Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries MiX Telematics Reports Third Quarter Fiscal 2022 U.S. GAAP Financial Results By: MiX Telematics via Business Wire February 03, 2022 at 06:05 AM EST Third Quarter Highlights: Total revenues of $36.2 million Subscription revenues of $30.3 million Net subscriber additions of 20,300, bringing the total base to over 790,500 subscribers Net income of $0.6 million Adjusted EBITDA of $7.1 million, at a 19.6% margin Cash and cash equivalents of $35.9 million at quarter end MiX Telematics Limited (“MiX Telematics”) (NYSE: MIXT, JSE: MIX), a leading global Software-as-a-Service (“SaaS”) provider of connected fleet management solutions, today announced financial results, in accordance with accounting principles generally accepted in the United States (“GAAP”), for the third quarter of fiscal 2022, which ended December 31, 2021. “MiX’s third quarter performance reflected an improved demand environment, particularly for enterprise opportunities. We added 20,300 subscribers in the quarter, our best performance since before the pandemic,” said Stefan Joselowitz, Chief Executive Officer of MiX Telematics. Joselowitz continued, “Now that we have returned to sustainable revenue growth, we are increasingly optimistic about our ability, over the longer-term, to deliver our stated growth and profitability targets.” Financial Results for the Three Months Ended December 31, 2021 Subscription Revenues: Subscription revenues were $30.3 million, an increase of 4.3% compared to $29.1 million for the third quarter of fiscal 2021. Subscription revenues represented 83.7% of total revenues during the third quarter of fiscal 2022. Subscription revenues increased by 3.5% on a constant currency basis, year over year. During the third quarter of fiscal 2022, the Company’s subscriber base grew by a net 20,300 subscribers. The majority of our revenues and subscription revenues are derived from currencies other than the U.S. Dollar. Accordingly, the weakening of the U.S. Dollar against these currencies (in particular against the South African Rand) following recent currency volatility, has positively impacted our revenue and subscription revenues reported in U.S. Dollars. Compared to the third quarter of fiscal 2021, the South African Rand strengthened by 1% against the U.S. Dollar. The Rand/U.S. Dollar exchange rate averaged R15.42 in the third quarter of fiscal 2022 compared to an average of R15.65 during the third quarter of fiscal 2021. The impact of translating foreign currencies to U.S. Dollars at the average exchange rates during the third quarter of fiscal 2022 led to a 0.8% increase in reported U.S. Dollar subscription revenues. Total Revenues: Total revenues were $36.2 million, an increase of 6.2% compared to $34.1 million for the third quarter of fiscal 2021. Total revenues increased by 5.0% on a constant currency basis, year over year. Hardware and other revenues were $5.9 million, an increase of 17.0%, compared to $5.0 million for the third quarter of fiscal 2021. The impact of translating foreign currencies to U.S. Dollars at the average exchange rates during the third quarter of fiscal 2022 led to a 1.2% increase in reported U.S. Dollar revenues. Gross Margin: Gross profit was $22.5 million, compared to $21.3 million for the third quarter of fiscal 2021. Gross profit margin was 62.0%, compared to 62.5% for the third quarter of fiscal 2021. The decline in the gross profit margin was due to the increase in hardware and other revenues which carry lower margins than subscription revenue. The subscription revenue margin during the third quarter of fiscal 2022 was 70.8%. Income From Operations: Income from operations was $2.6 million, compared to $5.0 million for the third quarter of fiscal 2021. Operating income margin was 7.1%, compared to 14.8% for the third quarter of fiscal 2021. Operating expenses of $19.9 million increased by $3.6 million, or 22.1%, compared to the third quarter of fiscal 2021. Net Income and Earnings Per Share: Net income was $0.6 million, compared to net income of $5.9 million in the third quarter of fiscal 2021. During the third quarter of fiscal 2022, net income included a net foreign exchange gain of $0.1 million before tax, as well as a $1.1 million deferred tax charge on a U.S. Dollar intercompany loan between MiX Telematics and MiX Telematics Investments Proprietary Limited (“MiX Investments”), a wholly-owned subsidiary of the Company. During the third quarter of fiscal 2021, net income included a net foreign exchange loss of $0.1 million before tax and a $2.7 million deferred tax credit on a U.S. Dollar intercompany loan between MiX Telematics and MiX Investments. Earnings per diluted ordinary share was 0.1 U.S. cents, compared to 1.1 U.S. cents in the third quarter of fiscal 2021. For the third quarter of fiscal 2022, the calculation was based on diluted weighted average ordinary shares in issue of 564.6 million compared to 559.8 million diluted weighted average ordinary shares in issue during the third quarter of fiscal 2021. On a ratio of 25 ordinary shares to one American Depositary Share (“ADS”), earnings per diluted ADS were 3 U.S. cents compared to 26 U.S. cents in the third quarter of fiscal 2021. The Company’s effective tax rate was 76.0%, compared to negative 18.7% in the third quarter of fiscal 2021. Ignoring the impact of net foreign exchange losses net of tax, the tax rate used in determining non-GAAP net income below was 35.5% compared to 34.3% in the third quarter of fiscal 2021. Adjusted EBITDA: Adjusted EBITDA, a non-GAAP measure, was $7.1 million, compared to $9.5 million for the third quarter of fiscal 2021. Adjusted EBITDA margin, a non-GAAP measure, for the third quarter of fiscal 2022 was 19.6%, compared to 28.0% for the third quarter of fiscal 2021. Non-GAAP Net Income and Non-GAAP Net Income Per Share: Non-GAAP net income was $1.6 million, compared to $3.4 million for the third quarter of fiscal 2021. Non-GAAP net income per diluted ordinary share was 0.3 U.S. cents, compared to 0.6 U.S. cents in the third quarter of fiscal 2021. At a ratio of 25 ordinary shares to one ADS, the non-GAAP net income per diluted ADS was 7 U.S. cents compared to 15 U.S. cents in the third quarter of fiscal 2021. Cash and Cash Equivalents and Cash Flow: At December 31, 2021, the Company had $35.9 million of cash and cash equivalents, compared to $45.5 million at March 31, 2021. Net cash provided by operating activities for the third quarter of fiscal 2022 was $4.0 million compared to $10.2 million for the third quarter of fiscal 2021. The Company invested $5.5 million in capital expenditures (including investments in in-vehicle devices of $3.7 million), leading to negative free cash flow, a non-GAAP measure, of $1.5 million in the quarter. The Company generated free cash flow of $8.7 million for the third quarter of fiscal 2021 when the Company invested $1.5 million in capital expenditures (including investments in in-vehicle devices of $0.4 million). Net cash used in financing activities amounted to $2.0 million for the third quarter of fiscal 2022, compared to $1.7 million used during the third quarter of fiscal 2021. The cash used in financing activities during the third quarter of fiscal 2022 mainly consisted of ordinary shares repurchased of $0.8 million and dividends paid of $1.4 million, offset by facilities utilized of $0.2 million. The cash used in financing activities during the third quarter of fiscal 2021 consisted of dividends paid of $1.4 million and $0.3 million from a reduction in facilities utilized. During the quarter, the South African Rand weakened against the U.S. Dollar from R15.12 at September 30, 2021 to R15.95 at December 31, 2021 and as a result, cash decreased by $0.4 million due to foreign exchange losses. Quarterly Dividend The most recent dividend payment of 4 South African cents (0.3 U.S. cents) per ordinary share and 1 South African Rand (6 U.S. cents) per ADS was paid on December 2, 2021 to shareholders on record on November 19, 2021. A dividend of 4 South African cents per ordinary share and 1 South African Rand per ADS will be paid on March 3, 2022 to shareholders on record as of the close of business on February 18, 2022. The details with respect to the dividends declared for holders of our ADSs are as follows: Ex dividend on New York Stock Exchange (NYSE) Thursday, February 17, 2022 Record date Friday, February 18, 2022 Approximate date of currency conversion Monday, February 21, 2022 Approximate dividend payment date Thursday, March 3, 2022 Share Repurchases In the third quarter of fiscal 2022, the Company repurchased 1,567,791 ordinary shares on the open market at prevailing market prices, for a total consideration of $0.8 million. Business Outlook Due to the uncertainty surrounding the level of business disruption as a result of the spread of COVID-19, the Company has suspended its practice of issuing financial guidance and as a consequence no guidance has been issued for the full 2022 fiscal year. Conference Call Information MiX Telematics management will host a conference call and audio webcast at 8:00 a.m. (Eastern Daylight Time) and 3:00 p.m. (South African Time) on Thursday, February 3, 2022 to discuss the Company’s financial results and current business outlook. The live webcast of the call will be available at the “Investor Information” page of the Company’s website, http://investor.mixtelematics.com. To access the call, dial 1-877-451-6152 (within the United States) or 0-800-983-831 (within South Africa) or 1-201-389-0879 (outside of the United States). The conference ID is 13726444. A replay of this conference call will be available for a limited time at 1-844-512-2921 (within the United States) or 1-412-317-6671 (within South Africa or outside of the United States). The replay conference ID is 13726444. A replay of the webcast will also be available for a limited time at http://investor.mixtelematics.com. About MiX Telematics Limited MiX Telematics is a leading global provider of connected fleet and mobile asset solutions delivered as SaaS to over three-quarters of a million subscribers in over 120 countries. The Company’s products and services provide enterprise fleets, small fleets and consumers with solutions for efficiency, safety, compliance and security. MiX Telematics was founded in 1996 and has offices in South Africa, the United Kingdom, the United States, Uganda, Brazil, Australia, Romania and the United Arab Emirates as well as a network of more than 130 fleet partners worldwide. MiX Telematics shares are publicly traded on the Johannesburg Stock Exchange (JSE: MIX) and MiX Telematics American Depositary Shares are listed on the New York Stock Exchange (NYSE: MIXT). For more information, visit www.mixtelematics.com. Forward-Looking Statements This press release includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation, statements regarding our position to execute on our growth strategy, and our ability to expand our leadership position. These forward-looking statements include, but are not limited to, Company’s beliefs, plans, goals, objectives, expectations, assumptions, estimates, intentions, future performance, other statements that are not historical facts and statements identified by words such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “seeks”, “estimates” or words of similar meaning. