Karooooo Q3 2026 Karooooo Ltd Earnings Call | AllMind AI Earnings | AllMind AI
Q3 2026 Karooooo Ltd Earnings Call
We serve a large, underpenetrated market with strong, sustained demand driven by digital transformation, a constant need to improve operational efficiency, and an increasing focus on safety and compliance.
We are a founder-led business with a strong financial profile. A two-decade proven track record of execution excellence and a cultural focus on disciplined capital allocation and operational efficiency.
Our platform supports approximately 2.6 million subscribers across more than 125,000 businesses, spanning a diverse set of industries.
Importantly, our financial model is anchored by accelerating ARR growth, high-margin subscription revenue, exceptional commercial ARR retention, and powerful unit economics.
In Q3, our ARR increased 22% to 516 million ZAR and, on a US dollar basis, increased 28% to $298 million. Our commercial customer ARR retention rates remained at 95%, and subscription revenue accounted for 97% of contract revenue.
We continue to scale up proprietary data assets.
Now generating more than 275 billion data points monthly, which we leverage to deliver impactful insights and value to our customers.
In our vertically integrated business model and company culture.
During today's presentation, we will review both of KU's operating segments, Kartra and Kuru Logistics.
Kartra is our SaaS operations management platform. Kartra operates at scale and has a very attractive financial profile. Krex operating momentum is the primary driver of Kuru growth and strong financial performance.
In Q3, the contract delivered exceptional results, highlighted by accelerating subscription revenue growth in South Africa.
These results reflect the early returns from the strategic investments we have made in expanding our sales capacity in recent quarters and selling video and contract tags to our existing customers in South Africa. The results also underscore the continued growth potential in South Africa.
In Q3, Kartek generated approximately $1.2 billion in subscription revenue, an increase of 20% or 27% on a US dollar basis. A strengthening Czar negatively impacted reported Q3 contract subscription revenue growth. Year to date, CREC subscription revenue has increased 20% to 15% in FY 2025 and material acceleration.
Contracts, operating profit margin was a healthy 28% in Q3.
Kuru Logistics is our rapidly growing delivery as a service offering that empowers large Enterprise customers to scale their e-commerce and Logistics operations Kuru Logistics, continues to demonstrate strong growth and operating momentum, while delivering real value to our Enterprise customers. We report Kuru Logistics separately as its delivery, as a service Financial profile differs from contract SAS Financial profile.
Kuru Logistics is strategically important to us as it empowers our customers to scale their e-commerce and logistics operations through a capital-like model, while driving high-contract customer retention.
We continue to profitably scale the Kuru Logistics business in Q3. Kuru Logistics is delivery as a service. Revenue reached 135 million ZAR, an increase of 24%, or 31% on a US dollar basis.
Kuru Logistics is robust, with revenue growth. We are very excited about the long-term growth opportunity.
In Q3, Kuru delivered strong consolidated financial results. Total revenue increased 22% to 1,410 million Czar. Subscription revenue increased 20% to 1,279 million Czar. Operating profit increased 14% to
To 369 million ZAR and total subscribers increased 16% to approximately 2.6 million.
Cartraxx 20% subscription revenue growth and a 28% operating profit margin were the primary drivers of our strong financial performance in Q3.
Q3 continued our track record of delivering profitable growth at scale. In Q3, we were a Rule of 60 company. When adding Cartrack subscription revenue growth of 20% and Cartrack adjusted EBITDA margin of 45%, we note that our EBITDA margin does not include any stock-based compensation addback.
Before detailing our Q3 performance, it is important to underscore just how differentiated our financial model has become in the context of the broader SaaS universe. We believe we are among a select few SaaS companies operating at a rule of 50. Plus, based on calendar year 2026 GAAP Street estimates, within a SaaS universe of approximately 140 companies, there are less than 10 companies operating at this level, and Karooooo is the only small-cap company. Our financial profile is incredibly rare in public markets, especially among small-cap companies. Being part of this elite group reflects our unwavering commitment to disciplined and profitable growth. In addition, with an essentially unchanged share count over the last several years and no stock-based compensation.
Actionable growth in free cash flow directly translates into higher per share value. Given the absence of dilution, this is a key point of differentiation relative to many South African peers that fund growth through significant equity issuance and SBC.
8 million.
Contract subscription revenue growth increased 20%, underpinned by 21% growth in South Africa. The 21% growth rate in South Africa represents a significant acceleration compared to FY 2026 Q2 growth of 18% and 14% in Q3 of the prior fiscal year.
Cartraxx total subscribers increased 16% to approximately 2.6 million, driven by healthy growth across all regions, notably Cartraxx delivered a record. Subscriber net additions of 111,000 in Q3.
Also, year to date, net subscriber additions increased 30% in Asia.
Cartrack operating profit margin remained healthy at 28%, despite the 47% increase in sales and marketing expenses. In Q3, we were a rule of 60 company, and our balance sheet remains strong and unleveraged. We ended the quarter with net cash and cash equivalents of ZAR 531 million.
Our healthy subscription growth margin, efficient customer acquisition, and attractive commercial customer ARR retention rates continue to drive our healthy unit economics. In Q3, our subscription gross margin was 73%. Our LTV to CAC ratio remained above 9 times, and our commercial customer ARR retention rate was 95%.
At Karooooo, our economics remain healthy despite the significant increase in sales and marketing expenses. During Q3, it is also noteworthy that we accelerated our subscription revenue growth from 14% in Q3 last year to 20% this quarter, while maintaining our strong unit economics.
We remain committed to profitable growth and strong unit economics as we pursue the expansive growth opportunity ahead of us.
We ended Q3 with approximately 1.9 million subscribers in South Africa, an increase of 16%.
Q3 subscription revenue growth was 21%, a significant acceleration compared to Q2 FY 2026 growth of 18% and 14% in Q3 of the prior fiscal year.
South Africa represented 72% of total Cartrack subscription revenue. The pace of growth reflects how our strategy is to drive Cartrack subscription revenue growth through a balanced combination of subscriber additions and selling video and contract tags to our existing customers.
South African subscriber and subscription revenue growth is a clear signal that our strategy is driving results.
This accelerated growth reflects our deliberate strategy to cement our leadership position in South Africa, by simultaneously growing our customer base and selling video and contract to customers in South Africa.
Average revenue per user, or ARPU, in South Africa increased 7% to ZAR 162 in November 2025, compared to November 2024.
We are committed to continuing to build our distribution capabilities to serve the demand for our products from both new and existing customers. We are confident that our investments in sales capacity this year will have a positive impact on contract and subscriber growth in FY 2027.
We are optimistic about the market opportunity in South Africa and believe there is a long runway to drive strong subscription growth.
We ended Q3 with approximately 318,000 subscribers in Southeast Asia and the Middle East, an increase of 20%, with most of the subscribers in Southeast Asia year to date. Net subscriber additions in the region increased 30%.
Southeast Asia and the Middle East comprise 15% of total subscription revenue, and Southeast Asia and the Middle East subscription revenue growth increased 14%.
The pace of subscription revenue growth in the region reflects an increase in subscribers from lower ARPU countries, combined with the translation impact of a strengthening ZAR.
As the second largest contributor to group revenue, Southeast Asia continues to be the most compelling growth opportunity for our group in the medium to long term.
Southeast Asia is a vast, underpenetrated market for sophisticated fleet management and video-based solutions, and we are well positioned to capitalize on the opportunity.
We ended Q3 with approximately 223,000 subscribers in Europe. An increase of 16%—European subscription revenue increased 24%, and Europe comprised 10% of our total subscription revenue.
Distribution capabilities in the region.
We have partnered with leading OEMs to provide easy access to our platform, seamlessly integrating their connected vehicle data to our platform through APIs. We expect these partnerships to contribute to our results in the medium to long term. In addition, we are experiencing encouraging demand for our proprietary compliance technology in the region, as customers seek to simplify compliance with evolving legislation and enforcement.
In Q3, Korea Logistics continued to build scale and delivered revenue of 135 million ZAR, an increase of 24% and a 7% operating profit margin growth in e-commerce. Orders drove Kuru Logistics as revenue growth.
