MIXT - Earnings call transcript Q1 2020

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Operator

Greetings and welcome to the MiX Telematics First Quarter Fiscal 2020 Earnings Conference Call and Webcast. At this time, all participants are in listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Paul Dell. sir. ahead, go Please

Paul Dell

the welcome quarter Telematics' which of XXXX. hours be June and release our for a issued ended results the XX, few discussing will we first fiscal Today, announced to day in earnings press MiX and ago. call on many on He results Good I'm year Officer, Stefan and John me today Executive of know MiX Joss. the Chief as him, you Dell President MiX Paul joining Telematics' of is is Granara, Joselowitz, call and Telematics. new Financial Officer or Chief XXXX,

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

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

results will release, rate available the the exchange exchange at All RXX.X We U.S. rand-dollar referring Commission. XX, dollar non-IFRS by these to which amounts certain measures. in is XXXX. the Exchange of call rate June of and an and was be U.S. referred been Securities a on detailing translated schedule oanda.com on have our to to the as dollar, reported There press our located which reconciliation with is financial website also currently filed

turn to me over let Joss. that, With call the

Stefan Joselowitz

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

Chief Granara Company's financial and highlights, brings into like I get over to strategic XX new welcome this broad as John Officer. would experience. of MiX to Before John years quarter's the Financial I

growth its to positive MiX his next our strategy of phase I'm insight evolvement. will on looking forward exciting contribution as the have the enters

of Americas. for our continue leadership in an role Finance invaluable support reminder, MiX new Dell Paul member his the to will team of a As remains and Head as

expansion Turning that strong our to report earnings a the additions, double-digit results, growth, revenue start as well well continued geographic cash weak we on reported call, discussed solid as the MiX further free deals. margin continuing quarter EBITDA from diversified financial and results and to subscription flow. last bundled positive product subscriber as despite highlighted evidence These benefit as our to portfolio, footprint are our by are we

solid attractive and model scalable generation. topline combination evidenced cash growth highly a business quarter another was of of MiX's by

million impact million strategy. This even quarter, part, our free the devices we in the for investing flow of RXX in after cash RXX bundling contracts. generated During in positive in-vehicle reflects, bundled

EBITDA In expansion. year-over-year addition, were which exceeded points our our performance, pleased we basis margin XXX of with with expectations adjusted

currency million grew of constant a revenue Our XX% RXXX and subscription year-over-year was with over basis in line on guidance.

have We and ARPU net also quarter, quarter growth. a and our contracts have up net bringing bundled time become over our year-on-year our new of reflects double-digit we during of revenues. premium XXX,XXX, higher subscribers subscription subscriber trended fifth expanded percentage consecutive to base XX% has increase of added as over our the XX,XXX a total services

product and can from remains to mix ARPU directly fluctuate said, quarter-to-quarter. That correlated

to don't regional continue the call, both our and top performance, contributed elections of on and line. detail QX the our much buildup to pleased headwind quarter buying a the bottom last the mentioned in we South with be broad provide Africa March positively geographies both activity national April. proved but We typically to to as our as geographic in slowdown all We

delivered quarter. normal a the return the business of States, momentum In pleased cadence in growth. Africa in to a and thawing we a June saw with we our we quarter expected, in with more another the exiting As United May were

However, we energy some some multinational buying more cautious our to begun among have and companies. see behavior

environment global our oil believe monitoring growth price something but U.S, by if is current in created the soon volatility. closely. and impact recent the It how uncertainty at reflects this to the tell all, may We we this it trade is are too

for it in continuing make but the be sales laying and MiX remains progress our strategy growth. and MiX opportunity foundation important organization building excited As now diversification continue States out for now, in and our market the early are we growth to the can in the still play future the at abroad. for role process and to It United we

serving of the addressable market Mexico in for presence greater direct a been partner through demonstrate establishing while success customers opportunity. to a highlight indirectly few remains more size long-term Mexico, go-to-market has victories years in partners to and with Telematics and direct channel our In relationship world. we a this XX over the strategic launched seize closely place, our our channel customers. work strong presence a the I to around justifies would by MiX that like strategy more

an customer enable through vehicles. to socially to industry-leading heavy responsible adopting Telematics' solution. MiX a company premium using solutions This wanted fleet commercial recycling of Furthermore, culture will be of drivers its Mexican-based fleet MiX's and management manage safe

over commitment years footprint continue We their started efficiency now in more We and customer and ago this close safety Asia. to America, expand vehicles South Europe, global to two FMCG and XXX underpin than a with vehicles to throughout in Africa, our the large X,XXX with of within addition Malaysia.

