MIXT - Earnings call transcript Q4 2019

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Operator

Greetings and welcome to the MiX Telematics’ First Quarter Fiscal 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions].

As a reminder, this conference is being recorded. pleasure your my Paul Interim now Dell. is to host, introduce CEO, It sir. go Please ahead,

Paul Dell

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

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

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

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

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

Stefan Joselowitz

would all the to like today. for Thanks, joining you I Paul. call thank

the the in year. throughout fiscal trends Our continuation experienced was the fourth a we of performance quarter

in company. for nearly XXX,XXX, This me from revenue net total significant came currency a we We primarily notable milestone increase drove to we margins let to of the from XX.X% generate XXXX. to subscribers, over base EBITDA of by growth free basis XX.X%, more and XXXX XXX the We high-level fiscal solutions. basis. Subscription a providing increased our on adjusted flow increasing new million target summary up a million, constant by XX%. customers XXXX the increased for points. ROI bundled our grew added our straight year subscribers to margins than through second XX,XXX RXXX RXXX start adjusted was So, investing XX,XXX expanded pleased which were EBITDA even a cash We our in the year from in in-vehicle margin XX%, results. long-term fleet after higher added a devices, We

free flow devices. investments leveraging We SaaS of we the match. as record in-vehicle expect track This rule quarter renewal and EBITDA a to exceeded cash generate in contracts our margin adjusted their combined previous companies cycles, for full XXXX. few through fiscal is benchmark XX and can the of matured significant growth bundle each And revenue

RXXX constant margin XX,XXX Adjusted currency points subscribers this record a the to time from in year, highlights. a QX, We XXXX. revenue compared quarter on fiscal in number more than basis last performance Our XXX reached XX% subscription of in XX,XXX drew up was EBITDA fourth basis. and QX added XX% up year-over-year of a million

expecting South demonstrate that and performance, behind primarily March through adoption in week. vehicles related guidance Our of strong is the will premium experienced success fiscal reflected geography us, in initial held Americas, its to under has normal. our the services We MiX shortly. globally, I fourth the expanding around wins XXXX last in that the one than is solution XX quarter resume to but remain that with of our our QX our X,XXX return results to customer for reflected oilfield world's additional market Africa in world, position to would to companies well-positioned subscription momentum walk leader enhance the years our like has Paul to performance US and a largest in Telematics which highlight We the including, somewhat vehicles we're elections elections softer-than-expected been topline more in April, now an over worldwide. X,XXX its fleet. and global customer of This some impact

and our value and our monitor revenue Africa fleet. that EBITDA to operations. a expand engine their of America, grew selected Another geographies extremely Australian for consumer with solution perspective, customer margins. by From in the their accurately out South customers. operator represents customer solution expansion management this excited Colombia first while vertical of we to grow will requirements vehicles in XXX goods for partnership Europe, contract over to address fleet into in leading premium to our providing monitor its long-time we're to MiX fast-moving South premium vehicles regional MiX fleet of additional during in intelligence strongly, rolling longstanding And all specialty continued XXX fiscal a South an them by hours solution Transport has the chose be their with we're subscription presence pleased the US compliance we reduction safety, as Latin efficiency our this A XXXX, vehicles XXX of [indiscernible] additional data and a our in passing MiX global America. to throughout Wales provide company. expanding In to with earth-moving our

year-over-year challenging up to year XXXX. yet Africa Africa Subscription continues EBITDA Africa, Our be revenue solid again. fiscal grew particularly picked margins well. and operation for XX.X% and Americas results in XX% adjusted Brazil our the team reported economy The where South to

driving ARPU margins, EBITDA up bundled our revenue from of Our by XX.X% which positive the points from Americas deals of of impact and premium driven strong to growing Growth team continues contracts. the of is adjusted our mix XX%. region, high at with were second-largest in Americas now X,XXX subscription has XX% mix fastest and, outperform services add-on is basis revenues, more to growth operation. It healthy subscriptions XX.X%. The subscribers, than been new to also bundled is

