Q3 2024 Karooooo Ltd Earnings Call

Earnings Call. On behalf of Karu, we'd like to thank you for joining us today.

Host: Earnings Call

Carmen: On behalf of Kuru, we'd like to thank you for joining us today. I'm Carmen, the Group's Chief Strategy and Marketing Officer, and together with Hu Xin, our Group Chief Financial Officer, we'll be taking you through our strong business updates and financials. All investors are advised to read through the disclaimer.

Carmen: On behalf of Karu, we'd like to thank you for joining us today. I'm Carmen, the group's chief strategy and marketing officer, and together with Hu Xin, our group chief financial officer, we'll be taking you through our recent business updates and financials.

We'd like to thank you for joining us today.

I'm Carmen, the group's chief strategy and marketing officer, and together with Hu Xin, our group chief financial officer, we'll be taking you through our strong business updates and financials. All investors are advised to read through the disclaimer.

Speaker Change: I'm common the group's chief strategy, and marketing officer, and together with <unk>, Our group Chief Financial Officer, who will be taking you through our strong business updates and financials. All investors are advised to read through the disclaimer.

Host: All investors are advised to read through the disclaimer.

Hu Xin: We will be reviewing all three of Carew's business units in today's webinar, namely CarTrack, Carzuca and Carew Logistics.

Carmen: We will be reviewing all three of Carew's business units in today's webinar, namely CarTrack, Carzuca, and Carew Logistics. Carew remains committed to its mission of being the leading operations cloud. Our focus is to simplify the lives of operators and maximize the scale and efficiency of their operations. Our innovative platform goes far beyond connected vehicles and equipment to centralize and unify an entire operation into one single place.

Carmen: We will be reviewing all three of Kourou's business units in today's webinar, namely Kartrek, Karzuka, and Kourou Logistics. Carew remains committed to our mission of being the leading operations cloud. Our focus is to simplify the lives of operators and maximize the scale and efficiency of their operations. Our innovative platform goes far beyond connected vehicles and equipment to centralize and unify an entire operation into one single place. We are helping to pave the benchmark and future of efficiency, safety, and impact for operational businesses. Fundamentally, every operation wants to achieve safety targets, compliance targets, and well-being targets, but historically, these have come at the compromise of the core survival and success targets of a business, productivity, and efficiency. Having a tool that solves complex problems in simple ways is no small feat, and this is a constant driver for our strong growth at scale. Everything is embedded together.

Speaker Change: We will be reviewing all three of cruise business units in today's webinar, namely contract Kazuko <unk> in Peru logistics.

Hu Xin: Carew remains committed to our mission of being the leading operations cloud. Our focus is to simplify the lives of operators and maximize the scale and efficiency of their operation. Our innovative platform goes far beyond connected vehicles and equipment to centralize and unify an entire operation into one single place. We are helping to pave the benchmark and future of efficiency, safety, and impact for operational businesses.

Speaker Change: <unk> remains committed to our mission of being the leading operations cloud all focus is to simplify the lives of operators and maximize the scale and efficiency of the operation.

Speaker Change: Our innovative platform goes far beyond connected vehicles and equipment to centralize and unify an entire operation into one single place, we are helping to pave the benchmark and future of efficiency safety and impact for operational businesses Fund.

Carmen: We are helping to pave the benchmark and future of efficiency, safety, and impact for operational businesses. Fundamentally, every operation wants to achieve safety targets, compliance targets, and well-being targets. But historically, these have come at the compromise of the core survival and success targets of a business, productivity, and efficiency. Having a tool that solves complex problems in simple ways is no small feat, and this is a constant driver for our strong growth at scale. Everything is embedded together. The tool that automatically flags potential fuel fraud to save thousands is the same tool that automates carbon emission tracking. The tool that optimizes routes to slash mileage and fuel consumption also makes drivers' lives easier and puts them at ease to ensure they get paid for every minute they work.

Hu Xin: Fundamentally, every operation wants to achieve safety targets and compliance targets and well-being targets. But historically, these have come at the compromise of the core survival and success targets of a business, productivity and efficiency. Having a tool that solves complex problems in simple ways is no small feat, and this is a constant driver for our strong growth at scale.

Speaker Change: Fundamentally every operation wants to achieve safety targets and compliance targets and well being targets, but historically these have come at the compromise of the core survival and success targets of a business productivity and efficiency.

Speaker Change: Having a tool that solve complex problems in simple ways is no small feat and this is a constant driver for our strong growth at scale.

Hu Xin: Everything is embedded together. The tool that automatically flags potential fuel fraud to save thousands is the same tool that automates carbon emission tracking. The tool that optimizes routes to slash mileage and fuel consumption also makes drivers' lives easier and puts them at ease to ensure they get paid for every minute they work.

Speaker Change: Everything is embedded together the tool that automatically flags potential few fraud to save thousands is the same tool that automates carbon emission tracking the tool that optimizes routes to slash mileage and fuel consumption also makes drivers' lives easier and puts them at ease to ensure they get paid for every minute they worked with.

Carmen: The tool that automatically flags potential fuel fraud to save thousands is the same tool that automates carbon emission tracking. The tool that optimizes routes to slash mileage and fuel consumption also makes drivers' lives easier and puts them at ease to ensure they get paid for every minute they work. When burdens like maintenance are well managed, they become strong differentiators for operators, and this is easily done through our automation and integrations. Carew's platform allows operators to prioritize safety and compliance with heightened productivity. Karoo's AI-powered cameras are redefining the boundaries of visibility.

Hu Xin: When burdens like maintenance are well managed, they become strong differentiators for operators and this is easily done through our automation and integrations.

Carmen: When burdens like maintenance are well managed, they become strong differentiators for operators, and this is easily done through our automation and integrations. Carew's platform allows operators to prioritize safety and compliance with heightened productivity. In an era where safety is taking center stage, our cameras are reshaping how we approach risk management, worker well-being, community safety, and operational efficiency. Our Operations Cloud drives digital transformation for over 113,000 commercial customers with a 95% retention rate across businesses of varying sizes in diverse markets and industries. We continue to empower the day-to-day operations of our customers with our data-enhanced platform, enabling them to make informed decisions with actionable intelligence about their own fleets, as well as others in their industries.

Speaker Change: Burdens like maintenance, how well managed they become strong differentiators cooperators and this is easily done throughout automation and integration.

Hu Xin: Carew's platform allows operators to prioritise safety and compliance with heightened productivity.

Speaker Change: Chorused platform allows operators to prioritize safety and compliance with heightened productivity.

Speaker Change: Chorused AI powered cameras are redefining the boundaries of visibility these cameras standards safety pioneers, revealing hidden risks and enabling proactive responses from slashing accidents to exonerating innocent drivers the profound impact transcends industries.

Carmen: These cameras stand as safety pioneers, revealing hidden risks and enabling proactive responses. From slashing accidents to exonerating innocent drivers, their profound impact transcends industries. A key factor contributing to the success of our platform is its smooth integration into our customers' various operational workflows. In challenging environments like mines, traditional methods, such as sit-down discussions on driving styles, may not be feasible.

Speaker Change: A key factor contributing to the success of our platform is it smooth integration into our customers' various operational workflows in challenging environments like minds traditional methods such as sit down discussions on driving style may not be feasible.

Carmen: Recognizing the significance of training, our innovative approach involves utilizing our risk management control room tool and two-way in-cab communication tools for on-the-spot training and immediate action. The generated alerts ensure prompt intervention and risk mitigation, such as directing drivers to rest when fatigued. The outcome has been transformative, with a remarkable 59% reduction in fatigued or distracted driving in just four months, resulting in an overall decrease in accidents. In other industries, establishing formal training is feasible, and driver incentives are based on safety scores. A leading mass bus company transporting around one million passengers daily has revolutionized the industry and made a significant impact on community safety, with a 41% decrease in fatigue and distracted driving in just three months. Not only has this led to positive branding as commuters see the change and feel safer, but it has also boosted operational efficiencies by reducing accidents and minimizing the associated downtime. Accidents involving company vehicles often result in substantial maintenance and insurance expenses, protracted legal disputes, and employee disgruntlement.

Speaker Change: Recognizing the significance of training our innovative approach involves utilizing our risk management controls them tool and two way in cab communication tools for on the spot training and immediate action that generated alerts ensure prompt intervention and risk mitigation such as directing drivers to race to enter.

Speaker Change: Cheat the outcome has been transformative with a remarkable 59% reduction in fatigued or distracted driving in just four months, resulting in an overall decrease in accidents.

