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] - 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's 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 due to the need for sufficient teams to meet demand [24][26] Other Important Information - The company reported a commercial customer retention rate of 95% and a subscription growth margin of 72% [9] - The balance sheet remains strong with net cash and cash equivalents of ZAR 393 million [9][20] - The company aims to return surplus cash to shareholders primarily through an annual dividend [14] 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]

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][17] - Total revenue of ZAR 1,344 million increased 21%, with subscription revenue of ZAR 1,182 million increasing 20% [7][17] - Operating profit increased 18% to ZAR 356 million, with an operating profit margin of 29% [7][17] - Adjusted earnings per share increased 13% to $0.0828 [17][21] Business Line Data and Key Metrics Changes - CARTRACK's subscription revenue increased 20% to approximately ZAR 1.2 billion, with a 29% operating profit margin [5][19] - Karooooo Logistics revenue reached ZAR 139 million, an increase of 38% [6][13] - CARTRACK's total subscribers increased 15% to approximately 2.5 million [9][19] Market Data and Key Metrics Changes - South Africa's subscription revenue growth accelerated to 18%, comprising 71% of total subscription revenue [10][20] - Southeast Asia and the Middle East subscription revenue growth increased to 26%, with approximately 303,000 subscribers [11][20] - European subscription revenue growth accelerated to 27%, with approximately 216,000 subscribers [13][20] Company Strategy and Development Direction - The company focuses on expanding its distribution capabilities and enhancing customer engagement through video solutions and CARTRACK tag [15][22] - Strategic investments in sales capacity are aimed at supporting future growth and improving customer acquisition [15][23] - The company prioritizes organic growth and innovation, with a disciplined capital allocation strategy [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate sustainable cash flow and maintain strong growth in an expanding market [22] - The company is encouraged by the acceleration in subscription revenue growth and remains committed to achieving FY2026 growth ambitions [23][24] - Management acknowledged the challenges in scaling operations due to high demand and the need for sufficient sales teams [25][29] Other Important Information - The company reported a net cash position of ZAR 393 million and healthy debtor collection days at 31 days [9][21] - The company aims to return surplus cash to shareholders through dividends when growth investments are not feasible [15][22] 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 [26] Question: How does the new sales capacity compare to demand? - The company is experiencing more demand than it can deliver, indicating a need to build teams faster [27][29] Question: What is the market penetration in each region? - South Africa is estimated at 35%, Europe at 20-25%, and Asia under 10% [36][37] Question: How is AI being utilized in scaling go-to-market efforts? - AI is being explored, but there are challenges in customer acceptance in certain markets [38]

Financial Data and Key Metrics Changes - In Q2 FY26, total revenue increased by 21% to ZAR1,344 million, with subscription revenue rising by 20% to ZAR1,182 million [11][24] - Operating profit increased by 18% to ZAR356 million, and adjusted earnings per share rose by 13% to ZAR8.28 [25][30] - Annual recurring revenue (ARR) grew by 20% to ZAR486 million, and on a U.S. Dollar basis, it increased by 21% to USD272 million [5][6] Business Line Data and Key Metrics Changes - Kartrak's subscription revenue grew by 20% to ZAR1,204 million, with a healthy operating profit margin of 29% [8][25] - Karoo Logistics revenue reached ZAR139 million, marking a significant increase of 38% [10][19] - Subscription revenue from Kartrak accounted for 98% of its total revenue, indicating a strong reliance on subscription-based income [25] Market Data and Key Metrics Changes - South Africa's subscription revenue growth accelerated to 18%, contributing 71% of total subscription revenue [16] - Southeast Asia and the Middle East saw a subscription revenue growth of 26%, with a total of approximately 303,000 subscribers [17] - European subscription revenue growth accelerated to 27%, with 216,000 subscribers in the region [18] 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 [20][21] - There is a focus on capital allocation towards organic growth and product