] Additional Considerations - **Sales Challenges**: Difficulty in hiring quality sales personnel; emphasis on training and maintaining staff quality [12][14] - **Market Education**: Importance of educating potential customers about the benefits of technology and use cases to drive adoption [32][33] This summary encapsulates the key points discussed during the conference call, highlighting Karooooo's market position, growth strategies, financial performance, and investor insights.

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Summary of Karoooo's Conference Call Company Overview - **Company Name**: Karoooo - **Business Model**: Operates Cartrack, a SaaS platform focusing on telematics, fleet management, AI, vision, and logistics - **Subscribers**: 2.5 million across 24 countries - **Recent Performance**: 20% subscription revenue growth and 29% operating profit growth in the last quarter [5][12][30] Market Position and Competition - **Geographic Focus**: - **South Africa**: Largest market, generating approximately 70% of revenue, with 1.85 million subscribers - **Asia**: Fastest-growing segment, competing with smaller companies - **Europe**: Operations in Portugal, Poland, and Spain, competing against Geotab and Powerfleet - **Market Share**: 40% market share in South Africa despite entering the market 10 years after competitors [6][10][12] Growth Opportunities - **South Africa**: - Significant growth potential with a vehicle pool of approximately 13 million - New product launch: Cartrack Tag for asset monitoring, contributing to upsell opportunities [10][11][12] - **Asia**: - Plans to increase sales headcount by 70% to drive subscription revenue growth into the mid- to high 20s percentage range [13][16] - **Cross-Selling Initiatives**: Focus on selling new products (Tag and video solutions) to existing customers to enhance long-term business health [18][24] Financial Performance - **Recent Growth Metrics**: - Q2 subscription revenue growth: 20% - Subscriber growth: 15% - ARPU growth: 4% [24][27] - **Future Guidance**: - Subscription revenue growth guidance for FY 2026: 16%-21% - Expected ARPU growth in South Africa: up to 10% year-over-year [17][27] Challenges and Considerations - **Subscriber Growth Deceleration**: Noted a 150 basis points deceleration in subscriber growth, attributed to resource allocation towards selling new products rather than macroeconomic factors [9][49] - **Margin Concerns**: Operating profit margin decreased by 50 basis points year-over-year, but the company views this as a trade-off for accelerated growth [30][34] - **Investment in Sales Capacity**: Increased sales and marketing expenses by 34% in Q2 to support growth initiatives [30][31] Strategic Focus - **Innovation and Customer Retention**: Emphasis on continuous innovation to meet customer needs and maintain strong retention rates [51] - **Autonomous Vehicles**: Viewed as an opportunity rather than a disruption, with plans to integrate related solutions into the platform [48] Additional Insights - **Cultural Aspect**: The unique spelling of "Karoooo" reflects the founder's vision and the company's culture of innovation and disruption [54][56]