Kuru supports our strong financial performance by immersing our platform into large customers' operations, contributing to strong customer retention at Kuru Logistics. It also enables us to learn about the operational and logistics challenges confronting our large customers. We see a large opportunity for Kuru Logistics going forward as large businesses seek to increase their e-commerce offerings and optimize their logistics capabilities through a capital-light model.
In Q3, we continue to make progress with our FY 2026 priorities. First, we continue to strengthen our leadership position in South Africa by driving the adoption of video solutions and contract tag within our existing customer base. The early results are promising, with South African RPO increasing 7% as of November 2025 compared to November 2024, highlighting growing customer engagement and product uptake. In addition, we expect our ongoing investment in distribution capacity to create durable growth benefits that extend beyond the current financial year.
Carmen Calisto: Including AI video. Capital allocation is a fundamental part of our disciplined culture, rooted in a 20-year culture of profitable growth at scale and prudent financial management, key drivers of long-term shareholder value. Our capital allocation framework is unchanged and prioritizes organic growth and innovation. Our paramount priority is investing in organic growth and product innovation, given our strong unit economics, sustained profitability, and large market opportunity. Returning capital to shareholders. At current growth rates, our business generates significant excess cash. With our strong balance sheet and net cash position, we aim to return surplus capital to shareholders when we cannot efficiently invest it for growth, primarily through an annual dividend. As to avoid doubt, management prioritizes growth over dividends. Strategic M&A. We take a prudent and strategic approach to M&A.
Operator: Including AI video. Capital allocation is a fundamental part of our disciplined culture, rooted in a 20-year culture of profitable growth at scale and prudent financial management, key drivers of long-term shareholder value. Our capital allocation framework is unchanged and prioritizes organic growth and innovation. Our paramount priority is investing in organic growth and product innovation, given our strong unit economics, sustained profitability, and large market opportunity. Returning capital to shareholders. At current growth rates, our business generates significant excess cash. With our strong balance sheet and net cash position, we aim to return surplus capital to shareholders when we cannot efficiently invest it for growth, primarily through an annual dividend. As to avoid doubt, management prioritizes growth over dividends. Strategic M&A. We take a prudent and strategic approach to M&A.
Message, including AI video.
Capital allocation is a fundamental part of our discipline culture, rooted in a 20-year culture of profitable growth at scale and prudent financial management. Key drivers of long-term shareholder value.
Our capital allocation framework is unchanged and prioritizes organic growth and innovation. Our paramount priority is investing in organic growth and product innovation, given our strong unit economics, sustained profitability, and large market opportunity.
Returning capital to shareholders: At current growth rates, our business generates significant excess cash with our strong balance sheet and net cash position. We aim to return surplus capital to shareholders when we cannot efficiently invest it for growth, primarily through an annual dividend. This is to avoid doubt—management prioritizes growth over dividends.
Carmen Calisto: We view M&A as a tool to accelerate time to market in key geographies, expand our product portfolio, or strengthen our competitive position. However, given our compelling organic growth, customer-centric culture, and attractive unit economics, we set a high bar for any potential acquisitions. Ultimately, we see it as our responsibility to allocate capital thoughtfully, always with the goal of maximizing long-term shareholder returns. I will now hand it over to Hu Xin, who will discuss our Q3 financial performance.
We view M&A as a tool to accelerate time to market in key geographies, expand our product portfolio, or strengthen our competitive position. However, given our compelling organic growth, customer-centric culture, and attractive unit economics, we set a high bar for any potential acquisitions. Ultimately, we see it as our responsibility to allocate capital thoughtfully,H always with the goal of maximizing long-term shareholder returns. I will now hand it over to Hu Xin, who will discuss our Q3 financial performance.
Strategic M&A: We take a prudent and strategic approach to M&A. We view M&A as a tool to accelerate time to market in key geographies, expand our product portfolio, or strengthen our competitive position. However, given our compelling organic growth, customer-centric culture, and attractive unit economics, we set a high bar for any potential acquisitions.
Ultimately, we see it as our responsibility to allocate capital thoughtfully, always with the goal of maximizing long-term shareholder returns.
Zak Calisto: Thank you, Carmen. I will now discuss Karooooo's financial performance for Q3, FY 2026. Please note my comments will refer to year-over-year comparisons unless we state otherwise. Our proven and profitable SaaS business model continues to deliver strong results in Q3. Karooooo's total subscription revenue increased 20% to ZAR 1,239 million, operating profit increased 14% to ZAR 369 million, and earnings per share increased 11% to ZAR 8.55. Earnings growth remained robust despite significant and planned upfront investment in sales and marketing to drive future revenue and earnings. In other words, these investments are fully expensed as they incur, while the associated recurring revenue benefits are expected to realize over time. We will now focus on Cartrack's financial performance, which is fueled by SaaS revenue momentum. In Q3, Cartrack's revenue increased 21% to ZAR 1,275 million, and Cartrack's subscription revenue increased 20% to ZAR 1,236 million. Subscription revenue comprised 97% of Cartrack's total revenue.
Hoe Shin Goy: Thank you, Carmen. I will now discuss Karooooo's financial performance for Q3, FY 2026. Please note my comments will refer to year-over-year comparisons unless we state otherwise. Our proven and profitable SaaS business model continues to deliver strong results in Q3. Karooooo's total subscription revenue increased 20% to ZAR 1,239 million, operating profit increased 14% to ZAR 369 million, and earnings per share increased 11% to ZAR 8.55.
I will now hand it over to Hushin, who will discuss our Q3 financial performance.
Thank you, Carmen. I will now discuss Karooooo's financial performance for Quarter 3, FY 2026.
Please note, my comments will refer to year-over-year comparisons unless we state otherwise.
Our proven and profitable business model continues to deliver strong results in Q3.
Earnings growth remained robust despite significant and planned upfront investment in sales and marketing to drive future revenue and earnings. In other words, these investments are fully expensed as they incur, while the associated recurring revenue benefits are expected to realize over time. We will now focus on Cartrack's financial performance, which is fueled by SaaS revenue momentum. In Q3, Cartrack's revenue increased 21% to ZAR 1,275 million, and Cartrack's subscription revenue increased 20% to ZAR 1,236 million. Subscription revenue comprised 97% of Cartrack's total revenue.
Peruse total subscription Revenue, increased 20% to 1,239 million. Rand operating profit increased 14% to 369 million Rand and earnings per share, increase 11% to 8 Grand and 555 cents.
Earnings growth remained robust, despite significant and planned, upfront investment in sales and marketing to drive future revenue and earnings. In other words, these investments are fully expensed as incurred, while the associated recurring revenue benefits are expected to be realized over time.
We will now focus on contacts’ financial performance, which is fueled by sales revenue. Momentum in quarter three, CX Revenue, increased 21% to R1,275 million.
And Cartrack subscription revenue increased 20% to 1,236 million Rand.
Zak Calisto: Q3, ARR growth accelerated to 22%, reaching ZAR 5,106 million. In US dollar, ARR growth accelerated to 28%, reaching $298 million. As you can see from the trend of the charts, Cartrack has a proven track record of scaling in varying macroeconomic conditions, given our consistent executions, resilient subscription revenue model, and attractive historic retention rates. In Q3, subscribers increased 16% to approximately 2.6 million. Subscription revenue increased by 20% to ZAR 1,236 million, and operating profit increased 14% to ZAR 359 million. Cartrack experienced record customer acquisition in Q3, with net subscriber additions of 111,478 subscribers. The record net subscriber additions reflect our strategic investment in sales capacity and success selling video and Cartrack Tech. Total subscriber growth increased 16% in Q3, underpinned by record subscriber net additions. Importantly, South Africa's subscriber growth also increased 16%, underscoring the growth potential in the region.