Carmen: The continuous evolution of our platform ensures ongoing enhancements, driving increased returns for our customers whilst we keep our ARPU stable. The value proposition of our platform is massive, and we have a huge runway for growth. Our culture, founded on customer centricity, transparency, and solution-oriented thinking, sets us apart. We attract top talent that thrives on challenges and values hard work over frills, fostering a team that leads by example.

Speaker Change: Other industries, establishing formal training is feasible in driver incentives are based on safety scores.

Speaker Change: Leading mass bus company transporting around 1 million passengers daily has revolutionized and industry and made significant impact on community safety with a 41% decrease in fatigue and distracted driving in just three months.

Speaker Change: Not only has this led to positive branding is commute to see the change in feel safer, but it is also boosted operational efficiencies by reducing accidents and minimizing the associated downtime accidents involving company vehicles, often result in substantial maintenance and insurance expenses protracted.

Speaker Change: Legal disputes and employee disgruntlement.

Carmen: Our cloud-based footage has revolutionized the way companies address accidents, providing a straightforward means to investigate incidents and exonerate their teams. This approach enables companies to establish clear mandates around liabilities, streamlining compliance and boosting employee morale. Businesses appreciate a tool that prevents unwarranted blame, leading to increased employee retention, whilst businesses benefit by avoiding unwarranted bills that often rack up to tens of thousands of dollars. In an era where safety is taking center stage, our cameras are reshaping how we approach risk management, worker well-being, community safety, and operational efficiency.

Speaker Change: Our cloud based footage has revolutionized the way companies address accidents, providing a straightforward means to investigate incidents and exonerate their teams.

Speaker Change: This approach enables companies to establish clear mandates around liabilities streamlining compliance and boosting employee morale.

Speaker Change: It is appreciated tool that prevents unwarranted Blaine leading to increased employee retention, whilst businesses benefit by avoiding unwarranted bills that also in a rack up to tens of thousands of dollars.

Hu Xin: In an era where safety is taking center stage, our cameras are reshaping how we approach risk management, worker well-being, community safety, and operational efficiency. Our Operations Cloud drives digital transformation for over 113,000 commercial customers with a 95% retention rate across businesses of varying sizes in diverse markets and industries.

Speaker Change: In an era, where safety is taking center stage, our cameras are reshaping, how we approach risk management work of wellbeing community safety and operational efficiency.

Hu Xin: Our operations cloud drives digital transformation for over 113,000 commercial customers with a 95% retention rate across businesses of varying sizes in diverse markets and industries. We continue to empower the day-to-day operations of our customers with our data-enhanced platform, enabling them to make informed decisions with actionable intelligence about their own fleet, as well as others in their industries. The continuous evolution of our platform ensures ongoing enhancements, driving increased returns for our customers whilst we keep our RPUs stable. The value proposition of our platform is massive, and we have a huge runway for growth. Our culture, founded on customer centricity, transparency, and solution-oriented thinking, sets us apart. We attract top talent that thrives on challenges and values hard work over frills, fostering a team that leads by example. From infield technicians to decision makers, our team's curiosity, ingenuity, and diverse experience result in a powerhouse of innovation and successful execution. Our unique culture, while not for everyone, cultivates resourceful individuals driven to efficiently solve complex problems. I will now hand over to Hu Xin, who will take us through our financial performance. Thank you, Carmen.

Speaker Change: Our operations cloud drives digital transformation for over 113000 commercial customers with a 95% retention rate across businesses of varying sizes in diverse markets and industries.

Hu Xin: We continue to empower the day-to-day operations of our customers with our data-enhanced platform, enabling them to make informed decisions with actionable intelligence about their own fleet, as well as others in their industries.

Speaker Change: We continue to empower the day to day operations of our customers without data enhanced platform, enabling them to make informed decisions with actionable intelligence about their own fleet as well as others in their industries.

Hu Xin: The continuous evolution of our platform ensures ongoing enhancements, driving increased returns for our customers whilst we keep our ARPU stable. The value proposition of our platform is massive, and we have a huge runway for growth.

Speaker Change: The continuous evolution of our platform ensures ongoing enhancements driving increased returns for our customers, whilst we keep our RPI stable the value proposition of our platform is massive and we have a huge runway for growth.

Carmen: From infield technicians to decision makers, our team's curiosity, ingenuity, and diverse experience results in a powerhouse of innovation and successful execution. Our unique culture, while not for everyone, cultivates resourceful individuals driven to efficiently solve complex problems.

Hu Xin: Our culture, founded on customer centricity, transparency, and solution-orientated thinking, sets us apart. We attract top talent that thrives on challenges and values hard work over frills, fostering a team that leads by example. From infield technicians to decision makers, our team's curiosity, ingenuity, and diverse experience results in a powerhouse of innovation and successful execution. Our unique culture, while not for everyone, cultivates resourceful individuals driven to efficiently solve complex problems. I will now hand over to Hu Xin, who will take us through our financial performance.

Speaker Change: Our culture founded on customer Centricity transparency and solution oriented thinking sets us apart, we attract top talent that thrives on challenges and values hard work overthrows fostering a team that leads by example from infield technicians to decision makers are teens carry.

Speaker Change: City ingenuity and diverse experience, resulting a powerhouse of innovation and successful execution, our unique culture, while not for everyone cultivation resourceful individuals driven to efficiently solve complex problems.

Carmen: I will now hand over to Hu Xin, who will take us through our financial performance.

Speaker Change: I will now hand over to <unk>, who will take us through our financial performance.

Hu Xin: Thank you Carmen. I will now talk through KERU's financial performance for Q3 FY24. Please note that all comparisons are against Q3 FY23 unless otherwise stated.

Thank you, Carmen. I will now talk through KERU's financial performance for Q3 FY24.

unknown: Thank you Carmen I will now talk to coast financial performance for Q3, FY 'twenty four.

Hu Xin: I will now talk through Carew's financial performance for Q3 FY24. Please note that all comparisons are against Q3 FY23 unless otherwise stated. Quarter 3 has proven to be an exciting period for us.

Please note that all comparisons are against Q3 FY23 unless otherwise stated. Quarter 3 has proven to be an exciting period for us. Our well-established and profitable SaaS business model and robust financial position provide us with multiple levels of growth, and our primary focus remains on growing our subscription revenue. Our subscription revenue grew 17% to R904 million, and our ARR demonstrated an increase of 20% to R3,711 million. Operating profit increased by 31% to RM275 million, and our earnings per share grew 35% to RM6.34 despite our prudent provision made in the quarter relating to Kazuka's reduced operations. All segments continue to see strong traction, with the benefits of our strategic investment beginning to show. Earnings in this quarter stood at R199 million, and our free cash flow was at R162 million.

unknown: Note that all comparisons are against Q3, FY2023 unless otherwise stated.

Hu Xin: Quarter 3 has proven to be an exciting period for us. Our well-established and profitable SaaS business model and robust financial position provide us with multiple levels for growth, and our primary focus remains on growing our subscription revenue.

unknown: Quarter, three has proven to be an exciting period for us all of that establish unprofitable SaaS business model and a robust financial position provide us with multiple levers for growth and our primary focus remains on growing our subscription revenue.

Hu Xin: Our well-established and profitable sales business model and robust financial position provide us with multiple levels of growth, and our primary focus remains on growing our subscription revenue. Our subscription revenue grew 17% to R904 million, and our ARL demonstrated an increase of 20% to R3,711 million. Operating profit increased by 31% to R275 million, and our earnings per share grew 35% to R6.34 despite our prudent provision made in a quarter relating to Kajuka's reduced operations. All segments continue to see strong growth, with the benefits of our strategic investment beginning to show. Earnings in this quarter stood at R199 million, and our free cash flows are at R162 million.

Hu Xin: Our subscription revenue grew 17% to R904 million and our ARR demonstrated an increase of 20% to R3,711 million.

unknown: Our subscription revenue grew 70% to and I haven't and 4 million win and our ear all demonstrated an increase of 20% to 3000 711 million veins.

Hu Xin: Operating profit increased by 31% to RM275 million and our earnings per share grew 35% to RM6.34 despite our prudent provision made in the quarter relating to Kazuka's reduced operations.

Operating profit increased by 31% to 275 million van and our earnings per share grew 35% to six <unk> and 34 cents, despite our prudent provision, making the quarter relating to caducous reduce operations.