Our Americas from to impact the market, diversifying in in period. continues in the the investments a verticals. environment. comparative continues from increased margins to early from XX% have XX.X% well year-over-year outperform very energy this XXXX business go-to-market region challenging to EBITDA Brazil in socioeconomic benefit for made traditional strength adjusted up the the as Subscription we as XX.X% to revenues grew fiscal as

overall profitability these bigger regions and Our which bundled the portion have on business. margins become deal performance US our will strategy, positive impact group Brazil of as are a in strong the inherent the our indication of of a a

reiterate our profitable the targeting highlight Day our I Another we for market to moment multibillion-dollar MiX just have remain significant December. year to fiscal growth. opportunity Investor deliver which XXXX ahead. multiple event, our a at the areas is outlined and levers take themes in we of a key in was want and focus to consistent,

range, to this a more of data recognizing [indiscernible] product ideally global multinationals phenomena. Things. observing the broad and rare take footprint are whereby are the more big value and distribution advantage and are We trend of of positioned we With Internet our

add uptake the and has light number a can We our new X%. will continues recent continue accretion fiscal and growth solutions deals. premium been of approximately customers be consistent for the world. we of to to the driver to various and to in that fleet over ARPUs add-on drive bundled customers continued in years ARPU by There In leverage invest strengths increase subscribers around a ARPU MiX to our incremental opportunity grew bundling XXXX, the expansion to and significant solutions drive time. as

to both well broaden segment segment. the continue the represents premium for as our our as will light We believe presence fleet in regional US scale and the focus. growth area substantial a customer We

benefiting plus grow Now, the We of have in from believe basis time. results the we we execute driven MiX for US To introduction early still and simple, initiatives a in for in constant long smaller area the is on clear, as subscription and be we revenue management stages currency a offering fleet the believe US operations. runway this XX% we over recent a of focus fleet opportunity. A are on plug-and-play key key in can our we solid have years growth believe of

there up remain of more opportunity vehicles with US And new new the a and a with in that and billion. greenfield Now. are a annual building alone sales MiX we US$X are to go-to-market incremental signed adapting force XX customers reminder, this MiX addressable vertical. marked fleet market are quarter We an process of we than million our enthusiastic service our this about and As progress full making Now QX attack vertical represents inside first the opportunity. number

fiscal to over expect Paul run all a although the details the on incurring are XXXX. As quarter. let impact Now we growth turn not our to seeing me meaningful have the With of today, back through on it reminder, expenses until that, do MiX we to a begin

Paul Dell

Thanks, Jos.

Now, me walk fiscal the currency African South rand. full that quarter and performance XXXX our and is through let year fourth our reporting recall

have XXXX March and using our dollars, the For the XXXX convenience, translated for rates. we US into results periods, XX, both spot XXXX

these find release. can conversions our You press in

by basis revenues total revenue challenging our in RXXX line in that million. in results to an [indiscernible] on came this the market total, a presented please fourth addition, basis the range unless noted. million, XX% compounded In subscription and In over RXXX.X IFRS guidance were on up constant are Africa, currency Of despite our note quarter, the conditions at elections. otherwise South with

to quarter. customers the as and bundled is was our of hardware our We over fourth by business elect hardware other shift subscriber percentage markets. expect of portfolio, or fleet provide improved visibility XXXX. in the a decline premium year-over-year. us traction offerings. revenue higher increase deals the will and quarter of increase revenues on subscribers, towards XX.X% driven subscribers revenues across depends cash of Our million, the to both fourth XX,XXX over and including fiscal represented revenue, compared In added broad our customers was quarter, total our our XX.X% margins. all whether total year-over-year bundled of The ongoing our component to geographies XX.X% Over year RXX and time, positive which we more revenue subscription as a volatile continue performance with Subscription fiscal vertical in an from of XXX,XXX ended we the ongoing XX.X% fourth the

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

controls and trend expect expected gross in certain includes contracts. And fleet gross as related to drive used to an contract As cycles, a generate renewal cost the ARPUs. our reminder, contracts peripherals in year, the are not XX.X% we to which to quarter bundled capitalized. These through which include our charges in compared to in-vehicle in margins that depreciation term. profit administration and costs total profit revenues increase devices go of general high-value our business. they in revenue research and XX% of were scale last of our development XX.X% Recall fourth longer ongoing towards costs highlights Operating expenses the commitment and