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in, or suggested by, these forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of known and unknown risks and uncertainties, some of which are beyond our control including, without limitation: the severity and duration of the COVID-19 pandemic, the pandemic’s economic impact on the geographical locations of our regional service organizations and central service organization, the impact of the pandemic on our customers’ ability to meet their financial obligations, our ability to implement cost containment and business recovery strategies during the pandemic, local and foreign government regulations implemented to combat the pandemic and any future developments on the pandemic; our ability to attract, sell to and retain customers; our ability to improve our growth strategies successfully, including our ability to increase sales to existing customers; our ability to adapt to rapid technological change in our industry; competition from industry consolidation; loss of key personnel or our failure to attract, train and retain other highly qualified personnel; our ability to integrate any businesses we acquire; the introduction of new solutions and international expansion; our dependence on key suppliers and vendors to manufacture our hardware; our dependence on our network of dealers and distributors to sell our solutions; businesses may not continue to adopt fleet management solutions; our future business and system development, results of operations and financial condition; expected changes in our profitability and certain cost or expense items as a percentage of our revenue; changes in the practices of insurance companies; the impact of laws and regulations relating to the Internet and data privacy; our ability to protect our intellectual property and proprietary technologies and address any infringement claims; our ability to defend ourselves from litigation or administrative proceedings relating to labor, regulatory, tax or similar issues; significant disruption in service on, or security breaches of, our websites or computer systems; our dependence on third-party technology; fluctuations in the value of the South African Rand; economic, social, political, labor and other conditions and developments in South Africa and globally; our ability to issue securities and access the capital markets in the future; and other risks set forth in our filings with the U.S. Securities Exchange Commission. We assume no obligation to update any forward-looking statements contained in this press release and expressly disclaim any obligation to do so, whether as a result of new information, future events or otherwise, except as required by law. Use of Non-GAAP Financial Measures This press release and the accompanying tables include references to Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP net income and non-GAAP net income per share, free cash flow and constant currency, which are non-GAAP financial measures. For a description of these non-GAAP financial measures, including the reasons management uses these measures, please see Annexure A titled “Non-GAAP Financial Measures”. A reconciliation of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with GAAP is provided in Annexure A. MIX TELEMATICS LIMITED CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share amounts) (Unaudited) March 31, 2021 December 31, 2021 ASSETS Current assets: Cash and cash equivalents $ 45,489 $ 35,863 Restricted cash 854 835 Accounts receivables, net 19,265 24,879 Inventory, net 3,109 3,440 Prepaid expenses and other current assets 8,509 8,866 Total current assets 77,226 73,883 Property and equipment, net 23,463 28,753 Goodwill 43,938 41,796 Intangible assets, net 18,303 18,256 Deferred tax assets 3,782 5,121 Other assets 4,434 4,291 Total assets $ 171,146 $ 172,100 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Short-term debt $ 1,674 $ 2,298 Accounts payables 6,560 6,502 Accrued expenses and other liabilities 17,330 18,762 Deferred revenue 5,788 7,662 Income taxes payable 1,345 1,936 Total current liabilities 32,697 37,160 Deferred tax liabilities 9,187 9,991 Long-term accrued expenses and other liabilities 5,863 5,513 Total liabilities 47,747 52,664 Stockholders’ equity: MiX Telematics Limited stockholders’ equity Preference shares: 100 million shares authorized but not issued — — Ordinary shares: 605.6 million and 608.1 million no-par value shares issued and outstanding as of March 31, 2021 and December 31, 2021, respectively 67,401 67,401 Less treasury stock at cost: 53.8 million and 55.4 million shares as of March 31, 2021 and December 31, 2021, respectively (17,315 ) (18,116 ) Retained earnings 76,710 77,669 Accumulated other comprehensive income 1,924 (3,201 ) Additional paid-in capital (5,326 ) (4,322 ) Total MiX Telematics Limited stockholders’ equity 123,394 119,431 Non-controlling interest 5 5 Total stockholders’ equity 123,399 119,436 Total liabilities and stockholders’ equity $ 171,146 $ 172,100 MIX TELEMATICS LIMITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) (Unaudited) Three Months Ended December 31, Nine Months Ended December 31, 2020 2021 2020 2021 Revenue Subscription $ 29,072 $ 30,324 $ 82,570 $ 92,299 Hardware and other 5,032 5,889 9,979 14,886 Total revenue 34,104 36,213 92,549 107,185 Cost of revenue Subscription 8,889 8,869 23,914 27,215 Hardware and other 3,915 4,893 7,765 11,696 Total cost of revenue 12,804 13,762 31,679 38,911 Gross profit 21,300 22,451 60,870 68,274 Operating expenses Sales and marketing 2,882 4,027 8,075 11,411 Administration and other 13,384 15,841 40,506 46,214 Total operating expenses 16,266 19,868 48,581 57,625 Income from operations 5,034 2,583 12,289 10,649 Other (expense)/income (95 ) 114 (270 ) 178 Net interest income/(expense) 58 (75 ) (82 ) (294 ) Income before income tax expense 4,997 2,622 11,937 10,533 Income tax benefit/(expense) 936 (1,992 ) (130 ) (5,073 ) Net income 5,933 630 11,807 5,460 Less: Net income attributable to non-controlling interest — — — — Net income attributable to MiX Telematics Limited $ 5,933 $ 630 $ 11,807 $ 5,460 Net income per ordinary share: Basic $ 0.01 $ 0.001 $ 0.02 $ 0.01 Diluted $ 0.01 $ 0.001 $ 0.02 $ 0.01 Net income per American Depositary Share: Basic $ 0.27 $ 0.03 $ 0.54 $ 0.25 Diluted $ 0.26 $ 0.03 $ 0.53 $ 0.24 Ordinary shares: Weighted average 551,106 552,452 548,752 552,234 Diluted weighted average 559,845 564,580 559,172 565,076 American Depositary Shares: Weighted average 22,044 22,098 21,950 22,089 Diluted weighted average 22,394 22,583 22,367 22,603 MIX TELEMATICS LIMITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Nine Months Ended December 31, 2020 2021 Cash flows from operating activities: Cash generated from operations $ 33,156 $ 18,621 Interest received 496 300 Interest paid (281 ) (262 ) Income tax paid (2,437 ) (3,999 ) Net cash provided by operating activities 30,934 14,660 Cash flows from investing activities: Acquisition of property and equipment – in-vehicle devices (2,957 ) (13,413 ) Acquisition of property and equipment – other (264 ) (1,462 ) Proceeds from the sale of property and equipment — 54 Acquisition of intangible assets (2,968 ) (4,083 ) Net cash used in investing activities (6,189 ) (18,904 ) Cash flows from financing activities: Proceeds from issuance of ordinary shares in relation to stock options exercised 854 — Cash paid for ordinary shares repurchased — (801 ) Cash paid on dividends to MiX Telematics Limited stockholders (3,901 ) (4,484 ) Movement in short-term debt 428 666 Net cash used in financing activities (2,619 ) (4,619 ) Net increase/(decrease) in cash and cash equivalents, and restricted cash 22,126 (8,863 ) Cash and cash equivalents, and restricted cash at beginning of the period 18,652 46,343 Effect of exchange rate changes on cash and cash equivalents, and restricted cash 4,001 (782 ) Cash and cash equivalents, and restricted cash at end of the period $ 44,779 $ 36,698 Segment Information Our operating segments are based on the geographical location of our Regional Sales Offices (“RSOs”) and also include our Central Services Organization (“CSO”). CSO is our central services organization that wholesales our products and services to our RSOs who, in turn, interface with our end-customers, distributors and dealers. CSO is also responsible for the development of our hardware and software platforms and provides common marketing, product management, technical and distribution support to each of our other operating segments. Each RSO’s results reflect the external revenue earned, as well as its performance before the remaining CSO and corporate costs allocations. Segment performance is measured and evaluated by the chief operating decision maker (“CODM”) using Segment Adjusted EBITDA, which is a measure that uses income before income tax expense excluding net interest income/(expense), foreign exchange gains or losses, depreciation, amortization, operating lease expenses, stock-based compensation costs, restructuring costs, non-recurring legal costs, gains or losses on the disposal or impairments of long-lived assets and subsidiaries and corporate and consolidation entries. Product development costs are capitalized and amortized and this amortization is excluded from Segment Adjusted EBITDA. The segment information provided to the CODM is as follows (in thousands and unaudited): Three Months Ended December 31, 2020 Subscription Revenue Hardware and Other Revenue Total Revenue Segment Adjusted EBITDA Regional Sales Offices Africa $ 16,205 $ 1,858 $ 18,063 $ 8,407 Europe 3,116 1,305 4,421 1,718 Americas 4,582 236 4,818 1,332 Middle East and Australasia 4,174 1,596 5,770 2,516 Brazil 978 27 1,005 347 Total Regional Sales Offices 29,055 5,022 34,077 14,320 Central Services Organization 17 10 27 (1,836 ) Total Segment Results $ 29,072 $ 5,032 $ 34,104 $ 12,484 Three Months Ended December 31, 2021 Subscription Revenue Hardware and Other Revenue Total Revenue Segment Adjusted EBITDA Regional Sales Offices Africa $ 18,242 $ 3,196 $ 21,438 $ 9,047 Europe 3,421 687 4,108 1,452 Americas 3,481 560 4,041 (88 ) Middle East and Australasia 4,176 1,325 5,501 2,327 Brazil 993 108 1,101 230 Total Regional Sales Offices 30,313 5,876 36,189 12,968 Central Services Organization 11 13 24 (2,786 ) Total Segment Results $ 30,324 $ 5,889 $ 36,213 $ 10,182 Nine Months Ended December 31, 2020 Subscription Revenue Hardware and Other Revenue Total Revenue Segment Adjusted EBITDA Regional Sales Offices Africa $ 44,983 $ 4,094 $ 49,077 $ 22,901 Europe 8,885 1,913 10,798 4,556 Americas 13,543 631 14,174 4,910 Middle East and Australasia 12,173 3,253 15,426 6,839 Brazil 2,937 78 3,015 1,120 Total Regional Sales Offices 82,521 9,969 92,490 40,326 Central Services Organization 49 10 59 (5,373 ) Total Segment Results $ 82,570 $ 9,979 $ 92,549 $ 34,953 Nine Months Ended December 31, 2021 Subscription Revenue Hardware and Other Revenue Total Revenue Segment Adjusted EBITDA Regional Sales Offices Africa $ 55,639 $ 6,007 $ 61,646 $ 26,825 Europe 10,207 3,285 13,492 4,885 Americas 10,548 1,223 11,771 484 Middle East and Australasia 12,732 4,180 16,912 7,535 Brazil 3,134 156 3,290 835 Total Regional Sales Offices 92,260 14,851 107,111 40,564 Central Services Organization 39 35 74 (7,830 ) Total Segment Results $ 92,299 $ 14,886 $ 107,185 $ 32,734 The following table (unaudited and shown in thousands) reconciles total Segment Adjusted EBITDA to income before income tax expense for the periods shown: Three Months Ended December 31, Nine Months Ended December 31, 2020 2021 2020 2021 Segment Adjusted EBITDA $ 12,484 $ 10,182 $ 34,953 $ 32,734 Corporate and consolidation entries (2,253 ) (2,358 ) (7,090 ) (7,208 ) Operating lease costs (1) (423 ) (383 ) (1,214 ) (1,163 ) Product development costs (2) (262 ) (328 ) (776 ) (1,026 ) Depreciation and amortization (4,099 ) (3,584 ) (11,563 ) (10,931 ) Impairment of long-lived assets (6 ) — (7 ) (28 ) Stock-based compensation costs (366 ) (310 ) (960 ) (1,004 ) Restructuring costs (3) (31 ) (117 ) (1,028 ) (169 ) Net (loss)/profit on sale of property and equipment — (1 ) (8 ) 42 Net foreign exchange (losses)/gains (105 ) 126 (288 ) 110 Net interest income/(expense) 58 (75 ) (82 ) (294 ) Non-recurring legal costs — (530 ) — (530 ) Income before income tax expense $ 4,997 $ 2,622 $ 11,937 $ 10,533 Description of reconciling items: 1. For the purposes of calculating Segment Adjusted EBITDA, operating lease expenses are excluded from the Segment Adjusted EBITDA. Therefore, in order to reconcile Segment Adjusted EBITDA to income before income tax expense, the total lease expense in respect of operating leases needs to be deducted. 2. For segment reporting purposes, product development costs, which do not meet the capitalization requirements under ASC 730 Research and Development or under ASC 985 Software, are capitalized and amortized. The amortization is excluded from Segment Adjusted EBITDA. In order to reconcile Segment Adjusted EBITDA to income before income tax expense, product development costs capitalized for segment reporting purposes need to be deducted. 