Hu Xin: All segments continue to see strong tractions with the benefits of our strategic investment beginning to show.

unknown: All segments continue to see strong traction with the benefits of our strategic investment beginning to show, earning.

Hu Xin: Earnings in this quarter stood at R199 million and our free cash flow are at R162 million.

unknown: Earnings in this quarter stood at 199 million van and our free cash flow at 162 million ran.

Hu Xin: Our free cash flow has remained positive over the last eight quarters, despite our investment in the development of our new South Africa Centre of

Our free cash flow has remained positive over the last eight quarters, despite our investment in the development of our new South Africa Centre. Up to this quarter, we had invested RM231 million in this development. Our high cash conversions are demonstrated through our strong financial discipline as we continue to invest for our future growth. Our net cash on hand stood at RM782 million in this quarter, and that does turn over days improve to 30 days alongside prudent provisioning to weather off strong economic headwinds in some of the markets we are operating in. We have strong unit economics, robust operating margins, an unleveraged balance sheet, and a strong cash conversion. We remain confident that our track record of success, especially our ability to generate healthy cash flow, is sustainable.

Hu Xin: Our fee cash flow has remained positive over the last eight quarters, despite our investment in the development of our new South Africa Central Offering. Up to this quarter, we had invested R231 million in this development. Our high cash conversions are demonstrated through our strong financial discipline as we continue to invest for our future. Our net cash on hand stood at R782 million in this quarter.

unknown: Our free cash flow has should remain positive over the last eight quarters. Despite our investment in the development of our New South Africa Center office.

Hu Xin: Up to this quarter, we had invested RM231 million in this development.

unknown: Up to this quarter, we had invested 231 million went in deep development, our high cash conversion at demonstrated through our strong financial discipline as we continue to invest for our future growth. Our net cash on hand stood at 782 million when in this quarter that the spinoff.

Hu Xin: Our high cash conversions are demonstrated through our strong financial discipline as we continue to invest for our future growth.

Hu Xin: Our net cash on hand stood at RM782 million in this quarter, that does turn over days improving to 30 days alongside with prudent provisioning to weather off strong economic headwinds in some of the markets we are operating.

Hu Xin: That does turn over days improving to 30 days alongside prudent provisioning to weather off strong economic headwinds in some of the markets we are operating in. We have strong unit economics, robust operating margins, an unleveraged balance sheet, and a strong cash conversion. We remain confident that our track record of success, especially our ability to generate healthy cash flow, is sustainable. Despite our provision for a quarter for Kazooka, our earnings per share increased by 35% to R6.34. The increase is the result of positive revenue growth and improved profitability, notwithstanding our prudent and strategic investment for growth. Kazuka has negatively impacted our earnings per share by $0.75, in line with the provision we make in a quarter as Kazuka reduced its operations.

unknown: These improving to 30 days alongside we've prudent provisioning to better off strong economic headwinds in some of the markets. We are operating we.

Hu Xin: We have strong unit economics, robust operating margins, unleveraged balance sheet and a strong cash conversion.

unknown: We have strong unit economics, and robust operating margins and leverage balance sheet and a strong cash conversion, we remain confident that our track records of success, especially our ability to generate healthy cash flow is sustainable.

Hu Xin: We remain confident that our track records of success, especially our ability to generate healthy cash flow, is sustainable.

Hu Xin: Despite our provision in a quarter for Kazooka, our earnings per share increased by 35% to R6.34. The increase is the result of positive revenue growth and improved profitability, notwithstanding with our prudent and strategic investment for growth.

Despite our provision in a quarter for Kazooka, our earnings per share increased by 35% to R6.34. The increase is the result of positive revenue growth and improved profitability, notwithstanding our prudent and strategic investment for growth. Kazuka has negatively impacted our earnings per share by $0.75 in line with the provision we make in a quarter as Kazuka reduces its operations. Based on our estimates, we believe we have made adequate provision, and going forward, we do not expect Kazuka to have a significant impact on our earnings per share. We will now focus on CarTrack, the underlying assets to Karoo's success. Our momentum continues in this quarter as CarTrack extends its decade-plus track record of growth at scale, profitability, and cash generation ability.

unknown: Despite our provision in the quarter for coach Luca our earnings per share increased by 35% to six <unk> and 34 cents. The increase is the result of apostrophe revenue growth and improved profitability, notwithstanding with our prudent and strategic investments for growth.

Hu Xin: Kazuka has negatively impacted our earnings per share by $0.75 in line with the provision we make in a quarter as Kazuka reduces its operations.

unknown: Cause Luca has negatively impacted our earnings per share by 75 cents in line with the provision we make in the quarter ash because Luca reduces operations based on our estimates we believe we have adequate provision and going forward Lee we do not expect because we've got to have significant impact on our earnings per share.

Hu Xin: Based on our estimates, we believe we have made adequate provision, and going forwardly, we do not expect Kazuka to have significant impact on our earnings per share.

Hu Xin: Based on our estimates, we believe we have made adequate provision, and going forward, we do not expect Kazuka to have a significant impact on our earnings per share. We will now focus on CarTrack, the underlying assets to Carew's success. Our momentum continues in this quarter as CarTrack extends its decade-plus track record of growth at scale, profitability, and cash generation ability. Overall, subscriber growth at scale was 14% to over 1.9 million. Subscription revenue grew 17% to R900 million, while operating profit grew to R295 million. CarTracks consistently proves its ability to scale in diverse macroeconomic conditions and consistently beats the rule of 40. And in this quarter, CarTracks saw a 34% growth in earnings per share, reaching $0.0696.

unknown: Sure.

Hu Xin: We will now focus on CarTrack, the underlying assets to Karoo success.

unknown: We will now focus on contract the underlying assets to <unk> success.

Hu Xin: Our momentum continues in this quarter as CarTrack extends its decade-plus track record of growth at scale, profitability and cash generation ability.

unknown: Our momentum continue in this quarter as contract extend his decade, plus track record of growth at scale profitability and cash generation ability.

Hu Xin: Overall, subscribers grew at scale by 14% to over 1.9 million.

Overall, subscribers grew at scale by 14% to over 1.9 million. Subscription revenue grew 17% to R900 million, while operating profit grew to R295 million. CarTracks consistently proves its ability to scale in diverse macroeconomic conditions and consistently beats the rule of 40. And in this quarter, CarTracks saw a 34% growth in earnings per share, reaching R6.96. Our earnings are benefiting from our robust economic scale. The expansion of CarTrack's subscriber base by 14% to 1.9 million reflects our highly successful rate of implementation and strong customer retention across various businesses. The demand from small to large enterprises looking to enhance their compliance function and embark on a digital transformation journey for increased efficiency and competitiveness in their operations remains high. CarTrack's total subscription revenue grew 17% to R900 million and represents 98% of total revenue. Total revenue grew 14% to RM990 million. Our SAS ARR grew 20% to RM3,695 million, showcasing the strength and growth potential of our SAS business model.

unknown: Overall subscriber grew at scale by 14% to over $1 9 million.

Hu Xin: Subscription revenue grew 17% to R900 million while operating profit grew to R295 million.

unknown: Subscription revenue grew 17% to nine Havent medium van while operating profit grew to 295 million van <unk>.

Hu Xin: CarTracks consistently proves its ability to scale in diverse macroeconomic conditions and consistently beaten the rule of 40. And in this quarter, CarTracks saw a 34% growth in earnings per share, reaching R6.96. Our earnings are benefiting from our robust economic soft scale.

unknown: <unk> consistently proves its ability to scale in diverse macroeconomic conditions and consistently beaten the rule of 40 and in this quarter Patrick saw a 34% growth in earnings per share, reaching six ran at 96 cents. Our earnings are benefiting from our robust economies of scales.

Hu Xin: Our earnings are benefiting from our robust economies of scale. The expansion of CarTrack's subscriber base by 14% to 1.9 million reflects our highly successful rate of implementation and strong customer retention across various businesses. The demand from small to large enterprises looking to enhance their compliance function and embark on a digital transformation journey for increased efficiency and competitiveness in their operations remains high.

unknown: The expansion of contract subscriber base by 14% to $1 9 million reflects our highly successful rate of implementation and strong customer retention or cost me U S businesses.

Hu Xin: The expansion of CarTrack subscriber base by 14% to 1.9 million reflects our highly successful rate of implementation and strong customer retention across various businesses.

Hu Xin: The demand from small to large enterprise looking to enhance compliance function and embark on a digital transformation journey for increased efficiency and competitiveness in their operations remain high.

unknown: The demand from small to large enterprise looking to enhance compliance function and embark on their digital transformation journey for increased efficiency and competitiveness in their operations remain high.

