Recent KARO transcripts
Associated KARO filings
| Zak Calisto | Founder, CEO & Director |
Good day. Thank you for joining us today. I'm Zak Calisto, the Founder and CEO of Karooooo.
During this presentation, we will be making forward-looking statements, including statements regarding our financial outlook for FY '23. Please read the disclaimer before you make any decisions. metrics our our website. non-IFRS X-K announcement, to on published reconciliations are earnings in the All
way our Before FY to the 'XX, talk we think we about want demonstrate our to business. results of we about you
As impact per what per billion change month or solution our in as we the is vehicle large underestimated. often charge misunderstood have do, average XX an we at for on businesses
they efficient with digitalize do businesses. Our on-the-ground platform We their and helps competitive be to much using transform our as our Fundamentally, platform. allow extremely their to operations. customers less customers them able our to are by more
have been has and monitoring We decade vehicles. our building over a far beyond for evolved platform
and years, so. have amount the we a last continue in Specifically to we do into allocated large will R&D, of capital
built the will and We many understand long-term term. the we future, We platform to medium will results that us want, benefits immediate for that customers. long so we not partners our have get can our the give in of the developments of these be we
we core the any operations of [Presentation] beyond to We and know, is think As underground business. connected all vehicles mobility all equipment.
Hopefully, has better our to with going one watch our helped what of Fundamentally, long We're like. all we've the understand term. that is the [Presentation] another on-the-ground now operations show looks establish to our us everybody mission operations our leading to will partner that business. the video cloud video allow watched customers' will day-to-day customers that for
to service SME up are digitalized The value complex more business believe larger are the now operations more we the contextualize and we into to to assist talk can our are better allowing customers transform platform bring them we're mitigate increase the table continue to enterprises. order businesses. you not the know to Clearly, can and proud the able the the visibility we its After video, to that to each productivity small that the developing in few very digitally that risk, now greater ourselves to to customers to our overnight. And the from I be in happen watching that them digitalizing We them indeed departments the operations. large operations. to business assist right have value other, better enterprise, operations continue to does the allowing all is bring their of to
we partner different So our building stages with their through them to business. customers take of
customers we to They month. see day the importantly, ourselves right get. of in at time. on benefits is day, as technology, improve which time ROI proud businesses the their allows ROI things them see first our the they over real that every benefits a is One that on second the one use they our our more But
a customer consumers types are different, have We large different operations. they small, medium, different that active X very with given enterprises. to from base, We these understand operate businesses very ranging different diverse at industries in vehicles of that all
take really and mindsets our regions, and had to data what be through that operations. that to customer on a to knowledge This and and app industry or learnings their companies, do one from together monthly And different very the to basis. we different us for other and customers understand success. in his localize this own to help we gather all one transform intelligence this important country reports not different that all our challenges. data every even give only help that able but country, ability been industries data assist able our We are we've within all is a also business collect allows And countries, it's there's billions collect we that the digitally to of putting is there that understand is given points to
day-to-day but that, we their business, way With that to them using our facts that to the optimize it businesses. staff, their and they the the give only data of long-term be derive that for and business, value customers, training it's them efficient it platform organize and not our of our improve also competitive, their the their real allows operations, many strategy from drive contextualized real allows allows -- to customers the them
they they those businesses. But not be decisions really improving are should your know some that may some what instant them to without knowledge, of how because of gratification don't improve. And even of own say they
much-needed the the way data and We sale monthly on large vast of our is of growing. cloud valuable We The platform. pool. our XX effect over We on of are points related a data our services understand billion collect given basis. a network untapped data