of The regarding globally increased capital in our period, of we with our Adjusted or additional we full margin. in to have generated million point per a million a diluted by year-over-year the business. which you grow financial and represented earnings to This in those period million our RXXX in margins ordinary ago. capitalization or Fourth measures, quarter EBITDA which we million our highlights free the business the For focused provided disclose flow well provide was year-over-year earnings and RXX margin compared so net are XX.X% improvement This management press development the To RXX US$X.XX press million our investors to a fourth cash adjusted year. cash EBITDA or adjusted interested we activities year reconciliation up as to ability XX% from American cost in basis revenue From or during release. RXXX last million XX% continued in provided from diluted a quarter a we of on margins release. table depositary posted on flow expense, This while to the with per of and investments cash share. see adjusted last tables as EBITDA perspective, successfully earnings and year. XXX same expenditures. million the we invested historical results, adjusted cash operating positive translates as historical quarter was the cost RXXX have flow scale to of adjusted our EBITDA free improvement revenue EBITDA adjusted non-IFRS information our share, compared for RXX led return million RX.XX throughout for RXX RXX remaining RX.XX leveraging for the

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

our turning to financial Now, outlook.

to per share XX.X%. of the The adjusted on midpoint represents midpoint total of our of guidance ribbon million, In of RX.XXX RX.XXX regards of adjusted EBITDA to the guidance an adjusted expect are RXXX we compared XXXX, of we midpoint US of XX fiscal billion, would constant at the diluted adjusted range. of revenue represents margin margin are RXX.XX for XX.X%. range, to RX.XXX represent revenue we of basis represents currency to growth at the subscription the midpoint year-on-year billion, dollar, exchange As growth fiscal translates earnings guidance, XXXX. an currency ADS. points of revenue XXXX expect EBITDA EBITDA which per increase be to guidance At RX.XXX we our which midpoint, rate X.X%. targeting At the expecting an constant fiscal which the this Based

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

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

the year-over-year first the our million that on to will quarter the of RXXX in of are growth XXXX. subscription currency XX.X% anticipate XXXX, revenues For fiscal we of We represent XX.X% million post quarter growth constant a RXXX which of targeting to accelerate range would rand, first basis.

Stefan Joselowitz

executing XXXX to achieving our over in to that, With the of revenue session. and well-positioned growth Thanks, global subscription double-digit Q&A with momentum Paul. are In turn its beyond. will its closing, strong reputation maintain accretion. to call continues the is we leverage begin we MiX fiscal and the to parallel operator in strategy margin

Operator

[Operator Instructions]. Thank you.

Our today is coming from from Genuity. Canaccord Walkley question Mike first

now is line Your live.

Mike Walkley

ARPU slower XXXX been to expect we XX% growth more Great. flatten between is trajectory. the results. a of Thank or forecast, just little Congratulations sub premium on forecast XX% you. on growth. fiscal higher help a it's nice growth us the mix upward the components growth you little just combination – about subscription for planning and some it the Jos, that can ARPU about Can so still subscription XXXX strong help a out improving your has a fiscal sub to on Do us think you to and growth? drive think ARPU

Stefan Joselowitz

a as it see We Certainly. combination. Thanks.

at existing ARPU – course. that growth. So, forward strategic we're that some expect us, certainly And of of with still for least that pipeline growth to forward the of a customers guidance. combined gives that some new a a combination pipeline, of we our customers we up of that's focus use course, have And can and from initial we with indication a reasonable and a come expect from

Mike Walkley

then, can start EBITDA And to about Great, what on it's you'll this you of versus a Now, of terms and drive and we Thanks. investments expand expansion the margin, thanks. investment could XXXX MiX in the XXXX MiX last in margins should adjusted two slowing just XXXX great start margins in beyond? little again? And fiscal terms in to seeing in due that bit years. in talk it the mainly Now harvest Is the

Stefan Joselowitz

Certainly.

see you to again. go. in have as remember, of we there, terms play. not plus, same margin that long-term the it certainly update great We and it's of a that XX% of the there's way XX% We'll Nonetheless, of not get did which update expansion of a margin, indefinitely. EBITDA our the couple at we rate is from guidance so Once to journey. – In had sustainable number factors terms is years we a end EBITDA

part So, the – Now marketing that believe part it area that full investment other focus that's MiX investment for view. sales point fully-baked in of of certainly are strategic in – that a – we Certainly, but XXXX strategic investment it investment in and just and is big involve us. saw a not enhanced story and certainly of fiscal don't from our initiatives

that very do are to head So, certainly Also, our future meeting we're XXXX for business some that clear for things where that this that. bear us does – we investments, thinking we about we require for as instance, have component believe vision at a are a in increasing to of we capacity various important strategy. make office additional mind have strategic strategic