Hu Xin: CarTrack's total subscription revenue grew 17% to R900 million and represents 98% of total revenue.

Hu Xin: Caltracks' total subscription revenue grew 17% to R900 million and represents 98% of total revenue. Total revenue grew 14% to R990 million. Our SAS ARR grew 20% to R3,695 million, showcasing the strength and growth potential of our SAS business model, as car tracks continue to have strong visibility of its future sales revenue. Our realization of the economy of scale continues to demonstrate our ability to expand. In this quarter, Gross Profit grew 19% to R672 million, and Gross Profit Margin grew 3% to 73%. Despite the investment for growth, car tracks' operating profit grew 33% to R295m, and the operating profit margin grew 4% to 32%. Our adjusted EBITDA grew 29% to RM447 million, and our adjusted EBITDA margins are at 49%. CarTrack's low cost of acquiring a customer, high customer lifetime value and retention rate, as well as strong benefits from economies of scale, result in our leading unit economy. Our LTV to CAG is overnight.

unknown: I'll try to still do subscription revenue grew 17% to and I haven't million rent and represent 98% of total revenue.

Hu Xin: Total revenue grew 14% to RM990 million.

unknown: Total revenue grew 14% to and I haven't and 19 million RIN.

Hu Xin: Our SAS ARR grew 20% to RM3,695 million, showcasing the strength and growth potential of our SAS business model.

unknown: Oh, it's S. A a good 20% to 3690 5 million win showcasing the strength and growth potential of our SaaS business model.

Hu Xin: As car tracks continue to have strong visibility of its future sales revenue,

As car tracks continue to have strong visibility of its future sales revenue, our realisation of the economy of scale continues to demonstrate our ability to expand mind. In this quarter, gross profit grew 19% to R672 million and gross profit margin grew 3% to 73%. Despite the investment for growth, CarTrack's operating profit grew 33% to RM295 million and operating profit margin grew 4% to 32%. Our adjusted EBITDA grew 29% to RM447 million, and adjusted EBITDA margins are at 49%. CarTrack's low cost of acquiring a customer, high customer lifetime value and retention rate, as well as strong benefits from economies of scale result in our leading unit economy. Our LTV to CAC is over 9.

unknown: As contracts continue to have strong visibility of its future SaaS revenue our realization of economy of scale continue to demonstrate our ability to expand margins in this quarter gross profit grew 19% to 672 million van and gross profit margin grew 3%.

Hu Xin: Our realisation of economy of scale continue to demonstrate our ability to expand mind,

Hu Xin: In this quarter, gross profit grew 19% to R672 million and gross profit margin grew 3% to 73%.

unknown: 73%.

Hu Xin: Despite the investment for growth, CarTrack's operating profit grew 33% to RM295 million and operating profit margin grew 4% to 32%.

unknown: Despite the investment for growth contracts operating profit grew 33% to 295 million win and operating profit margin grew 4% to 32%.

Hu Xin: Our adjusted EBITDA grew 29% to RM447 million and adjusted EBITDA margins are at 49%. CarTrack's low cost of acquiring a customer, high customer lifetime value and retention rate, as well as strong benefits from economies of scale result in our leading unit economy.

unknown: Our adjusted EBITDA grew 29% to 447 million range and adjusted EBITDA margin at 49% contracts low cost of acquiring a customer high customer lifetime value and retention rate as well as strong benefits from economies of scale, resulting in our leading you in.

unknown: Economics.

Hu Xin: Our LTV to CAC is over 9. We have strong profit margins with our gross profit margin on subscription revenue at 75% and commercial customer retention rate of 95%.

unknown: Our LTV to CAC is overnight, we have strong profit margins, our gross profit margin on subscription revenue at 75% and commercial customer retention rate of 95%.

We have strong profit margins, with our gross profit margin on subscription revenue at 75% and a commercial customer retention rate of 95%.

Hu Xin: We have strong profit margins, with our gross profit margin on subscription revenue at 75% and a commercial customer retention rate of 95%. With our track record, we are well-positioned to continue to increase our market share. Over the years, CarTrack has maintained a steady APU and an averaged upfront cost of acquiring a subscriber. APU for the quarter was RM160.

Hu Xin: With our track record, we are well-precision to continue to increase our market share. Over the years, CarTrack has maintained a steady ARPU and averaged upfront cost of acquiring a subscriber. ARPU for the quarter was RM160.

With our track record, we are well-positioned to continue to increase our market share.

unknown: With our track record of out decision to continue to increase our market share.

Over the years, CarTrack has maintained a steady ARPU and averaged the upfront cost of acquiring a subscriber. ARPU for the quarter was RM160. CarTrack's average lifetime revenue per subscriber in this quarter stood at R9,629. The average upfront cost of adding a subscriber to our cloud platform in this quarter was R2160. This course mainly relates to sales commissions and telematic devices, which are capitalized, and sales and marketing expenses that are expenses. The hate room, derived from the average lifetime revenue per subscriber, after subtracting the average upfront cost of adding a subscriber was R7,469 per subscriber. From RM7,469, we incurred the cost to service the subscriber over the contract life cycle of 60 months. The cost to service a subscriber decreased as we grew our subscriber base.

unknown: Over the years contract has maintained a steady apple and average upfront cost of acquiring a subscriber a pool for the quarter was 160 rain.

Hu Xin: CarTrack's average lifetime revenue per subscriber in this quarter stood at R9,629.

unknown: <unk> average lifetime revenue per subscriber in this quarter stood at 9629.

Hu Xin: CarTrack's average lifetime revenue per subscriber in this quarter stood at R9,629. The average upfront cost of adding a subscriber to our cloud in this quarter was R2,160. This course mainly relates to sales commissions and telematic devices, which are capitalized, and sales and marketing expenses that are expenses.

Hu Xin: The average upfront cost of adding a subscriber to our cloud in this quarter was R2160.

unknown: The average upfront cost of adding a subscriber to our cloud in this quarter was 2160 or in.

Hu Xin: This course mainly relates to sales commission and telematic device which are capitalized and sales and marketing expenses that are expense of.

unknown: These costs, mainly relate to sales commission and telematic device, which are capitalized and sales and marketing expenses that are expense off the.

Hu Xin: The hate room, derived from the average lifetime revenue per subscriber, after subtracting the average upfront cost of adding a subscriber was R7,469 per subscriber.

unknown: The hate boom derived from the average lifetime revenue per subscriber after subtracting the average upfront cost of adding a subscriber was 7469 rent, but a subscriber.

Hu Xin: From the RM7,469, we incurred the cost to service the subscriber over the contract life cycle of 60 months.

unknown: From the 7469 are in we incurred a cost of service the subscriber or the contract lifecycle of 60 months the cost to service a subscriber decrease as we grow our subscriber base. Our unit economics has remained steady, allowing us a strong operating.

Hu Xin: The headroom, derived from the average lifetime revenue per subscriber, after subtracting the average upfront cost of adding a subscriber was RM7,469 per subscriber. From the RM7,469 rent, we incur the cost to service the subscriber over the contract life cycle of 60 months. The cost to service a subscriber decreased as we grew our subscriber base. Our unit economics has remained steady, allowing us to make a strong operating profit. CarTracks continues to grow its subscriber base and ARR to expand in all geographies. For example, our subscribers in South Africa grew by 12% despite the challenging trading conditions. Given that we continuously pass on additional benefits to our customers and have a rich data pool, we believe we will continue to see strong customer demand in this region.

Hu Xin: The cost to service a subscriber decreased as we grow our subscriber base. Our unique economics has remained steady, allowing us a strong operating profit.

Our unique economics has remained steady, allowing us to make a strong operating profit. CarTrack continues to grow its subscriber base, and ARR to expand in all geographies. Our subscribers in South Africa grew by 12% despite the challenging trading conditions. Given that we continuously pass on additional benefits to our customers and have a rich data pool, we believe we will continue to see strong customer demand in this region. In Asia, the Middle East and USA subscriber grew by 26%, as the traction in Southeast Asia has been encouraged. Southeast Asia remains the second largest contributor to the group's revenue, presenting the most compelling growth opportunity and delivering increasing and sustainable income to the group in the medium to long term. Europe saw healthy growth of 15% and remains a region we are focusing our resources on. With our recent partnership with leading OEMs, we are poised to leverage our extensive offerings to further develop the connected vehicle ecosystem and expect these partnerships to contribute to our results in the medium term.

