Cartrack sees robust demand for its software platform from business users and consumers

YEAR-ON-YEAR HIGHLIGHTS

• Net subscriber growth to 1,133,547 (Q1 FY20: 990,073), up 14%

FIRST QUARTER FINANCIAL HIGHLIGHTS (YEAR-ON-YEAR)

• Subscription revenue of R526 million (Q1 FY20: R441 million), up 19%
• Subscription revenue is 98% of the total revenue and growing (Q1 FY20: 94%)
• Total revenue of R535 million (Q1 FY20: R468 million), up 14%
• Operating profit up 15%

Cartrack, one of the largest telematics companies globally and a leading provider of mobility solutions for asset management, asset recovery and workforce optimisation, yesterday released a business update with robust performance for quarter one, despite Covid-19.

Zak Calisto, Founder and Group Chief Executive Officer, commented: “Given all the economic headwinds and the challenges resulting from the Covid-19 pandemic, we are content with our first quarter performance. It demonstrates the strong demand for our Software-as-a-Service (SaaS) platform and services.

Cartrack saw a strong surge in demand for its platform in July and recorded its second-best month of new subscriber additions in its 16 years of business and now has over 1,150,000 subscribers.

GROUP PERFORMANCE

Despite the Covid-19 disruptions, Cartrack delivered a solid performance across its key metrics, with subscription revenue growing by 19%, from R441 million to R526 million. Subscription revenue now represents 98% (Q1 FY20: 94%) of total revenue. Cartrack’s balance sheet has been strengthened with cash and cash equivalents growing from R146 million at the end of FY20 to R245 million.

REGIONAL OVERVIEW

Cartrack’s significant reportable segments have all delivered strong year-on-year subscription revenue and operating profit growth despite the substantial challenges presented by the Covid-19 pandemic.

In South Africa, the performance delivered robust subscription revenue growth of 15% from R323 million to R371 million.
Cartrack’s highest growth segment, Asia-Pacific, delivered subscription revenue growth of 39% from R52 million to R72 million.

Europe delivered subscription revenue growth of 35% from R40 million to R53 million while Africa (excluding South Africa) delivered subscription revenue growth of 12% from R26 million to R29 million.

Zak Calisto concludes:
“Our broad industry approach with a low customer and industry concentration risk has assisted in delivering year-on-year subscriber, subscription revenue and operating profit growth.

Our clean balance sheet, innovative SaaS business model and our ability to adapt to new challenges has allowed us to continue growing during these difficult times.

As anticipated, the demand for our software platform has assisted us in weathering the storm.”

Please find the full SENS announcement via this link: https://cartrack.hosted.inetbfa.com/news/story/20402ce3-6455-4abb-8e08-4ac3718c10c5