equipped combination solutions. fleet solutions. be their Senegal, Telematics' Papua with African in And, organization Central finally, humanitarian MiX global MiX's large expanding of New a premium will Guinea, of and and will reduction India, Their light fleets a Republic be

to their have on our themselves. fully few, of providers for confidentiality, certified non-financial strong services certification XXXXX Most our our recently security customers. certifications information management. further ISO and XXXX we gather, achieved the This the central of and companies demonstrates and if and ISO telematics process, standard to information the deliver cloud organization rely to a was any, XXXXX commitment both protecting note, availability international On integrity,

XXXX years. our solid which investments in a quarter, reflects strategic fiscal first we global with made So, unique and presence started over the have we summary, the

to believe company with to scalability, on executing create financial are an driven cash global opportunity As I profile, by and we enhanced growth, large a growing continue revenue a compelling flow. a subscription double-digit result,

to to let it me on the run through that, the turn John over details With quarter.

John Granara

Thanks, Joss.

all thrilled Before next that tremendous I our review financial the the both have in results, the looking wanted the to sharing forward of global of I'm opportunity the you months to by platform it. strategy to move front growth. I'm as on excited to and MiX of the achieve better we we ahead. of I have the to and getting take share in know CFO into place us in we opportunity I'm by story stage role

for then QX and I'll by first discuss the for fiscal year. QX start financial outlook reviewing our I'll results full and the

otherwise a results As basis our are an reminder, unless rand reporting and on our currency the South represented IFRS is noted. African

For I U.S. Please our unless changes results and that in convenience, quarter all we figures June refer have all mind first year-over-year otherwise. dollars translated XXXX the press spot to our in for rate. are into say the release the keep XX, using comparisons XXXX

first revenue goal with total, guidance were to XX% a As RXXX Joss up long-term quarter on are continues now to XX.X% this or pleased P&L, million, XX.X%, our Of trend revenues RXXX year-over-year came range. start at mentioned, Subscription on total up Starting revenue year results. the solid subscription with the with a represents in revenue. million. total constant we toward and line more currency of our and basis basis, in than

markets. subscriber XX% our the was driven the rand and positive by strong all and broad of XXX,XXX revenue added We XX,XXX across customers quarter fleet from of key than nearly ongoing other Hardware This vertical subscribers portfolio, flat. ended and RXX traction increase year-over-year. was million with more an essentially our premium performance including subscribers, in geographies

the Our from share gross greater XX.X%, XXX first basis dealer quarter gross margin was that we profit Subscription distribution hardware through last of The profit margin. consistent a was prior sales margin year. margin where decline XX%, primarily with our points the mix than our from higher down channel went result was year.

contracts related in-vehicle expected used depreciation certain profit term. gross trend an expect margins, drive in they gross we go longer devices which includes the high-value profit These are as through reminder, and our to renewal higher and to As of charges contracts. increase in generate contract a in bundled cycles, fleet up to XX% peripherals ARPUs toward

costs were of XX% of year, last to total expenses revenue, and scale initiatives. R&D capitalized. XX% Recall Operating economies management not of revenue G&A improved include compared highlights costs cost our that our ongoing which

XX% interested XX.X% provided to table a those our cost EBITDA of we or to earnings release. Adjusted RXXX million, our compared see have to expense, million development and XX.X%. you RXXX of capitalization press historical in or revenue, increased For

improvement exceeded year-over-year As XXX Joss expectations. the point basis mentioned, our

demonstrates We invest are investment. successfully improvement margin, in growth for pleased historical our adjusted to a the with EBITDA a ability leveraging our while continued return on which

a reminder, the adjusted As course over our then year. the is of seasonally increases EBITDA margin quarter QX and typically, lowest it

for was cents group's compared for to RXX was African tax compared Adjusted The which X in per was rate which up diluted quarter from or the rate quarter XX.X% or XX determining to XX.X%. share. earnings cents adjusted was per share, RXX The XX.X% South African the effective XX.X%. used South million, million is diluted earnings tax

press reconciliation release. accompany adjusted a of the earnings in financial included have the We tables which

cash, quarter million, shareholder the Our to have we and create or us no a We We balance for with million the flexibility pursue sheet the our company provides to sheet believe continues strong. to and balance $XX.X be asset strategic of very value. with is ended opportunities RXXX debt.

