Cartrack reports solid set of results
Cartrack’s total revenue has increased by 28% to R1.7 billion from R1.3 billion in the previous year.
The JSE-listed Cartrack, which is a global provider of data analytics solutions for mobile asset management, asset recovery and workforce optimisation, reported a solid set of results for the year ended 28 February.
“This year marks the sixth year of consecutive double-digit total company revenue and subscription revenue growth,” says Zak Calisto, founder and global CEO of Cartrack.
“Added to that, subscription revenue as a percentage of total revenue reached peak levels of 90% this year. We are equally excited about the continued growth and adoption of our advanced fleet management platform by a number of large corporate fleets in both Asia-Pacific and mainland Europe. In South Africa, our industry-leading audited recovery rate of 92% at year-end underpins the superior specialised quality of the security technology required for the recovery of stolen vehicles.”
Total revenue increased by 28% to R1.7 billion from R1.3 billion reported in the prior year on the back of robust subscriber growth at the same level to 960 798 subscribers (February 2018: 751 380 subscribers) and a strong performance across its key growth metrics, the company says.
It adds that net subscriber additions grew by 39% from 150 770 in 2018 to 209 418.
Cartrack’s subscription revenue is currently at 90% (February 2018: 88%) of total revenue, increasing subscription revenue by 30% to R1 521 million (February 2018: R1 166 million).
The group continues to maintain a strong pipeline and order book while focusing on maximising the distribution footprint it has expanded in the current financial year, says Cartrack.
It points out that despite the significant increase in investments to grow distribution capacity and the headwinds in the South African economy, earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 17% from R651 million in the prior year to R761 million in this year. The EBITDA margin of 45% (February 2018: 49%) continues to be the highest in the industry, it says.
“Cartrack is gathering significant momentum in its efforts to capitalise on the increase in global trends of artificial intelligence and data analytics, and tangible results are already becoming evident from these efforts,” Calisto notes.
“Our vision remains to achieve global leadership in the telematics industry as we strive to be the technology leader, providing transformational solutions to manage fleets, workforces and other non-powered assets, and help clients move their business operations into the digital age.
“As we focus on a highly underpenetrated market, Cartrack’s goal is to provide our customers and partners with real-time, actionable business intelligence, based on advanced technology and reliable data.”