Financial Data and Key Metrics Changes - In Q1 FY26, annual recurring revenue (ARR) increased 18% to 4,574 million ZAR and 24% to $254 million on a U.S. Dollar basis [5] - Total revenue for Q1 reached 1,277 million ZAR, an increase of 18%, with subscription revenue also increasing by 18% to 1,141 million ZAR [11][29] - Earnings per share rose 19% to 8.55 ZAR [15][34] - The company maintained a strong balance sheet with net cash and cash equivalents of 1,103 million ZAR [16] Business Line Data and Key Metrics Changes - Kartrak's subscription revenue grew 19% to 1,138 million ZAR, with an operating profit margin of 30% [11][30] - Karoo Logistics generated delivery as a service revenue of 121 million ZAR, an increase of 20% [10][22] - The total subscriber base increased by 17% to approximately 2,400,000 [11][32] Market Data and Key Metrics Changes - South Africa's subscription revenue growth accelerated to 16%, contributing 70% of total subscription revenue [17] - Southeast Asia and the Middle East saw subscription revenue growth accelerate to 30%, with a subscriber base of approximately 290,000 [20] - European subscription revenue growth accelerated to 22%, now comprising 10% of total subscription revenue [21] Company Strategy and Development Direction - The company aims to strengthen its leadership position in South Africa while expanding its distribution footprint in Asia and Europe [23][24] - Capital allocation strategy prioritizes organic growth and innovation, with a disciplined approach to M&A [25][26] - The company is focused on increasing ARPU in South Africa and expanding its sales headcount by 70% by February 2026 [20][24] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory for both consumer and commercial customers in South Africa [41] - The company does not foresee significant impacts from U.S. tariffs on its Southeast Asia operations, attributing growth to local market engagement [41] - Management reaffirmed the FY26 growth outlook, emphasizing the importance of strategic investments in sales and marketing [36] Other Important Information - The company reported a healthy subscription gross margin of 74% and a customer retention rate of 95% [16] - Free cash flow generation resumed, benefiting from disciplined working capital management [34] - The company plans to return surplus capital to shareholders primarily through dividends [26] Q&A Session Summary Question: Subscriber growth trajectory in South Africa - Management noted strong traction in both commercial and consumer customer growth, expecting this to continue throughout the year [41] Question: Impact of U.S. tariffs on Southeast Asia subscriber growth - Management believes that local economic growth is driving adoption rather than U.S. tariffs [41] Question: Cross-selling initiatives and their impact on ARR growth - Management aims for a 6% increase in ARPU this year, with good progress noted in Q1 [42] Question: Expansion strategy in Southeast Asia versus Africa - Management indicated that Southeast Asia presents a larger market opportunity compared to Africa [44] Question: Mix between subscriber growth and cross-selling initiatives - Management reported a 2% uplift from cross-selling, with expectations for this to increase by Q4 [45] Question: Hiring capacity plans and their impact on subscription growth - Management expects a correlation between increased sales staff and subscriber growth, targeting a 28% increase in Asia [48] Question: Contract performance rollout in South Africa - Management highlighted significant progress with the contract tag, viewing it as a game changer [53] Question: Effective tax rate and its outlook - Management noted benefits from profitable entities that previously had tax losses [54]

Financial Data and Key Metrics Changes - In Q1 FY26, total revenue increased by 18% to 1,277 million ZAR, with subscription revenue also rising by 18% to 1,141 million ZAR [11][28] - Annual recurring revenue (ARR) grew by 18% to 4,574 million ZAR, and on a U.S. Dollar basis, it increased by 24% to $254 million [5][13] - Earnings per share (EPS) rose by 19% to 8.55 ZAR [15][33] - The company maintained a strong balance sheet with net cash and cash equivalents of 1,103 million ZAR [16][34] Business Line Data and Key Metrics Changes - Kartrak, the operations management SaaS platform, generated subscription revenue of 1,100 million ZAR, an increase of 19% [7][29] - Karoo Logistics, the delivery as a service offering, reported revenue of 121 million ZAR, up 20% [10][22] - Kartrak's operating profit margin remained stable at 30% despite increased investments in sales capacity [11][15] Market Data and Key Metrics Changes - South Africa's subscription revenue growth accelerated to 16%, contributing 70% of total subscription revenue [17][21] - Southeast Asia and the Middle East saw subscriber growth accelerate to 22%, with subscription revenue growth reaching 30% [18][19] - European subscription revenue growth accelerated to 22%, now accounting for 10% of total subscription revenue [20][21] Company Strategy and Development Direction - The company aims to strengthen its leadership position in South Africa while expanding its distribution footprint in Asia and Europe [23][24] - A disciplined capital allocation strategy prioritizes organic growth and innovation, with a focus on returning capital to shareholders when growth opportunities are limited [25][26] - The company is committed to maintaining a strong financial profile while pursuing profitable growth opportunities in underpenetrated markets [4][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory for both consumer and commercial customers in South Africa [41] - The company does not foresee significant impacts from U.S. tariffs on its Southeast Asia operations, attributing growth to local market dynamics [41] - Management reaffirmed the FY26 growth outlook, emphasizing the importance of strategic investments in sales and marketing [35][36] Other Important Information - The company reported a healthy subscription gross margin of 74% and a customer retention rate of 95% [16][28] - Free cash flow generation resumed, benefiting from disciplined working capital management [33][34] Q&A Session Summary Question: Subscriber growth trajectory in South Africa - Management noted strong traction in both commercial and consumer customer growth, expecting this trend to continue [41] Question: Impact of U.S. tariffs on Southeast Asia subscriber growth - Management believes that local economic growth is driving subscriber growth, not U.S. tariffs [41] Question: Cross-selling initiatives and their impact on ARR and ARPU - Management aims for a 6% increase in ARPU this year, with good progress made in Q1 [43] Question: Expansion strategy in Southeast Asia versus Africa - Management indicated that the market opportunity in Southeast Asia is larger than in Africa, driving the expansion strategy [44] Question: Mix between subscriber growth and cross-selling initiatives - Management reported a 2% uplift from cross-selling, with expectations for further increases as initiatives gain momentum [45] Question: Hiring capacity plans and their impact on subscription growth - Management expects a correlation between increased sales staff and subscriber growth, targeting a 28% increase in subscriber growth with a 70% increase in sales staff [47] Question: Contract performance rollout in South Africa - Management highlighted significant progress with the contract tag, viewing it as a game changer in the marketplace [52]