Office.

Hu Xin: CarTrack continues to grow its subscriber base and ARR to expand in all geographies.

unknown: <unk> continued to grow its subscriber base and E are out to expand in all geographies all the subscribers in South Africa grew by 12% despite the challenging trading conditions.

Hu Xin: Our subscribers in South Africa grew by 12%, despite the challenging trading conditions.

Hu Xin: Given that we continuously pass on additional benefits to our customers and have a rich data pool, we believe we will continue to see strong customer demand in this region.

unknown: Given that we continuously pass on additional benefits to our customer and half of each data pool. We believe we will continue to see strong customer demand in this region.

Hu Xin: In Asia, the Middle East and USA subscriber grew by 26%, as the traction in Southeast Asia has been encouraged.

unknown: In Asia, the Middle East and U S E subscribers grew by 26% as restriction in southeast Asia has been encouraging.

Hu Xin: Southeast Asia remain as the second largest contributor to the group's revenue, presenting the most compelling growth opportunity, and deliver increasing and sustainable income to the group in medium to long term.

unknown: Southeast Asia remain as the second largest contributor to the group's revenue presenting the most compelling growth opportunity and deliver increasing and sustainable income to the group in medium to long term.

Hu Xin: In Asia, the Middle East, and the USA, subscribers grew by 26% as attraction in Southeast Asia has been encouraged. Southeast Asia remained the second largest contributor to the group's revenue, presenting the most compelling growth opportunity and delivering increasing and sustainable income to the group in the medium to long term. Europe saw a healthy growth of 15% and remains a region we are focusing on our resources on.

Hu Xin: Europe saw a healthy growth of 15% and remains a region we are focusing our resources on.

Europe saw a healthy growth of 15% and remains a region, we are focusing on our results.

Hu Xin: With our recent partnership with leading OEMs, we are poised to leverage our extensive offerings to future develop the connected vehicle ecosystem and expect these partnerships to contribute to our results in medium term.

unknown: With our recent partnership with leading Oems, we are poised to leverage our extensive offerings to future develop the connected vehicle ecosystem and expect these partnerships to contribute to our results in medium term.

Hu Xin: In addition, we are experiencing encouraging demand for our proprietary compliance technology in the region.

In addition, we are experiencing encouraging demand for our proprietary compliance technology in the region.

unknown: In addition, we are experiencing encouraging demand for our proprietary compliance technology in the region.

Hu Xin: With our recent partnership with leading OEMs, we are poised to leverage our extensive offerings to future develop the connected vehicle ecosystem and expect these partnerships to contribute to our results in the medium term. In addition, we are experiencing encouraging demand for our proprietary compliance technology in the region. Africa others maintain its growth with an 8% increase in subscribers. At the end of Q3, our ARR increased 20% to R3,695,000,000.

Hu Xin: Africa Others maintained its growth with 8% increase in subscribers.

Africa Others maintained its growth with an 8% increase in subscribers. At the end of Q3, our ARR increased 20% to RM3,695 million. This is a good trend as we continue to see the momentum of growth in our subscriber and ARR. CarTracks continues to have robust operating margins, and our trends are in line with the long-term financial goals set out upon our listing in 2021. Our subscription revenue gross profit margin stood at 72%, which is consistent with our expectations. Research and development expense as a percentage of subscription revenue was 6% as we focus on driving substantial benefits from our R&D capital allocation.

unknown: Africa, others maintained its schools with 8% increase in subscriber.

Hu Xin: At the end of Q3, our ARR increased 20% to RM3,695 million.

unknown: At the end of quarter, three our <unk> increased 20% to cheat thousand and 695 million win.

Hu Xin: This is a good trending as we continue to see the momentum of growth in our subscriber and ARR.

This is a good trending as we continue to see the momentum of growth in our subscriber N E. R O.

Hu Xin: CarTracks continue to have robust operating margins, and our trends are in line with the long-term financial goals set out upon our listing in 2021.

unknown: Contracts continue to have robust operating margins and our trends are in line with our long term financial goals set up on our leasing in 2021 hour.

Hu Xin: Our subscription revenue gross profit margin stood at 72%, which is consistent with our expectations.

unknown: Our subscription revenue gross profit margin stood at 72%, which is consistent with our expectation.

Hu Xin: This is a good trend as we continue to see the momentum of growth in our subscriber and ARR. Car tracks continue to have robust operating margins, and our trends are in line with the long-term financial goals set out upon our listing in 2021. Our Subscription Revenue Gross Profit Margin stood at 72%, which is consistent with our expectations.

Hu Xin: Research and development expense as a percentage of subscription revenue are 6% as we focus on driving substantial benefit from our R&D capital allocation.

unknown: Research and development expense as a percentage of subscription revenue up 6% as we focus on driving substantial benefit from our R&D capital location.

Hu Xin: Our planned investment in improving, enriching and expanding our operation cloud and internal management system is to enhance our value proposition to our customers.

Our planned investment in improving, enriching, and expanding our operation cloud and internal management system is to enhance our value proposition to our customers. Sales and marketing expense as a percentage of subscription revenue increased to 14% We believe the strategic investment for customer acquisition positions us well for continued growth, and we expect to see future benefits from this investment. General and admin expenses as a percentage of subscription revenue are at 21%. The expenses have been relatively stable to reflect our commitment to build a strong support infrastructure to meet our future growth plan and yet be pragmatic in our spending. Operating profit as a percentage of subscription revenue is 30%, and adjusted EBITDA as a percentage of subscription revenue is 48%. As we continue with our momentum in Q3, we are pleased with our progress so far.

unknown: Our planned investment in improving and reaching and expanding our operation clock and internal management system is to enhance our value proposition to our customers.

Hu Xin: Research and development expense as a percentage of subscription revenue is 6% as we focus on driving substantial benefit from our R&D capital allocation. Our planned investment in improving, enriching, and extending our operation cloud and internal management system is to enhance our value proposition to our customers. Sales and marketing expense as a percentage of subscription revenue increased to 14%. We believe the Strategic Investment for Customer Acquisition positions us well for continued growth, and we expect to see future benefits from this investment. General and administrative expenses as a percentage of subscription revenue are at 21%.

Hu Xin: Sales and marketing expense as a percentage of subscription revenue increased to 14%

unknown: Sales and marketing expense as a percentage of subscription revenue increased to 14%.

Hu Xin: We believe the strategic investment for customer acquisition positioned us well for continued growth and we expect to see future benefits from this investment.

unknown: We believe the strategic investment for customer acquisition decision or spell for continue growth and we expect to see future benefits from these investments.

Hu Xin: General and admin expenses as a percentage of subscription revenue are at 21%.

unknown: General and admin expenses as a percentage of subscription revenue at 21%.

Hu Xin: The expenses has been relatively stable to reflect our commitment to build a strong support infrastructure to meet our future growth plan, yet being pragmatic in our spending.

unknown: The expenses has been relatively stable through reflects our commitment to a strong support infrastructure to meet our future growth plan, yet being pragmatic in our spending.

Hu Xin: Operating profit as a percentage of subscription revenue are 30% and adjusted EBITDA as a percentage of subscription revenue is at 48%.

unknown: Operating profit as a percentage of subscription revenue up 30% and adjusted EBITDA as a percentage of subscription revenue is at 48%.

Hu Xin: The expenses have been relatively stable to reflect our commitment to build a strong support infrastructure to meet our future growth plan, yet being pragmatic in our spending. Operating profit as a percentage of subscription revenue is 30%, and adjusted EBITDA as a percentage of subscription revenue is at 48%. As we continue with our momentum in Quarter 3, we are pleased with our progress so far. Our outlook for CarTracks remains, and we maintain our guidance, with the number of subscribers between 1.9 to 2.1 million, CarTracks subscription revenue between 3.4 to 3.6 million rand, and CarTracks operating profit margin between 28 to 31 percent. KERU Logistics delivered significant growth, generating R$91 million in revenue and a commendable operating profit of R$7 million in this quarter.

Hu Xin: As we continue with our momentum in Q3, we are pleased with our progress so far. Our outlook for CarTrax remain and we maintain our guidance with number of subscriber between 1.9 to 2.1 million, CarTrax subscription revenue between 3.4 to 3.6 million rand and CarTrax operating profit margin between 28 to 31%.

unknown: As we continue with our momentum in quarter three we are pleased with our progress so far.