So, it. up the that guess, other makes I part of

Mike Walkley

I'll question in Last thanks. and queue. me jump Okay, for back the

on that is on fiscal previous in large strong maybe And concentrated you in strong it the for highlighted guys after continuing dairy see Thank how customer based? region this is XXXX? Brazil, Just growth you. the or you you do that calls broad

Stefan Joselowitz

it's on And great – view Appreciate not a concentrated absolutely one customer, Brazil And as from news. – it, just vertical. we certainly not Mike. perspective which one

So, Louis looking for of in the team diversify [ph] performing of decent performance a year scale. their continued, out there his and a build continue to building and number of ahead, and well out as plans see verticals that to expecting business terms at really are they

Mike Walkley

Thank you.

Operator

you. Thank

Our Raymond next from James. coming question Peterson is from Brian

Your line live. is now

Brian Peterson

for the thanks And gentlemen. question. morning, Good taking

to just the off fiscal start outlook. So, XXXX on wanted year

from like to a that And, that upside first the support that stretch you guidance target, we provided year is of had revenue obviously, acceleration looks but this are targets last of outlook it imply year. kind lot your So, above an we've quarter. seeing

kind on the outlook. guidance setting went want of what understand into to thoughts of your kind just really So,

Stefan Joselowitz

for Thanks. time. the And thanks

in at judgment on As always, guidance based time. is point a best

a how the strategic the a certainly, is this out of we'll are focused for on objectives. we And data mentioning have the more our terms feel guidance. incentive reiterating when very always, of balanced year, growth as we worth updating balanced particularly our we certainly – we it we adjusted also – in guidance, that not component team business noting there. our have when better We've view focus that range stage, top at range. worth It's of It's and year within So, reach and our delivering of that put the that, points, approach is to a that. we comes EBITDA have important on are progressing. as But line half see we're we plan a we where or mentioned you within probably that a get also

we remember, to than So, to combination it And both, the those or that be the one do to other. have team two us guidance not achieve objectives. for the recognizes better of has

is significant there So, focus on a that.

So, pleased year. the with guidance we are for initial our

it As and think but always, going starting to performance, a our point. we improve beat good to are I strive it's

Brian Peterson

of if hit kind the like a Maybe deal kind we've a guys. Thanks, trajectory maybe know What trying the longer but year. five-year look And we Jos. just up is bundled that what ARPU way outlook. could Thanks, I are to of term? this that the X% trends isolate about impact, a think to follow-up. does understand some investors just got on already, right on to

Stefan Joselowitz

and out dollars that effect Paul I on ARPU-enhancing add-ons on deal data isolated not driving don't that. add-ons, me that correct additional splitting I'm we've other any the effect of between I'm sure. extra terms bundled think can in the published ARPU has for service if wrong. has

a kind deals, XX% is is really worth only exposure. isolated. total bundled of the haven't still What as of base we noting So, it's percentage that, our still in

in So, are we the XXs.

deals, but potentially come a of base of non-bundled customers -- direction, long them potentially arena. way terms for go are in have our that a as of to our they up moving current bundled we all are. to into to So, move renewal, Not in many

with for that's excited to And are of lot particularly our going things a some drive are of of both MiX there's to about So, like getting increasingly we ARPU. there. new which add-ons are traction and a continue I think we existing Vision, which lot And – customers. seeing upside

So, the certainly ARU think way is for be businesses the expanding, future. about that the we should foreseeable

Brian Peterson

Thanks, Jos.

Stefan Joselowitz

you. Thank

Operator

Thank you.

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

live. now is line Your

Matt Pfau

are the my the drove us in. any a Hey, But investments some taking wins and down some energy guys. combination Can after some is more vehicles Thanks still it other mentioned road? to you've online on? within You other been strong other that? had Americas region. the on of hit it or previously energy, potentially more I of expansions growth are customers performance in of primarily give some energy they bringing driving or investing going the was question. what for it that drivers And customer and offline these verticals you details Jos, that is brought wanted growth on there

Stefan Joselowitz

Certainly.

number it of there. part – there's coming a It's certainly large is a So, of questions energy.