Q3, ARR growth accelerated to 22%, reaching ZAR 5,106 million. In US dollar, ARR growth accelerated to 28%, reaching $298 million. As you can see from the trend of the charts, Cartrack has a proven track record of scaling in varying macroeconomic conditions, given our consistent executions, resilient subscription revenue model, and attractive historic retention rates. In Q3, subscribers increased 16% to approximately 2.6 million. Subscription revenue increased by 20% to ZAR 1,236 million, and operating profit increased 14% to ZAR 359 million. Cartrack experienced record customer acquisition in Q3, with net subscriber additions of 111,478 subscribers. The record net subscriber additions reflect our strategic investment in sales capacity and success selling video and Cartrack Tech. Total subscriber growth increased 16% in Q3, underpinned by record subscriber net additions. Importantly, South Africa's subscriber growth also increased 16%, underscoring the growth potential in the region.
Subscription revenue comprised 97% of Cartrack's total revenue.
In Quarter 3, ARR growth accelerated to 22%, reaching 5,160 million Rand.
In US dollars, ARR growth accelerated to 28%, reaching $298 million.
As you can see from the trend of the charts, Cartrack has a proven track record of scaling in varying macroeconomic conditions, given our consistent execution, resilient subscription revenue model, and attractive historic retention rates.
In quarter 3, subscribers increased 16% to approximately 2.6 million.
Subscription revenue increased by 20% to 1,236 million Rand, and operating profit increased 14% to 359 million Rand.
I'll check the experience record, customer acquisition in quarter three, with net subscribers, additions of 111,478 subscribers.
The record net subscriber additions reflect our strategic investment in sales capacity and success selling video and Cartrack tech.
Zak Calisto: Q3 SaaS ARR accelerated to 22%, compared to Q2 growth of 20% and Q3 FY 2025 growth of 14%. In USD, Q3 SaaS ARR increased 28%, reaching $298 million. This marked the fourth consecutive quarter of ARR growth accelerations. We believe the accelerations in ARR growth reflect the underlying momentum in the business and signal that our strategic initiatives are gaining momentum. Cartrack continued to grow its subscription revenue across geographies, highlighted by an acceleration in South Africa. South Africa's subscription revenue growth accelerated to 21%, compared to Q2 growth of 18% and Q3 FY 2025 growth of 14%. The accelerations indicate that our efforts to cement our leadership position are driving measurable results. Europe's subscription revenue growth increased 24% and 19% on a constant currency basis. Asia and the Middle East's subscription revenue growth increased 14% and 18% on a constant currency basis.
Q3 SaaS ARR accelerated to 22%, compared to Q2 growth of 20% and Q3 FY 2025 growth of 14%. In USD, Q3 SaaS ARR increased 28%, reaching $298 million. This marked the fourth consecutive quarter of ARR growth accelerations. We believe the accelerations in ARR growth reflect the underlying momentum in the business and signal that our strategic initiatives are gaining momentum. Cartrack continued to grow its subscription revenue across geographies, highlighted by an acceleration in South Africa. South Africa's subscription revenue growth accelerated to 21%, compared to Q2 growth of 18% and Q3 FY 2025 growth of 14%. The accelerations indicate that our efforts to cement our leadership position are driving measurable results. Europe's subscription revenue growth increased 24% and 19% on a constant currency basis. Asia and the Middle East's subscription revenue growth increased 14% and 18% on a constant currency basis.
Total subscriber growth increased 16% in Quarter 3, underpinned by record subscriber net additions—importantly, South Africa. Subscriber group also increased 16%, underscoring the growth potential in the region.
Quarter 3 sales are accelerated to 22%, compared to quarter 2 growth of 20% and quarter 3 FY 2025 growth of 14%.
In US dollars, for quarter 3, ARL increased 28%, reaching $298 million.
We believe the accelerations in our growth reflect the underlying momentum in the business, and signal that our strategic initiatives have gained momentum.
Contracts continue to grow in subscription revenue across geographies, highlighted by an acceleration in South Africa.
In South Africa, subscription revenue growth accelerated to 21%, compared to Q2 growth of 18% and Q3 FY2025 growth of 14%.
The acceleration indicates that our efforts to cement our leadership and decisions are driving measurable results.
Zak Calisto: Asia and the Middle East's reported subscription revenue growth reflects an increase in subscribers from lower ARPU countries in the region, combined with the translation impact of a strengthening South African rand. Healthy growth across regions reflects our strong executions and provides a solid foundation for continued growth. Karooooo adjusted earnings per share increased 11% to R8.54. Cartrack's earnings per share contribution increased 11% to R8.35. Karooooo Logistics earnings per share contribution increased 25% to R20. Adjusted earnings per share growth reflects significant planned investment in sales capacity and customer acquisition, evidenced by the 47% increase in sales and marketing expense by Karooooo in Q3. Our upfront sales and marketing costs are not aligned with the lifetime value of customer recurring revenue and related earnings in our financial statements. Importantly, our powerful unit economics remain intact, and our balance sheet remains strong as we invest in sales capacity.
Asia and the Middle East's reported subscription revenue growth reflects an increase in subscribers from lower ARPU countries in the region, combined with the translation impact of a strengthening South African rand. Healthy growth across regions reflects our strong executions and provides a solid foundation for continued growth. Karooooo adjusted earnings per share increased 11% to R8.54. Cartrack's earnings per share contribution increased 11% to R8.35. Karooooo Logistics earnings per share contribution increased 25% to R20. Adjusted earnings per share growth reflects significant planned investment in sales capacity and customer acquisition, evidenced by the 47% increase in sales and marketing expense by Karooooo in Q3. Our upfront sales and marketing costs are not aligned with the lifetime value of customer recurring revenue and related earnings in our financial statements. Importantly, our powerful unit economics remain intact, and our balance sheet remains strong as we invest in sales capacity.
In Europe, subscription revenue growth increased 24% and 19% on a constant currency basis. In Asia and the Middle East, subscription revenue growth increased 14% and 18% on a constant currency basis.
Asia and the Middle East reported subscription revenue growth, which reflects an increase in subscribers from lower-yield countries in the region, combined with the translation impact of a strengthening South African rand.
Healthy growth across regions reflects our strong execution and provides a solid foundation for continued growth.
Peru, adjusted earnings per share, increased 11% to 8 grand and 54 cents. Cartrack's earnings per share contribution increased 11% to 8 grand and 35 cents. Karooooo Logistics earnings per share contribution increased 25% to 20 cents.
Adjusted earnings per share growth reflects significant planned investment in sales capacity and customer acquisition, evidenced by the 47% increase in sales and marketing expense by KU in quarter 3.
Zak Calisto: On a year-to-date basis, our adjusted free cash flow increased 37% to ZAR 597 million, underscoring the strength of our operating model. Q3 adjusted free cash flow increased 28% to ZAR 239 million. As we pursue accelerated growth, we expect free cash flow to reflect our investment to drive growth. While quarterly fluctuations may occur due to working capital dynamics and growth-oriented investment, we remain confident in our ability to consistently generate meaningful free cash flow. Karooooo's consistent free cash flow generations powers our disciplined capital allocation strategy and positions us well for future growth. Our balance sheet reflects our track record of durable growth at scale, profitability, and cash generations. Our net cash on hand plus cash in bank fixed deposit was ZAR 531 million. Debtors' collection days remain healthy at 31 days and are within our historical norm.
On a year-to-date basis, our adjusted free cash flow increased 37% to ZAR 597 million, underscoring the strength of our operating model. Q3 adjusted free cash flow increased 28% to ZAR 239 million. As we pursue accelerated growth, we expect free cash flow to reflect our investment to drive growth. While quarterly fluctuations may occur due to working capital dynamics and growth-oriented investment, we remain confident in our ability to consistently generate meaningful free cash flow. Karooooo's consistent free cash flow generations powers our disciplined capital allocation strategy and positions us well for future growth. Our balance sheet reflects our track record of durable growth at scale, profitability, and cash generations. Our net cash on hand plus cash in bank fixed deposit was ZAR 531 million. Debtors' collection days remain healthy at 31 days and are within our historical norm.
Our upfront sales and marketing costs are not aligned with the lifetime value of the customer, recurring revenue, and related earnings in our financial statements. Importantly, our powerful unit economics remain intact, and our balance sheet remains strong as we invest in sales capacity.
On a year-to-date basis, our adjusted free cash flow increased 37% to 597 million Rand, underscoring the strength of our operating model.