Africa understand are XXX at currently that road Asia, there's believe is vehicles. million about of consumer insignificant XX really we have got South the on we've XXX,XXX got in also ease easing at certainly believe we all this in of We've We countries in by vehicles We vehicles. Asia the Africa, opportunity. got rather vehicles specifically now up. that early region are the rates. ground grow in geography And best operate the these that has Southeast has of in. small a some that is If open starting business certain despite of at the understand got the million point others momentum well And Africa, the XX,XXX XX% XX% will South of got growth is same talk And opportunity, the capital consumer, hopefully at operate, at we And And lot COVID amount above QX, had opportunity we the amount time, core this month exists biggest growth. our over and think, I in all into talk time. point all well historical all in that we XXX,XXX months. the we a vehicles large -- operations throughout a our at about next are which and Mobility at certainly platform. growth at Europe we we we Africa, we to we vehicles. at X the If vehicles to geographies, South to we into as vehicles. have Africa, world. million look of each grow February, look that in has will The stage the have to part. understand of full of over We've been allocate about excluding Europe XX to do are did on vehicles seen XXX businesses. million and end long-term we and continue would when opportunity. businesses We Africa, of at way April, that about we we and got over and vehicles of there's don't vehicles, are that look
We are certainly also growing going market. to into put that efforts
important very is of terms in And factor operations at looking contributing is on-the-ground documented over in terms what the XX%. of Another well that of way GDP. it's been global
to evolves, And is operations. be businesses competitive; be and evolves the world grow. we data, helps efficient. As technology key It it to improving to it helps IoT helps certainly believe as data
ZAR USD do the growth a last rate win. February, We over the X.XXX at compounded XX%. few Why was we ZAR was annual In has believe reasons why us XXX million. of billion. ARR these we years, key Our win? it allowed That are
end-to-end We allocating vertically all software R&D are cloud We and an continuously improving that too. IoT platform integrated. increased we clearly,
we that will in a and operating infrastructure, noticeably have over that coming some well-established strong years. be We certainly a establishing been we've the Other countries longer. very countries, infrastructure of the for
infrastructure. an which network, distribution to We the have expanding well-established talks
last and business. achieve we continue Our over proven the ability to to our decade, been execute and has scale
why these quickly. And over technology while a customer-centric we provided our fundamentally operational most probably our allow Our customers. growth year we XX,XXX important of things, will break the customer the finished reasons which into reason the with our drive culture. And believe, really a I drive aspects fundamentally we that to culture, staff our 'XX. are win. believe to cultures, ROI, innovative, commercial we FY And the one are continue overriding to the remedy staff We partner, be we innovative is of
go of Karooooo. will the now results through XXXX financial We
I listed entity a know, all in financial sole started you we contract, owned Exchange South the Stock the where the shareholder was Johannesburg of year, As in of Karooooo, XX% Africa. which
the On inward Africa. listing Stock Singapore of April, on the to the of a owning we in we a took XXX% first and founded was on with did, ownership in the shares contract. XXst successfully -- in Karooooo company XXX% from JSE. the and now of Exchange. Cartrack South NASDAQ of is contract listing delisted headquartered Karooooo Johannesburg April,
market during outlook year, performance we met our XXXX. for that this to with gave are We we have delighted the whereby our financial
basis have EBITDA We of currency contract subscribers, the well the and constant number met contract X,XXX,XXX a revenue subscribers. was adjusted margin that subscription as on
The we our terms certainly margin In consistently we X.XX experienced the And have what goals. 'XX in acquisition. is year. billion, still despite our what have the and XX%. for been long-term had contracts revenue, X planned last difficult. keeping EBITDA subscription in subscription we of and adjusted grown that, revenue But quite financial ZAR customer of our trend financial and Further, with years
XX%. subscribers by Our grew
year. Our compared net to subscriber last additions grew by XX%
XXXX and Revenue over delighted FY a now platform. EBITDA to total 'XX commercial scale continue Our revenue of X.XXX billion, XX,XXX subscription Total at in ZAR compared X.XXX revenue also We're grew constant have we subscription and ZAR customers that as 'XX. XX% percentage on XX%. revenues growth our XX%. compared our X% by revenue up growth on basis up in a currency billion, to XX%, adjusted constant to FY currency by on grow Karooooo a is was XXXX. was
consistently We've strong Rule operating unit economics. We're margins. got of have the beating robust a XX. We
'XX retention in We cash a strong have sit year the cash FY supported a by and strong very The we balance very strong is position. customer We growth with rate. ended a of strong sheet, position.