3. For the nine months ended December 31, 2020, $0.6 million, $0.2 million, $0.1 million and $0.1 million of the restructuring costs related to CSO, Africa, North America and Middle East and Australasia reporting segments, respectively. Annexure A: Non-GAAP Financial Measures We use certain measures to assess the financial performance of the business. Certain of these measures are termed “non-GAAP measures” because they exclude amounts that are included in, or include amounts that are excluded from, the most directly comparable measure calculated and presented in accordance with GAAP, or are calculated using financial measures that are not calculated in accordance with GAAP. These non-GAAP measures include Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP net income, non-GAAP net income per share, free cash flow and constant currency information. An explanation of the relevance of each of the non-GAAP measures, a reconciliation of the non-GAAP measures to the most directly comparable measures calculated and presented in accordance with GAAP and a discussion of their limitations is set out below. We do not regard these non-GAAP measures as a substitute for, or superior to, the equivalent measures calculated and presented in accordance with GAAP or those calculated using financial measures that are calculated in accordance with GAAP. Adjusted EBITDA and Adjusted EBITDA Margin Adjusted EBITDA and Adjusted EBITDA margin are two of the profit measures reviewed by the chief operating decision maker (“CODM”). We define Adjusted EBITDA as the income before income taxes, net interest income/(expense), net foreign exchange gains/(losses), depreciation of property and equipment including capitalized customer in-vehicle devices, amortization of intangible assets including capitalized internal-use software development costs and intangible assets identified as part of a business combination, stock-based compensation costs, restructuring costs, non-recurring legal costs and profits/(losses) on the disposal or impairments of assets or subsidiaries. We define Adjusted EBITDA margin as Adjusted EBITDA divided by total revenue. We have included Adjusted EBITDA and Adjusted EBITDA margin in this press release because they are key measures that the Company’s management and Board of Directors use to understand and evaluate its core operating performance and trends; to prepare and approve its annual budget; and to develop short and long-term operational plans. In particular, the exclusion of certain expenses in calculating Adjusted EBITDA and Adjusted EBITDA margin can provide a useful measure for period-to-period comparisons of the Company’s core business. Accordingly, the Company believes that Adjusted EBITDA and Adjusted EBITDA margin provide useful information to investors and others in understanding and evaluating its operating results. A reconciliation of net income (the most directly comparable financial measure presented in accordance with GAAP) to Adjusted EBITDA for the periods shown is presented below (in thousands and unaudited): Three Months Ended December 31, Nine Months Ended December 31, 2020 2021 2020 2021 Net income $ 5,933 $ 630 $ 11,807 $ 5,460 (Less)/plus: Income tax (benefit)/expense (936 ) 1,992 130 5,073 (Less)/plus: Net interest (income)/expense (58 ) 75 82 294 Plus/(less): Foreign exchange losses/(gains) 105 (126 ) 288 (110 ) Plus: Depreciation (1) 3,132 2,621 8,914 7,965 Plus: Amortization (2) 967 963 2,649 2,966 Plus: Impairment of long-lived assets 6 — 7 28 Plus: Stock-based compensation costs 366 310 960 1,004 Plus/(less): Net loss/(profit) on sale of property and equipment — — 8 (43 ) Plus: Restructuring costs 31 117 1,028 169 Plus: Non-recurring legal costs — 530 — 530 Adjusted EBITDA $ 9,546 $ 7,112 $ 25,873 $ 23,336 Adjusted EBITDA margin 28.0 % 19.6 % 28.0 % 21.8 % 1. Includes depreciation of owned equipment (including in-vehicle devices). 2. Includes amortization of intangible assets (including intangible assets identified as part of a business combination). Our use of Adjusted EBITDA and Adjusted EBITDA margin have limitations as analytical tools, and should not be considered as performance measures in isolation from, or as a substitute for, analysis of our results as reported under GAAP. Some of these limitations are: although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements; Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs; Adjusted EBITDA does not consider the potentially dilutive impact of equity-based compensation; Adjusted EBITDA does not reflect tax payments that may represent a reduction in cash available to the Company; other companies, including companies in our industry, may calculate Adjusted EBITDA differently, which reduces its usefulness as a comparative measure; and certain of the adjustments (such as restructuring costs, impairment of long-lived assets and others) made in calculating Adjusted EBITDA are those that management believes are not representative of our underlying operations and, therefore, are subjective in nature. Because of these limitations, Adjusted EBITDA and Adjusted EBITDA margin should be considered alongside other financial performance measures, including income from operations, net income and our other results. Non-GAAP Net Income and Non-GAAP Net Income Per Share Non-GAAP net income is defined as net income excluding net foreign exchange gains/(losses) net of tax. We have included non-GAAP net income per share in this press release because it provides a useful measure for period-to-period comparisons of our core business by excluding net foreign exchange gains/(losses) net of tax and associated tax consequences from earnings. Accordingly, we believe that non-GAAP net income per share provides useful information to investors and others in understanding and evaluating our operating results. The following tables (in thousands, except per share data, and unaudited) reconcile Net Income to Non-GAAP Net Income and Diluted Net Income Per Ordinary Share or ADS to Non-GAAP Net Income Per Ordinary Share or ADS for the periods shown: Three Months Ended December 31, Nine Months Ended December 31, 2020 2021 2020 2021 Net income $ 5,933 $ 630 $ 11,807 $ 5,460 Net foreign exchange losses/(gains) 105 (126 ) 288 (110 ) Income tax effect of net foreign exchange (losses)/gains (2,688 ) 1,107 (3,691 ) 1,417 Non-GAAP net income $ 3,350 $ 1,611 $ 8,404 $ 6,767 Net income per ordinary share – diluted $ 0.01 $ 0.001 $ 0.02 $ 0.010 Effect of net foreign exchange losses/(gains) to net income # # # # Income tax effect of net foreign exchange (losses)/gains # 0.002 # 0.003 Non-GAAP net income per ordinary share – diluted $ 0.01 $ 0.003 $ 0.02 $ 0.012 Net income per ADS – diluted $ 0.26 $ 0.03 $ 0.53 $ 0.24 Effect of net foreign exchange losses/(gains) to net income 0.01 * 0.01 * Income tax effect of net foreign exchange (losses)/gains (0.12 ) 0.05 (0.16 ) 0.06 Non-GAAP net income per ADS – diluted $ 0.15 $ 0.07 $ 0.38 $ 0.30 # Amount less than $0.001 * Amount less than $0.01 Free Cash Flow Free cash flow is determined as net cash provided by operating activities less capital expenditure for investing activities. We believe that free cash flow provides useful information to investors and others in understanding and evaluating the Company’s cash flows as it provides detail of the amount of cash the Company generates or utilizes after accounting for all capital expenditures including investments in in-vehicle devices. The following table (in thousands and unaudited) reconciles Net Cash Provided by Operating Activities to Free Cash Flow for the periods shown: Three Months Ended December 31, Nine Months Ended December 31, 2020 2021 2020 2021 Net cash provided by operating activities $ 10,176 $ 3,995 $ 30,934 $ 14,660 Less: Capital expenditure payments (1,467 ) (5,534 ) (6,189 ) (18,958 ) Free cash flow $ 8,709 $ (1,539 ) $ 24,745 $ (4,298 ) Constant Currency Constant currency information has been presented to illustrate the impact of changes in currency rates on the Company’s results. The constant currency information has been determined by adjusting the current financial reporting period results to the prior period average exchange rates, determined as the average of the monthly exchange rates applicable to the period. The measurement has been performed for each of the Company’s currencies, including the South African Rand and British Pound. The constant currency growth percentage has been calculated by utilizing the constant currency results compared to the prior period results. The constant currency information represents non-GAAP information. We believe this provides a useful basis to measure the performance of our business as it removes distortion from the effects of foreign currency movements during the period. Due to the significant portion of our customers who are invoiced in non-U.S. Dollar denominated currencies, we also calculate our subscription revenue growth rate on a constant currency basis, thereby removing the effect of currency fluctuation on our results of operations. The following tables (in thousands, except year over year change) provide the unaudited constant currency reconciliation to the most directly comparable GAAP measure for the periods shown: Subscription Revenue: Three Months Ended December 31, Year Over Year Change 2020 2021 Subscription revenue as reported $ 29,072 $ 30,324 4.3 % Conversion impact of U.S. Dollar/other currencies — (234 ) (0.8)% Subscription revenue on a constant currency basis $ 29,072 $ 30,090 3.5 % Total Revenue: Three Months Ended December 31, Year Over Year Change 2020 2021 Total revenue as reported $ 34,104 $ 36,213 6.2 % Conversion impact of U.S. Dollar/other currencies — (404 ) (1.2)% Total revenue on a constant currency basis $ 34,104 $ 35,809 5.0 % Subscription Revenue: Nine Months Ended December 31, Year Over Year Change 2020 2021 Subscription revenue as reported $ 82,570 $ 92,299 11.8 % Conversion impact of U.S. Dollar/other currencies — (7,169 ) (8.7)% Subscription revenue on a constant currency basis $ 82,570 $ 85,130 3.1 % Total Revenue: Nine Months Ended December 31, Year Over Year Change 2020 2021 Total revenue as reported $ 92,549 $ 107,185 15.8 % Conversion impact of U.S. Dollar/other currencies — (7,972 ) (8.6)% Total revenue on a constant currency basis $ 92,549 $ 99,213 7.2 % View source version on businesswire.com: https://www.businesswire.com/news/home/20220125005802/en/Contacts Investor: Brian Denyeau ICR for MiX Telematics ir@mixtelematics.com +1-855-564-9835 Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. 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MiX Telematics Reports Third Quarter Fiscal 2022 U.S. GAAP Financial Results By: MiX Telematics via Business Wire February 03, 2022 at 06:05 AM EST Third Quarter Highlights: Total revenues of $36.2 million Subscription revenues of $30.3 million Net subscriber additions of 20,300, bringing the total base to over 790,500 subscribers Net income of $0.6 million Adjusted EBITDA of $7.1 million, at a 19.6% margin Cash and cash equivalents of $35.9 million at quarter end MiX Telematics Limited (“MiX Telematics”) (NYSE: MIXT, JSE: MIX), a leading global Software-as-a-Service (“SaaS”) provider of connected fleet management solutions, today announced financial results, in accordance with accounting principles generally accepted in the United States (“GAAP”), for the third quarter of fiscal 2022, which ended December 31, 2021. “MiX’s third quarter performance reflected an improved demand environment, particularly for enterprise opportunities. We added 20,300 subscribers in the quarter, our best performance since before the pandemic,” said Stefan Joselowitz, Chief Executive Officer of MiX Telematics. Joselowitz continued, “Now that we have returned to sustainable revenue growth, we are increasingly optimistic about our ability, over the longer-term, to deliver our stated growth and profitability targets.” Financial Results for the Three Months Ended December 31, 2021 Subscription Revenues: Subscription revenues were $30.3 million, an increase of 4.3% compared to $29.1 million for the third quarter of fiscal 2021. Subscription revenues represented 83.7% of total revenues during the third quarter of fiscal 2022. Subscription revenues increased by 3.5% on a constant currency basis, year over year. During the third quarter of fiscal 2022, the Company’s subscriber base grew by a net 20,300 subscribers. The majority of our revenues and subscription revenues are derived from currencies other than the U.S. Dollar. Accordingly, the weakening of the U.S. Dollar against these currencies (in particular against the South African Rand) following recent currency volatility, has positively impacted our revenue and subscription revenues reported in U.S. Dollars. Compared to the third quarter of fiscal 2021, the South African Rand strengthened by 1% against the U.S. Dollar. The Rand/U.S. Dollar exchange rate averaged R15.42 in the third quarter of fiscal 2022 compared to an average of R15.65 during the third quarter of fiscal 2021. The impact of translating foreign currencies to U.S. Dollars at the average exchange rates during the third quarter of fiscal 2022 led to a 0.8% increase in reported U.S. Dollar subscription revenues. Total Revenues: Total revenues were $36.2 million, an increase of 6.2% compared to $34.1 million for the third quarter of fiscal 2021. Total revenues increased by 5.0% on a constant currency basis, year over year. Hardware and other revenues were $5.9 million, an increase of 17.0%, compared to $5.0 million for the third quarter of fiscal 2021. The impact of translating foreign currencies to U.S. Dollars at the average exchange rates during the third quarter of fiscal 2022 led to a 1.2% increase in reported U.S. Dollar revenues. Gross Margin: Gross profit was $22.5 million, compared to $21.3 million for the third quarter of fiscal 2021. Gross profit margin was 62.0%, compared to 62.5% for the third quarter of fiscal 2021. The decline in the gross profit margin was due to the increase in hardware and other revenues which carry lower margins than subscription revenue. The subscription revenue margin during the third quarter of fiscal 2022 was 70.8%. Income From Operations: Income from operations was $2.6 million, compared to $5.0 million for the third quarter of fiscal 2021. Operating income margin was 7.1%, compared to 14.8% for the third quarter of fiscal 2021. Operating expenses of $19.9 million increased by $3.6 million, or 22.1%, compared to the third quarter of fiscal 2021. Net Income and Earnings Per Share: Net income was $0.6 million, compared to net income of $5.9 million in the third quarter of fiscal 2021. During the third quarter of fiscal 2022, net income included a net foreign exchange gain of $0.1 million before