Quarter 3 adjusted free cash flow increased 28% to 239 million Rand.
As we pursue accelerated growth, we expect free cash flow to reflect our investment to drive growth.
While quarterly fluctuations may occur due to working capital dynamics and growth-oriented investment, we remain confident in our ability to consistently generate meaningful free cash flow.
Coos' consistent, free cash flow generation powers our disciplined capital allocation strategy and positions us well for future growth.
Our balance sheet reflects our track record of durable growth at scale, profitably and cash—generations. Our net cash on hand plus cash in bank, fixed deposit, was 531 million Rand.
Zak Calisto: In August, we paid a total cash dividend of approximately $38.6 million to our shareholders, which equates to a dividend of $1.35 per share. We believe that our ability to generate healthy cash flow is sustainable given our IoT business model, coupled with our track record of consistent executions. We believe Karooooo remains strongly positioned for growth as we operate in an expanding and largely underpenetrated market fueled by robust and sustained customer demand. This demand is driven by a heightened focus on digitalization, the need to improve operational efficiencies and reduce costs, and an increasing attention to safety in physical operations. Year-to-date in FY 2026, we have accelerated Cartrack subscription revenue growth by expanding our distribution footprint in existing markets, driving broader platform adoptions, and capitalizing on growing demand for video solutions, including AI videos.
In August, we paid a total cash dividend of approximately $38.6 million to our shareholders, which equates to a dividend of $1.35 per share. We believe that our ability to generate healthy cash flow is sustainable given our IoT business model, coupled with our track record of consistent executions. We believe Karooooo remains strongly positioned for growth as we operate in an expanding and largely underpenetrated market fueled by robust and sustained customer demand. This demand is driven by a heightened focus on digitalization, the need to improve operational efficiencies and reduce costs, and an increasing attention to safety in physical operations. Year-to-date in FY 2026, we have accelerated Cartrack subscription revenue growth by expanding our distribution footprint in existing markets, driving broader platform adoptions, and capitalizing on growing demand for video solutions, including AI videos.
Doctors' collection days remain healthy at 31 days and are within our historical norm.
In August, we paid a total cash dividend of approximately $38.6 million to our shareholders, which equates to a dividend of $1.25 per share.
We believe that our ability to generate healthy cash flow is sustainable, given our entity business model coupled with our track record of consistent execution.
We believe Karu remains strongly positioned for growth as we operate in an expanding and largely underpenetrated market fueled by robust and sustained customer demand.
This demand is driven by Hayden's focus on digitalization, the need to improve operational efficiencies and reduce costs, and an increasing attention to safety in physical operations.
Zak Calisto: We are encouraged by our positive performance, evidenced by Cartrack Q3 subscription revenue growth of 20% and ARR growth of 22%. Cartrack delivered a 29% operating profit margin, reflecting strong executions while investing in sales and marketing capacity to support future growth. While we have delivered strong year-to-date results, the appreciation of the South African rand has created a currency translation headwind on our reported revenue, constraining the flow through of our strong performance to our FY 2026 outlook. We do not hedge our foreign currency exposure, so fluctuation in exchange rates may create some variability in our reported result despite our underlying operating momentum. Given our momentum year-to-date, we are increasing our FY 2026 Cartrack subscription revenue outlook to between ZAR 4,785 million and 4,900 million, implying growth between 18% and 21%, as compared to our previous outlook of ZAR 4,700 million and 4,900 million, implying growth between 16% and 21%.
We are encouraged by our positive performance, evidenced by Cartrack Q3 subscription revenue growth of 20% and ARR growth of 22%. Cartrack delivered a 29% operating profit margin, reflecting strong executions while investing in sales and marketing capacity to support future growth. While we have delivered strong year-to-date results, the appreciation of the South African rand has created a currency translation headwind on our reported revenue, constraining the flow through of our strong performance to our FY 2026 outlook.
Year to date in FY 2026, we have accelerated contract and subscription revenue growth by expanding our distribution footprint in existing markets, driving broader platform adoption, and capitalizing on growing demand for video solutions, including AI videos.
We are encouraged by our positive performance, evidenced by Cartrack Q3 subscription revenue growth of 20%, and ARR growth of 22%.
Cartrack reported a 29% operating profit margin, reflecting strong execution while investing in sales and marketing capacity to support future growth.
We do not hedge our foreign currency exposure, so fluctuation in exchange rates may create some variability in our reported result despite our underlying operating momentum. Given our momentum year-to-date, we are increasing our FY 2026 Cartrack subscription revenue outlook to between ZAR 4,785 million and 4,900 million, implying growth between 18% and 21%, as compared to our previous outlook of ZAR 4,700 million and 4,900 million, implying growth between 16% and 21%.
Our reported revenue constraining the flow-through of our strong performance to our FY2026 outlook.
We do not hedge our foreign currency exposure. So, fluctuation in exchange rates may create some variability in our reported results, despite our underlying operating momentum.
Given our momentum year-to-date, we are increasing our FY2026 contract subscription revenue outlook to between 4,785 million and 4,900 million Rand, implying growth between 18% and 21%.
Zak Calisto: We are also revising our FY 2026 Cartrack operating profit margin outlook to between 27% and 30%, as compared with our previous outlook of 26% and 31%. Our FY 2026 Karooooo adjusted earnings per share outlook remains unchanged at ZAR 32.50 to ZAR 35.50. As we work towards closing the financial year, we are executing on two fronts: expanding our sales capacity to drive new customer acquisition and strengthening our relationship with current customers through increased adoption of video and Cartrack Tech. While the business is accelerating, we remain people-constrained and will continue to build the sales capability to meet these goals. At this stage, we believe the right strategy for the long-term health of the business is to lean into driving adoption of video and Cartrack Tech with our existing customer base to further cement our leadership position in South Africa.
We are also revising our FY 2026 Cartrack operating profit margin outlook to between 27% and 30%, as compared with our previous outlook of 26% and 31%. Our FY 2026 Karooooo adjusted earnings per share outlook remains unchanged at ZAR 32.50 to ZAR 35.50. As we work towards closing the financial year, we are executing on two fronts: expanding our sales capacity to drive new customer acquisition and strengthening our relationship with current customers through increased adoption of video and Cartrack Tech. While the business is accelerating, we remain people-constrained and will continue to build the sales capability to meet these goals. At this stage, we believe the right strategy for the long-term health of the business is to lean into driving adoption of video and Cartrack Tech with our existing customer base to further cement our leadership position in South Africa.
As compared to our previous outlook of 4,700 million and 4,900 million Rand, implying growth between 16% and 21%.
We are also revising our FY 2026 Cartrack operating profit margin outlook to between 27% and 30%, as compared with our previous outlook of
26 and 31.
Our FY2026 Kuru adjusted earnings per share outlook remained unchanged at 32.5% to 35.5%.
As we work towards closing the financial year, we are executing on two fronts: expanding our sales capacity to drive new customer acquisition, and strengthening our relationship with current customers through increased adoption of video and Car Track tech.
While the business is accelerating, we remain people-constrained and will continue to build the sales capability to meet this goal.
Zak Calisto: With that said, we are also confident that our investment in sales capacity this year will have a positive impact on subscriber growth in FY 2027. In closing, Karooooo's delivered outstanding results this quarter, highlighted by accelerating ARR growth, strong subscriber momentum with record net additions, and continued robust profitability. We also made progress towards an important milestone and ended the quarter approaching $300 million USD in ARR. We achieved this result even as we made significant and planned upfront investment in sales and marketing to drive future recurring revenues and earnings. These achievements underscore our ability to scale efficiently while delivering meaningful value to our customers and shareholders. The underlying acceleration in the business reflects the strength of our operating model and early traction from strategic investment in sales capacity and customer acquisition.
With that said, we are also confident that our investment in sales capacity this year will have a positive impact on subscriber growth in FY 2027. In closing, Karooooo's delivered outstanding results this quarter, highlighted by accelerating ARR growth, strong subscriber momentum with record net additions, and continued robust profitability. We also made progress towards an important milestone and ended the quarter approaching $300 million USD in ARR. We achieved this result even as we made significant and planned upfront investment in sales and marketing to drive future recurring revenues and earnings. These achievements underscore our ability to scale efficiently while delivering meaningful value to our customers and shareholders. The underlying acceleration in the business reflects the strength of our operating model and early traction from strategic investment in sales capacity and customer acquisition.