ZAR up Our hand April. was XXX IPO net that to ZAR million we proceeds was money million, raised, of net our XXX cash on in XXX% the
of ZAR is also strong need doing million a believe XX for we an than position the acquisition We albeit months. got future, don't us for which certainly XXX ZAR next and we funding, Picup, that we the spent untouched. growth largely XX very in the And million also puts have on into
at during ended days XXX ZAR for After significant we XX the FY R&D free up investment in down and customer cash 'XX. financial compared X-day into days, million was debtor's contract to Our year, with acquisition flow.
to components. Our at XXX inventory is PPE we we the the shortages customer We also raised that million. our more demand. not ourselves the similarly, rather experience ZAR We And of normally increase meet acquisition, stock over FY increase in of did We operating be acquisition, fulfill through to years we to customer that and carry included with allocation be of on either. PPE. able prior year the In now years. find stock, any We've activities cash 'XX, demand. able invested In to than should predominantly activities, amount the into the XX% is record. track inventory shortages with believe we're capital got 'XX, FY flat pride was discipline faced we operating which not we shortage due that to have XX
Our earnings per year was XX.XX. this share ZAR
U.S. Karooooo's And up USD in Free of will in declare X%. ZAR EBITDA of dollars. million X.XX. to an year, cash we XXX The $XX pay we growth of in declare equivalent because million. Singapore decided was cents is Our out that That's U.S. reason dividends. in dividend flow dividends filings we a is margin this
we we sufficient We of cash. FY cash; cash certainly don't FY we that's sufficient be this during can in 'XX. growth generated invest 'XX the cash at 'XX, generation believe with have believe want ongoing cash for have keeping We've disposal. that got sufficient We FY and bank to the year. our during also facility we'll next projected And we've don't our
'XX. we feel with very FY So comfortable
we then into growing as generator long of everyone reach knows, has history consistent we always a Our is our We've strong If level do very of high accelerated business a business can cash. Cartrack years XX growth, our for dip execution. facility. bank a of now. model, been
the X.X steps at million XXX XX operating billion make million at over taken all our back occur put Our financial ZAR of end and a year not profit we've does off. in had happen to have X.X declared in after that And of operating profit this now in benefit results subscribers terms was we that years. uncovered X close Further, again. tested sure quite of role, QX, we're February. given given that ZAR been revenue the Subscription written also we We our comfortable the the all to satisfied We've the XXXX, will all ZAR with steps of for we those the place and the that subscribers. million this circumstances in feel not for customers again. doubt are necessary
of We and year look compared discipline, will in We was year the That net a strong we up financial on years. additions. continue challenges with will our forward the XXX,XXX strong in opinion, to certainly to X had a over good was the given COVID record XX% had XXXX. last XXX,XXX, subscriber last quite That's last that a year. that and our we've achievement
was Importantly, an XX% we and our on over increase XX,XXX commercial the of customers, now financial that previous year. have
attractive increase our unit for on materially to our of back the We investment are economics. well growth positioned
cost -- of value of internal Our out strategy ability to and by customers go-to-market and our systems, key lifetime is, for to our And product our quality market. And staff the in and client us, retain is of to quality the customers. able that our driven be over the of Xx. win the customers that our to
components to sales of the expense, negatively. portion ZAR of subscribers, to we times X,XXX portion decreased will X portion average the and ZAR increased our from XXX income the to [indiscernible] a by that and that you ZAR ZAR X,XXX. that that, impacted said statement acquiring cost to adding XXX did capitalize expense that FY 'XX our Our of you Having from the the the subscriber cost cloud new of numbers of in that there's
'XX. of compared a ZAR we capitalized capitalized; FY of terms to In X,XXX we what difference of X,XXX XXXX ZAR in
rates. XXX FY XXX. 'XX is ZAR to What exchange ARPU compared the also have ZAR the and there Our effect in timing an could was impact
for -- on from that our mostly to an been either subscription had Our COVID the impacted XX%, of margin that's of dropped because was run growth revenue XX% financial did by that specifically gross have and by and or the at that we all write-offs customers impact predominantly QX. that margin our adjusted margin our in contract gross in is subscriber the remains And within at segments different XX%, bases expectations profit FY return certainly despite we believe expansion all EBITDA XXXX. 'XX. which grew in our Overall, expansion COVID. will We
XX%. South Africa grew by
we by R&D In XX% XXX by grew net is Sales EUR Africa ZAR opportunity. XX%. XXX our XXX much believe money by lag XX%. in EUR keeping always encountered we XX% Europe and our is XX% from capital, still our we remain the to goals. believe the XXXX, way our on by of million December We in a million ZAR is million excluding XXX subscription by increased ZAR this the significantly long-term We to for that we from million with between that marketing million. up grew And Asia XX the We've Asia got and up and was And in and very marketing sales allocate biggest million. G&A strategic XXX it grew XXXX. additions XX% very that spend went to and up There's actual XXX by went ZAR from X%. million. ZAR benefits. on spend obviously
