MIXT - Earnings call transcript Q3 2019

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings and welcome to the MiX Telematics’ Third Quarter Fiscal 2019 Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce Paul Dell, CFO. Please go ahead, sir.

Paul Dell

Good day and welcome to MiX Telematics’ earnings results call for the third quarter of fiscal year 2019, which ended on December 31, 2018. discussing few announced hours be release our will a issued ago. we the in results press Today, I am Paul Dell, Interim Chief Financial Officer. on of Joss. And or me the is today joining Stefan as many you him, know call Joselowitz, He is Executive Chief President MiX Officer of and Telematics.

uncertainties make will are of the that Act to materially relating to Harbor of could Litigation subject Reform provision variety of that XXXX. we maybe call, our and results forward-looking statements considered to actual the a to risks expectations. statements from During Securities These pursuant Safe business cause the Private differ

and For results, important www.mixtelematics.com under a on discussion contained and of the Relations to Securities Investor refer the with that material in our available risks and affect filings website Form Commission XX-F other other our could at those tab. our factors please the Exchange

also is There the available is We filed website financial to results a our and reconciliation referring located press will non-IFRS currently Commission. detailing release, and which Exchange these our in certain measures. be on Securities schedule with

which RXX, reported the $X.XX of XX, over Joss. an U.S. let Finally, and the to U.S. total referring call we be to dollars, rates. to will oanda.com me the exchange growth translated that, currency rate rate as With rand-dollar was constant by amounts subscription XXXX. discussing been December at have referred of to dollar our turn call revenue on growth, when exchange All the

Stefan Joselowitz

and with top exceeding strength MiX metrics. across like our our operating to the growth. another all would I all pleased quarter, record XX% business, joining up of am call Paul. you expectations particularly continued I year-over-year subscription delivered Thanks, that’s for the very strong thank today. key

comparative. margins the XXX quarter, exceeded EBITDA more year’s to compared second adjusted than straight the for prior our Additionally, basis points expanding XX%

demonstrates match rule few for a EBITDA companies XX% can Telematics. quarter. now benchmark of proposition and fourth have the compelling exceeded the software is value track the revenue MiX combined margin record and growth We of consecutive of adjusted This

enable of us the fiscal a strong our confident strong the combination evidenced of was another are solid for our We XXXX model maintain strength MiX’s of cash of to of business will generation. and attractive by beyond. growth and quarter market subscribers scalable highly momentum diversified portfolio balance

During ZARXX in investing ZARXX generating in flow our margin, in we future cash quarters in continue with bundled even the to in flow ongoing bundled ability free layering to invest quarter, adjusted devices our we we contracts, expansion of contracts. cash ARPU-bundled generated million confident for parallel higher after the million as free in-vehicle deals. in Due combined are significant EBITDA in

summary Now, performance. third turning to a quarter of our

subscription $XX.X revenue was ZARXXX and grew above year-on-year. of million or XX% million guidance our Our

ongoing driven verticals. robust Our by across our from demand services customers all globally results were for

double-digit regional net a of geographies the We during than added consecutive be subscribers This quarter XX% pleased XXX,XXX. base We all positively is over quarter, and increasing third both our of top of contributed broad more subscriber the our with our XX,XXX new to our year-on-year continued to to as performance growth. and bottom increase line. net

key We the and deliver initiatives. multiple substantial new acquire strong committed month last our have and consistent, we a Investor number of management remain years, one, suite New a to opportunities customers execute long and purposeful runway the profitable believe to delivering Number growth the mobile we we on around Given that a ability in globe. and we are of and developed subscribers. for customers have we great value asset we sales York, the levels as recent Day have At pipeline growth. is solutions Over significant orders fleet outlined our globally, of our opportunity momentum. confident maintain the MiX targeting in market to

the around subscribers and customers new add globe. to continue will We

our While one only is million market. fleets fractionally vehicles the of with penetrated largest in MiX mobile XXX addressable today management commercial providers, asset is industry the total in world’s solution