At this stage, we believe the right strategy for the long-term health of the business is to lean into driving adoption of video in our existing customer base, to further cement our leadership position in South Africa.
With that said, we are also confident that our investment in sales capacity this year will have a positive impact on subscriber growth in FY 2027.
In closing, Coos delivered outstanding results. This quarter was highlighted by accelerating ARR growth, strong subscriber momentum with record net additions, and continued robust profitability.
We also make progress towards an important Milestone and ended the quarter approaching 300 million US dollar in ARR.
We achieved this result even as we make significant, and plan upfront investment in sales and marketing to drive future, recurring revenues and earnings.
This achievements underscore our ability to scale efficiently, while delivering meaningful value to our customers and shareholders.
Zak Calisto: As we continue to enhance our distribution footprint, we expect our ongoing investment in distribution capacity to create durable advantage that extends beyond the current financial year. With continued execution, disciplined investment, and growing regional momentum, we believe that we are well-positioned to deliver profitable and durable long-term growth. Finally, we remain firmly committed to thoughtful capital allocation, strong unit economics, and our vertically integrated and open operating culture. With that, I will turn the presentation over to Zak Calisto for Q&A. Good evening or good morning to everybody. Thank you very much, Rishun. I'll start off by reading the questions. I've got a first question from; it's just simply labeled as investor, not quite sure what that is. How are we doing with the 70% increase in headcount in Asia?
As we continue to enhance our distribution footprint, we expect our ongoing investment in distribution capacity to create durable advantage that extends beyond the current financial year. With continued execution, disciplined investment, and growing regional momentum, we believe that we are well-positioned to deliver profitable and durable long-term growth. Finally, we remain firmly committed to thoughtful capital allocation, strong unit economics, and our vertically integrated and open operating culture. With that, I will turn the presentation over to Zak Calisto for Q&A.
The underlying acceleration in the business, reflects the strength of our operating model and early traction, from Strategic investment in sales capacity, and customer acquisition.
As we continue to enhance our distribution footprint, we expect our ongoing investment in distribution capacity to create durable advantage that extends beyond the current financial year.
We continue execution, discipline investment, and growing Regional momentum. We believe that we are well positioned to deliver profitable and durable long-term growth
Finally, we remain firmly committed to thoughtful capital allocation, strong unit economics, and our vertically integrated and open operating culture.
Zak Calisto: Good evening or good morning to everybody. Thank you very much, Rishun. I'll start off by reading the questions. I've got a first question from; it's just simply labeled as investor, not quite sure what that is. How are we doing with the 70% increase in headcount in Asia?
With that, I will turn the presentation over to Zach Callisto for Q&A.
Good evening, or good morning to everybody. Thank you very much. I'll start off by reading a question.
I've got a— a first question is from, it's just simply labeled as 'Investor'; not quite sure, that is—
Zak Calisto: Currently, at the end of Q3, we were at around 40%, but a lot of that higher is coming in January and February. So I do believe we will end up with a 70% that we initially targeted for the year. And a lot of it really is happening this Q4 simply because, in these countries, a lot of the people are willing only to change in January. So it's all going according to plan. When will our investment in sales and marketing stabilize? I think to answer that, it's really about how efficient is our sales and marketing. And as we keep our strong unit economics and our sales and marketing strategies working and we stable, we will continue to increase that given the large addressable market. So hopefully I've answered you in a different way. Who owns 34%? Who's the 34% owner of New Zealand?
Currently, at the end of Q3, we were at around 40%, but a lot of that higher is coming in January and February. So I do believe we will end up with a 70% that we initially targeted for the year. And a lot of it really is happening this Q4 simply because, in these countries, a lot of the people are willing only to change in January. So it's all going according to plan. When will our investment in sales and marketing stabilize? I think to answer that, it's really about how efficient is our sales and marketing. And as we keep our strong unit economics and our sales and marketing strategies working and we stable, we will continue to increase that given the large addressable market. So hopefully I've answered you in a different way. Who owns 34%? Who's the 34% owner of New Zealand?
How I will be doing with the 70% increase in account in Asia.
Currently, at the end of Q3, we work around 40%.
But a lot of that hiring is coming in, in January and February, so I do believe we will end up with the 70% that we initially targeted for the year.
And, uh, a lot of it really is happening this Q4 simply because, uh, in these countries, a lot of the people are willing. I need to change in January, so it's all going according to plan.
When will our investment in sales and marketing stabilize?
Um, I think to answer that, it's really about how efficient we are ourselves, and marketing.
Zak Calisto: When I initially started the business in 2004, our first employee was actually Johan de Wet, and Johan de Wet owns 34% of the business in New Zealand and immigrated from South Africa to New Zealand approximately nine years ago. I might be wrong with the number of years, but approximately there. We now go over to Joshua Riley from New Zealand. ARPU was up nicely again in the quarter and even more so for the business in South Africa, up 7% year on year. How far along in the cross-selling Tag and video cycle would you say we are in South Africa? Joshua, I would say that we're in the early stages, and we're hoping that in the next financial year we'll get even stronger momentum. Then the next question, net new subscribers were record in the quarter with strength across all geographies.
When I initially started the business in 2004, our first employee was actually Johan de Wet, and Johan de Wet owns 34% of the business in New Zealand and immigrated from South Africa to New Zealand approximately nine years ago. I might be wrong with the number of years, but approximately there. We now go over to Joshua Riley from New Zealand. ARPU was up nicely again in the quarter and even more so for the business in South Africa, up 7% year on year. How far along in the cross-selling Tag and video cycle would you say we are in South Africa? Joshua, I would say that we're in the early stages, and we're hoping that in the next financial year we'll get even stronger momentum. Then the next question, net new subscribers were record in the quarter with strength across all geographies.
And we're stable. We are continuing to increase that, given the loss in the larger durable market. So, hopefully, I've answered you in a different way—who owns 34%, who is the 34% owner of New Zealand. Um, when I initially started the business in 2004, our first employee was actually Yuan du Toit, and Yuan du Toit owns 34% of the business in New Zealand, and he immigrated from South Africa to New Zealand approximately nine years ago—I might be wrong with the number of years, but approximately.
We now go over to Joshua Riley from Nether.
R2 was up nicely again in the quarter and even more. So, for the business in South Africa, up 7% year on year—how far along in the cross-selling tank and Vision cycle would you say we are in South Africa? And Joshua, I would say that we're in the early stages,
And, uh, we’re hoping that in the next financial year, we’ll get even stronger momentum.
Zak Calisto: How do you see half of the market in demand today relative to your sales execution in key markets? We've increased our sales and marketing substantially this year, as we had set out in the beginning of the year. And are we getting huge productivity? Our unit economics remain very strong, and we believe that we're really performing in the key markets. In some markets, we outperform in budgets. Others we're a bit lagging, but overall it's going according to plan. Then the next question from Dylan Becker at William Blair, drivers of acceleration. How do you think about the uplift from pure capacity versus scaling productivity from recent higher drifts? And how does this support your view of a durable 20% growth prospects given momentum in both subscribing and cross-selling?
How do you see half of the market in demand today relative to your sales execution in key markets? We've increased our sales and marketing substantially this year, as we had set out in the beginning of the year. And are we getting huge productivity? Our unit economics remain very strong, and we believe that we're really performing in the key markets. In some markets, we outperform in budgets. Others we're a bit lagging, but overall it's going according to plan. Then the next question from Dylan Becker at William Blair, drivers of acceleration. How do you think about the uplift from pure capacity versus scaling productivity from recent higher drifts? And how does this support your view of a durable 20% growth prospects given momentum in both subscribing and cross-selling?