negative from million leading flow From in the million invested the RXX with cash same during to cash an RXX in period compared quarter, year. a free last operating flow flow RXX perspective, cash cash free generated million first for improvement we RXX activities capital of net expenditures, of million and

premium is subscriber cash investments XX% of offering. our demand of the driven use bundled devices in-vehicle are million, now of subscribers. by bundled our which The includes base fleet RXX for in

we financial our to our fiscal the outlook. call. earnings XXXX, turning on expectations regards maintaining are for to provided last guidance Now In we our

which revenue of is constant constant our RX.XXX of currency year-over-year As of billion, currency and current a would growth reminder, which growth guidance RX.XXX total represent subscription for X.X%, represents of revenue XX.X%. billion,

range, At in the are an represents EBTIDA well the adjusted guidance as of strong given the margin as adjusted we opportunities. of midpoint targeting XX.X%. achieve first and of sales in We EBITDA momentum remain RXXX pipeline quarter orders firm confident our which million, of ability our to the this

for based guidance at shares guidance on and translates diluted of to U.S. XXX an cents adjusted EPS the fiscal to an on to expecting dollar, this XXXX, South per XX.X ADS. This are the effective $X.XXX ordinary rate of XX%. regards is tax diluted we the exchange RXX.XX of Based midpoint African million In range. rate

this hardware as as to targets have As is relates on how This is previously, do is is to quarterly discussed focus annual suboptimal not our we to intention achieve P&L. and it close we to order relevant in the most wish and revenue our our items other line in deals management on objectives. focused terms

The discussed, area and as highest which of of revenue revenue, subscription level our component growing, largest, of where the highest margin fastest predictability and have visibility our the we is business. we've is

of For are XXXX, RXXX we revenues quarter targeting of would to RXXX million which second basis. constant million, of the currency XX.X% on range year-over-year growth XX.X% to a subscription in represent the

MiX summary, fiscal in gotten strong XXXX. a start has to In off

improvement EBITDA growth, flow our quarter. We in revenue and first free with in subscription the the continuing margins, adjusted are our cash pleased

and the telematics continue XXXX our we product and industry-leading is to ahead, key portfolio, sustaining growth. positioned that Looking traction verticals momentum in in diverse given ongoing integrated profitable commitment fiscal believe and geographies, MiX to platform, beyond, well our

over some I Joss back for will to closing remarks. now it hand

Stefan Joselowitz

fiscal subscriber to double-digit the Thanks, margin the to John. a growth, In solid additions, got off as as first revenue continued We closing, year strong quarter. well we start delivered in EBITDA subscription further is positive margin adjusted evidence of to in These working and confident EBITDA remain strategy achieve and free cash we expansion are XX%-plus. our long-term target results our our ability flow. that

pointed is us to create powerful with shareholder opportunities asset and Furthermore, a as provides strategic flexibility out, pursue our sheet balance value. untapped John to

over call the to that, operator Q&A to we begin With the the turn will session.

Operator

question-and-answer We'll be Pfau session. you. [Operator Our Instructions] William from conducting today Thank a coming from Blair. question is now Matt first

Your is now line live.

Matthew Pfau

to relative that's and start your with Hey, us guys. Thanks perhaps now progressing wanted Joss, for could you update mix questions. taking I an out, expectations? to how on give my

Stefan Joselowitz

combination and but of generation. we're certainly Thanks, the have still obviously early filing guess, is terms Matt. a we're months through or the process progressed. now, making mix in And relatively of progress new rather, out regards us I that with from strategy, sales out building go-to-market It's generating subscribers our as internal lead for perspective to team perfecting, new and

got but the well. are of diversification I'm remain We've long only as And excited and globally States, strategy, pleased say it to an United convinced the to be not way opportunity our and important progress. about will part we're go a growth we but making in

Matthew Pfau

Great. And to then the in wanted the a around ask customers follow-up energy U.S. I on just the comments

So new then existing within to is is count in energy to you world? this reducing trend their are purchases related and isolated the caution or you're customers customers seeing the are also with anywhere you? with energy customers And else fleet seeing this U.S. just the

Stefan Joselowitz

did me in let the in grow So sector we quarter. by start saying that that

What pace seeing certainly So existing we of from haven't contraction slowdown of expansion. or that pace observed we are customers. growth the you any referred the in to is a fleet

we've the seen. observations of one So that's that

could as of I with We are customers, cycles. guess sales new described be elongation regards seeing, an to

So U.S., I But certainly just a saying longer. When comes close I gotten during sector, in that have will did the bit a it's the it that sector energy cycles the sales we grow global little quarter. by guess. to not And it's observation. again

Matthew Pfau

Got lot. a Thanks That's it for me. it. That's helpful.