years So, energy. all ago, remember, it few was a

trend So, – are sector, it's we view it it's coming certainly stages. nonetheless, as so in that are seeing and early a new energy the we of as we encouraging. outside But, that customers view

for So, that's us. important

we've as of from our exciting, new will a I positive expansion far in as going look got been looking sector, energy it pipeline say is exciting adding customers deals at well. that And existing if pipeline new forward, we've equally the drive a – of again customers. we and, are number gross combination that As from fleet the

is it combination. a So,

Matt Pfau

there Got it. about your other or the perhaps future growing improving room to Americas regions Africa? the EBITDA of does Is the as Americas to that segment margins margins these for their and the level come segment same and from segments margins of of for margin some both faster and for expansion those at more And the look at level. both Africa EBITDA I those they're expand Americas,

Stefan Joselowitz

don't which believe I business, result a future business anywhere scale two view as .The at business. given its of near is examples – driven is scale guess, business, the margin, for for mid-XXs different that US look you've primarily have for yet. room we absolutely We our the impressive there the room When African as because we Yeah. improvement margin US running is in reasons at

delivering a of component bundled However, it's margins deals. of because very high impressive

business So, devices. time when in dark we as these these deals the with much amortize we business. will come component component – renewal than bundled African US deals higher our compare one efflux our And of to that and come other, through the down

the parallel So, seeing business, are up same should the we and the seeing to a so – in effect on are time, margins at should parallel we a margin inherent come its effect we're region scale renewal continuing scale that that improve.

So, at the combination as of, drive margin us I guess, point longer-term is those achieving now just our continue which, will two factors you and updated we're of focused should XX% journey, that driving know, strategic update again. – objectives, businesses on our it we in on we see one business all to that plus help our our of view which our achieve

Matt Pfau

I all Thanks questions, for guys. taking That's Great. had. my

Stefan Joselowitz

Matt. it, Thanks. Appreciate

Operator

Thank you.

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

Your line is now live.

David Gearhart

number the a Hi. morning. about to wanted ask XXXXX question, little quarter. for first for additions. subscriber Thank in my taking bit you the year. Lowest I My questions. Good the

wondering, to prior up, as talk versus the quarter? deals upfront it in premium a of for bundled the relative quarter mix in about the in the As to flat asset – fleet Is bit is you terms also, three the to tracking? well the it And economy the fiscal can quarters? little mix the in of QX additions versus net weakness prior year? the relative quarters Just of lower then South of African the in rest regards to

Stefan Joselowitz

the little general into softer certainly QX really election. performance than our and quarter to a related a leading in were last first our as we anticipating month month the are African We very QX bit reasons the David. South in of new of viewed we observed the specific around that and slowdown Thanks,

course, broadly now normal. us. business The expecting behind momentum Of positive was certainly outcome is are to to last and return week. that's It as viewed we

the grew African let never months, of business that fast grow added subscribers. – as Even me definitely, did fact those our So, we through net both stretch.

were wasn't growth. planning. we the pace certainly we So, saw at It

comparative Having momentum of that, this the added reasons. a said guided And So, as grew that's improve more any the one in we we've for we period, that's certainly subscribers the certainly expecting year. to We QX certainly consolation. did of if prior subscribers. we're than in balance the to

So, expectation. that's our current

David Gearhart

bundled fleet tracking versus stand at regards the does mix premium directionally? quarters, prior And where in versus upfront and the verses least the to between asset quarter in that

Stefan Joselowitz

Yes.

just contributor reported, our important were in us. for an combined fleet products So, directionally, we've that the quarter

XX% were in fleet more net So, fact, tracking than rather additions than the asset of customers customers.

David Gearhart

that the or quarters is in And up line? prior or versus down

Stefan Joselowitz

quarter. also, in it the has guess certainly It's where breakdown than the I think line – don't we'd XX%. it's with have for be we I of quarter year. ultimately we disclosed more like tracking head, to year, had – by And been top my this asset

quarter. But certainly is something depends remains that flows not the it's with. So, it's It a percentage. steady how the that that very ratio it's deal – – necessarily not during I'm a . happy It's not ratio it's not a

David Gearhart

ELD in the deadline from coming And up lastly, me, in December. States, second United

it of Just wondering something as some into it wildcard? it baked that's to what is for that's on building And ELD Is the progresses due as you. ELD the Thank treated expecting terms front. a you're being or guidance in year momentum me.

Stefan Joselowitz

is our will of appreciate haven't tailwind It's certainly We in might have last in that certainly we we're And as of that. pipeline. I in. will pipeline on into certainly not significant be And on know – from deals, based that some have – current And But Thank ELD baked of perspective. a banking it we've rush. level what reasonable minute you. a baked what of the it. we a to have terms baked relates that happens, of those currently if much on it in certainty that it our will fact we terms

terminology, treating wildcard. So, a as to use your it we're

David Gearhart

Okay. the color. Thank you for

Stefan Joselowitz

Appreciate it, David.