percentage XX%, of We as Sales an X% XX%. to targets. subscription marketing our spend it targets, and and XX% development XX% our in 'XX. X%, We and like Research to FY be have increase a in to be FY long-term between was between additional by in sales metric it marketing and X% revenue would 'XX. and operating was
margin a decrease was target XX%. our plan general revenue XX% percentage we was And as to revenue of XX%. 'XX. adjusted a outlook XX% administration as FY our is that between subscription percentage long-term and Our XX% and EBITDA certainly and subscription XX% for to Cartrack's of
planning well of to geared to the X.X better. subscribers X.X. that scale if be are We the support we Clearly, and were We business. number would see between can
billion X.XX margin looking and between Cartrack's XX%. we're looking EBITDA revenue, Our and Cartrack's adjusted between XX% ZAR subscription X.X billion, ZAR at to we're
would Our thank like and Thank to that's for for questions. as XXX billion. And million, up February the like presentation. I much. joined to ZAR ARR everybody was the you X.XXX open of SaaS at I'd end very USD us
to and when also look sales expect you you do recruiting typical ramp-up expect of to ramp-up. investment take always the your already of to right the We've And trained. recruitment marketing should FY like? remain The started does really one year? mix sales strong a new sales 'XX, down ramp do we you clearly, And Clearly, slower the accelerate in look a this people As reps to what people bit sales specifically, is efficiencies up your throughout you than the stable envisages. to QX. and start, right do get want well in process
if takes -- of sense. You right. a time with any with do quite lack to that bit of live have efficiencies, that makes And to get a
competing that are own only come with our those get We -- operations. their clearly And to worth help not set will offering servicing where sophisticated their -- our to greenfield. it we looking and customers. customers starting more are you customers, we So of commercial at opportunities? with we most into We quite It's we case that large expecting Normally, be of actually them a enterprise now but are start believe clearly, to next ramp is majority solutions? as are economics. a customer target, large. our in Or unit that. of the replacing always question, up we and variety it's certainly recent our staff the -- wins, certainly tell the untapped. Then quite competitive of of are the greenfield weakening medium-sized When we vehicles, we competitors situation's the market
been million, XX not G&A. million. it's expenses sure, we've just included, booked that William The but say not next Philippines, included in Karooooo? the have, The you Where Matthew. you, if is EBITDA that's solution, or bit comprehensive the in are very that, time. to will away XX a ZAR reason honest we the ZAR taking on entities in Indonesia, reflect -- -- was It's both over next a have back not at have was Vietnam. We're be question, got questions Carzuka, the got of is definitely Then I between that markets customers a OpEx We ARPU Asia, sure of markets competitors, XX much specifically I'm get biggest country We years under are Blair, Cartrack and million from got That Malaysia. Southeast into a not but why will Which Matthew. countries start from is XXX certain. do are Does it whole under sure we haven't this I William actually booked the And X from only That if and potentially ZAR we those envisage and I'm you William is I'm Vietnam, region? pickup get Matthew -- XX million, difference we're they Matthew. they is was evolved margin million negative from the Thailand. I if stage. it's Matthew the your predominantly over with jointly, competitors our So shown ZAR P&L, Matthew, in Blair. are more that Asia? X settle XXX not. Southeast and absolutely And not they to loss-making Vietnam ZAR vehicles an the from in in Blair, very right, EBITDA EBITDA not have been includes start-ups. it in million? XX I'm once to why we've The the
from So Matthew now I've question a William Blair. from got
the I'm Matt, wrong. first not So Matthew my sure that apologies, is
sales that additional increase this the certainly not would like we Where fully the percentage is I'm revenue of you spent I investment to product? Well, I'd plan question, certain that do revenue Matt. geo -- mentioned on You or marketing. understood and you market. increase of is that -- sales and to we're going spent to like on the percentage allocating
actually we're our centers. the experience on call overall, is, So on, spending intend, new we obviously, our customer just customers. on think money salespeople attracting adoption, and face-to-face, on one doing customer adoption I And certainly improving product and
the our it's refers growing right business, of that. spectrum through to So overall it
lot is range February. customers on it X, affect best the FY in year, much growth average the in range? subscriber the and is you quite on lot in guidance, came got the of it that or we depends and is affect growth the that For subscription of a [indiscernible] financial to could about in get what revenue and growth wider the expect why to plus match. The subscription modeling, more should does growth 'XX Also And take to on in where the growth doesn't QX. subscription is X-year It's -- them subscriber A way growth the -- reason there to That's be. growth subscribers model subscription. the the of the that revenue less give those previous timing.