Our outlook for CarTrax remains, and we maintain our guidance with the number of subscribers between 1.9 to 2.1 million, CarTrax subscription revenue between 3.4 to 3.6 million rand, and CarTrax operating profit margin between 28 to 31%. KERU Logistics delivered significant growth, generating R91 million in revenue and a commendable operating profit of R7 million in this quarter. Its focus on delivery as a service through selected third-party crowdsource drivers and logistics companies has been highly scalable and is delivering substantial growth.

unknown: Our outlook for contracts remain and we maintain our guidance with number of subscriber between one nine to $2 1 million contract subscription revenue between $3 four to $3 6 million win and contracts operating profit margin between 28% to 31% career logistic delivered significant growth journey.

Hu Xin: KERU Logistics delivered significant growth generating R91 million in revenue and a commendable operating profit of R7 million in this quarter.

unknown: <unk> 91 million ran in revenue and a commendable operating profit of 7 million rent in this quarter is.

Hu Xin: Its focus on delivery as a service through selected third-party crowdsource drivers and logistic companies has been highly scalable and is delivering substantial growth.

unknown: His focus on delivery as a service to select that bought the sauce driver and logistic companies has been highly scalable and is delivering substantial growth.

Hu Xin: While it continues to integrate into CarTrack's platform to expand its customer base, the Karoo Logistics stack is expected to deliver a long-term revenue stream to the group.

While it continues to integrate into CarTrack's platform to expand its customer base, the Karoo Logistics stack is expected to deliver a long-term revenue stream to the group. We believe the benefits of our strategic investment in this segment are starting to manifest.

unknown: We continue to integrate into contracts platform to expand its customer base. The crude logistics that is expected to deliver a long term revenue stream do their group.

Hu Xin: We believe the benefits of our strategic investment in this segment are starting to manifest.

unknown: We believe the benefit of our strategic investment in this segment are starting too many fish.

Hu Xin: Its focus on delivery-as-a-service through selected third-party crowdsource driver and logistics companies has been highly scalable and is delivering substantial growth. While we continue to integrate into CarTrack's platform to expand its customer base, the Carew Logistics stack is expected to deliver a long-term revenue stream to the group. We believe the benefits of our strategic investment in this segment are starting to manifest. I would like to thank everyone for joining us today, and we will now open the floor to Q&A with our Group CEO and Founder, Mr. Zach Kalisto. Good morning or good evening to everyone.

Speaker Change: I would like to thank everyone for joining us today, and we will now open the floor to Q&A with our group CEO and founder, Mr. Zach Callisto.

Host: I would like to thank everyone for joining us today, and we will now open the floor to Q&A with our group CEO and founder, Mr. Zach Callisto.

Speaker Change: I would like to thank everyone for joining us today, and we will now open the floor to Q&A with our group CEO and founder Mr. Zack College, though.

Zach Callisto: Good morning or good evening to everyone. Thanks for joining us today. I'm going to start off with the first question from Miles Ferry. What does Karoo plan to do with Karzuka's IP?

Good morning or good evening to everyone. Thanks for joining us today.

Hey, good morning, everybody evening to everyone.

Zack College: Thanks for joining us today.

I'm going to start off with the first question from Miles Ferry.

Zack College: The first question from Marci <unk>.

Zack College: Okay.

Speaker Change: Going to do it causes this RFP.

What does Karoo plan to do with Karzuka's IP? And we do use part of Kazuka's IP for the broader Daniel Bartus, Anthony Geard Daniel Bartus, Anthony Geard, On a scale of 1 to 10, are those card checks performing in Southeast Asia and Europe relative to your expectations? I think, Miles, we're definitely on target with our budgets. Clearly, what we would like to do is start growing faster, and we definitely, that's exactly what we plan to do. Do you see growth in Southeast Asia and Europe scaling fast in FY25 and in the current financial year? I think in the results of the next quarter, we're certainly going to give the outlook, and there we'll be more firm in what we believe we can deliver.

Zach Callisto: and we do use part of the Kazuka's IP for the broader

Speaker Change: We do use part of the country because the RFP for the board.

Zach Callisto: Daniel Bartus, Anthony Geard Daniel Bartus, Anthony Geard

Speaker Change: Spectrum of contract business. So we can't at this point in time to continue using that causes it'd be one that we'd be a way that we could sell order goods.

Speaker Change: One could you.

Speaker Change: We're not certain at this point in time, if we sold it and we made them.

Thanks for joining us today. I'm going to start off with the first question from Mars for E. What does Karoo plan to do with Kozuka's IP? And we do use part of the Consumers IP for the broader. We have a wide spectrum of car track business, so we intend at this point in time to continue using the Kozuka IP, although we are aware that we could sell part of it if we wanted to. We're not certain at this point in time if we sold it, then we would make another if that wouldn't just create another competitor that would upset the OEMs and dealerships.

Speaker Change: We did that we didn't just create another competitor and to do that.

Speaker Change: Amgen the dealerships, so we sort of got it to treat carefully and decide if we decide that it to be at Fox South Africa.

Zach Callisto: On a scale of 1 to 10, are those card checks performing in Southeast Asia and Europe relative to your expectations? I think, Miles, we're definitely on target with our budgets.

Speaker Change: On a scale of one to 10 now does cortex, performing southeast Asian and European markets.

Speaker Change: To your expectations.

Speaker Change: Think of malls, we definitely on target without budgets right.

Zach Callisto: Clearly what we would like to do is start growing faster and we definitely, that's exactly what we plan to do. Do you see growth in Southeast Asia and Europe scaling fast in FY25 and in the current financial year? I think in the results of the next quarter we're certainly going to give the outlook and there we'll be more firm in what we believe we can deliver.

Speaker Change: Clearly, what we would like to give you start growing faster and we definitely.

Speaker Change: That's exactly what we plan to do.

Speaker Change: Do you see growth in southeast Asia in Europe's coming forth in April I think broadening the current financial year.

So we've sort of got to tread carefully and decide if we do sell it outside South Africa. On a scale of 1 to 10, are those contracts performing in Southeast Asia and Europe relative to your expectations? I think, Miles, we're definitely on target with our budget. Clearly, what we would like to do is start growing faster, and that's exactly what we plan to do. Do you see growth in Southeast Asia and Europe scaling past an FY20 path and in the current financial year? I think in the results of the next quarter, we're certainly going to give the outlook, and then we'll be more firm in what we believe we can deliver. The next question comes from Matt from Wollombly: can you update us on the progress of OEN?

Speaker Change: Linking the results of the next quarter, we'd certainly going to keep that book and pay.

Will it be more in what we believe we can deliver.

Speaker Change: The next question coming from Matt from Muldoon Blay. Can you update us on the progress of OEMs?

The next question comes from Matt from Muldoon Blay.

Speaker Change: The next question coming from Matt from William Blake can you update us on the progress of that.

Can you update us on the progress of the OEMs? I think the progress has been slow, but we certainly believe that once that progress starts, it's definitely going to be a kicker for attracting business and for customer acquisition, so we remain very hopeful that our integrations with our OEMs and our current collaboration with them are going to yield good results. And another question from Matt from William Blair. How is Asia performing relative to your expectations? And Matt, are we seeing in accordance with our forecasts and our budgets for the year? And we certainly are doing a lot in the background to really increase our activity. Like I said earlier, I think within the next three months or so, we'll be giving better guidance for FY25. A question from Sandini.

Speaker Change: Yeah.

Matt: I think the progress has been slow but we certainly believe that once that progress starts it's definitely going to be a kicker for attracting business and for customer acquisition so we remain very hopeful that our integrations with our OEMs and our current collaboration with them is going to yield good results

Matt: Well I think the progress.

Matt: No.

Matt: We sure can be believed it once.

Matt: Once that program starts it's different.

Matt: Be a kicker.

Matt: <unk>.

Matt: And therefore, attracting business and for customer acquisition.

Matt: We remain very hopeful that.

Matt: Integrations with <unk> and our current collaboration with him he's going to yield good results.

Speaker Change: and another question from Matt from William Blair. How is Asia performing relative to your expectations? And Matt, are we seeing in accordance with our forecasts and our budgets for the year? And we certainly are doing a lot in the background to really increase our activity. Like I said earlier, I think within the next three months or so, we'll be giving better guidance for FY25.

Speaker Change: Another question from Matt from William Blair.

Speaker Change: Asia performing relative to your expectations.

Speaker Change: Nick.

Speaker Change: In equities workout forecast at our budgets for the year and we certainly are being locked in their background to really increase our activity.