tax, as well as a $1.1 million deferred tax charge on a U.S. Dollar intercompany loan between MiX Telematics and MiX Telematics Investments Proprietary Limited (“MiX Investments”), a wholly-owned subsidiary of the Company. During the third quarter of fiscal 2021, net income included a net foreign exchange loss of $0.1 million before tax and a $2.7 million deferred tax credit on a U.S. Dollar intercompany loan between MiX Telematics and MiX Investments. Earnings per diluted ordinary share was 0.1 U.S. cents, compared to 1.1 U.S. cents in the third quarter of fiscal 2021. For the third quarter of fiscal 2022, the calculation was based on diluted weighted average ordinary shares in issue of 564.6 million compared to 559.8 million diluted weighted average ordinary shares in issue during the third quarter of fiscal 2021. On a ratio of 25 ordinary shares to one American Depositary Share (“ADS”), earnings per diluted ADS were 3 U.S. cents compared to 26 U.S. cents in the third quarter of fiscal 2021. The Company’s effective tax rate was 76.0%, compared to negative 18.7% in the third quarter of fiscal 2021. Ignoring the impact of net foreign exchange losses net of tax, the tax rate used in determining non-GAAP net income below was 35.5% compared to 34.3% in the third quarter of fiscal 2021. Adjusted EBITDA: Adjusted EBITDA, a non-GAAP measure, was $7.1 million, compared to $9.5 million for the third quarter of fiscal 2021. Adjusted EBITDA margin, a non-GAAP measure, for the third quarter of fiscal 2022 was 19.6%, compared to 28.0% for the third quarter of fiscal 2021. Non-GAAP Net Income and Non-GAAP Net Income Per Share: Non-GAAP net income was $1.6 million, compared to $3.4 million for the third quarter of fiscal 2021. Non-GAAP net income per diluted ordinary share was 0.3 U.S. cents, compared to 0.6 U.S. cents in the third quarter of fiscal 2021. At a ratio of 25 ordinary shares to one ADS, the non-GAAP net income per diluted ADS was 7 U.S. cents compared to 15 U.S. cents in the third quarter of fiscal 2021. Cash and Cash Equivalents and Cash Flow: At December 31, 2021, the Company had $35.9 million of cash and cash equivalents, compared to $45.5 million at March 31, 2021. Net cash provided by operating activities for the third quarter of fiscal 2022 was $4.0 million compared to $10.2 million for the third quarter of fiscal 2021. The Company invested $5.5 million in capital expenditures (including investments in in-vehicle devices of $3.7 million), leading to negative free cash flow, a non-GAAP measure, of $1.5 million in the quarter. The Company generated free cash flow of $8.7 million for the third quarter of fiscal 2021 when the Company invested $1.5 million in capital expenditures (including investments in in-vehicle devices of $0.4 million). Net cash used in financing activities amounted to $2.0 million for the third quarter of fiscal 2022, compared to $1.7 million used during the third quarter of fiscal 2021. The cash used in financing activities during the third quarter of fiscal 2022 mainly consisted of ordinary shares repurchased of $0.8 million and dividends paid of $1.4 million, offset by facilities utilized of $0.2 million. The cash used in financing activities during the third quarter of fiscal 2021 consisted of dividends paid of $1.4 million and $0.3 million from a reduction in facilities utilized. During the quarter, the South African Rand weakened against the U.S. Dollar from R15.12 at September 30, 2021 to R15.95 at December 31, 2021 and as a result, cash decreased by $0.4 million due to foreign exchange losses. Quarterly Dividend The most recent dividend payment of 4 South African cents (0.3 U.S. cents) per ordinary share and 1 South African Rand (6 U.S. cents) per ADS was paid on December 2, 2021 to shareholders on record on November 19, 2021. A dividend of 4 South African cents per ordinary share and 1 South African Rand per ADS will be paid on March 3, 2022 to shareholders on record as of the close of business on February 18, 2022. The details with respect to the dividends declared for holders of our ADSs are as follows: Ex dividend on New York Stock Exchange (NYSE) Thursday, February 17, 2022 Record date Friday, February 18, 2022 Approximate date of currency conversion Monday, February 21, 2022 Approximate dividend payment date Thursday, March 3, 2022 Share Repurchases In the third quarter of fiscal 2022, the Company repurchased 1,567,791 ordinary shares on the open market at prevailing market prices, for a total consideration of $0.8 million. Business Outlook Due to the uncertainty surrounding the level of business disruption as a result of the spread of COVID-19, the Company has suspended its practice of issuing financial guidance and as a consequence no guidance has been issued for the full 2022 fiscal year. Conference Call Information MiX Telematics management will host a conference call and audio webcast at 8:00 a.m. (Eastern Daylight Time) and 3:00 p.m. (South African Time) on Thursday, February 3, 2022 to discuss the Company’s financial results and current business outlook. The live webcast of the call will be available at the “Investor Information” page of the Company’s website, http://investor.mixtelematics.com. To access the call, dial 1-877-451-6152 (within the United States) or 0-800-983-831 (within South Africa) or 1-201-389-0879 (outside of the United States). The conference ID is 13726444. A replay of this conference call will be available for a limited time at 1-844-512-2921 (within the United States) or 1-412-317-6671 (within South Africa or outside of the United States). The replay conference ID is 13726444. A replay of the webcast will also be available for a limited time at http://investor.mixtelematics.com. About MiX Telematics Limited MiX Telematics is a leading global provider of connected fleet and mobile asset solutions delivered as SaaS to over three-quarters of a million subscribers in over 120 countries. The Company’s products and services provide enterprise fleets, small fleets and consumers with solutions for efficiency, safety, compliance and security. MiX Telematics was founded in 1996 and has offices in South Africa, the United Kingdom, the United States, Uganda, Brazil, Australia, Romania and the United Arab Emirates as well as a network of more than 130 fleet partners worldwide. MiX Telematics shares are publicly traded on the Johannesburg Stock Exchange (JSE: MIX) and MiX Telematics American Depositary Shares are listed on the New York Stock Exchange (NYSE: MIXT). For more information, visit www.mixtelematics.com. Forward-Looking Statements This press release includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation, statements regarding our position to execute on our growth strategy, and our ability to expand our leadership position. These forward-looking statements include, but are not limited to, Company’s beliefs, plans, goals, objectives, expectations, assumptions, estimates, intentions, future performance, other statements that are not historical facts and statements identified by words such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “seeks”, “estimates” or words of similar meaning. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in, or suggested by, these forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of known and unknown risks and uncertainties, some of which are beyond our control including, without limitation: the severity and duration of the COVID-19 pandemic, the pandemic’s economic impact on the geographical locations of our regional service organizations and central service organization, the impact of the pandemic on our customers’ ability to meet their financial obligations, our ability to implement cost containment and business recovery strategies during the pandemic, local and foreign government regulations implemented to combat the pandemic and any future developments on the pandemic; our ability to attract, sell to and retain customers; our ability to improve our growth strategies successfully, including our ability to increase sales to existing customers; our ability to adapt to rapid technological change in our industry; competition from industry consolidation; loss of key personnel or our failure to attract, train and retain other highly qualified personnel; our ability to integrate any businesses we acquire; the introduction of new solutions and international expansion; our dependence on key suppliers and vendors to manufacture our hardware; our dependence on our network of dealers and distributors to sell our solutions; businesses may not continue to adopt fleet management solutions; our future business and system development, results of operations and financial condition; expected changes in our profitability and certain cost or expense items as a percentage of our revenue; changes in the practices of insurance companies; the impact of laws and regulations relating to the Internet and data privacy; our ability to protect our intellectual property and proprietary technologies and address any infringement claims; our ability to defend ourselves from litigation or administrative proceedings relating to labor, regulatory, tax or similar issues; significant disruption in service on, or security breaches of, our websites or computer systems; our dependence on third-party technology; fluctuations in the value of the South African Rand; economic, social, political, labor and other conditions and developments in South Africa and globally; our ability to issue securities and access the capital markets in the future; and other risks set forth in our filings with the U.S. Securities Exchange Commission. We assume no obligation to update any forward-looking statements contained in this press release and expressly disclaim any obligation to do so, whether as a result of new information, future events or otherwise, except as required by law. Use of Non-GAAP Financial Measures This press release and the accompanying tables include references to Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP net income and non-GAAP net income per share, free cash flow and constant currency, which are non-GAAP financial measures. For a description of these non-GAAP financial measures, including the reasons management uses these measures, please see Annexure A titled “Non-GAAP Financial Measures”. A reconciliation of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with GAAP is provided in Annexure A. MIX TELEMATICS LIMITED CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share amounts) (Unaudited) March 31, 2021 December 31, 2021 ASSETS Current assets: Cash and cash equivalents $ 45,489 $ 35,863 Restricted cash 854 835 Accounts receivables, net 19,265 24,879 Inventory, net 3,109 3,440 Prepaid expenses and other current assets 8,509 8,866 Total current assets 77,226 73,883 Property and equipment, net 23,463 28,753 Goodwill 43,938 41,796 Intangible assets, net 18,303 18,256 Deferred tax assets 3,782 5,121 Other assets 4,434 4,291 Total assets $ 171,146 $ 172,100 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Short-term debt $ 1,674 $ 2,298 Accounts payables 6,560 6,502 Accrued expenses and other liabilities 17,330 18,762 Deferred revenue 5,788 7,662 Income taxes payable 1,345 1,936 Total current liabilities 32,697 37,160 Deferred tax liabilities 9,187 9,991 Long-term accrued expenses and other liabilities 5,863 5,513 Total liabilities 47,747 52,664 Stockholders’ equity: MiX Telematics Limited stockholders’ equity Preference shares: 100 million shares authorized but not issued — — Ordinary shares: 605.6 million and 608.1 million no-par value shares issued and outstanding as of March 31, 2021 and December 31, 2021, respectively 67,401 67,401 Less treasury stock at cost: 53.8 million and 55.4 million shares as of March 31, 2021 and December 31, 2021, respectively (17,315 ) (18,116 ) Retained earnings 76,710 77,669 Accumulated other comprehensive income 1,924 (3,201 ) Additional paid-in capital (5,326 ) (4,322 ) Total MiX Telematics Limited stockholders’ equity 123,394 119,431 Non-controlling interest 5 5 Total stockholders’ equity 123,399 119,436 Total liabilities and stockholders’ equity $ 171,146 $ 172,100 MIX TELEMATICS LIMITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) (Unaudited) Three Months Ended December 31, Nine Months Ended December 31, 2020 2021 2020 2021 Revenue Subscription $ 29,072 $ 30,324 $ 82,570 $ 92,299 Hardware and other 5,032 5,889 9,979 14,886 Total revenue 34,104 36,213 92,549 107,185 Cost of revenue Subscription 8,889 8,869 23,914 27,215 Hardware and other 3,915 4,893 7,765 11,696 Total cost of revenue 12,804 13,762 31,679 38,911 Gross profit 21,300 22,451 60,870 68,274 Operating expenses Sales and marketing 2,882 4,027 8,075 11,411 Administration and other 13,384 15,841 40,506 46,214 Total operating expenses 16,266 19,868 48,581 57,625 Income from operations 5,034 2,583 12,289 10,649 Other (expense)/income (95 ) 114 (270 ) 178 Net interest income/(expense) 58 (75 ) (82 ) (294 ) Income before income tax expense 4,997 2,622 11,937 10,533 Income tax benefit/(expense) 936 (1,992 ) (130 ) (5,073 ) Net income 