We sales a are as and growth in to very opportunity. existing blazing down accretion increased to a increasing and to add-on customers our we ARPU uptake long of MiX been consistent number has ARPU driver customers. for expand the runway fleet recent deals. solutions of Number drive of two years light the premium by continue bundled

with allow we broaden in plug-and-play simple this execution. We U.S. fleet fleet on business scale new diversify us their strength now our to is And now and see success fingertips. smaller beyond spoke we This were and have great have strategy operations. also continue management at and segment essential its States fleet smaller opportunities the our the At will Day, gas United the regional we features drivers offering the our will new further significant our focus. new needed in both to in all We at industry. the for very excited number oil specifically solution, and launch growth up event. about to the recent our and had our MiX opportunity customers three, will customer MiX and at historical the Investor manage presence length vehicles opens segment. With

customers. am report already fact, pleased that In I we signed to several have up

around with an States with are geographies. opportunity million incremental us United a MiX represents to similar there in provides market billion. As verticals Now forget Now vehicles the fleet other and that this opportunity in reminder, the alone that target also $X MiX of annual Don’t addressable XX are service

wins the to power included postal product than provider their the solution its telematics at-risk across potential ability in and preferred points and our MiX South of XXX flexibility vehicles. diversified our on A over the solution highlight chose the to vehicles. with as existing chose Bpost telematics business deploy established more applications. with Other record to Some systems. monitor remote and due this Africa with selling competitors quarter Tabs of of our track interoperability MiX premium-fleet vehicles our of in won locations for tools X,XXX factors leading Belgian MiX’s fleet our and key MiX We customer agribusiness success service, Bpost, strategy. has for contract deciding intelligence solution customer. during future leading its a the MiX light global

the to dairy XXX companies of is our solution in vehicles. Brazil its fleet deploying One premium largest

XXXX momentum market compliance we guidance. continued Based will we comprehensive [indiscernible] strong Our capabilities risk seeing solution help safety, help of in company, Services, once enable that the fiscal a the solutions chose energy on improve will finally, reporting Integrity and robust And subscription its are and to LineStar reduce accidents. MiX’s ELD and the revenue efficiency the our are again total increasing our U.S.-based of execution, fleet.

our addition, versus to XX.X%. are EBITDA of guidance raising adjusted In margin XX.X% midpoint we the previous

our out XX% adjusted sales We to organization, in summarize, strong scalability delivered quarter. EBITDA recently expansion raised delivering strong to operational speaks of incremental that we third business model. our which margin target are the our as investments in we the inherent make we plus. Also another performance long-term even global building and note To financial

subscription quarter. With to it continued of well-positioned review to margin revenue the the on our beyond. success the the Paul? me and over momentum quarter let growth Our accretion maintain and to turn strategy. fourth in that, Paul reflects solid that details We remain

Paul Dell

our XXXX Thanks, Joss. the rand. quarter year fiscal African that I Recall our will currency performance. South reporting is review third now

the dollars the results For December both XXXX for spot using rate. XXXX convenience, XXXX U.S. periods we XX, have translated and our into

press in conversions these find our can You release.

if positive on basis the that average XX,XXX subscription from strong XX.X% traction are quarter purchasing otherwise visibility quarter, ZARXXX million. note own portfolio, and up customer margins. XX% and guidance as will an year-over-year. in us they a deals the support an base revenue ongoing total ZARXX fleet the increase please a we were improved subscriber revenue including our our year-over-year. million, and continue bundled whichever and subscription unless addition, decision the customers of currency at Of total performance ZARXXX added We to came total, markets. basis to noted. towards presented wants In This expect hardware, ended will Hardware of the which percentage results was XXX,XXX, ongoing increase in our a revenue both third higher million, That revenue, revenues continue across our shift vertical of subscriber time, a broad to and on total above In other in with our said make. an Over this of driven XX.X% to by our customers all premium provide subscribers geographies increase range. was we constant

year. Our XX from gross last was profit XX.X%, quarter third third margin in the quarter basis up the points

revenue to expect they XX% year. to of longer to revenue management include ongoing cycles profit towards increase that not fleet gross in charges These reminder, in quarter our the scale of high-value and initiatives. peripherals should economies a profit increased and capitalized. contracts which ARPUs margins, contract costs This cost last third in related research our improved an Operating administration term. XX% of in go generate development bundled gross Recall certain the total devices in-vehicle compared through of used depreciation highlights higher As we contracts. and renewal and drive were as and trend general expenses costs our XX%