And then the next question. Next, new subscribers were recorded this quarter with strength across all geographies. And I just see half of the market and you want today relative to your sales and issue execution. In key markets, we've increased our sales and marketing substantially this year, as we had set out in the beginning of the year, and are we getting huge productivity? Our unit economics remain very strong. And we believe that we really perform in the key markets—in some markets, we outperform in budgets, others we are a bit lagging, but overall it's gaining according to plan.
Then the next question from Dylan Becket, William Blair.
Zak Calisto: Dylan, you know, in the outlook that we gave in the beginning of the year, we expected ours, we basically have outlooked that our subscription revenue would be around these ranges. We're actually on the upper end of the range we gave, and I personally believe that we've got good momentum and it will continue with the momentum. Our hiring, recruitment, retention of key staff, I think we're doing pretty well this year, and I believe we'll only get better at it. The next question from Scott Searle at Roth MKM. Can you address adoption trends for AI camera penetration rates per region, competitive landscape, and impact of 7% ARPU increase in the current quarter? We've really focused a lot of this in our South African operation. We moved into new offices approximately 18 months ago. We've got the space to hire, to build out the infrastructure.
Dylan, you know, in the outlook that we gave in the beginning of the year, we expected ours, we basically have outlooked that our subscription revenue would be around these ranges. We're actually on the upper end of the range we gave, and I personally believe that we've got good momentum and it will continue with the momentum. Our hiring, recruitment, retention of key staff, I think we're doing pretty well this year, and I believe we'll only get better at it. The next question from Scott Searle at Roth MKM. Can you address adoption trends for AI camera penetration rates per region, competitive landscape, and impact of 7% ARPU increase in the current quarter? We've really focused a lot of this in our South African operation. We moved into new offices approximately 18 months ago. We've got the space to hire, to build out the infrastructure.
Drivers of acceleration. And how do you think about the uptrend from pure capacity versus scaling productivity from recent high reps? Now, this supports your view of a durable 20% growth process, given momentum in both subscribing and cross-selling. Um, you know, in the outlook that we gave in the beginning of the year, we expected to, to our, and, you know, we basically have out of that subscription revenue would be around these ranges. We are actually on the upper end of the range we gave, and our person believed that we got good momentum. And it will continue with the momentum and, uh, in recruitment.
Retention of key stores. I think we're doing pretty well this year, and I believe, you know, it gets better at it.
The next question is from Scott. So, at Ross,
Can you address adoption trends for our camera penetration rates for the region, the competitive landscape, and the impact of a 7% or so increase in the current quarter?
Zak Calisto: We're busy building out the infrastructure in most other countries to be able to build out the call centers required to be able to really execute on this. The adoption of cameras is strong at this point in time, but we certainly believe it's early days in adoption and will only get stronger with time. The competitive landscape, we feel very comfortable to compete with our peers, and I believe we'll just continue to get stronger in this space. A question from Cornelis Macari. Is there any way to roll out Privilege 6 to Europe or Southeast Asia, or are those markets saturated? I think it's very early days when we're talking long-term of the e-commerce space and what our large enterprises' customers require. I don't believe the market is saturated.
We're busy building out the infrastructure in most other countries to be able to build out the call centers required to be able to really execute on this. The adoption of cameras is strong at this point in time, but we certainly believe it's early days in adoption and will only get stronger with time. The competitive landscape, we feel very comfortable to compete with our peers, and I believe we'll just continue to get stronger in this space. A question from Cornelis Macari. Is there any way to roll out Privilege 6 to Europe or Southeast Asia, or are those markets saturated? I think it's very early days when we're talking long-term of the e-commerce space and what our large enterprises' customers require. I don't believe the market is saturated.
We really focused a lot of this in our South African operation. We moved into new offices approximately 18 months ago. We've got the space there to build out the infrastructure. We're busy building out the infrastructure in most other countries to be able to build out the call centers required to be able to really execute on this. And the adoption of cameras is strong at this point in time, but we certainly believe it's early days in adoption and will only get stronger with time.
Uh, the competitive landscape—we feel very comfortable to compete with our peers.
And, uh, I believe we will continue to get stronger in this space.
Uh, a question from Cornelius Macari.
Is there any way to roll out the religious 6-year, or Southeast Asia, or are all those markets saturated?
And I think it's very early days when we talk in long term of the e-commerce space and what our large Enterprises customers require
Zak Calisto: I believe the market's only going to grow bigger, and we are developing our technology in order to be able to go into Europe and Southeast Asia and to compete efficiently. It must be said that we don't necessarily need to roll out the driver network in every geography. We've done that in South Africa, but it's more for us to learn. What our platform allows us to do is we can integrate with various and multiple e-commerce service providers that have rolled out fleets. And all we do is we become the aggregator to be able to, to our customers to be able to use any of the service providers that can service them. So the model when we go outside South Africa, it might be slightly different.
I believe the market's only going to grow bigger, and we are developing our technology in order to be able to go into Europe and Southeast Asia and to compete efficiently. It must be said that we don't necessarily need to roll out the driver network in every geography. We've done that in South Africa, but it's more for us to learn. What our platform allows us to do is we can integrate with various and multiple e-commerce service providers that have rolled out fleets. And all we do is we become the aggregator to be able to, to our customers to be able to use any of the service providers that can service them. So the model when we go outside South Africa, it might be slightly different.
And I don't believe the market is saturated. I believe the market's only going to grow bigger, and we are developing our technology in order to be able to go into Europe and Southeast Asia. And to compete efficiently, it must be said that we
Zak Calisto: As we develop the South African market, we also might change our current model despite it working very well, but we are learning every day. The market is changing every day. A question from Alex Sklar from Raymond James. What drove the strong pickup in South Africa subscriber growth versus plan? I think the subscriber growth is going in accordance with plan, and the cross-selling is going in accordance with plan. I think it's really just about increasing our footprint and our ability to execute. Where do you stand on sales hiring versus your specific geoplan, Southeast Asia and Europe? I think we're on track with all the hiring across all regions. Given the magnitude of sales hiring plans in Southeast Asia, do you expect subscriber growth to pick up from 20% to 21% level, or is this a good durable rate?
As we develop the South African market, we also might change our current model despite it working very well, but we are learning every day. The market is changing every day. A question from Alex Sklar from Raymond James. What drove the strong pickup in South Africa subscriber growth versus plan? I think the subscriber growth is going in accordance with plan, and the cross-selling is going in accordance with plan. I think it's really just about increasing our footprint and our ability to execute. Where do you stand on sales hiring versus your specific geoplan, Southeast Asia and Europe? I think we're on track with all the hiring across all regions. Given the magnitude of sales hiring plans in Southeast Asia, do you expect subscriber growth to pick up from 20% to 21% level, or is this a good durable rate?
Various and multiple e-commerce service providers have rolled out fleets. And all we do is we become the aggregator to be able to, uh, to, uh, our customers to be able to use any of the service providers that can service them. So the model when we go outside South Africa, it might be slightly different. And as we develop the South African market, we also might change our current model, despite it working very well, but we are learning every day and the market is changing every day.
Question from Alex caller from Raymond Jones.
What drove the strong pickup in South Africa, since Kyber growth versus plan? Um, I think the subscriber growth is going in accordance with plan, and the cross selling is going in accordance with plan, and I think it's really just about increasing our footprint and our ability to execute.
Um, where do you stand on Salesforce versus your specific? Geo plan, Southeast Asia and Europe. I think we are on track with all our high across all regions.
Zak Calisto: We certainly, our ambition is certainly to pick that 20% to 21% and to compound on that. But it's like everything, it's all about the execution. But we feel positive that we're going to have a very strong FY 27 in the region. A question from FC de Beer. It seems there has been an increase in subscriptions in South Africa quarter on quarter. How has the shift from used vehicle sales to new vehicle sales in South Africa impacted subscriptions? That does not impact our business. We get our customer acquisition is based on customers that have got vehicles. Now, the only time when a new vehicle comes into play, it might be when our customers, they basically trade in or sell their vehicles and buy new vehicles.
