Financial Data and Key Metrics Changes - Annual recurring revenue (ARR) increased 20% to ZAR 4,806 million, and on a U.S. dollar basis, increased 21% to $272 million [4] - Total revenue of ZAR 1,344 million increased 21%, with subscription revenue of ZAR 1,182 million increasing 20% [7] - Operating profit increased 18% to ZAR 356 million, and adjusted earnings per share increased 13% to ZAR 8.28 [16][20] Business Line Data and Key Metrics Changes - Cartrack generated approximately ZAR 1.2 billion in subscription revenue, an increase of 20% [5] - Karooooo Logistics's delivery-as-a-service revenue reached ZAR 139 million, an increase of 38% [6][12] - Cartrack's operating profit margin was a healthy 29% in Q2 [9] Market Data and Key Metrics Changes - South Africa's subscription revenue growth accelerated to 18%, contributing 71% of total subscription revenue [10] - Southeast Asia and the Middle East subscription revenue growth increased 26%, with approximately 303,000 subscribers [11] - European subscription revenue accelerated to 27%, with approximately 216,000 subscribers [12] Company Strategy and Development Direction - The company focuses on expanding its distribution capabilities and enhancing customer engagement through video solutions and AI [14][21] - Strategic investments in sales capacity are aimed at accelerating organic growth and broadening the customer base [10][22] - The company prioritizes organic growth and innovation while maintaining a disciplined capital allocation strategy [14][15] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate healthy cash flow and sustain growth in an expanding market [21] - The company is encouraged by the strong performance and believes it is well-positioned for future growth due to robust customer demand [21][22] - Management acknowledged the challenges in scaling operations but remains focused on building teams to meet demand [24][27] Other Important Information - The company ended Q2 with net cash and cash equivalents of ZAR 393 million [9] - The total subscriber base reached approximately 2.5 million, an increase of 15% [7][9] - The company paid a total cash dividend of approximately $38.6 million to shareholders [21] Q&A Session Summary Question: Can you talk about the touch rates on newer offerings and ARPU growth? - The company has grown ARPU by 4%, with a target of 10% growth in South Africa [24][25] Question: How does the sales capacity compare to demand? - The company is experiencing more demand than it can deliver, indicating a need to build teams faster [25][26] Question: What is the market penetration in each region? - South Africa is estimated at 35%, Europe at 20%-25%, and Asia at under 10% [34][35] Question: How is AI being utilized in scaling go-to-market efforts? - AI is being explored for efficiency, but there are challenges in customer acceptance in certain markets [36]