expense, investors with in period, we as EBITDA to For as provided development earnings the well To adjusted a and our results, we disclosed adjusted for provide those our our interested have are and historical additional EBITDA regarding measures. non-IFRS you press of table cost capitalization earnings see which release. financial margin information adjusted

in tables reconciliation press our full provided release. have we So,

quarter or EBITDA third of EBITDA to margin. a million basis to adjusted or the XX.X% This year. in Third improvement year-over-year revenue million represented increased ZARXXX XX.X% compared of last point XX% the in ZARXXX revenue adjusted quarter XXX

improvement were per for demonstrates up Adjusted million invested the per ago. ordinary we million cash which period generated while from We million ZARXX or with during a flow free successfully including a for EBITDA diluted activities to free net led return million same devices. This invest year. in the cash and to the flow in-vehicle a a continued for cash earnings quarter our ZARXXX third we ability our margin, positive ZARX ZARXX year investments growth investments. From with share, was perspective, historical on ZARX.XX cash are compared in ZARX.XX in the million the ZARXX from or share of pleased of adjusted quarter capital million leveraging expenditure, million of in ZARXX ZARXX flow posted operating our which last

given very devices are our pleased generate demand we for in-vehicle investments our mentioned, bundled Joss driven by cash ability ongoing the with to the As in offering.

Day, the flow as increases our existing contracts operating cash at Investor and we indicated renewal into with increasing cash flow expect of growing levels scale of generate stabilize the for we business. to as cycles bundled expenditures move capital free As we

performance fiscal range, XX.XX%. for previous XX.X%, from our of confident due XX XXXX represents which three an we basis ZARXXX momentum in midpoint, approximately billion, compared the we to guidance midpoint fiscal XXXX. to our represents billion, achieve We of adjusted ability the of our expectation revenue as outlook, targeting well pipeline results year. well now of to basis EBITDA financial adjusted revenue midpoint EBITDA our the first guidance, in continue, previous our which at the as which of of increase margin points to expect growth EBITDA of guidance turning the points opportunities. ZARX.XXX growth increasing margin of midpoint quarters revenue of an to year-on-year we is our revenue our guidance ZARX.XXX of for XX.X%. increase At Adjusted remain an guidance At represents expect are we constant XX.X% last orders total guidance our and be as and the subscription from third our strong of the quarter firm up sales to subscription our are XXX constant At Now, our million, growth of strong this currency previous increase guidance an currency represents XX.X%, as XX.XX%. given from of

previous fiscal guidance Our business diluted in our year-over-year share the our ability margin demonstrates are at regards of investing adjusted increased guidance continue earnings guidance for we range. expectations XXXX, to midpoint of to our In while expanding from the ZARX.XXX per to margins increasing ZARX.XXX drive the to growth. future

is tax million rate of diluted between guidance based new an Our on ordinary shares XX% XXX to and XX%. effective

annual on close wish on achieve is terms is As is quarterly we most focus our how do deals objectives. it to and as we relates management have discussed to not this relevant the component previously, our our intention in suboptimal of fastest is as the in items to is order This focused largest, to discussed have of margin level line highest revenue other area where and The we hardware visibility and highest our of and growing we our revenue, loss. the is which and profit business. subscription as revenue have targets predictability

are of In benefit the reported subscription accretion represents which revenues fourth to million in we growth as on margin range to year-over-year we a quarter ZARXXX For strong XX.X% targeting market million, summary, continued current our XX.X% ZARXXX of strategy. to constant MiX basis. XXXX, from momentum the our quarter currency of and another

As hand maintain the a Joss some to closing it positioned the result, to now the momentum company and for of remarks. remains fiscal fourth well quarter will beyond. over I XXXX back for