We certainly, our ambition is certainly to pick that 20% to 21% and to compound on that. But it's like everything, it's all about the execution. But we feel positive that we're going to have a very strong FY 27 in the region. A question from FC de Beer. It seems there has been an increase in subscriptions in South Africa quarter on quarter. How has the shift from used vehicle sales to new vehicle sales in South Africa impacted subscriptions? That does not impact our business. We get our customer acquisition is based on customers that have got vehicles. Now, the only time when a new vehicle comes into play, it might be when our customers, they basically trade in or sell their vehicles and buy new vehicles.
Given the magnitude of cells on plants in Southeast Asia, do you expect subscriber growth to pick up from 2020? At the 10% level, what is this? Is that a good, durable rate?
Um we certainly are Ambitions is certainly to pick that 202% and to Compound on that.
But it's like everything—it's all about the execution. Uh, but we feel positive that we're going to have a very strong FY27 in the region. Um,
Question from FC, the beer.
It seems there has been an increase in subscriptions in South Africa, quarter on quarter.
How is the shift from used vehicle sales to new vehicle sales—so that can impact the subscriptions? Um, that does not impact our business.
Uh, we
Zak Calisto: So the impact of new vehicle sales has got an impact on our business, but it's an insignificant impact at this point in time. Is the used vehicle market in South Africa still under pressure given the affordable new vehicles entering the market? You know, we don't really specialize in that, so in that whether the market's under pressure or not, we don't really look at that. We are focused on the services we provide. And does a stronger new vehicle market have a more positive impact on the subscriptions? Not necessarily. Another question from Scott from Roth. Can you provide an update on asset tracking, sales, connections in South Africa, the ongoing rollout in Poland, and plans for additional markets? At the moment, we don't plan any additional markets. The rollout is going according to plan, but we are looking at expanding into Europe cautiously.
So the impact of new vehicle sales has got an impact on our business, but it's an insignificant impact at this point in time. Is the used vehicle market in South Africa still under pressure given the affordable new vehicles entering the market? You know, we don't really specialize in that, so in that whether the market's under pressure or not, we don't really look at that. We are focused on the services we provide. And does a stronger new vehicle market have a more positive impact on the subscriptions? Not necessarily. Another question from Scott from Roth. Can you provide an update on asset tracking, sales, connections in South Africa, the ongoing rollout in Poland, and plans for additional markets? At the moment, we don't plan any additional markets. The rollout is going according to plan, but we are looking at expanding into Europe cautiously.
We get our customer acquisition is based on customers that have got vehicles. Now, the only time when a new vehicle comes into play might be when our customers, they basically trade in or sell their vehicles and buy new vehicles. So, the impact of new vehicle sales has got an impact on our business, but it's an insignificant impact at this point in time.
Is the used vehicle marketing Center is still under pressure, given the affordable new vehicles entering the market. You know, we don't really specialize in in in that. So uh, in that whether the markets and the pressure or not, we don't really look at that. We we more we are focused on the services, we provide
And does a strong, a new vehicle market, ever more positive, impact the subscriptions? Not necessarily.
Uh, another question from Scott, uh, from Roth. Can you provide an update on asset tracking sales, connections in South Africa, the ongoing rollout, employment, and plans for additional markets?
Zak Calisto: So we are adding our annual discussions now in February where we're going to approve the rollout plan or not approve the rollout plan. But fundamentally, there's a huge opportunity to go outside our key markets in Europe that we're currently in. But at the same time, there's also a huge opportunity to grow within the markets and to cement our leadership in the markets we're already operating. Another question from Dylan Becker from William Blair. How are you thinking about growth versus margin trade-off? I think, Dylan, the bottom line, you know, in the way we look at it, there's actually the IFRS where you see a bit of a compression in operating profit margins because of the increasing sales and marketing. But I think that's really a temporary thing.
So we are adding our annual discussions now in February where we're going to approve the rollout plan or not approve the rollout plan. But fundamentally, there's a huge opportunity to go outside our key markets in Europe that we're currently in. But at the same time, there's also a huge opportunity to grow within the markets and to cement our leadership in the markets we're already operating. Another question from Dylan Becker from William Blair. How are you thinking about growth versus margin trade-off? I think, Dylan, the bottom line, you know, in the way we look at it, there's actually the IFRS where you see a bit of a compression in operating profit margins because of the increasing sales and marketing. But I think that's really a temporary thing.
Um at the moment we don't plan any additional markets, a roll out is going according to plan but we are looking at expanding into Europe. Uh cautiously. So we are adding our annual discussions now in February where we're going to approve the rollout plan or not approve, the rollout plan but uh fundamentally there's a huge opportunity to go outside. Our key markets in Europe that we currently in. But at the same time there's also a huge opportunity to grow within the markets and to cement our, you know, our leadership, in the markets we are already operating
Another question from Belen Baker from William Blair.
How are you thinking about the growth versus margin trade-off?
Zak Calisto: The minute you stop allocating money to the sales and marketing, then you just get this huge margin expansion. The reality is all these upfront costs of getting customers; these customers stay with us for a very long time. So there's a huge understatement of these expenses against future revenue. So we're more focused on the long term of the business as opposed to one quarter or one financial year. We're looking at it rather from the perspective of what value are we bringing to our shareholders over a period of five years. So we look at it a little bit different. Impressive ability to accelerate growth to extend your moat and with minimum margin impact. That has a lot to do with the way we run the business and our economies of scale.
The minute you stop allocating money to the sales and marketing, then you just get this huge margin expansion. The reality is all these upfront costs of getting customers; these customers stay with us for a very long time. So there's a huge understatement of these expenses against future revenue. So we're more focused on the long term of the business as opposed to one quarter or one financial year. We're looking at it rather from the perspective of what value are we bringing to our shareholders over a period of five years. So we look at it a little bit different. Impressive ability to accelerate growth to extend your moat and with minimum margin impact. That has a lot to do with the way we run the business and our economies of scale.
Long term of the business, as opposed to one quarter or one financial year. We're looking at it, rather, from a perspective: over what value are we bringing to our shareholders? That looked at the five years. So we look at it a little bit differently.
Zak Calisto: How does this validate both conviction and overall opportunity for LT leverage as the impact from upfront investments continue to scale? I think I've probably answered that latter part of your question. Another question from Dylan Becker. Areas to double down on. Strategy clearly working. Any areas you feel confident you could step up investment further? I think fundamentally it's our unit economics continues to be very, very strong. So while we're only right now busy approving our budgets for the FY 2027, we probably are going to push to continue with the current trend we've got and to continue investing in our footprint in the markets we're in and to continue to grow and accelerate the top line. But we've got to conclude our budgets and we've just got to get board approval before that happens. A question from Ablay.
How does this validate both conviction and overall opportunity for LT leverage as the impact from upfront investments continue to scale? I think I've probably answered that latter part of your question. Another question from Dylan Becker. Areas to double down on. Strategy clearly working. Any areas you feel confident you could step up investment further? I think fundamentally it's our unit economics continues to be very, very strong. So while we're only right now busy approving our budgets for the FY 2027, we probably are going to push to continue with the current trend we've got and to continue investing in our footprint in the markets we're in and to continue to grow and accelerate the top line. But we've got to conclude our budgets and we've just got to get board approval before that happens. A question from Ablay.
Impressive ability to accelerate growth to extend to our within minimum margin impact. Uh, that has got to do a lot with the way we run the business and our economies of scale.
How does this validate both complexion and overall opportunity opportunity for, uh, LT leverage as an impact from upfront Investments, continue discount, I think I probably answered that later. Part of your question.
Another question from Dylan, Becker.
Here is to double down on statistically working any areas you feel confident. You could step up investment further. I think fundamentally it's our unit economics—continuously very, very strong. So we, while we—I mean, right now, as we're approving our budget just for FY27, we probably are going to push to continue with the current trend we've got and to keep continuing. Uh,
Uh, investing in our footprint, in the markets we're in, and to continue to grow and accelerate the top line. Uh, but we've got to conclude our budgets, and we just have to get all the approval before that happens.
and,
Zak Calisto: How does the Volkswagen OEM integration tangibly accelerate your European growth compared to your traditional sales-led expansion? It's in a simple way. It allows us to get vehicles onto the platform rather quickly. The real challenge we have is that the OEM telemetry devices on most occasions do not talk to what our customers do. So you get a lot of data, but it doesn't help our customers because the data that they require and the data points that are needed to be collected, you typically cannot get it off the OEM devices. So we're getting closer and closer to the OEMs in making sure this relationship works and ironing out the practicalities of using these devices. And I believe over time this will be sorted out. But the good thing is we've integrated with most of the providers in Europe, including Tesla. So that's all been integrated.