Stefan Joselowitz

Appreciate Matt. you, it. Thank

Operator

Thank you.

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

now live. Your line is

Michael Walkley

And you. forward looking John, to with you. working Thank Great.

John Granara

Yeah. Thank you, Mike.

Michael Walkley

companies be that last things. and Just build a some lot bigger, of on trailers and of industrial, market, to have to excess we for there U.S. other large in question, to the seems earnings tough inventory have the seen

You have slowing of adoption. kind

Joss. customers energy the strong in the other been things or that in just there's slowing maybe on discuss seeing just U.S. talked call maybe Maybe Are that discuss – maybe So pushing change to a of in pipeline. of it purchases within can out in you any or of just pipeline, maybe if outside any can more, terms that pipeline. verticals guys you you dig little you

Stefan Joselowitz

energy there's when not nervousness Thanks, comes enhanced growth based, having to emanates, or that prospects I've probably U.S. global around think it definitely other in only definitely multinationals, that geographies been global, well, Mike. is conversations Certainly, as large, but the in I and an concern tariff just how of to we'll of had have war and time. sectors, decent it plays outside performance during out we out the emanates, sector, But the this concerns. really a I see other with customers is other conversations guess quarter. But multinational

position. So that's our current

Michael Walkley

stronger of it there. talk think It just things sounds maybe are ended go into the sounds quarter if And that you just fiscal to it than South like year? now and Thanks. Great. Africa. you like it improving Can about rest continue momentum your began maybe the is going for

Stefan Joselowitz

categorizes Yes. That well. it

that this we As prior and to it believe. were the month disappointed to were year results you impacted know those particularly positive, the of month our with in the the elections of from national from we ago, pretty months started prior build we three earnings our geography, attributed the quarter, elections year. way which up The we of opening and call closing

we as and to, expected alluded normalizing. we as And business started

quarter definitely a to out second the in finish saw thawing the strong we month of the quarter. and a So

happy region And very mind economy years, a bearing be with exited the that has in a we and to tough the in on. is were number continue now the with will for economy we for been quarter the our we So that it's cadence of probably momentum the tell. normalized way with of pleased the year we're the and and way team a and of more the we there happy feeling balance time that performance finished quarter

Michael Walkley

and Great. question Last pass it me for I'll on.

direct opportunities opportunities invest discuss sounds some and that are take any Thank continue to one It can channel that as you. you you you a you in Mexico the like see competition you changing but different in to business opportunities seeing? see scale of to seeing new maybe any advantage new as you're Just markets, is in regions?

Stefan Joselowitz

to I where, be Thank you. a degree, to spot with And, trace it. appreciate yes, awash so for we're fortunate We're definitely. space opportunities. in a we're

combination very that in you our our in making We're management terms of, a being look primary mentioned strengths plays in of plays safety good them fleet really offering, – geography. of and very security strong it well of You lot and Mexico. the the and of at one security product progress data pillars to if that geography

be believe to of parts number more directly large than good and engage pretty that's there's excited that a in a we various for with about, United geography. opportunities of the other we're been globe have to us including look we in the going investment past other So in that as verticals customers geographies in States. we certainly, And the other

options our guess, forward. we're overall, going the So to grow have we with, myriad of business I pleased

Michael Walkley

you. Thank Great.

Operator

you. Thank

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

now live. is line Your

Brian Peterson

Hi, the call. Welcome Joss, to and hi, John.

working to you. forward with Looking

just anything trying to other big its frame Joss, revenue? Mexico is And maybe how market markets opportunity, that on is put first just could So early today? how to to there on term into the opportunity longer that the that context. know any I'm days. to relative way contribute I

Stefan Joselowitz

economy days, verticals is States very transportation that in been a of United that a in of and successful where, by lot factor, in and more there It's market It strength much of instance, the for a bear is in is but than mind large way a have it we've other example. are it many is early lot public big a geographies. we

is number to have of which us some asking a use So are direct and certainly, very huge prior transport that that. a we presence there of establishing the us doing with when of were fleets, public large and opportunity engaged in market for us considering a

motivational customer influence process us sort guess I us in been degree, there. other To getting past. geographies of to of in a what's the followed taken some similar into we've it's So a terms

sales still out there. we'll it's have going I where which with our from at And percentage time, continue guess, will some to relationships, to it'll see to I third-party now established in the a a marketing perspective. with opportunity take has and happen relationships, but piece business build office. our directly engage stage not similar see, from our presence They're a business we steadily we've there. territory, evolved years. that Brazilian We have do degree and dealer it's it definitely a an meaningful of that evolving, overnight. an It'll So I become we it