question more gross it's QX, match. necessarily Further Alex. margins higher wanted subscription of ask XX% in to X from that, Cartrack's don't about quarter. despite this that on based profit the mix I only So
some and QX, I G&A fiscal Blair. to expansion 'XX. expect are your investment the into improve certainly and write-offs QX, substantially and in doing Matthew and year higher the profit in continue our the than What touched really in we but certainly quantify write-offs. Can our expansion, I but FY And areas our write-offs clearly we XXXX? obviously You we QX for in gross that would sales product. some operating In told don't gross in margin have QX impact that's anything would impacted profit training, margin? was numbers, and QX. -- be gross William profit else exact develop also building on say marketing market impacted that expansion on margin Alex, certainly key up you QX. from
But and through right what for sales your So in it's to focus sales your clearly, our and going R&D. Embedded I is outlook, think be with overall, different, FY Mike continuing investment? quite [indiscernible] forgive assumptions what So And I'm not GM for for what abbreviation me ignorance the are I'll sure GM knowing marketing is. marketing we're skip up GM it's R&D. get that I'm are going not all not what and try whether be invest is Mike, to I to base expenses, and what question. G&A, by this the my is. Walkley, 'XX sure main trends? to back to operating the is. whether And going it and looked your to assumptions you. I'm
are What is Given in business fuel in prices inflation what see trying marketing have do increasing impact sales we it of the and or will not 'XX. But community above will are thinking guidance would the prices you food the do significant growth we we upper scale on so. seen not in is like a that in beat you be a it this hopefully, promising side a our we Clearly, impact investor pricing? revenue business? the upwards the a the we question we're inflation? concern. putting -- and shift in with things delivering in Europe. in now guidance would we Or on-the-ground, we'd We ourselves We've in come seeing way. need inflation our certainly in economies do us your to out and long-term especially trying want to Clearly, any not benefit year FY will be economies thing given the going of Istra. our of spend can your with to the can the we're our But up. certainly them. And be way. Clearly, COVID next for on go that. and up, we're we is change also guidance, also from We real be to of guidance? that just on to are certainly, we to unease of the conservative now expecting The do scale, from it's the is, got like to out And feel repricing market? terms question
we're in. rather it's really on spread what And the offering that thinner. We've -- And think ourselves opportunity. actually learned We do. that vehicles. focus to we and a color management, untapped Americans I customers good we've not Carzuka? one Lesedi. software U.S.A. some to believe certainly see customers' it's I make we have South feel expand? on large are a results. in play seen talk all by let's excited a are much gets different insights all it's difficulty software you've because about lot got in developing we've in million tackle the what's it's and the in other Does current are we've from on-the-ground office from give the What software. year the U.S.A. Why not And software to yielding? larger a opportunity you have of that businesses space. from into moving? from market in only see, both competitors Then opportunity What's our trends to our how do can Africa, in question take I that to is fleet the got doing? happening and relates in We've the lives but David a in sufficient platform America? doing is operations in with What the you So people investments the Carzuka And we've we industry, we is have helping we market to Congrats difficulty got intend David, the just work -- to to see got what relates just always get which and or it. are competitors? for good see to Then we that segments necessarily question our we one, by don't are So information it we what What software certainly just market. a you U.S.A. happening What to space, way you that on market, the logistics? in 'XX? we think from the think have go software Capital. and so FY bundle there's when management any Saltine you X.X What everything got moved easier. at
every customer XX average vehicle their Our changes months.