innovation, with a disciplined approach to M&A [22][23] - The company is committed to enhancing its distribution capabilities and increasing product adoption among existing customers [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying demand driven by digital transformation and the need for operational efficiency [32] - The company anticipates continued growth in subscription revenue, supported by strategic investments in sales and marketing [33] - There is a recognition of the bottleneck in customer onboarding and cross-selling due to insufficient team capacity [35][39] Other Important Information - The company reported a net cash position of USD393 million, reflecting a strong balance sheet [31] - The subscription gross margin was 72%, with a lifetime value to customer acquisition cost (LTV to CAC) ratio remaining above 9x [15][14] Q&A Session Summary Question: Can you talk about the tax rates you're seeing on some of your newer offerings? - The company has grown its average revenue per user (ARPU) by 4%, with expectations to grow ARPU in South Africa by 10% [35] Question: How do you think about drivers of momentum in the market? - The company has been focused on recruiting and building teams to support new customer acquisitions and cross-selling [39] Question: What did you see from vision attach rate by geo? - Most sales currently come from the existing customer base, with video sales accounting for about 10% of total sales [40] Question: How is the change in mix shift towards videos impacting gross margins? - Gross margins have remained in the range of 70% to 74%, with a slight decrease to 72% this quarter due to increased cost of sales [41] Question: How did your new sales reps compare to the existing base? - New sales reps typically take time to reach the performance levels of established salespeople [43] Question: How long do you expect elevated operating expenses to persist? - The company plans to continue investing in infrastructure and sales, indicating that elevated expenses may be a long-term strategy [44] Question: What is the estimated market penetration in each region? - South Africa is estimated to have a market penetration of about 35%, Europe around 25%, and Asia under 10% [46]

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 - The company's total subscription revenue increased by 16% to ZAR 1,086 million in Q4, and by 15% to ZAR 4,068 million for FY25 [37][38] - Operating profit rose by 30% to ZAR 385 million in Q4 and by 26% to ZAR 1,312 million for FY25 [38][39] - Adjusted earnings per share increased by 39% to ZAR 9.48 in Q4 and by 33% to ZAR 31.67 for FY25 [38][44] Business Line Data and Key Metrics Changes - Kartrak's subscription revenue grew by 16% to ZAR 1,084 million in Q4 and by 15% to ZAR 4,055 million for FY25 [39][40] - Karoo Logistics' revenue reached ZAR 420 million, an increase of 33% for FY25 [17][28] - Kartrak's operating profit margin was robust at 34% in Q4, while adjusted EBITDA margin was 48% [19][23] Market Data and Key Metrics Changes - South Africa's subscription revenue growth was 15% in Q4, while Southeast Asia's constant currency revenue growth accelerated to 31% [42][25] - Europe saw a 20% subscriber growth in Q4, with a 100 basis point quarter-on-quarter acceleration [27][28] - The company ended FY25 with over 1,700,000 subscribers in South Africa, representing 75% of the global subscriber base [24] Company Strategy and Development Direction - The company aims to expand its distribution footprint in Asia and Europe while enhancing customer engagement and capturing demand for video capabilities [34][49] - A focus on disciplined capital allocation and organic growth is emphasized, with plans to return surplus capital to shareholders when not reinvested for growth [35][49] - The launch of Car Track Tag is expected to enhance customer offerings and increase average revenue per user (ARPU) by approximately 10% by year-end [51][55] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute sales plans, citing strong momentum in the last six months and a normalization of hiring conditions post-COVID [58] - The outlook for FY26 includes expected subscription revenue growth between 16% to 21%, with operating profit margins projected between 26% to 31% [49] - The company remains optimistic about growth opportunities in all regions, particularly in Asia, which is viewed as having the highest growth potential [57] Other Important Information - The company generated significant free cash flow of ZAR 425 million in FY25, with a strong balance sheet and net cash position of ZAR 838 million [44][46] - The adjusted free cash flow decline in Q4 was attributed to strategic