Brian Peterson

to shy update haven't desire about may opportunities, be terms Thanks, in Thanks, Joss. of in me the you Any And particularly a for Americas. those M&A follow-up there your through you can share on been guys. indicating M&A, just guys efforts? expand

Stefan Joselowitz

Thank you.

to all and do continue possible is We allocation enhancement to really in the bid there's principle opportunities engage based for in recognize around to We've it one capital some share. And opportunities. in We what's is stock. own on our drive our We've incredible stuff. intrinsic value at per of around tough makes us best it value going decisions looked fundamental deals.

is to it. something a at to a take it's reality accretive in capital over as to demonstrated But we'll we've measured hard going continue if run approach and we shareholder years, allocation the short-term looking. we certainly we're the our that deliver value perspective, be that, fair and remain believe But patient in many we is from the meantime, going and in pretty find we'll

Brian Peterson

Joss. Thanks,

Stefan Joselowitz

you. Thank

Operator

Thank you.

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

live. is line Your now

David Gearhart

you good morning. my questions. for Thank Hi, taking

I cadence on the rest Should of margin? I channel. you of for us wondering toward moving but here, the things one-time how to year. year color cadence I'm because it if step from you you about progress the can down the we XX%, said, volume through for question, greater just the term, the And ask First a see in Is just dealer quarter? for the should the this down gross wanted some longer give know we think gross sequentially. going mentioned about margin

John Granara

Hey, David.

looking So we at this. are

are for some we As Joss terms mentioned, can have – lumpiness of expecting be were year. this to in XX.X% quarter-to-quarter. be But a probably the

can basis. vary timing an at we're it though. looking So on annual quarter-to-quarter The

David Gearhart

I the cycle, and guidance for the in you around And some for terms QX. commentary or on in full-year taking what to Thank with a in strong QX QX dig of rest of and then hitting it side little the with a acceleration more pretty the for the implies you. bit some year. just hesitation, wanted subscription Joss' longer sales And context, then confidence the revenue in the gives number ramp

Stefan Joselowitz

Thanks, time. occasions, best David. I've our past as point judgment based in Again in at numerous on, guidance said is a the on

So number let's of a then which not of uncommitted, factors, orders our we percentage to we apply those. a potential fruition of that of orders look but likelihood to of, course reasonably committed at pipeline least close and is pipeline are and our say,

growth do, factor various at and that. things look as geographies the us depending our macro subscription a layering currently environment not And the ARPUs unusual having we have judgment for We make loaded revenue effect deals. back a various so in to is in We stand, on call. of we year from

as the about stand So a on update we today, things full-year good and as guidance our basis, do it and we're regular review feeling market still accordingly. we'll certainly

David Gearhart

heard the since MiX the a Okay. tracking, it's And we've update update us me, while revenue, value energy just and us because an on metric. think well then an asset overall an that I can if sub-additions between gross fleet or idea the percentage as you the been on lastly lower of of give give as for

John Granara

Yes.

consistent tracking XX%. the fleet over representing it's been the asset with actually I'd and say So, XX% premium light fleet approximately and

David Gearhart

of that's additions gross for the quarter? And

John Granara

Yes. Yes, the for quarter.

David Gearhart

then side? and Okay, energy the

John Granara

terms just is side still business major part a Energy the of of additions. in our

– change our vertical in composition no the So, been of verticals. there's

So it the top. remains toward still

So vertical I the past. the consistent composition terms vertical, of remains in that would say with the the additions,

David Gearhart

Okay. color. for the Thank you

Operator

Thank you.

coming is Oppenheimer. Schwartz from today from question Brian next Our

Your now line is live.

Brian Schwartz

Hi. Yes. morning, for taking questions Africa. in this Thanks South my afternoon maybe here

Stefan Joselowitz

Thanks, Brian.