I think the progress has been slow, but we certainly believe that once that progress starts, it's definitely going to be a kicker for attracting business and for customer acquisition. So we remain very hopeful that our integrations with our OEMs and our current collaboration with them are going to yield good results. Another question from Matt from William Blair: how is Asia performing relative to your expectations? And Matt, we are performing in accordance with our forecasts and our budgets for the year, and we certainly are doing a lot in the background to really increase our activity. Like I said earlier, I think within the next three months or so, we'll be giving better guidance for FY25. A question from Sandini. Can you maintain dentist days at 30 going into FY25?

Speaker Change: I think within the next three months or so we will be giving better guidance for FY 'twenty.

Speaker Change: a question from Sandini.

Speaker Change: A question from Fin E D.

Can you maintain your debtors base at 30 going into FY25? I certainly believe that, you know, whether you've got your debtors at 30 or 35, it's not much of a difference. And I think whether we're going to maintain it at 29, 31, it's all very healthy. So we've traditionally always had a very healthy debtors base. Historically, we've had a very high altitude. You said that free cash flow continues to benefit from prior investment efforts. Can you expect this trend to continue from this point? If you look at the slide that we just presented, our conversion over the last 24 months has actually been earnings that have practically equaled our free cash flow. Obviously, that is if you take into account that we are deploying capital into building a building in Rosebank, which is going to be our South African head office, which is a very important investment.

Speaker Change: Can you maintain debtors base at 30 going into FY25? I certainly believe that, you know, whether you've got your debtors at 30 or 35, it's not much of a difference. And I think whether we're going to maintain it at 29, 31, it's all very healthy. So we've traditionally always had a very healthy debtors base.

Speaker Change: Can you maintain gaithersburg, Turkey going into FY 'twenty part.

Speaker Change: I certainly believe that.

Speaker Change: Whether you got your debt is at 30 or 35.

Speaker Change: With defense and I think with it we're going to maintain it at <unk> 31, it's all very healthy so we've traditionally always rather be healthy gaithersburg.

Speaker Change: Historically we've had a very altitude

Speaker Change: Historically, we've had a pretty healthy.

Speaker Change: So you see this picture continues to benefit from pricing based on FX can you expect this trend to continue from this point.

Speaker Change: You said that free cash flow continues to benefit from prior investment efforts. Can you expect this trend to continue from this point? If you look at the slide that we just presented, our conversion over the last 24 months has actually been earnings as practically equaled our free cash flow. Obviously, that is if you take into account that we are deploying capital into building the building in Rosebank, which is going to be our South African head office, which is a very important investment. So once that building is built, and if we continue growing at this pace, earnings and free cash flow equal.

Speaker Change: And if you look at the slide that attrition.

Speaker Change: <unk> a conversion over the last 24 months.

Speaker Change: <unk> been earning aspect it equals our free cash flow. Obviously that is if you take into account that we all deploying capital into building the building in drives bank, which is going to be Oh, South African aid office.

I certainly believe that, you know, whether you've got your dentist at 30 or at 35, it's not much of a difference. And I think whether we're going to maintain it at 29, 31, it's all very healthy. So we traditionally always have a very healthy dentist.

Speaker Change: Which is going to be important in distance one set bogeys ease bolt in and if we continue growing at this pace earnings and free cash flow equals.

So once that building is built, and if we continue growing at this pace, earnings and free cash flow will be equal. However, if we start growing much faster, then free cash flow will start coming down simply because of our investment in customer acquisition. And similarly, if our growth slows down further, then our free cash flow will be higher than our earnings. Can you provide guidance for Kazuka's Q4 loss? Well, that's all already provided, and we believe, given our estimates, that we are now fully provided for the Kazuka losses, and we expect Q4 not to have any losses in Kazuka, and if there are, they will be minimally insignificant. So we expect really our earnings just to be career logistics and car tracks, the addition of those. Question from Alex Scholar.

Speaker Change: However, if we start growing much faster, then free cash flow will start coming down simply because of our investment in customer acquisition. And similarly, if our growth slows down further, then our free cash flow will be higher than our earnings.

If we start growing much faster than free cash flow, we'll start coming down simply because all of our investment in customer acquisition and similarly, all in basis.

Historically, we've had a very healthy kid. You said that free cash flow continues to benefit from prior investment efforts. Can you expect this trend to continue from this point? If you look at the slide that we presented, our conversion over the last 24 months has actually been earnings practically equal to our free cash flow.

Yeah.

Speaker Change: If our growth slows down further in our free cash flow will be higher than our earnings.

Speaker Change: Can you provide guidance for Kazuka Q4 loss? Well, that's all been already provided and we believe, given our estimates, that we are now fully provided for the Kazuka losses and we expect Q4 not to have any losses in Kazuka.

Can you provide guidance for cause you get Q4 loss.

Speaker Change: Well, that's all been already provided and we believe given our instruments that we now fully provided for their cause you can keep losses, and we expect Q4 not to have any losses in Costa Rica.

Obviously, that is if you take into account that we are deploying capital into building the building in Rosebank, which is going to be our South African aid office, which is a very important investment. So once that building is built, and if we continue growing at this pace, earnings and free cash flow will be equal. However, if we start growing much faster, then free cash flow will start coming down simply because of our investment in customer acquisition. And similarly, if our growth slows down further, then our free cash flow will be higher than our earnings. Can you provide guidance for Karzuka's Q4 losses? Well, that's all been already provided, and we believe, given our estimates, that we are now fully provided for the Karzuka Q4 losses, and we expect Q4 not to have any losses in Karzuka. And if there are any, they will be minimally insignificant.

Speaker Change: and if there are, it will be minimally insignificant. So we expect really our earnings just to be career logistics and car tracks, the addition of those.

Speaker Change: There are people being minimally insignificant. So we expect really our earnings just to be carried logistics and contracts. The addition of those two.

Speaker Change: Question from Alex Scholar.

Speaker Change: A question from Alex scholar.

Speaker Change: Was there anything one-time benefit in the strong 73% gross margin results? There was a little bit of a credit note on certain costs that came through in Q3, but they're not significant. And, you know, we're quite used to historically seeing these type of gross profit margins. So there's nothing untoward.

Was there anything a one-time benefit in the strong 73% gross margin results? There was a little bit of a credit note on certain costs that came through in Q3, but they're not significant. And, you know, we're quite used to historically seeing these types of gross profit margins. So there's nothing untoward.

Well I think anything onetime benefit in this show, 73% gross margin results.

Speaker Change: There was a little bit of a.

Critics note on certain costs that came through in Q3.

If they're not significant and you know we're quite used to historically seeing destock of gross profit margins. So there is nothing towards it.

So I think a good gross profit target is between 72% and 73%.

Speaker Change: So I think a good gross profit target is 72% to 73%. I think that region is where we feel very comfortable. And at this point in time, if you look at year-to-date, we're at 72%. So I think that's very healthy and very much in accordance with our estimates.

Speaker Change: Do you guys like you thought it was good for them. So I think a good gross profit target is 72%, 73% I think that region is where we feel very comfortable and at this point in time. If you look at year to date, we had 72% so and I think that's pretty healthy and be much in accordance.

I think that region is where we feel very comfortable. And at this point in time, if you look at year-to-date, we're at 72%.

So we expect our earnings really just to be career logistics and car tracks. The addition of those. Question from Alex Scholar.

So I think that's very healthy and very much in accordance with our estimates. Sales and marketing were down slightly. Can you talk about the capacity for growth ads you have in the current server base?

Speaker Change: With our estimates.

Speaker Change: Sales and marketing was down slightly. Can you talk about the capacity for growth ads you have in the current server base? How are you thinking about sales and plans for the next 12 months? Alex, we are very busy with the recruitment process to hire for actually the next 24 months.

Speaker Change: Marketing was down slightly quarter, but can you talk about the capacity for growth as you have in the current favorite advice.

Why is there anything a one-time benefit in the strong 73% gross margin results? There was a little bit of a credit note on certain costs that came through in Q3, but they're not significant. And, you know, we're quite used to historically seeing these types of gross profit margins. So there's nothing untoward.

How are you thinking about sales and plans for the next 12 months?

Speaker Change: Are you thinking about sales hiring plans for the next 12 months.

Alex, we are very busy with the recruitment process to hire for actually the next 24 months, and we certainly believe that our investment, we're really going to invest quite a lot in that whole process, and I believe we're going to get the benefits out of that going forward. Question from Matthew from Confluence Impact Fund. Good subscriber for culture growth in Asia. Please could you give details of the split of subscriber growth by country? What is the outlook for future growth?