investments to support growth, not indicative of structural issues [45][46] - The company has a healthy subscription gross margin of 76% and a commercial retention rate of 95% [23] Q&A Session Summary Question: What is the reception of the Car Track Tag launch? - The product has been well received in South Africa, with substantial scale achieved and plans to expand to Asia next [52][53] Question: How will subscriber growth be driven in FY26? - The focus will be on enhancing customer offerings and increasing ARPU through existing customer sales [54][55] Question: What is the outlook for hiring and sales productivity? - The company plans to increase its sales force significantly, expecting improved productivity as new hires gain experience [56][62] Question: What is the strategy regarding net cash and dividends? - The company aims to allocate capital efficiently for growth, with dividends considered at the end of Q1 [60][61] Question: What is the view on share buybacks? - Share buybacks have been challenging due to low liquidity, and the focus will remain on other growth initiatives [61] Question: How does the company plan to achieve ARPU growth? - The expected ARPU growth is primarily driven by the adoption of new products like the camera and tag [59][62]

Financial Data and Key Metrics Changes - In Q4 FY25, total subscription revenue increased by 16% to ZAR 1,086 million, and on a U.S. dollar basis, it increased by 20% [37] - For FY25, total subscription revenue increased by 15% to ZAR 4,068 million, with a 19% increase on a U.S. dollar basis [38] - Adjusted earnings per share in Q4 increased by 39% to ZAR 9.48, while for FY25, it increased by 33% to ZAR 31.67 [38][44] - Operating profit in Q4 increased by 30% to ZAR 385 million, and for FY25, it increased by 26% to ZAR 1,312 million [38] Business Line Data and Key Metrics Changes - Kartrak generated ZAR 4,100 million in subscription revenue for FY25, a 15% increase or 19% on a U.S. dollar basis, with an operating profit margin of 31% [15] - Karoo Logistics' revenue reached ZAR 420 million, an increase of 33% or 37% on a U.S. dollar basis, with a 9% operating profit margin [16][27] - In Q4, Kartrak's subscription revenue increased by 16% to ZAR 1,084 million, comprising 98% of its total revenue [39] Market Data and Key Metrics Changes - South Africa represented 75% of the global subscriber base, with over 1,700,000 subscribers [23] - Southeast Asia and the Middle East accounted for 12% of total subscribers, with Q4 constant currency subscription revenue growth reaching 31% [24] - Europe had over 200,000 subscribers, with a 20% growth rate in Q4 [25] Company Strategy and Development Direction - The company aims to expand its distribution footprint in Asia and Europe while enhancing customer engagement and capturing demand for video capabilities [33] - A focus on disciplined capital allocation prioritizes organic growth and innovation, with plans to return surplus capital to shareholders when not efficiently invested [35] - The launch of Car Track Tag aims to enhance asset management and expand the platform's capabilities [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth momentum, particularly in Asia, which is viewed as having the highest growth opportunity [58] - The company anticipates a 10% increase in average revenue per user (ARPU) by the end of FY26, driven by upselling existing customers [55] - The outlook for FY26 includes subscription revenue guidance between ZAR 4,700 million to ZAR 4,900 million, implying growth of 16% to 21% [50] Other Important Information - The company ended Q4 with net cash and cash equivalents of ZAR 838 million, maintaining a strong balance sheet [22] - Adjusted free cash flow was ZAR 425 million, with a focus on strategic investments to support growth [45][46] Q&A Session Summary Question: What is the reception of the Car Track Tag launch? - The product has been well received in South Africa, with substantial scale achieved [54] Question: How does the company plan to drive growth in FY26? - The focus will be on enhancing customer offerings and increasing ARPU through existing customer sales [55] Question: What is the current view on net cash balance and dividends? - The company remains focused on capital allocation for growth, with decisions on dividends typically made in Q2 [61] Question: How does the company view share buybacks? - Share buybacks have been challenging due to low liquidity, and the focus will be on other growth initiatives [62] Question: What is the outlook for subscriber growth in Asia? - Subscriber growth is expected to improve as the sales force expands, with strong productivity anticipated [63]