Stefan Joselowitz

executing In the closing, expanded by revenue its QX currency points. subscription margin XXX constant growth subscription which is evidenced MiX margin XX% growth is of basis EBITDA adjusted and double-digit and strategy achieving that strong performance by revenue of accretion,

we generate that, significant that will the is the a the for We rare operator industry in to call that shareholders. will to we over and turn our session. are delivering begin combination and With Q&A believe value the software profitability, growth, of cash

Operator

Our James. Thank Brian Instructions] coming Raymond from from is first you. today question Peterson [Operator

line Your is live. now

Brian Peterson

the Good gentlemen. congrats and strong morning Thanks on quarter. very

penetration that to offering So, it few service I vehicles Now, And we in expectations just other about the U.S., versus out fleet hitting really that running fleet on mentioned of for XX over the product sense looks end-markets for think wanted sounds start think your served? any next How maybe the you should MiX the of some there. million those the years? vehicles you just you ground like like service what are

Stefan Joselowitz

fact, for at year, I we Yes, have deals. not this they of we much, bottom Investor all to pretty large with you much collectively, or But fleets, real product. top Thanks, line not And this happy banked will outlined these And are and certainly certainly I Yes. no are we deals on fiscal no the revenue according or as Day Brian. baked upside small in the it’s costs, going expectations. from but think have remember so particular are that. in signed

of them malleable. need do You lots to to be

XXXX certainly in year XXXX. in a product we one fiscal engines our this next our we it rocket being see and minds fiscal in our see So, the potentially contributor being of in

we that’s about think the So, how product.

of the in I of of that it. rates, vehicles of opportunity a goes estimate fleet been opportunity. still vehicles question, there we’re of on of terms penetration – million believe certainly service is of the U.S., part an excited X In billion about estimate of around kind other about have further in annual about there’s $X your them terms said, penetrated million so And there’s so we small the very healthy the $X as about billion it’s, balance to ARPU market XX very

Brian Peterson

so as one M&A And seen share wanted we’ve as congrats. there? make space market Thanks of the just your guys me, the hop you that but Joss. ambitions, in volatility get is well Great, going in it for M&A to an back update to updates? in just and some activity any queue can And maybe you I’ll and just or on anything follow-up

Stefan Joselowitz

No, you. thank

We certainly still ambitious. are

look and suitable business, process disposal that the for fleet guess, news significantly acquisition, We different telematics announced I the was traded do business another you. at $X interesting we’re the point, to if for so. looking our will around we so that and nothing certainly data continue market, actively Thank else, opportunities billion in is to for the a ongoing size-wise not big quarter the of continue to but TomTom

Brian Peterson

Joss. Thanks Great.

Operator

you. Thank

Blair. Our coming Pfau next is from from question Matt William

live. is now line Your

Matt Pfau

the guess, seem that that Yes, to out thanks expanding off and MiX there? you type Europe ask for taking the maybe business selling it I the targeting some that MiX my fleets questions. MiX to maybe so there’s business TomTom about its moving Tom-tom so And kind same of off to asset, targeting actually into expected selling service would me the Wanted Now was telematics be telematics so than Now created of would Now and rethink quicker does that with of the U.S.? opportunities of relative

Stefan Joselowitz

that going our only product geography terms we terms that in rolling sure we’ve happy MiX a I and plan correct, other big into as is we’ll other distribution focus making Europe focus time out then what in won’t and means? I a out and the that year, have rolling the the the does to United I getting getting to will geographies United next in right of mapped our correct, not in our we so this be sure in to year the year it next it understate can’t out iron won’t no expletive, of invested news with ripe, multiple for and together, once rush of in making right this opportunity the out, be it, fiscal start it’s any act is distribution We to the want this product certainly, not fiscal and global certainly we there’s it we’ve probably but make we’re period is want long so certainly guess, now time big any for well for got months process focus for a will States in it then wrinkles that is quarter territories question so For be it States. we’re recognize few for in about be our Matt. this Thanks, we Now us we’ve is definitely we’re parallel now got for model get be said, now, next likely

Matt Pfau

operate devices Got of in some what themselves that in customers the initially? is those clearly terms so to the on the of supposed it and one one and MiX and that I the then a coming And or Now online, you’ve approach product, so customers installing to self-service for to I I Now it. of Now? guess, way door follow-up as you’re MiX is last seeing just initial in who of well be signing And me, terms supposed themselves are MiX is that nature guess, the taking customers self-installed are up offering self-service that guess,

