Karooooo .(US:KARO)2025-06-09 13:12Subscriber Growth - For the financial year ended February 28, 2025, the company increased its subscribers to 2,302,236, up from 1,971,532 in FY 2024, representing a growth of 17%[360] - For the year ended February 28, 2025, Cartrack had 2,302,236 subscribers, representing a net subscriber growth of 330,704 or a 17% increase from the previous year[381] - Subscriber growth for the financial year ended February 28, 2025, reached 2,302,236, reflecting a 17% growth compared to the same quarter in the previous year[498] Financial Performance - Subscription revenues for the financial year ended February 28, 2025, reached ZAR 4,068.2 million, compared to ZAR 3,535.8 million in FY 2024, reflecting a year-over-year growth of 15%[360] - The company's profit for the year was ZAR 937.1 million for FY 2025, a 24% increase from ZAR 754.2 million in FY 2024, which included Carzuka's operating losses of ZAR 52.9 million in FY 2024[361] - Adjusted EBITDA for the year was ZAR 1,973.5 million, up 17% from ZAR 1,690.6 million in FY 2024[362] - The total revenue for the company in FY 2025 was ZAR 4,567.5 million, reflecting a 9% increase from ZAR 4,205.5 million in FY 2024[367] - Profit for the year reached $50,379 thousand, reflecting a 24% year-over-year increase[400] - Revenue for the year ended February 28, 2025, increased by 9% to $245.5 million compared to $225.5 million in 2024[1] Cash Flow and Liquidity - Net cash generated from operating activities for FY 2025 was ZAR 1,933.3 million, a significant increase of 102% compared to ZAR 955.0 million in FY 2024[363] - As of February 28, 2025, cash and cash equivalents totaled ZAR 1,042.9 million, providing sufficient liquidity for operational needs[476] - Net cash generated from operating activities increased by ZAR 978.3 million, or 102%, for the financial year ended February 28, 2025, compared to the previous year[480] - Free Cash Flow surged to $48,971 thousand, a significant increase of 1058% compared to $78,686 thousand in 2024[409][410] Revenue Breakdown - Cartrack's subscription revenue rose 15% to ZAR 4,055.3 million for the financial year ended February 28, 2025, driven by subscriber growth, which comprised 98% of total revenue[385] - SaaS Annualized Recurring Revenue (ARR) for the year ended February 28, 2025, was ZAR 4,383.9 million, representing a 16% increase from ZAR 3,769.4 million in the previous year[391] - South Africa's revenue increased by ZAR 364.5 million, or 14%, for the financial year ended February 28, 2025, with subscription revenue up by 15%[467] - European revenue grew by ZAR 51.6 million, or 15%, for the financial year ended February 28, 2025, driven by a 20% increase in subscribers[469] - Revenue for Asia-Pacific, Middle East, and USA increased by ZAR 117.6 million, or 22%, for the financial year ended February 28, 2025, with a 19% rise in subscribers[470] Operational Efficiency - The gross profit margin for the consolidated results was 70% for FY 2025, compared to 64% in FY 2024, indicating improved operational efficiency[367] - Adjusted EBITDA margin improved to 43% in 2025, compared to 40% in 2024[400] - Operating profit increased by 26% to $70.6 million, up from $56.0 million in 2024[1] Expenses and Investments - Operating expenses rose by 15% to ZAR 1,901.1 million, driven by increased marketing and salary expenses[442] - General and administration expenses increased by 13% to ZAR 944.8 million, primarily due to infrastructure investments[451] - Research and Development expenses increased by ZAR 14.7 million, or 7%, for the financial year ended February 28, 2025, primarily due to Cartrack's R&D expenses rising by ZAR 18.1 million, or 9%[453] - The company invested ZAR 818.5 million in in-vehicle IoT devices and ZAR 73.6 million for future use, impacting Free Cash Flow[411] Risks and Challenges - The company has not hedged its foreign currency risk, exposing it to fluctuations in exchange rates[660] - An increase of 100 basis points in interest rates would result in an additional ZAR 5.20 million in interest expenses, highlighting the company's exposure to interest rate risk[662] - The company monitors its customer mix to ensure effective sales and marketing efforts and to evaluate exposure to customer concentration risks[375] Future Outlook - The company aims to enhance its platform with innovative features to drive subscriber growth and retention, focusing on increasing subscription revenue[372] - Research and development expenses are expected to increase in line with subscription revenue growth, focusing on new offerings and platform scalability[423][424] - The company expects revenue for the quarter ending November 30, 2023, to be approximately R903,915 thousand, indicating a projected growth of 5.1%[499]