5,933 630 11,807 5,460 Less: Net income attributable to non-controlling interest — — — — Net income attributable to MiX Telematics Limited $ 5,933 $ 630 $ 11,807 $ 5,460 Net income per ordinary share: Basic $ 0.01 $ 0.001 $ 0.02 $ 0.01 Diluted $ 0.01 $ 0.001 $ 0.02 $ 0.01 Net income per American Depositary Share: Basic $ 0.27 $ 0.03 $ 0.54 $ 0.25 Diluted $ 0.26 $ 0.03 $ 0.53 $ 0.24 Ordinary shares: Weighted average 551,106 552,452 548,752 552,234 Diluted weighted average 559,845 564,580 559,172 565,076 American Depositary Shares: Weighted average 22,044 22,098 21,950 22,089 Diluted weighted average 22,394 22,583 22,367 22,603 MIX TELEMATICS LIMITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Nine Months Ended December 31, 2020 2021 Cash flows from operating activities: Cash generated from operations $ 33,156 $ 18,621 Interest received 496 300 Interest paid (281 ) (262 ) Income tax paid (2,437 ) (3,999 ) Net cash provided by operating activities 30,934 14,660 Cash flows from investing activities: Acquisition of property and equipment – in-vehicle devices (2,957 ) (13,413 ) Acquisition of property and equipment – other (264 ) (1,462 ) Proceeds from the sale of property and equipment — 54 Acquisition of intangible assets (2,968 ) (4,083 ) Net cash used in investing activities (6,189 ) (18,904 ) Cash flows from financing activities: Proceeds from issuance of ordinary shares in relation to stock options exercised 854 — Cash paid for ordinary shares repurchased — (801 ) Cash paid on dividends to MiX Telematics Limited stockholders (3,901 ) (4,484 ) Movement in short-term debt 428 666 Net cash used in financing activities (2,619 ) (4,619 ) Net increase/(decrease) in cash and cash equivalents, and restricted cash 22,126 (8,863 ) Cash and cash equivalents, and restricted cash at beginning of the period 18,652 46,343 Effect of exchange rate changes on cash and cash equivalents, and restricted cash 4,001 (782 ) Cash and cash equivalents, and restricted cash at end of the period $ 44,779 $ 36,698 Segment Information Our operating segments are based on the geographical location of our Regional Sales Offices (“RSOs”) and also include our Central Services Organization (“CSO”). CSO is our central services organization that wholesales our products and services to our RSOs who, in turn, interface with our end-customers, distributors and dealers. CSO is also responsible for the development of our hardware and software platforms and provides common marketing, product management, technical and distribution support to each of our other operating segments. Each RSO’s results reflect the external revenue earned, as well as its performance before the remaining CSO and corporate costs allocations. Segment performance is measured and evaluated by the chief operating decision maker (“CODM”) using Segment Adjusted EBITDA, which is a measure that uses income before income tax expense excluding net interest income/(expense), foreign exchange gains or losses, depreciation, amortization, operating lease expenses, stock-based compensation costs, restructuring costs, non-recurring legal costs, gains or losses on the disposal or impairments of long-lived assets and subsidiaries and corporate and consolidation entries. Product development costs are capitalized and amortized and this amortization is excluded from Segment Adjusted EBITDA. The segment information provided to the CODM is as follows (in thousands and unaudited): Three Months Ended December 31, 2020 Subscription Revenue Hardware and Other Revenue Total Revenue Segment Adjusted EBITDA Regional Sales Offices Africa $ 16,205 $ 1,858 $ 18,063 $ 8,407 Europe 3,116 1,305 4,421 1,718 Americas 4,582 236 4,818 1,332 Middle East and Australasia 4,174 1,596 5,770 2,516 Brazil 978 27 1,005 347 Total Regional Sales Offices 29,055 5,022 34,077 14,320 Central Services Organization 17 10 27 (1,836 ) Total Segment Results $ 29,072 $ 5,032 $ 34,104 $ 12,484 Three Months Ended December 31, 2021 Subscription Revenue Hardware and Other Revenue Total Revenue Segment Adjusted EBITDA Regional Sales Offices Africa $ 18,242 $ 3,196 $ 21,438 $ 9,047 Europe 3,421 687 4,108 1,452 Americas 3,481 560 4,041 (88 ) Middle East and Australasia 4,176 1,325 5,501 2,327 Brazil 993 108 1,101 230 Total Regional Sales Offices 30,313 5,876 36,189 12,968 Central Services Organization 11 13 24 (2,786 ) Total Segment Results $ 30,324 $ 5,889 $ 36,213 $ 10,182 Nine Months Ended December 31, 2020 Subscription Revenue Hardware and Other Revenue Total Revenue Segment Adjusted EBITDA Regional Sales Offices Africa $ 44,983 $ 4,094 $ 49,077 $ 22,901 Europe 8,885 1,913 10,798 4,556 Americas 13,543 631 14,174 4,910 Middle East and Australasia 12,173 3,253 15,426 6,839 Brazil 2,937 78 3,015 1,120 Total Regional Sales Offices 82,521 9,969 92,490 40,326 Central Services Organization 49 10 59 (5,373 ) Total Segment Results $ 82,570 $ 9,979 $ 92,549 $ 34,953 Nine Months Ended December 31, 2021 Subscription Revenue Hardware and Other Revenue Total Revenue Segment Adjusted EBITDA Regional Sales Offices Africa $ 55,639 $ 6,007 $ 61,646 $ 26,825 Europe 10,207 3,285 13,492 4,885 Americas 10,548 1,223 11,771 484 Middle East and Australasia 12,732 4,180 16,912 7,535 Brazil 3,134 156 3,290 835 Total Regional Sales Offices 92,260 14,851 107,111 40,564 Central Services Organization 39 35 74 (7,830 ) Total Segment Results $ 92,299 $ 14,886 $ 107,185 $ 32,734 The following table (unaudited and shown in thousands) reconciles total Segment Adjusted EBITDA to income before income tax expense for the periods shown: Three Months Ended December 31, Nine Months Ended December 31, 2020 2021 2020 2021 Segment Adjusted EBITDA $ 12,484 $ 10,182 $ 34,953 $ 32,734 Corporate and consolidation entries (2,253 ) (2,358 ) (7,090 ) (7,208 ) Operating lease costs (1) (423 ) (383 ) (1,214 ) (1,163 ) Product development costs (2) (262 ) (328 ) (776 ) (1,026 ) Depreciation and amortization (4,099 ) (3,584 ) (11,563 ) (10,931 ) Impairment of long-lived assets (6 ) — (7 ) (28 ) Stock-based compensation costs (366 ) (310 ) (960 ) (1,004 ) Restructuring costs (3) (31 ) (117 ) (1,028 ) (169 ) Net (loss)/profit on sale of property and equipment — (1 ) (8 ) 42 Net foreign exchange (losses)/gains (105 ) 126 (288 ) 110 Net interest income/(expense) 58 (75 ) (82 ) (294 ) Non-recurring legal costs — (530 ) — (530 ) Income before income tax expense $ 4,997 $ 2,622 $ 11,937 $ 10,533 Description of reconciling items: 1. For the purposes of calculating Segment Adjusted EBITDA, operating lease expenses are excluded from the Segment Adjusted EBITDA. Therefore, in order to reconcile Segment Adjusted EBITDA to income before income tax expense, the total lease expense in respect of operating leases needs to be deducted. 2. For segment reporting purposes, product development costs, which do not meet the capitalization requirements under ASC 730 Research and Development or under ASC 985 Software, are capitalized and amortized. The amortization is excluded from Segment Adjusted EBITDA. In order to reconcile Segment Adjusted EBITDA to income before income tax expense, product development costs capitalized for segment reporting purposes need to be deducted. 3. For the nine months ended December 31, 2020, $0.6 million, $0.2 million, $0.1 million and $0.1 million of the restructuring costs related to CSO, Africa, North America and Middle East and Australasia reporting segments, respectively. Annexure A: Non-GAAP Financial Measures We use certain measures to assess the financial performance of the business. Certain of these measures are termed “non-GAAP measures” because they exclude amounts that are included in, or include amounts that are excluded from, the most directly comparable measure calculated and presented in accordance with GAAP, or are calculated using financial measures that are not calculated in accordance with GAAP. These non-GAAP measures include Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP net income, non-GAAP net income per share, free cash flow and constant currency information. An explanation of the relevance of each of the non-GAAP measures, a reconciliation of the non-GAAP measures to the most directly comparable measures calculated and presented in accordance with GAAP and a discussion of their limitations is set out below. We do not regard these non-GAAP measures as a substitute for, or superior to, the equivalent measures calculated and presented in accordance with GAAP or those calculated using financial measures that are calculated in accordance with GAAP. Adjusted EBITDA and Adjusted EBITDA Margin Adjusted EBITDA and Adjusted EBITDA margin are two of the profit measures reviewed by the chief operating decision maker (“CODM”). We define Adjusted EBITDA as the income before income taxes, net interest income/(expense), net foreign exchange gains/(losses), depreciation of property and equipment including capitalized customer in-vehicle devices, amortization of intangible assets including capitalized internal-use software development costs and intangible assets identified as part of a business combination, stock-based compensation costs, restructuring costs, non-recurring legal costs and profits/(losses) on the disposal or impairments of assets or subsidiaries. We define Adjusted EBITDA margin as Adjusted EBITDA divided by total revenue. We have included Adjusted EBITDA and Adjusted EBITDA margin in this press release because they are key measures that the Company’s management and Board of Directors use to understand and evaluate its core operating performance and trends; to prepare and approve its annual budget; and to develop short and long-term operational plans. In particular, the exclusion of certain expenses in calculating Adjusted EBITDA and Adjusted EBITDA margin can provide a useful measure for period-to-period comparisons of the Company’s core business. Accordingly, the Company believes that Adjusted EBITDA and Adjusted EBITDA margin provide useful information to investors and others in understanding and evaluating its operating results. A reconciliation of net income (the most directly comparable financial measure presented in accordance with GAAP) to Adjusted EBITDA for the periods shown is presented below (in thousands and unaudited): Three Months Ended December 31, Nine Months Ended December 31, 2020 2021 2020 2021 Net income $ 5,933 $ 630 $ 11,807 $ 5,460 (Less)/plus: Income tax (benefit)/expense (936 ) 1,992 130 5,073 (Less)/plus: Net interest (income)/expense (58 ) 75 82 294 Plus/(less): Foreign exchange losses/(gains) 105 (126 ) 288 (110 ) Plus: Depreciation (1) 3,132 2,621 8,914 7,965 Plus: Amortization (2) 967 963 2,649 2,966 Plus: Impairment of long-lived assets 6 — 7 28 Plus: Stock-based compensation costs 366 310 960 1,004 Plus/(less): Net loss/(profit) on sale of property and equipment — — 8 (43 ) Plus: Restructuring costs 31 117 1,028 169 Plus: Non-recurring legal costs — 530 — 530 Adjusted EBITDA $ 9,546 $ 7,112 $ 25,873 $ 23,336 Adjusted EBITDA margin 28.0 % 19.6 % 28.0 % 21.8 % 1. Includes depreciation of owned equipment (including in-vehicle devices). 2. Includes amortization of intangible assets (including intangible assets identified as part of a business combination). Our use of Adjusted EBITDA and Adjusted EBITDA margin have limitations as analytical tools, and should not be considered as performance measures in isolation from, or as a substitute for, analysis of our results as reported under GAAP. Some of these limitations are: although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements; Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs; Adjusted EBITDA does not consider the potentially dilutive impact of equity-based compensation; Adjusted EBITDA does not reflect tax payments that may represent a reduction in cash available to the Company; other companies, including companies in our industry, may calculate Adjusted EBITDA differently, which reduces its usefulness as a comparative measure; and certain of the adjustments (such as restructuring costs, impairment of long-lived assets and others) made in calculating Adjusted EBITDA are those that management believes are not representative of our underlying operations and, therefore, are subjective in nature. Because of these limitations, Adjusted EBITDA and Adjusted EBITDA margin should be considered alongside other financial performance measures, including income from operations, net income and our other results. Non-GAAP Net Income and Non-GAAP Net Income Per Share Non-GAAP net income is defined as net income excluding net foreign exchange gains/(losses) net of tax. We have included non-GAAP net income per share in this press release because it provides a useful measure for period-to-period comparisons of our core business by excluding net foreign exchange gains/(losses) net of tax and associated tax consequences from earnings. Accordingly, we believe that non-GAAP net income per share provides useful information to investors and others in understanding and evaluating our operating results. The following tables (in thousands, except per share data, and unaudited) reconcile Net Income to