Stefan Joselowitz

course, much customers the in lots process so so the customers, designed we expensive force have get been phone sales can’t right is to efficient brought concept invest we’ve is built us located expertise it. we got have kind large to not appointment pretty up so the we been than any out have on about we it to street and something sales much so much the that we money acquire what lower before software we without a acquire wheel setups, what board have compared force more that specialists to sales of of board costs feet to we of need get process an so of cost have to achieve do designed suites of of much sales mobile etcetera. that to the online etcetera, organization on that we’re have of some acquisition large how who internal product to done the when know achieve and Yes, spend to want trying reinvent other internally signing are more fleets the has kind demos, fleet showing process more calls, hence, to is planet acquiring and it don’t on this on the and who

Matt Pfau

lot it Great. Thanks a for me. Joss. That’s

Stefan Joselowitz

Thanks Matt. it. appreciate I

Operator

you. Thank

Walkley question Genuity. coming from Mike Canaccord from next Our is

Unidentified Analyst

Mike. on morning. for you quarter. good Anthony Hi, great Congrats to It’s on

terms the obviously, Analyst and about increasing Americas marketing you’ve and been sales you talking year, the investments the QX if terms significantly back this half the the to on think but and elaborate on comparable spend increases in and levels could completing investments, of tripling cadence hiring on seem in you you in of I mentioned was of wondering marketing sales here, the sales sales terms of force into Day, the Just some where kind of the come? are of I

Stefan Joselowitz

lower-than-expected some this we we out in appreciated baked and build-out build-outs year, the you, of to provided little of a in to we bit some number sales this increase pretty and the Anthony hence, our Paul, part are got that we’ve provides U.S. thank of the that’s seeing and and any expect of it? of still open made guidance complete plan a fiscal into in we’re the QX geographies more terms that’s for marketing so Yes, want behind much the plan our balance built have other more if our positions for so still guidance elaborate you and on costs and

Paul Dell

about that’s be I Yes, ZARX or think now. estimate to our million it’s ZARX probably going million up,

Unidentified Analyst

‘XX, Great. on contract-related down depreciation the profit of, you target, might but me, Or... margin of XX% And can the mentioned bit know or little when excuse we this, gross quarter, of levels the on I towards more type then kind reverting ‘XX cadence a like, in you this that elaborate and like, terms coming to QX XH see back XH of cadence? just XH

Paul Dell

Sure, I’ll answer that one.

the that XX% XX big trend term, through had network, in the in and lot of at margins partner subscription long renewals the obviously remained XX the renewal is about kick current in went we XX% quarter, of a our should revenue but on think I a sales, as than that lower thing months’ direct the in. think those towards through hardware important time, our lot that margins and I slightly deals which to we hardware bundled revenue go revenue was

Unidentified Analyst

Thank you. Great.

Operator

Thank you.

Analysis. from from question next Our Gearhart coming David is First

Your is live. now line

David Gearhart

pulled into be the or was Hi, color conservative? good question QX if year to a you to implies so some fiscal hardware just curious down haven’t Thank subscription and can questions will at some year and and up that out it hardware my next in on full you as congratulations QX, look levels from forward QX taking guidance morning. that, by is in for or are it’s pushing just and things first give some guidance year-over-year been on implied if regard My well at you back helpful. for time quarter. significantly I’m guidance If revenue nice

Stefan Joselowitz

to hardware hardware over so some I remains shortly still we QX we come in expecting into hand see will like show Thanks, that’s that that of to Paul, revenue two, did view that were of so decline an of will hardware on total that’s part is have do Paul part continue it you be add orders lumpy, one personal annual and issue certainly conservative potential does continue orders want QX will as anything we my percentage be the certainly David. number We the to number my expectation certainly. but to to more? that a

Paul Dell

so. No, I don’t think

think that was I covered.

think lumpy so a Joss I covered think little difficult was bit predict yes, and there of QX I it. always to and QX, but so

