Karooooo, that owns 100% of Cartrack, a leading provider of data analytics and business operational intelligence, reported strong results for the fourth quarter and full year ended February 29, 2024 (“Q4 2024” and “FY 2024”).
Zak Calisto, CEO and Founder:
“We believe Karooooo is well positioned to continue to grow at scale across diverse industries. We operate in a growing and largely underpenetrated market, with strong demand coming from customers needing to differentiate and digitalise themselves.
Our proven, robust and strong track record of execution, compounding growth at scale and profitable business model is underpinned by a solid balance sheet and healthy cash position. We expect our continuous investment in our AI products, platform and customer experience to continue to generate robust results in the future.”
Cartrack subscribers increased 15% to 1,971,532 at February 29, 2024 (Q4 2023: 1,717,077), with net subscriber additions having increased by 65% to 63,340 (Q4 2023: 38,471). At the time of this press release, Cartrack had exceeded 2 million subscribers.
Karooooo’s operating profit grew by 25% to ZAR296 million (Q4 2023: ZAR237 million), and earnings per share for the quarter surged by 45% to ZAR6.81 (Q4 2023: ZAR4.70). Full year earnings per share is up 24% to ZAR23.85 (FY 2023: ZAR19.29).
Annual Recurring Revenue (ARR) rose by 17% to ZAR3,769 million (FY 2023: ZAR3,235 million).
Cartrack grew revenue by 17% to ZAR3,614 million (FY 2023: ZAR3,077 million) and subscription revenue by 17% to a record of ZAR3,523 million in FY 2024 (FY 2023: ZAR3,004 million). Cartrack’s subscription revenue equated to 97% of its total revenue.
Cartrack grew operating profit by 17% to a record of ZAR1,069 million (FY 2023: ZAR915 million). Further, Cartrack delivered a record EBITDA of ZAR1,710 million, up 17%, in FY 2024 (FY 2023: ZAR1,456 million) with EBITDA margin of 47% (FY 2023: 47%).
Karooooo Logistics grew revenue by 77% to ZAR317 million (FY 2023: ZAR180 million). The company focuses on delivery-as-a-service (“DaaS”) through third-party drivers and logistics companies. This scalable business model is now delivering healthy operating profits.
Karooooo's leading Operations Cloud drives the digital transformation of over 121,000 commercial clients. The company consistently demonstrates high implementation success and maintains a 95% commercial customer retention rate across businesses of various sizes, industries and geographic locations.
Full earnings: www.karooooo.com
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