Non-GAAP Net Income and Diluted Net Income Per Ordinary Share or ADS to Non-GAAP Net Income Per Ordinary Share or ADS for the periods shown: Three Months Ended December 31, Nine Months Ended December 31, 2020 2021 2020 2021 Net income $ 5,933 $ 630 $ 11,807 $ 5,460 Net foreign exchange losses/(gains) 105 (126 ) 288 (110 ) Income tax effect of net foreign exchange (losses)/gains (2,688 ) 1,107 (3,691 ) 1,417 Non-GAAP net income $ 3,350 $ 1,611 $ 8,404 $ 6,767 Net income per ordinary share – diluted $ 0.01 $ 0.001 $ 0.02 $ 0.010 Effect of net foreign exchange losses/(gains) to net income # # # # Income tax effect of net foreign exchange (losses)/gains # 0.002 # 0.003 Non-GAAP net income per ordinary share – diluted $ 0.01 $ 0.003 $ 0.02 $ 0.012 Net income per ADS – diluted $ 0.26 $ 0.03 $ 0.53 $ 0.24 Effect of net foreign exchange losses/(gains) to net income 0.01 * 0.01 * Income tax effect of net foreign exchange (losses)/gains (0.12 ) 0.05 (0.16 ) 0.06 Non-GAAP net income per ADS – diluted $ 0.15 $ 0.07 $ 0.38 $ 0.30 # Amount less than $0.001 * Amount less than $0.01 Free Cash Flow Free cash flow is determined as net cash provided by operating activities less capital expenditure for investing activities. We believe that free cash flow provides useful information to investors and others in understanding and evaluating the Company’s cash flows as it provides detail of the amount of cash the Company generates or utilizes after accounting for all capital expenditures including investments in in-vehicle devices. The following table (in thousands and unaudited) reconciles Net Cash Provided by Operating Activities to Free Cash Flow for the periods shown: Three Months Ended December 31, Nine Months Ended December 31, 2020 2021 2020 2021 Net cash provided by operating activities $ 10,176 $ 3,995 $ 30,934 $ 14,660 Less: Capital expenditure payments (1,467 ) (5,534 ) (6,189 ) (18,958 ) Free cash flow $ 8,709 $ (1,539 ) $ 24,745 $ (4,298 ) Constant Currency Constant currency information has been presented to illustrate the impact of changes in currency rates on the Company’s results. The constant currency information has been determined by adjusting the current financial reporting period results to the prior period average exchange rates, determined as the average of the monthly exchange rates applicable to the period. The measurement has been performed for each of the Company’s currencies, including the South African Rand and British Pound. The constant currency growth percentage has been calculated by utilizing the constant currency results compared to the prior period results. The constant currency information represents non-GAAP information. We believe this provides a useful basis to measure the performance of our business as it removes distortion from the effects of foreign currency movements during the period. Due to the significant portion of our customers who are invoiced in non-U.S. Dollar denominated currencies, we also calculate our subscription revenue growth rate on a constant currency basis, thereby removing the effect of currency fluctuation on our results of operations. The following tables (in thousands, except year over year change) provide the unaudited constant currency reconciliation to the most directly comparable GAAP measure for the periods shown: Subscription Revenue: Three Months Ended December 31, Year Over Year Change 2020 2021 Subscription revenue as reported $ 29,072 $ 30,324 4.3 % Conversion impact of U.S. Dollar/other currencies — (234 ) (0.8)% Subscription revenue on a constant currency basis $ 29,072 $ 30,090 3.5 % Total Revenue: Three Months Ended December 31, Year Over Year Change 2020 2021 Total revenue as reported $ 34,104 $ 36,213 6.2 % Conversion impact of U.S. Dollar/other currencies — (404 ) (1.2)% Total revenue on a constant currency basis $ 34,104 $ 35,809 5.0 % Subscription Revenue: Nine Months Ended December 31, Year Over Year Change 2020 2021 Subscription revenue as reported $ 82,570 $ 92,299 11.8 % Conversion impact of U.S. Dollar/other currencies — (7,169 ) (8.7)% Subscription revenue on a constant currency basis $ 82,570 $ 85,130 3.1 % Total Revenue: Nine Months Ended December 31, Year Over Year Change 2020 2021 Total revenue as reported $ 92,549 $ 107,185 15.8 % Conversion impact of U.S. Dollar/other currencies — (7,972 ) (8.6)% Total revenue on a constant currency basis $ 92,549 $ 99,213 7.2 % View source version on businesswire.com: https://www.businesswire.com/news/home/20220125005802/en/Contacts Investor: Brian Denyeau ICR for MiX Telematics ir@mixtelematics.com +1-855-564-9835
Third Quarter Highlights: Total revenues of $36.2 million Subscription revenues of $30.3 million Net subscriber additions of 20,300, bringing the total base to over 790,500 subscribers Net income of $0.6 million Adjusted EBITDA of $7.1 million, at a 19.6% margin Cash and cash equivalents of $35.9 million at quarter end
MiX Telematics Limited (“MiX Telematics”) (NYSE: MIXT, JSE: MIX), a leading global Software-as-a-Service (“SaaS”) provider of connected fleet management solutions, today announced financial results, in accordance with accounting principles generally accepted in the United States (“GAAP”), for the third quarter of fiscal 2022, which ended December 31, 2021. “MiX’s third quarter performance reflected an improved demand environment, particularly for enterprise opportunities. We added 20,300 subscribers in the quarter, our best performance since before the pandemic,” said Stefan Joselowitz, Chief Executive Officer of MiX Telematics. Joselowitz continued, “Now that we have returned to sustainable revenue growth, we are increasingly optimistic about our ability, over the longer-term, to deliver our stated growth and profitability targets.” Financial Results for the Three Months Ended December 31, 2021 Subscription Revenues: Subscription revenues were $30.3 million, an increase of 4.3% compared to $29.1 million for the third quarter of fiscal 2021. Subscription revenues represented 83.7% of total revenues during the third quarter of fiscal 2022. Subscription revenues increased by 3.5% on a constant currency basis, year over year. During the third quarter of fiscal 2022, the Company’s subscriber base grew by a net 20,300 subscribers. The majority of our revenues and subscription revenues are derived from currencies other than the U.S. Dollar. Accordingly, the weakening of the U.S. Dollar against these currencies (in particular against the South African Rand) following recent currency volatility, has positively impacted our revenue and subscription revenues reported in U.S. Dollars. Compared to the third quarter of fiscal 2021, the South African Rand strengthened by 1% against the U.S. Dollar. The Rand/U.S. Dollar exchange rate averaged R15.42 in the third quarter of fiscal 2022 compared to an average of R15.65 during the third quarter of fiscal 2021. The impact of translating foreign currencies to U.S. Dollars at the average exchange rates during the third quarter of fiscal 2022 led to a 0.8% increase in reported U.S. Dollar subscription revenues. Total Revenues: Total revenues were $36.2 million, an increase of 6.2% compared to $34.1 million for the third quarter of fiscal 2021. Total revenues increased by 5.0% on a constant currency basis, year over year. Hardware and other revenues were $5.9 million, an increase of 17.0%, compared to $5.0 million for the third quarter of fiscal 2021. The impact of translating foreign currencies to U.S. Dollars at the average exchange rates during the third quarter of fiscal 2022 led to a 1.2% increase in reported U.S. Dollar revenues. Gross Margin: Gross profit was $22.5 million, compared to $21.3 million for the third quarter of fiscal 2021. Gross profit margin was 62.0%, compared to 62.5% for the third quarter of fiscal 2021. The decline in the gross profit margin was due to the increase in hardware and other revenues which carry lower margins than subscription revenue. The subscription revenue margin during the third quarter of fiscal 2022 was 70.8%. Income From Operations: Income from operations was $2.6 million, compared to $5.0 million for the third quarter of fiscal 2021. Operating income margin was 7.1%, compared to 14.8% for the third quarter of fiscal 2021. Operating expenses of $19.9 million increased by $3.6 million, or 22.1%, compared to the third quarter of fiscal 2021. Net Income and Earnings Per Share: Net income was $0.6 million, compared to net income of $5.9 million in the third quarter of fiscal 2021. During the third quarter of fiscal 2022, net income included a net foreign exchange gain of $0.1 million before tax, as well as a $1.1 million deferred tax charge on a U.S. Dollar intercompany loan between MiX Telematics and MiX Telematics Investments Proprietary Limited (“MiX Investments”), a wholly-owned subsidiary of the Company. During the third quarter of fiscal 2021, net income included a net foreign exchange loss of $0.1 million before tax and a $2.7 million deferred tax credit on a U.S. Dollar intercompany loan between MiX Telematics and MiX Investments. Earnings per diluted ordinary share was 0.1 U.S. cents, compared to 1.1 U.S. cents in the third quarter of fiscal 2021. For the third quarter of fiscal 2022, the calculation was based on diluted weighted average ordinary shares in issue of 564.6 million compared to 559.8 million diluted weighted average ordinary shares in issue during the third quarter of fiscal 2021. On a ratio of 25 ordinary shares to one American Depositary Share (“ADS”), earnings per diluted ADS were 3 U.S. cents compared to 26 U.S. cents in the third quarter of fiscal 2021. The Company’s effective tax rate was 76.0%, compared to negative 18.7% in the third quarter of fiscal 2021. Ignoring the impact of net foreign exchange losses net of tax, the tax rate used in determining non-GAAP net income below was 35.5% compared to 34.3% in the third quarter of fiscal 2021. Adjusted EBITDA: Adjusted EBITDA, a non-GAAP measure, was $7.1 million, compared to $9.5 million for the third quarter of fiscal 2021. Adjusted EBITDA margin, a non-GAAP measure, for the third quarter of fiscal 2022 was 19.6%, compared to 28.0% for the third quarter of fiscal 2021. Non-GAAP Net Income and Non-GAAP Net Income Per Share: Non-GAAP net income was $1.6 million, compared to $3.4 million for the third quarter of fiscal 2021. Non-GAAP net income per diluted ordinary share was 0.3 U.S. cents, compared to 0.6 U.S. cents in the third quarter of fiscal 2021. At a ratio of 25 ordinary shares to one ADS, the non-GAAP net income per diluted ADS was 7 U.S. cents compared to 15 U.S. cents in the third quarter of fiscal 2021. Cash and Cash Equivalents and Cash Flow: At December 31, 2021, the Company had $35.9 million of cash and cash equivalents, compared to $45.5 million at March 31, 2021. Net cash provided by operating activities for the third quarter of fiscal 2022 was $4.0 million compared to $10.2 million for the third quarter of fiscal 2021. The Company invested $5.5 million in capital expenditures (including investments in in-vehicle devices of $3.7 million), leading to negative free cash flow, a non-GAAP measure, of $1.5 million in the quarter. The Company generated free cash flow of $8.7 million for the third quarter of fiscal 2021 when the Company invested $1.5 million in capital expenditures (including investments in in-vehicle devices of $0.4 million). Net cash used in financing activities amounted to $2.0 million for the third quarter of fiscal 2022, compared to $1.7 million used during the third quarter of fiscal 2021. The cash used in financing activities during the third quarter of fiscal 2022 mainly consisted of ordinary shares repurchased of $0.8 million and dividends paid of $1.4 million, offset by facilities utilized of $0.2 million. The cash used in financing activities during the third quarter of fiscal 2021 consisted of dividends paid of $1.4 million and $0.3 million from a reduction in facilities utilized. During the quarter, the South African Rand weakened against the U.S. Dollar from R15.12 at September 30, 2021 to R15.95 at December 31, 2021 and as a result, cash decreased by $0.4 million due to foreign exchange losses. Quarterly Dividend The most recent dividend payment of 4 South African cents (0.3 U.S. cents) per ordinary share and 1 South African Rand (6 U.S. cents) per ADS was paid on December 2, 2021 to shareholders on record on November 19, 2021. A dividend of 4 South African cents per ordinary share and 1 South African Rand per ADS will be paid on March 3, 2022 to shareholders on record as of the close of business on February 18, 2022. The details with respect to the dividends declared for holders of our ADSs are as follows: Ex dividend on New York Stock Exchange (NYSE) Thursday, February 17, 2022 Record date Friday, February 18, 2022 Approximate date of currency conversion Monday, February 21, 2022 Approximate dividend payment date Thursday, March 3, 2022 Share Repurchases In the third quarter of fiscal 2022, the Company repurchased 1,567,791 ordinary shares on the open market at prevailing market prices, for a total