David Gearhart

And recently your terms vertical, something the that Okay. question then oil watching, in oil, customer. within a everybody energy, last you obviously it’s my of existing expansion is largest gas, in nice and announced decline but with

deployments, So, in us color decline past steady the change in in or as seeing any you’ve last gas few oil oil just activity months little in several you with on prices pushouts been any is a activity, hoping everything can so. quarters? over the give in Are and seeing the or you

Stefan Joselowitz

Yes.

are As certainly are a we’re change. – that – customer customer signs pleased we – until new vertical. quarter, that call, And us that signed even the any in up seen haven’t existing quarter expanded the we significant and We we and won we the a reporting this business in those and for I in important was fleet. terms of

can we current to about on eye an currently eye but appear doesn’t the what’s with So, nothing have we on changed it’s customer have that things levels, keep an we price, it, And if commodity nicely. – it. as to And happening certainly, stand, do on at keep any been coming behavior. clearly,

David Gearhart

so Thank color. Good. the for That’s it me. from much you

Stefan Joselowitz

Appreciate it.

Operator

Brian today from coming next [Operator Oppenheimer. Schwartz Instructions] is Our from question

Your now line live. is

Brian Schwartz

Joss, just for a the Thanks new taking up Yes, to business geographies that has dive out having Would morning. hear a subscribers has you or ask big been the wanted last or you months. year? here terms over the I here the referenceability in here now Is just what Clearly, the more to could in if subscribers of big this anything in of last the of been step-up U.S.? this there in the been year. the from signing step-up possibly do bit XX new verticals in think there’s you over step-up driver love hi. questions my little point the to

Stefan Joselowitz

makes Thanks, Brian. We so over work put to it got and to streets and nonetheless I’m they in. and We’ve a but tough really great we on there the – hard certainly start globe that point, easier they’ve all customers sell, and It’s about factor well, really that. for and I’ve pleased effort we the had contraction had. is selling thanks our that product executing very are also with to are well and we and the that executing out got at of haven’t teams suites the

revenues a but in because our words, And and now, customer, the the go periods that lose report business, we’ve fleet the them, where major because of were fleet been haven’t particularly in not the and their were had contraction. don’t size vertical. well but where we a by seen from had has verticals premium our particular don’t it’s from If of net compressed many In other the we customer. right performing the build you more assets, a that customer customers Remember, executing we great down numbers balance compressing those lost impacted retention been through customer to we are impact But differentiate history recall starting and is – we’re we’ve in a XX business. – I we rate fleet sizes, on it, we report between churn we and net is months, – XX we so, – it’s what months that ago, our is big contraction think we’ve and too verticals that We we churn, we factors, – large not a impact our call impact new that identifying step-up. – don’t we’re went lose had – Thankfully even of effectively a extremely numbers. and tough sometimes impacted provide not combination and contraction. of period, we more our seen well, And our in out there high. execution we a of that’ll challenge

Brian Schwartz

– Thank distribution you. to you think values? good the look is of of CAC fill equation your And two for of one product. or just maybe the when a on value ratios Now us a subscriber the CAC values, in of I type the different terms plan just thinking color just subscribers, in in follow-up here gave MiX long-term that about look your in lifetime go-to-market, at you potential just on Thanks. the lower lifetime big a you there big versus there the Now, curious, you MiX difference part And Can comparing core help talked the customers? of one us is other economics any difference you about having at and

Stefan Joselowitz

you, Thank Brian.

Now ARPUs be would fleet we ARPU reasons. MiX that the we our is than certainly all for that So, ARPUs of obvious Having the anticipation – said for will lower that, premium are a anticipating will the by our cost and it’s any lower. base virtue of are margins, – of the products margins attractive of is provide fact, lower to in equivalent good other servicing very

plus sale What an between somewhere MiX year’s that direct part expand We of we’re ARPU is is plan wholesaling we anticipating we’ll distribution thumb which yet kind be a our right know a haven’t the are building in arrangement, so – – and States, to in on do of will obviously force $XX to capability on teeth of sale we our great direct rule versus it’s $XX And Now of the basis, deal sales premium direct. spent a a through a strategy. this on now, partnering United a averaging we’re direct catching them. $XX not as don’t some U.S. for So, fleet we for