Brian Schwartz

Joss. you, for a got I've here few

trends in first or Energy more you're changes the pipeline on in follow-up than trends you that of first quarter? seeing really you're here the any sector a at are activity, that Maybe deal just looking the the U.S. month improvements the of in saw Just XQ. any activity from if seeing maybe that quick the fiscal you

Stefan Joselowitz

No. No, QX. pretty with consistent

Brian Schwartz

maybe think do you sales Did it it's any of maybe analyze Joss, wondering some processes? And of you little kind your that all about, think you or I Could a little talked of into it some increased be future either the just then, uncertainty the But diving that? the about these customers. that a causes internal there's challenging sounds from the it about future? competition bit, And like thoughts. just Okay. bit,

Stefan Joselowitz

Brian, I'm of the terms But hoping guess of – question I'm growth global I've – correctly. is, lot understanding around said. as outlook a conversations, it in I

analysis, got what terms our looks like the view a In that's of pipeline we've market. reasonable future picture of and we the what the guides that numbers, give that really

one formulate we is certainly But think particularly. that's that. So don't that MiX, way thing unique to I a this

anything really I it's a be can just longer-term stage, be the specific not this think I what around and, resolved whether tariff might if think wars nervousness, impact timely on at these global really growth. there's don't

making paid we're we're excuses to a situation is across because business to of drive So I success as don't come not. want what so irrespective the macro

do. headwinds, some pleased to way despite we're beholden on that's I we're we macro think the with business. to our and intend continue building it's deliver, what to And us

Brian Schwartz

seeing over there over kind other Yes. has this Joss. out That's in presence you're there good market? pointed what's possible I and in weakness business the appreciate it that. was One Brexit. UK. your just UK from Is regards in Clearly, happening businesses quarter that's other as a over that there on real what to helpful, area comment software been to of

Stefan Joselowitz

We Yes. quarter. in the grew

the that's for us. for first So me metric and key obviously always,

one that certainly profit growth I in nothing not and no monitor and and from that subscribers is can grew that stuff we the do that we those – Again everybody we it's sweat a specifically is so at. another to Brexit of I continues monitor to globally, look And something try concern perspective doubt that geography. about. there's issues

year And So the Europe into again – this on there. baked our to us our issue year our focus and forward of in is we are or grow the this not from that that on that will because jump for that us got our and we're we've can business immune continuing in so certainly building Brexit year. best to we there focus we whatever But far view numbers keep the expecting business. in, to ever presented opportunities happens

baked So we'll that's already monitor like numbers. to continue everybody our And into it.

Brian Schwartz

that a is last I for in it's just question, I to been technology you M&A acquisitions, topic activity And at on the mostly If topic the call. the M&A. been here through past, look Joss, M&A on update. Thank new wanted typically, ask tuck-in that's the products

And I'm thinking balance how prioritizing M&A. wondering the about you're just sheet for

enter new in just maybe Can using sheet share about you you the how geographies. new think markets different think new you've through through growth to using past, you or balance about using priority terms you're Thanks. three products three in If of categories, using it us growth if potentially consolidation, the with between those done opportunities for it like these the for or growth? it for

Stefan Joselowitz

Thank you.

be buy buying one to, would and that would we in our far, That revenues by preference. of the our So least United one a only terms of allocation. And as next preference capital have is States' our is profits. – alluded business a with at third-party business to certainly, options I've be

not a into of we're putting effort alternate analyzing huge So certainly amount geographies.

this deal to business a valuation, Most of And to been going our if continent. exclusively to if do the transaction. for next our at assumption we're have do could efforts the one is our build our in again, preference, we're find on we a scale on going deal, right

would scale and margins, cetera, something we onto platforms, So our et cetera. et drive that existing could that consolidate something build

preference. So, be would our that

to continue aligned and be to define are And huge as to recognize are continues Having there telematics said call could that, it directly aware that outside valuation be at, we that. a business, what open we course, let's but looking opportunities We are we technology of. would trading and opportunities in that what aren't we're Brian, very as that at along. where gap evaluate between of they something these deals that's to come we'll a

recognize earlier that measured appropriate approach remain value asset we've that allocation. to of as we're terms I to that strategic untapped our make will We sure the in continue in we the to at and leverage time. drive sheet balance going call, And maximum shareholder our very in a we said got capital to

Brian Schwartz

taking you today. my much for Thank very questions

Stefan Joselowitz

Thank you it. Appreciate for your time.

Operator

Thank you.

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

Stefan Joselowitz

and you. you We John for Canaccord the call. some really be Boston and thank attention Bear And Until much. us Thank appreciate mind, I we then, presenting Oppenheimer thanks there. at of questions. Yes. on today see very next the joining in you to and will week conferences in your hope your and

Operator

you. teleconference Thank webcast. conclude That today's does and

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

MiX Telematics (MIXT) 3 Aug 192020 Q1 Earnings call transcript