MiX Telematics has increased its guidance for revenue and subscription gains for the full year after seeing overall subscription revenue gain 15% year-on-year to R253.7 million in the third quarter.
The listed company says overall subscribers gained 16% year-on-year in the three months to December, to 495 000, while adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) gained to R68.4 million, from R65.5 million.
As a result, MiX has raised its guidance for subscription revenue, total revenue and adjusted Ebitda for the full year, which ends next month. The company, which provides fleet and mobile asset management solutions delivered via software-as-a-service, now claims to be one of the largest fleet managers globally.
CEO Stefan Joselowitz says the business continues to grow profitably "despite ongoing macro-economic headwinds and geopolitical unrest in key sales regions". The company grew margins although it invested in growth initiatives, particularly sales and marketing-related efforts, he notes.
"This has improved our traction in the Americas where we had key wins in South America and the development of a strong North American pipeline in the quarter."
Joselowitz says MiX, through its "affordable" Beam-e solution, is in the early "stages of tapping the incremental opportunity in asset tracking which is being adopted equally by our enterprise installed base and by consumers seeking a cost-effective solution for vehicle recovery".
Overall revenue came in at R351.5 million, a 13.4% gain on the previous corresponding quarter, while hardware and other revenue was R97.8 million, an increase of 8.7% compared to R90 million for the third quarter of the previous year.
MiX anticipates that full-year revenue will come in around R1.35 billion, which would be growth of as much as 6.6% on the previous year, while subscription revenue is expected to be in the region of between R985 million and R995 million, or between 15.4% and 16.5% better than the last year.
The company notes these predictions are based on expected growth rates related to market conditions and take into account previous growth rates.
At the end of the second quarter, MiX said full-year revenue would be between R1.325 billion and R1.35 billion, representing growth of 4% to 6%. After the first quarter, revenue was anticipated to gain 8.9% to 10.9%.
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