Operator

Thank you.

Brian from from question next Oppenheimer. Schwartz is Our coming

line is Your now live.

Brian Schwartz

subscription question Thanks having morning. maybe business this or bookings contribution shape Hi. taking the the here either you size your if Jos, had to couple questions or Just my that on for business, today, the a Yeah. either revenue. US can U.S. at is subscription all wondering

Just stands trying where sense a get to Thanks. that today. on

Stefan Joselowitz

I component still indicated Brian. certainly of the I've a a of view it of – albeit geography, stages US – and Thanks, fact as of we last early terms vital building well for significant untapped a that out over opportunity our business we've couple us. years that done view we that the It's the think as in

largest scale the US of And strategic region, to we part US forward. currently the second how business. is business our or this build the to size terms that from of to the we want close same pretty of African way of group long now to going want vision this a So, ultimately is African get our kind in our same still

and next see to that So, continue largest it's for over are couple like level as sort of We'd of where that us. region. we the talking in years, to second from two way to of is growth three we organic the to, at it's the believe group kind be we a going business geography XX% to a currently, our need to long of years. third XX%, get enjoy will strong to But

growth We that alone. we vision achieve won't also recognize on organic

for. hope for will a day have that that where to we're point color gives we business. find come I – looking that suitable you that at But the you're to So, add-on going some

So, currently revenues. about XX% of group our

Brian Schwartz

should this capacity. can there profile about or increased how Again, that then, last year It any grow share just the to you that us fiscal rep sales we your does. with region, – capacity year for maybe we way I here, this follow-up is if quantitative investment Maybe perspective, how Thank just much in region? sales rep you, fiscal that thinking about from about US? just either here in with the the capacity a especially you should expect profile And the the think year Jos. sales investment ask how

Stefan Joselowitz

Yeah.

the is certainly, US investment So, capacity receiving overweight us a from from an perspective. sales

force some So, sales I force that guess, over months, there. us. kind sales our for force we've the a sales last XX is tripled of of new Clearly,

of a it's So, team. dialing kind dollars for

the salespeople road. high system an more So, of on in but kind we've on systems out our level investment feet it's also of internally-focused, having street the increased team, – and dialing out

premium our business fleet remains. remember, So,

than have last MiX never which business. believe on the derives, a this While of what been portfolio, revenue over our our the premium Paul sales excited that we be and component will focus we critical we're this remains as is about Now higher most the fleet we certainly I that days. of was to of We're that it and percentage couple just year reported. in overheads discussing expecting potential

expect would maybe, we would Paul, think view we you level – get to. on what what's your So,

Paul Dell

drives. I get at next this And to XX% year we sales. percentage It came XX% of as We in a year. definitely think would

for Just again. – a just just me a reminder last question

I exposure think That doesn't check direct business just China. that. to on I to business – have double the correct. the any is want

Stefan Joselowitz

your Brian? that Does answer question,

Brian Schwartz

question then, just And last me. for does. It

Just a again. reminder

business is double I the think to China. I That check correct. doesn't just –the that. business exposure any want direct to have on

Stefan Joselowitz

Thank you. Appreciate question. the

We have on of exposure side business, either from We directly any direct our don't we no to China. – import components China. don't

have stand, of a production a South We the in think not view currently [indiscernible]. you our we primarily we subcontract to producing, manufacturer. we But carry things other looking been for the geographies. been subcontract. – took do hindsight, As looking over in years, I And know, at platform. as core Africa. And We're on

any have we don't exposure So, direct there.

Operator

I'd over you. management of closing turn or our further comments. reached the the floor Thank end like to question-and-answer We've any to session. back for

Stefan Joselowitz

to take call joining all like you opportunity thank this I'd the for to today.

in remind that William be mid-June. the Just in you presenting at Blair we'll Conference Chicago

appreciate have and we to we'd forward questions. And So, your cup discussing you our a spend together, time business. that town, of great look any soon. Thanks get in to again. chatting And of to really your and coffee be attention happen love more

Operator

today's does That you. teleconference. conclude Thank

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

MiX Telematics (MIXT) 14 May 192019 Q4 Earnings call transcript