part of lower So, that ARPU. next so ARPU year it but on sales strategy a it’s will the lower be the certainly differential, ARPU, direct than

to deals the to the direct we So, on higher something change maybe in it’s anticipate our right lower, blended I basis, and about And may bit we could between on ARPUs, target. way we I we’re fill sales, sales it a be it more a that it you a did, a on $XX once closer like that’s out thinking moment, focusing bit blended be aging basis, I’m may and forward, guess, on – we’re but that could going the that At in sales. we’ll at blending depending now. guess, and turn partner

Brian Schwartz

I to Thank think with color last – Now. you. can of maybe it up MiX evolution just try the some see to end the services companies, market you that different. the have market could of companies, just here, software, is you we disrupting just SMB they provide and in start question tend with is over they but then typically, for bit And this time, through the And on little lower especially market a the move Joss, entering in typically

the the part now Now. in with here started MiX moving of larger down has business Your market and you’re

answer little of a maybe talk little can bit if Thanks. down just just just just the the a you or the question what’s of with or Now? bit to market light just that Maybe opportunity attracted But you shed us demand what you’re can big or So, evolution market? pulled help seeing a organically the about you into MiX on this filling you’re new bringing market? it’s you getting in,

Stefan Joselowitz

conscious Thank as stage. have we around us. We were ARPU power users. could decision, were took user to and the really evolved, in and evolution, or self-servicing years, a years, was forwarding and you complex conscious product virtue we add a a kind we’re to early technology XX a more as the last focus between I whatever XX the Fast the course, get fleet. took customers. you to large years, more we’ve And sold evolution world started we’ve the the the the stage build many wasn’t and differentiating my were designed years small into our of we form, that customers just at building tracking we’ve currently and as And a looked XX know, probably I – bigger blocks blocks of – our the But smaller that – you. decision current that years got are started layers opportunities over that start-up business features but business They were at – to and not of suite. sectors, by on of business, over service those platform days of coming In for built they out a And great their fleet ago. all in built was that basically. fleets We mind, of building that. course, all that recognized couple and technology at industry ability the we of that that

we focused of and our the self-service but fleet we’d putting we couple built compressed ready. that premium go a that we platform, to view mobile-centric, a years we’re a all building dedicated with to were a were build form, into view but light using ready into platform, took knowledge that going So kind market back, now a it a of on offering when light-fleet, of

mainly And Bear an our business an a think years the our interesting in do the light with is it And So you’ll the that’s we of become is because evolution. moment. lower. have have else, of – why light labor part I see business at business and evolve. important there business the cost Africa will fleet much we as nowhere that fleet in a mind,

States that services of are us internally, doing not light acceptable. provide really are not – is wouldn’t Europe but it in do in or it’s So acceptable to cost it It features, enabled fleets for instance. be to we United self-service they

will business our piece significant we our healthy a component. self-service get years’ It had will you have have of X in we said envisage. business that. will Now we And think be and I be look as to I brought now what and and time that’s So a MiX at

Brian Schwartz

questions taking this you Thank much morning. my for very

Stefan Joselowitz

you. I appreciate it. Thank

Operator

you. Thank

our management I We turn for question-and-answer have floor end reached the like back the to of or over would to comments. closing session. further any

Stefan Joselowitz

would of AC States go reporting And running am out Africa time. moment, a the at in to United So a I I I the South week’s have for background firstly, the here. been of – and weeks back like couple so the in to here I have got

the am everybody apologize freeze if I into the a terrible I I rubbing believe is So at in U.S., moment. there it

very are So, we warm. pleased everybody QX. with Really, stay

and now and strategy be your on time our taking in presenting forward Conference our everybody forward look thanks then until and we March are many Florida meeting will James of and at the delivering full stay And focused We in there. attendance. you to Raymond year early for safe and

Operator

Thank you. today’s That teleconference. does conclude

you disconnect have may thank your line your We at participation time this day. a You wonderful today. for and

MiX Telematics (MIXT) 31 Jan 192019 Q3 Earnings call transcript