a got customers vehicles. their we've and lot vehicles selling So of buying all insight to that the new are
it believe lots got customers And we them want, of new We better have selling on we a We've if know lots customer. -- that. the the and Cartrack can conditions we similarly, our And that selling the those vehicle, data. vehicles. can allows we with visibility also we price, attract second help of a into to get us we vehicles, of can ease
And So for got We've version to certainly developed software, with our the effect scale software. believe dual will our market looking gone business. first now to that we've start we we and a us. that it's of
vehicles. it's benefits a shopping oil best The way price I boosted fuel changes it years fuel, just physical. it believe What taken fuel focus beyond XX add complementary, to give more fuel but of lower We've got the big We say, prices impact more we're up very got much was fuel, I customers call of is see only doing the Florian, our is have necessarily was which to currently, proposition X,XXX a picking to solution LGM extent? a shareholders. savings month the impact. high, vehicles. one than on have the look about drivers another because I've if Today, and up customers. the up the got going us. all-time not picking we have we We those retail more customers also on ROI? immediate oil from We've allows in about stock in how ago, less Santini Florian customers X,XXX quantify sales, And it at Cartrack. to got onboard customers profit that XXX sure. City. as much, Is I is Cartrack Then vehicles to of got value saving This But that I most XXX and it, correct think the on ROI, proposition the ROI brought XX for customers using To a to far on you our to that routes. in already. really on will value And second as a With business increase? than to on center. us think benefiting LSM an and gives do is month thing. add seeing us on clearly drive it That what fuel. customer a aren't on more the from any what what will at whether saving that, can't I good commercial an have just prices value the our idling, much first Investments. our new activity on our I Eastgate We've bay I'm parking that's just not up certainly fraud, the is benefits, would customers.
expand we the the Sandile. out when we actually build we April, that right we in Carzuka do benefits take intend certainly you build the X the the can price those come So with question. increases from the oil But term, believe In we only must first in get think And do increase to to get Florian, then it gone a that And to we we'll long in I all, months. that software South geographies? market, that need these with obviously, look are ROI. must another it right. other have which a geographies. getting we all take in think businesses time baby other at first business up. when I is good to that I of And steps. get of path to Florian, it. right, And good a question we've -- believe Then we Africa, given to in
using getting the to screen. I'm used Sorry,
with Just me, bear please.
in that we'd in sustainable Karooooo process, missed policy the us haven't Certainly, Can dividends. investing term? operationally, medium a And in at lot accumulated growth. obviously Sandile must into exchange . the our are please It given U.S. U.S. of of not few it that dividends in keep as for ongoing know repeatable, keep think not I a at to we've kindly we certainly, statutory need in all last quite anybody try on we the in grown actually But dividend dollars. lot dollar was money XXX-odd is end in rate. not the funds using that to We account. in investment money So dollars we've in X filings guidance A of invest U.S. Singapore. we dies ZAR lower was bank Karooooo's kept to dollars and we're provide liked grown years. that into February. you million the have
with a the on 'XX, the in to out cash pay we paying minus, able to we FY this we just because generation we're we're generate dividend as cash that cash going hand, out just believe, be some that plus we'll So dividend. have
with thank in for you question gain the nil. to material foreseeable much the the reduction is line that loans to will that line Is certainly are -- to that attending to the now that transaction. transactions at becoming parties And reason it again thank now probably all the Second to And Thank or future? related in related And stop listed a tender to party belonging substantial in likely are on item did Juan. the be Cartrack party the Bye, our that's be Karooooo myself related , will you. biggest the once balance Sandile And in that and rather, related in Cartrack why transaction. which And certainly since questions. we we sheet? reduce item very have occupied transactions party close will item we the all main JSE. to presentation. you for belong line building, with Rosebank, We a bye.
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