consideration of $0.8 million. Business Outlook Due to the uncertainty surrounding the level of business disruption as a result of the spread of COVID-19, the Company has suspended its practice of issuing financial guidance and as a consequence no guidance has been issued for the full 2022 fiscal year. Conference Call Information MiX Telematics management will host a conference call and audio webcast at 8:00 a.m. (Eastern Daylight Time) and 3:00 p.m. (South African Time) on Thursday, February 3, 2022 to discuss the Company’s financial results and current business outlook. The live webcast of the call will be available at the “Investor Information” page of the Company’s website, http://investor.mixtelematics.com. To access the call, dial 1-877-451-6152 (within the United States) or 0-800-983-831 (within South Africa) or 1-201-389-0879 (outside of the United States). The conference ID is 13726444. A replay of this conference call will be available for a limited time at 1-844-512-2921 (within the United States) or 1-412-317-6671 (within South Africa or outside of the United States). The replay conference ID is 13726444. A replay of the webcast will also be available for a limited time at http://investor.mixtelematics.com. About MiX Telematics Limited MiX Telematics is a leading global provider of connected fleet and mobile asset solutions delivered as SaaS to over three-quarters of a million subscribers in over 120 countries. The Company’s products and services provide enterprise fleets, small fleets and consumers with solutions for efficiency, safety, compliance and security. MiX Telematics was founded in 1996 and has offices in South Africa, the United Kingdom, the United States, Uganda, Brazil, Australia, Romania and the United Arab Emirates as well as a network of more than 130 fleet partners worldwide. MiX Telematics shares are publicly traded on the Johannesburg Stock Exchange (JSE: MIX) and MiX Telematics American Depositary Shares are listed on the New York Stock Exchange (NYSE: MIXT). For more information, visit www.mixtelematics.com. Forward-Looking Statements This press release includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation, statements regarding our position to execute on our growth strategy, and our ability to expand our leadership position. These forward-looking statements include, but are not limited to, Company’s beliefs, plans, goals, objectives, expectations, assumptions, estimates, intentions, future performance, other statements that are not historical facts and statements identified by words such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “seeks”, “estimates” or words of similar meaning. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in, or suggested by, these forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of known and unknown risks and uncertainties, some of which are beyond our control including, without limitation: the severity and duration of the COVID-19 pandemic, the pandemic’s economic impact on the geographical locations of our regional service organizations and central service organization, the impact of the pandemic on our customers’ ability to meet their financial obligations, our ability to implement cost containment and business recovery strategies during the pandemic, local and foreign government regulations implemented to combat the pandemic and any future developments on the pandemic; our ability to attract, sell to and retain customers; our ability to improve our growth strategies successfully, including our ability to increase sales to existing customers; our ability to adapt to rapid technological change in our industry; competition from industry consolidation; loss of key personnel or our failure to attract, train and retain other highly qualified personnel; our ability to integrate any businesses we acquire; the introduction of new solutions and international expansion; our dependence on key suppliers and vendors to manufacture our hardware; our dependence on our network of dealers and distributors to sell our solutions; businesses may not continue to adopt fleet management solutions; our future business and system development, results of operations and financial condition; expected changes in our profitability and certain cost or expense items as a percentage of our revenue; changes in the practices of insurance companies; the impact of laws and regulations relating to the Internet and data privacy; our ability to protect our intellectual property and proprietary technologies and address any infringement claims; our ability to defend ourselves from litigation or administrative proceedings relating to labor, regulatory, tax or similar issues; significant disruption in service on, or security breaches of, our websites or computer systems; our dependence on third-party technology; fluctuations in the value of the South African Rand; economic, social, political, labor and other conditions and developments in South Africa and globally; our ability to issue securities and access the capital markets in the future; and other risks set forth in our filings with the U.S. Securities Exchange Commission. We assume no obligation to update any forward-looking statements contained in this press release and expressly disclaim any obligation to do so, whether as a result of new information, future events or otherwise, except as required by law. Use of Non-GAAP Financial Measures This press release and the accompanying tables include references to Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP net income and non-GAAP net income per share, free cash flow and constant currency, which are non-GAAP financial measures. For a description of these non-GAAP financial measures, including the reasons management uses these measures, please see Annexure A titled “Non-GAAP Financial Measures”. A reconciliation of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with GAAP is provided in Annexure A. MIX TELEMATICS LIMITED CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share amounts) (Unaudited) March 31, 2021 December 31, 2021 ASSETS Current assets: Cash and cash equivalents $ 45,489 $ 35,863 Restricted cash 854 835 Accounts receivables, net 19,265 24,879 Inventory, net 3,109 3,440 Prepaid expenses and other current assets 8,509 8,866 Total current assets 77,226 73,883 Property and equipment, net 23,463 28,753 Goodwill 43,938 41,796 Intangible assets, net 18,303 18,256 Deferred tax assets 3,782 5,121 Other assets 4,434 4,291 Total assets $ 171,146 $ 172,100 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Short-term debt $ 1,674 $ 2,298 Accounts payables 6,560 6,502 Accrued expenses and other liabilities 17,330 18,762 Deferred revenue 5,788 7,662 Income taxes payable 1,345 1,936 Total current liabilities 32,697 37,160 Deferred tax liabilities 9,187 9,991 Long-term accrued expenses and other liabilities 5,863 5,513 Total liabilities 47,747 52,664 Stockholders’ equity: MiX Telematics Limited stockholders’ equity Preference shares: 100 million shares authorized but not issued — — Ordinary shares: 605.6 million and 608.1 million no-par value shares issued and outstanding as of March 31, 2021 and December 31, 2021, respectively 67,401 67,401 Less treasury stock at cost: 53.8 million and 55.4 million shares as of March 31, 2021 and December 31, 2021, respectively (17,315 ) (18,116 ) Retained earnings 76,710 77,669 Accumulated other comprehensive income 1,924 (3,201 ) Additional paid-in capital (5,326 ) (4,322 ) Total MiX Telematics Limited stockholders’ equity 123,394 119,431 Non-controlling interest 5 5 Total stockholders’ equity 123,399 119,436 Total liabilities and stockholders’ equity $ 171,146 $ 172,100 MIX TELEMATICS LIMITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) (Unaudited) Three Months Ended December 31, Nine Months Ended December 31, 2020 2021 2020 2021 Revenue Subscription $ 29,072 $ 30,324 $ 82,570 $ 92,299 Hardware and other 5,032 5,889 9,979 14,886 Total revenue 34,104 36,213 92,549 107,185 Cost of revenue Subscription 8,889 8,869 23,914 27,215 Hardware and other 3,915 4,893 7,765 11,696 Total cost of revenue 12,804 13,762 31,679 38,911 Gross profit 21,300 22,451 60,870 68,274 Operating expenses Sales and marketing 2,882 4,027 8,075 11,411 Administration and other 13,384 15,841 40,506 46,214 Total operating expenses 16,266 19,868 48,581 57,625 Income from operations 5,034 2,583 12,289 10,649 Other (expense)/income (95 ) 114 (270 ) 178 Net interest income/(expense) 58 (75 ) (82 ) (294 ) Income before income tax expense 4,997 2,622 11,937 10,533 Income tax benefit/(expense) 936 (1,992 ) (130 ) (5,073 ) Net income 5,933 630 11,807 5,460 Less: Net income attributable to non-controlling interest — — — — Net income attributable to MiX Telematics Limited $ 5,933 $ 630 $ 11,807 $ 5,460 Net income per ordinary share: Basic $ 0.01 $ 0.001 $ 0.02 $ 0.01 Diluted $ 0.01 $ 0.001 $ 0.02 $ 0.01 Net income per American Depositary Share: Basic $ 0.27 $ 0.03 $ 0.54 $ 0.25 Diluted $ 0.26 $ 0.03 $ 0.53 $ 0.24 Ordinary shares: Weighted average 551,106 552,452 548,752 552,234 Diluted weighted average 559,845 564,580 559,172 565,076 American Depositary Shares: Weighted average 22,044 22,098 21,950 22,089 Diluted weighted average 22,394 22,583 22,367 22,603 MIX TELEMATICS LIMITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Nine Months Ended December 31, 2020 2021 Cash flows from operating activities: Cash generated from operations $ 33,156 $ 18,621 Interest received 496 300 Interest paid (281 ) (262 ) Income tax paid (2,437 ) (3,999 ) Net cash provided by operating activities 30,934 14,660 Cash flows from investing activities: Acquisition of property and equipment – in-vehicle devices (2,957 ) (13,413 ) Acquisition of property and equipment – other (264 ) (1,462 ) Proceeds from the sale of property and equipment — 54 Acquisition of intangible assets (2,968 ) (4,083 ) Net cash used in investing activities (6,189 ) (18,904 ) Cash flows from financing activities: Proceeds from issuance of ordinary shares in relation to stock options exercised 854 — Cash paid for ordinary shares repurchased — (801 ) Cash paid on dividends to MiX Telematics Limited stockholders (3,901 ) (4,484 ) Movement in short-term debt 428 666 Net cash used in financing activities (2,619 ) (4,619 ) Net increase/(decrease) in cash and cash equivalents, and restricted cash 22,126 (8,863 ) Cash and cash equivalents, and restricted cash at beginning of the period 18,652 46,343 Effect of exchange rate changes on cash and cash equivalents, and restricted cash 4,001 (782 ) Cash and cash equivalents, and restricted cash at end of the period $ 44,779 $ 36,698 Segment Information Our operating segments are based on the geographical location of our Regional Sales Offices (“RSOs”) and also include our Central Services Organization (“CSO”). CSO is our central services organization that wholesales our products and services to our RSOs who, in turn, interface with our end-customers, distributors and dealers. CSO is also responsible for the development of our hardware and software platforms and provides common marketing, product management, technical and distribution support to each of our other operating segments. Each RSO’s results reflect the external revenue earned, as well as its performance before the remaining CSO and corporate costs allocations. Segment performance is measured and evaluated by the chief operating decision maker (“CODM”) using Segment Adjusted EBITDA, which is a measure that uses income before income tax expense excluding net interest income/(expense), foreign exchange gains or losses, depreciation, amortization, operating lease expenses, stock-based compensation costs, restructuring costs, non-recurring legal costs, gains or losses on the disposal or impairments of long-lived assets and subsidiaries and corporate and consolidation entries. Product development costs are capitalized and amortized and this amortization is excluded from Segment Adjusted EBITDA. The segment information provided to the CODM is as follows (in thousands and unaudited): Three Months Ended December 31, 2020 Subscription Revenue Hardware and Other Revenue Total Revenue Segment Adjusted EBITDA Regional Sales Offices Africa $ 16,205 $ 1,858 $ 18,063 $ 8,407 Europe 3,116 1,305 4,421 1,718 Americas 4,582 236 4,818 1,332 Middle East and Australasia 4,174 1,596 5,770 2,516 Brazil 978 27 1,005 347 Total Regional Sales Offices 29,055 5,022 34,077 14,320 Central Services Organization 17 10 27 (1,836 ) Total Segment Results $ 29,072 $ 5,032 $ 34,104 $ 12,484 Three Months Ended December 31, 2021 Subscription Revenue Hardware and Other Revenue Total Revenue Segment Adjusted EBITDA Regional Sales Offices Africa $ 18,242 $ 3,196 $ 21,438 $ 9,047 Europe 3,421 687 4,108 1,452 Americas 3,481 560 4,041 (88 ) Middle East and Australasia 4,176 1,325 5,501 2,327 Brazil 993 108 1,101 230 Total Regional Sales Offices 30,313 5,876 36,189 12,968 Central Services Organization 11 13 24 (2,786 ) Total Segment Results $ 30,324 $ 5,889 $ 36,213 $ 10,182 Nine Months Ended December 31, 2020 Subscription Revenue Hardware and Other Revenue