Speaker Change: Alex we are very busy with that.

Speaker Change: Recruitment process to ire for actually the next 24 months.

Speaker Change: and we certainly believe that our investment, we're really going to invest quite a lot in that whole process and I believe we're going to get the benefits out of that going forward.

Speaker Change: And we certainly believe that I think that we really can invest quite a lot in that whole process and I believe we're going to get the benefits out of it going forward.

I think a good gross profit target is 72% to 73%. I think that region is where we feel very comfortable, and at this point in time, if you look at year-to-date, we're at 72%. So, I think that's very healthy and very much in accordance with our estimates.

Speaker Change: A question from Matthew from confluence in Pakistan.

Speaker Change: question from Matthew from Confluence Impact Fund.

Matthew: Good subscriber for culture growth in Asia. Please could you give details of the split of subscriber growth by country? What is the outlet for future growth? I haven't got the subscriber by country, and we don't really give that. But obviously our strong countries in the region are Singapore, Thailand, Philippines, and Indonesia.

Matthew: Good subscriber for contract growth in Asia piece could you give details of the strong growth of our country what is that outbreak for future growth.

I haven't got the subscriber by country breakdown, and we don't really give that.

Sales and marketing were down slightly; can you talk about the capacity for growth as you have in the current server base? How are you thinking about sales iron plans for the next 12 months? Alex, we are very busy with the recruitment process to hire for actually the next 24 months, and we certainly believe that our investment, we're really going to invest quite a lot in that whole process, and I believe we're going to get the benefits out of that going forward. Question from Matthew from Confluence Impact Fund, a good subscriber for culture growth in Asia. Please could you give details of the split of subscriber growth by country? What is the outlook for future growth? I haven't got the subscriber by country breakdown, and we don't really give that. But obviously, our strong countries in the region are Singapore, Thailand, the Philippines, and Indonesia. A question from Riddhi Phaneke

Speaker Change: I haven't got that.

Speaker Change: Subscriber by country, and we downgraded keep that but obviously austral countries in the region, or Singapore, Thailand, Philippines and Indonesia.

But obviously, our strong countries in the region are Singapore, Thailand, the Philippines, and Indonesia. A question from Brady Farnicke. Can you just explain clearly what the scope for growth is? How meaningful could operating profit be in the medium term? Really, I imagine that operating profit in the medium term will still be relatively insignificant to the group. However, it's really what we're building on the QuadTrack platform that can be very meaningful to the group. So we'll, over the next 12 months, get better visibility, and that will actually increase our audience in QuadTrack. A question from Chris Logan. Given the under-penetrated market and scale in Southeast Asia and possibly Europe, would it not then make sense for consolidation to occur in a slow-growing and mature South African market? I think, Chris, my personal view is that South Africa has still got a lot of room for greenfield opportunity, and it's also got room to take market share from our competitors. Clearly, we're very focused at this point of time on clean field opportunity.

Speaker Change: A question from Brady Farnicke.

Speaker Change: A question from really from me.

Speaker Change: Can you just explain strongly what is the scope for growth? How meaningful could operating profit contribute in the medium term? Really, I imagine that operating profit in the medium term will still be relatively insignificant to the group. However, it's really what we're building on the QuadTrack platform that can be very meaningful to the group. So we'll, over the next 12 months, get better visibility. That will actually increase our audience in QuadTrack.

Speaker Change: Cause these logistics clients drove it what is the scope for growth how meaningful could operating profit contributing in the medium term through the I imagine that the operating profit in the medium term, we're still become relatively insignificant to the group. However, it's really what we bogey on the quarter platform that can be very many.

Speaker Change: Simple truth, so will we will over the next 12 months get better visibility on that will actually increase or decrease in contract.

Speaker Change: a question from Chris Logan.

Speaker Change: A question from Chris Logan.

Speaker Change: Given the under-penetrated market and scale in Southeast Asia and possibly Europe, would it not then make sense for consolidation to occur in a slow-growing and mature South African market?

Speaker Change: Given the Underpenetrated market and scout in South East Asia, and possibly Europe, Latam makes sense for consolidation to occur in a slow growth and mature South African market.

Can you just explain clearly what the scope for growth is and how meaningful operating profit will contribute in the medium term? Really, I imagine that operating profit in the medium term will still be relatively insignificant to the group. However, it's really what we're building on the Quantrix platform that can be very meaningful to the group. So we'll, over the next 12 months, get better visibility on that, and that will actually increase our earnings impact. A question from Chris Logan: Given the underpenetrated market and scale in Southeast Asia and possibly Europe, would it not make sense for consolidation to occur in a slow-growing and mature South African market? I think, Chris, my personal view is that South Africa has still got a lot of room for greenfield opportunity, and it's also got room, you know, to take market share from our competitors. Clearly, we're very focused at this point in time on the clean field opportunity. However, consolidation could be tricky. Quite frankly, I'm not certain it would be healthy for consolidation at this point in time, but maybe in four or five years' time, it could be a good thing to consolidate. Another question from Mollsbury.

Speaker Change: I think, Chris, my personal view is that South Africa has got still a lot of room for greenfield opportunity.

Speaker Change: I think Chris.

Speaker Change: My personal view is that South Africa has got still a lot of room for Greenfield opportunity.

Speaker Change: and it's also got room to take market share from our competitors.

Speaker Change: And it's also got to room.

Speaker Change: Take market share from our competitors.

Speaker Change: clearly we're very focused at this point of time on clean field opportunity. Consolidation could be tricky and...

Speaker Change: Really we're very focused at this point it out from Greenfield opportunity.

Speaker Change: Consolidation could be tricky.

Speaker Change: And quite frankly.

Speaker Change: quite frankly I'm not certain it would be healthy for consolidation at this point in time but maybe in four or five years time it could be a good thing to consolidate.

Speaker Change: Yeah.

Speaker Change: Certainly it would be healthy for consolidation at this point in time, but maybe four five years' time it could be.

Consolidation could be tricky and... quite frankly, I'm not certain it would be healthy for consolidation at this point in time, but maybe in four or five years' time, it could be a good thing to consolidate. Another question from Miles Ferry, when will the new headquarters in South Africa be in operation, and we'll do all the Q4 results in the premises. We will start, according to our plans, the handover was planned for July this year for us to get the building. We're now looking at moving into the building at the end of May this year, so we're probably two months or so before the planned date. How have debt-debt days trended down over the last year? Is 30 days the norm?

Speaker Change: Could be a good.

Speaker Change: To close out of that.

Speaker Change: Another question from Montefiore.

Speaker Change: Another question from Miles Ferry.

Speaker Change: when will the new headquarters in South Africa

Speaker Change: When will the new eight quarters in South Africa.

Speaker Change: will be in operation, and we'll do all the Q4 results in the premises. We will start, according to our plans, it was the handover was planned for July this year for us to get the building. We're now looking at moving into the building at the end of May this year, so we're probably two months or so before the planned date.

Speaker Change: Be in operation and what you all the Q4 results in the premises.

Speaker Change: We will start.

Speaker Change: According to our plans it was banned over was planned for July this.

This year for us to get the building, we're not looking at moving into the building at the end of May This year. So we probably two months or so before that.

When will the new headquarters in South Africa be in operation? And will you hold the queue for results in the premises? We will start. According to our plans, the handover was planned for July this year for us to get the building. We're now looking at moving into the building at the end of May this year, so we're probably two months or so before the planned date. How have debt-debt days trended down over the last year? Is 30 days the norm?

Speaker Change: Right.

Speaker Change: How have debted days trended down over the last year? Is 30 days the norm? I think I've answered that in a previous question.

Speaker Change: Our dice trimmed it down over the last year is 30 days the no I think I'd answer that in a previous question.

Speaker Change: Thank you everybody, that's the questions for today and thank you Should anybody have any questions, please reach out to Lauren and send an email. Thank you very much Bye bye

Speaker Change: And thank you everybody that's the questions for today and thank you should anybody have any questions. Please reach out to learn and send them an email. Thank you very much.

I think I've answered that in a previous question. Thank you everybody, that's the questions for today, and thank you. Should anybody have any questions, please reach out to Lauren and send an email.

Speaker Change: Okay.

I think I've answered that in previous... And thank you, everybody. That's the questions for today, and thank you. Should anybody have any questions, please reach out to Lauren and send an email. Thank you very much. Bye-bye.

Host: Thank you very much. Bye bye.