Total Revenue Segment Adjusted EBITDA Regional Sales Offices Africa $ 44,983 $ 4,094 $ 49,077 $ 22,901 Europe 8,885 1,913 10,798 4,556 Americas 13,543 631 14,174 4,910 Middle East and Australasia 12,173 3,253 15,426 6,839 Brazil 2,937 78 3,015 1,120 Total Regional Sales Offices 82,521 9,969 92,490 40,326 Central Services Organization 49 10 59 (5,373 ) Total Segment Results $ 82,570 $ 9,979 $ 92,549 $ 34,953 Nine Months Ended December 31, 2021 Subscription Revenue Hardware and Other Revenue Total Revenue Segment Adjusted EBITDA Regional Sales Offices Africa $ 55,639 $ 6,007 $ 61,646 $ 26,825 Europe 10,207 3,285 13,492 4,885 Americas 10,548 1,223 11,771 484 Middle East and Australasia 12,732 4,180 16,912 7,535 Brazil 3,134 156 3,290 835 Total Regional Sales Offices 92,260 14,851 107,111 40,564 Central Services Organization 39 35 74 (7,830 ) Total Segment Results $ 92,299 $ 14,886 $ 107,185 $ 32,734 The following table (unaudited and shown in thousands) reconciles total Segment Adjusted EBITDA to income before income tax expense for the periods shown: Three Months Ended December 31, Nine Months Ended December 31, 2020 2021 2020 2021 Segment Adjusted EBITDA $ 12,484 $ 10,182 $ 34,953 $ 32,734 Corporate and consolidation entries (2,253 ) (2,358 ) (7,090 ) (7,208 ) Operating lease costs (1) (423 ) (383 ) (1,214 ) (1,163 ) Product development costs (2) (262 ) (328 ) (776 ) (1,026 ) Depreciation and amortization (4,099 ) (3,584 ) (11,563 ) (10,931 ) Impairment of long-lived assets (6 ) — (7 ) (28 ) Stock-based compensation costs (366 ) (310 ) (960 ) (1,004 ) Restructuring costs (3) (31 ) (117 ) (1,028 ) (169 ) Net (loss)/profit on sale of property and equipment — (1 ) (8 ) 42 Net foreign exchange (losses)/gains (105 ) 126 (288 ) 110 Net interest income/(expense) 58 (75 ) (82 ) (294 ) Non-recurring legal costs — (530 ) — (530 ) Income before income tax expense $ 4,997 $ 2,622 $ 11,937 $ 10,533 Description of reconciling items: 1. For the purposes of calculating Segment Adjusted EBITDA, operating lease expenses are excluded from the Segment Adjusted EBITDA. Therefore, in order to reconcile Segment Adjusted EBITDA to income before income tax expense, the total lease expense in respect of operating leases needs to be deducted. 2. For segment reporting purposes, product development costs, which do not meet the capitalization requirements under ASC 730 Research and Development or under ASC 985 Software, are capitalized and amortized. The amortization is excluded from Segment Adjusted EBITDA. In order to reconcile Segment Adjusted EBITDA to income before income tax expense, product development costs capitalized for segment reporting purposes need to be deducted. 3. For the nine months ended December 31, 2020, $0.6 million, $0.2 million, $0.1 million and $0.1 million of the restructuring costs related to CSO, Africa, North America and Middle East and Australasia reporting segments, respectively. Annexure A: Non-GAAP Financial Measures We use certain measures to assess the financial performance of the business. Certain of these measures are termed “non-GAAP measures” because they exclude amounts that are included in, or include amounts that are excluded from, the most directly comparable measure calculated and presented in accordance with GAAP, or are calculated using financial measures that are not calculated in accordance with GAAP. These non-GAAP measures include Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP net income, non-GAAP net income per share, free cash flow and constant currency information. An explanation of the relevance of each of the non-GAAP measures, a reconciliation of the non-GAAP measures to the most directly comparable measures calculated and presented in accordance with GAAP and a discussion of their limitations is set out below. We do not regard these non-GAAP measures as a substitute for, or superior to, the equivalent measures calculated and presented in accordance with GAAP or those calculated using financial measures that are calculated in accordance with GAAP. Adjusted EBITDA and Adjusted EBITDA Margin Adjusted EBITDA and Adjusted EBITDA margin are two of the profit measures reviewed by the chief operating decision maker (“CODM”). We define Adjusted EBITDA as the income before income taxes, net interest income/(expense), net foreign exchange gains/(losses), depreciation of property and equipment including capitalized customer in-vehicle devices, amortization of intangible assets including capitalized internal-use software development costs and intangible assets identified as part of a business combination, stock-based compensation costs, restructuring costs, non-recurring legal costs and profits/(losses) on the disposal or impairments of assets or subsidiaries. We define Adjusted EBITDA margin as Adjusted EBITDA divided by total revenue. We have included Adjusted EBITDA and Adjusted EBITDA margin in this press release because they are key measures that the Company’s management and Board of Directors use to understand and evaluate its core operating performance and trends; to prepare and approve its annual budget; and to develop short and long-term operational plans. In particular, the exclusion of certain expenses in calculating Adjusted EBITDA and Adjusted EBITDA margin can provide a useful measure for period-to-period comparisons of the Company’s core business. Accordingly, the Company believes that Adjusted EBITDA and Adjusted EBITDA margin provide useful information to investors and others in understanding and evaluating its operating results. A reconciliation of net income (the most directly comparable financial measure presented in accordance with GAAP) to Adjusted EBITDA for the periods shown is presented below (in thousands and unaudited): Three Months Ended December 31, Nine Months Ended December 31, 2020 2021 2020 2021 Net income $ 5,933 $ 630 $ 11,807 $ 5,460 (Less)/plus: Income tax (benefit)/expense (936 ) 1,992 130 5,073 (Less)/plus: Net interest (income)/expense (58 ) 75 82 294 Plus/(less): Foreign exchange losses/(gains) 105 (126 ) 288 (110 ) Plus: Depreciation (1) 3,132 2,621 8,914 7,965 Plus: Amortization (2) 967 963 2,649 2,966 Plus: Impairment of long-lived assets 6 — 7 28 Plus: Stock-based compensation costs 366 310 960 1,004 Plus/(less): Net loss/(profit) on sale of property and equipment — — 8 (43 ) Plus: Restructuring costs 31 117 1,028 169 Plus: Non-recurring legal costs — 530 — 530 Adjusted EBITDA $ 9,546 $ 7,112 $ 25,873 $ 23,336 Adjusted EBITDA margin 28.0 % 19.6 % 28.0 % 21.8 % 1. Includes depreciation of owned equipment (including in-vehicle devices). 2. Includes amortization of intangible assets (including intangible assets identified as part of a business combination). Our use of Adjusted EBITDA and Adjusted EBITDA margin have limitations as analytical tools, and should not be considered as performance measures in isolation from, or as a substitute for, analysis of our results as reported under GAAP. Some of these limitations are: although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements; Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs; Adjusted EBITDA does not consider the potentially dilutive impact of equity-based compensation; Adjusted EBITDA does not reflect tax payments that may represent a reduction in cash available to the Company; other companies, including companies in our industry, may calculate Adjusted EBITDA differently, which reduces its usefulness as a comparative measure; and certain of the adjustments (such as restructuring costs, impairment of long-lived assets and others) made in calculating Adjusted EBITDA are those that management believes are not representative of our underlying operations and, therefore, are subjective in nature. Because of these limitations, Adjusted EBITDA and Adjusted EBITDA margin should be considered alongside other financial performance measures, including income from operations, net income and our other results. Non-GAAP Net Income and Non-GAAP Net Income Per Share Non-GAAP net income is defined as net income excluding net foreign exchange gains/(losses) net of tax. We have included non-GAAP net income per share in this press release because it provides a useful measure for period-to-period comparisons of our core business by excluding net foreign exchange gains/(losses) net of tax and associated tax consequences from earnings. Accordingly, we believe that non-GAAP net income per share provides useful information to investors and others in understanding and evaluating our operating results. The following tables (in thousands, except per share data, and unaudited) reconcile Net Income to Non-GAAP Net Income and Diluted Net Income Per Ordinary Share or ADS to Non-GAAP Net Income Per Ordinary Share or ADS for the periods shown: Three Months Ended December 31, Nine Months Ended December 31, 2020 2021 2020 2021 Net income $ 5,933 $ 630 $ 11,807 $ 5,460 Net foreign exchange losses/(gains) 105 (126 ) 288 (110 ) Income tax effect of net foreign exchange (losses)/gains (2,688 ) 1,107 (3,691 ) 1,417 Non-GAAP net income $ 3,350 $ 1,611 $ 8,404 $ 6,767 Net income per ordinary share – diluted $ 0.01 $ 0.001 $ 0.02 $ 0.010 Effect of net foreign exchange losses/(gains) to net income # # # # Income tax effect of net foreign exchange (losses)/gains # 0.002 # 0.003 Non-GAAP net income per ordinary share – diluted $ 0.01 $ 0.003 $ 0.02 $ 0.012 Net income per ADS – diluted $ 0.26 $ 0.03 $ 0.53 $ 0.24 Effect of net foreign exchange losses/(gains) to net income 0.01 * 0.01 * Income tax effect of net foreign exchange (losses)/gains (0.12 ) 0.05 (0.16 ) 0.06 Non-GAAP net income per ADS – diluted $ 0.15 $ 0.07 $ 0.38 $ 0.30 # Amount less than $0.001 * Amount less than $0.01 Free Cash Flow Free cash flow is determined as net cash provided by operating activities less capital expenditure for investing activities. We believe that free cash flow provides useful information to investors and others in understanding and evaluating the Company’s cash flows as it provides detail of the amount of cash the Company generates or utilizes after accounting for all capital expenditures including investments in in-vehicle devices. The following table (in thousands and unaudited) reconciles Net Cash Provided by Operating Activities to Free Cash Flow for the periods shown: Three Months Ended December 31, Nine Months Ended December 31, 2020 2021 2020 2021 Net cash provided by operating activities $ 10,176 $ 3,995 $ 30,934 $ 14,660 Less: Capital expenditure payments (1,467 ) (5,534 ) (6,189 ) (18,958 ) Free cash flow $ 8,709 $ (1,539 ) $ 24,745 $ (4,298 ) Constant Currency Constant currency information has been presented to illustrate the impact of changes in currency rates on the Company’s results. The constant currency information has been determined by adjusting the current financial reporting period results to the prior period average exchange rates, determined as the average of the monthly exchange rates applicable to the period. The measurement has been performed for each of the Company’s currencies, including the South African Rand and British Pound. The constant currency growth percentage has been calculated by utilizing the constant currency results compared to the prior period results. The constant currency information represents non-GAAP information. We believe this provides a useful basis to measure the performance of our business as it removes distortion from the effects of foreign currency movements during the period. Due to the significant portion of our customers who are invoiced in non-U.S. Dollar denominated currencies, we also calculate our subscription revenue growth rate on a constant currency basis, thereby removing the effect of currency fluctuation on our results of operations. The following tables (in thousands, except year over year change) provide the unaudited constant currency reconciliation to the most directly comparable GAAP measure for the periods shown: Subscription Revenue: Three Months Ended December 31, Year Over Year Change 2020 2021 Subscription revenue as reported $ 29,072 $ 30,324 4.3 % Conversion impact of U.S. Dollar/other currencies — (234 ) (0.8)% Subscription revenue on a constant currency basis $ 29,072 $ 30,090 3.5 % Total Revenue: Three Months Ended December 31, Year Over Year Change 2020 2021 Total revenue as reported $ 34,104 $ 36,213 6.2 % Conversion impact of U.S. Dollar/other currencies — (404 ) (1.2)% Total revenue on a constant currency basis $ 34,104 $ 35,809 5.0 % Subscription Revenue: Nine Months Ended December 31, Year Over Year Change 2020 2021 Subscription revenue as reported $ 82,570 $ 92,299 11.8 % Conversion impact of U.S. Dollar/other currencies — (7,169 ) (8.7)% Subscription revenue on a constant currency basis $ 82,570 $ 85,130 3.1 % Total Revenue: Nine Months Ended December 31, Year Over Year Change 2020 2021 Total revenue as reported $ 92,549 $ 107,185 15.8 % Conversion impact of U.S. Dollar/other currencies — (7,972 ) (8.6)% Total revenue on a constant currency basis $ 92,549 $ 99,213 7.2 % View source version on businesswire.com: https://www.businesswire.com/news/home/20220125005802/en/