How does the Volkswagen OEM integration tangibly accelerate your European growth compared to your traditional sales-led expansion? It's in a simple way. It allows us to get vehicles onto the platform rather quickly. The real challenge we have is that the OEM telemetry devices on most occasions do not talk to what our customers do. So you get a lot of data, but it doesn't help our customers because the data that they require and the data points that are needed to be collected, you typically cannot get it off the OEM devices. So we're getting closer and closer to the OEMs in making sure this relationship works and ironing out the practicalities of using these devices. And I believe over time this will be sorted out. But the good thing is we've integrated with most of the providers in Europe, including Tesla. So that's all been integrated.
Question from a, how does the forks ban am integration tangibly accelerate to a European growth compared to your traditional sales lead expansion?
Um, it's it's in a simple way, it allows us to get vehicles onto the platform rather quickly.
Zak Calisto: So we've got a great platform. We're in the game, but there's a lot of operational issues and data points that we aren't able to collect through the OEM telemetry devices. More questions. Question coming from Colin Smith from All Africa Partners. In November, you announced a partnership with Volkswagen, is okay. So I think we've answered that question, Colin. Sorry. Is the rand as strong as... There's another question from Colin Smith from All Africa Partners. Does the materially strongest South African rand over the last year have any positive or negative impact on the underlying operations? And the positive impact is probably in the production of our telemetry equipment, but fundamentally that becomes a very small part of the business. The biggest, the positive impact is if you're reporting dollars, then obviously that's a very strong impact.
So we've got a great platform. We're in the game, but there's a lot of operational issues and data points that we aren't able to collect through the OEM telemetry devices. More questions. Question coming from Colin Smith from All Africa Partners. In November, you announced a partnership with Volkswagen, is okay. So I think we've answered that question, Colin. Sorry. Is the rand as strong as... There's another question from Colin Smith from All Africa Partners. Does the materially strongest South African rand over the last year have any positive or negative impact on the underlying operations? And the positive impact is probably in the production of our telemetry equipment, but fundamentally that becomes a very small part of the business. The biggest, the positive impact is if you're reporting dollars, then obviously that's a very strong impact.
The real challenge we have is that the OEM telemetry devices, on most occasions, do not talk to what our customers do. So, you get a lot of data, but it doesn't help our customers because the data that they require and the data points that are needed to be collected, you typically cannot get off the OEM devices. So, we're getting closer and closer to the OEMs in making sure this relationship works, and I'm the out—the practicalities of using these devices. I believe, over time, this will be sorted out. But the good thing is, we've integrated with most of the providers in Europe, been doing tester. So that's all been integrated. So we've got a great platform, we're in the game, but there's a lot of operational issues.
Data points that we are unable to collect through the OEM Telemetry devices.
More questions.
Question coming from Colin Smith from All Africa Partners.
In November, you announced a partnership with Volkswagen, is—okay. So I think we've answered that question. Colin, sorry.
Is the city as strong as it?
Zak Calisto: However, if you're reporting Rands, then it's a negative impact in terms of subscriptions. So our operations outside South Africa are a negative, you know, they're negatively impacted towards our revenue. So our revenue in Rands, as we reported in US dollars, would have been up because we're reporting Rands. They're lower. They've been negatively impacted. Next question also from Colin Smith. If an existing subscriber chooses to add a video Cartrack tech, does their standard 36-month contract reset? The answer to that is complex, but I think the best way to look at that is that the 36-month contract we sign is nearly not material to us. What's more material to us is how long will that customer stay with us as opposed to the 36-month contract?
However, if you're reporting Rands, then it's a negative impact in terms of subscriptions. So our operations outside South Africa are a negative, you know, they're negatively impacted towards our revenue. So our revenue in Rands, as we reported in US dollars, would have been up because we're reporting Rands. They're lower. They've been negatively impacted. Next question also from Colin Smith. If an existing subscriber chooses to add a video Cartrack tech, does their standard 36-month contract reset? The answer to that is complex, but I think the best way to look at that is that the 36-month contract we sign is nearly not material to us. What's more material to us is how long will that customer stay with us as opposed to the 36-month contract?
And then another question from Colin Smith from all aspects, does the material strongest South African brand? Over the last year? Have any positive or negative impact on the underlying operations? And the positive impact is probably in the production of our Telemetry equipment, but fundamentally that's becomes a very small part of the business. Uh, the biggest, the positive impact is, if you reporting dollars, then obviously that's a very strong impact. However, if you're reporting rains, then it's a negative impact in terms of subscriptions. So our operations outside of Africa or a negative, you know, they are negatively impacted towards our Revenue. So our Revenue in Brands as we as we reported in new US Dollars would have been up because we report in range. They know they, they've been negatively impacted
Next question. Also from Colin Smith,
Um, if an existing subscriber chooses to add a video contract, Tech does the standard 36-month contract reset,
Zak Calisto: And what we find with customers, they don't really, you know, the contract we sign it, but it sort of goes into the bottom drawer. It's more, can we keep the customer and can we keep the vehicle on the platform while the customer still owns it? And that's what we measure. And we're more reliant on customer service, and customer retention than actually trying to enforce a 36-month contract. And that's been our policy since day one of starting the business. We take a much more pragmatic way of looking at the business as opposed to trying to get our customers to stick to the agreement when we know the customer is going to stay with us for very long. Next question from Colin. Is the current share price at a level that management may consider a share buyback?
And what we find with customers, they don't really, you know, the contract we sign it, but it sort of goes into the bottom drawer. It's more, can we keep the customer and can we keep the vehicle on the platform while the customer still owns it? And that's what we measure. And we're more reliant on customer service, and customer retention than actually trying to enforce a 36-month contract. And that's been our policy since day one of starting the business. We take a much more pragmatic way of looking at the business as opposed to trying to get our customers to stick to the agreement when we know the customer is going to stay with us for very long. Next question from Colin. Is the current share price at a level that management may consider a share buyback?
Really, you know, the contract—we signed it, but it sort of goes into the bottom drawer. It’s more...
Can we get the customer? And can we keep the vehicle on the platform, and the customer still owns it, and that's what we measure? We're more reliant on customer service and customer retention than actually trying to enforce a 36-month contract, and that's been our policy since day one of starting the business. We take a much more pragmatic way of looking at the business, as opposed to trying to get our customers to stick to the agreement, when we know the customer is going to stay with us for very long.
Next question from Colin.
Is the current share price at a level that management may consider their share buyback?
Zak Calisto: Colin, the reality of doing a share buyback in the marketplace as a listed entity, it's very complex. I think at this point in time, we are just not trying to second guess the market. We'll just continue being focused on growth of the business and the quality of the asset. You know, we're not going to, we tried to do that about two years ago, and it's really, really difficult with all the SEC rules around that. You know, unless we go a very complex route to do that, and if we do that, we might as well just be listed. Another question from Max Spoeder. Was the IP in South Africa only driven by the Camera and Tag or also general price hikes? It was driven by the Camera and Tag. And what's the IP in Southeast Asia this quarter? How much dilution are you expecting?
Colin, the reality of doing a share buyback in the marketplace as a listed entity, it's very complex. I think at this point in time, we are just not trying to second guess the market. We'll just continue being focused on growth of the business and the quality of the asset. You know, we're not going to, we tried to do that about two years ago, and it's really, really difficult with all the SEC rules around that. You know, unless we go a very complex route to do that, and if we do that, we might as well just be listed. Another question from Max Spoeder. Was the IP in South Africa only driven by the Camera and Tag or also general price hikes? It was driven by the Camera and Tag. And what's the IP in Southeast Asia this quarter? How much dilution are you expecting?
Um, calling the reality of doing a share buyback in the marketplace, as a listed entity, it's very complex. And I think at this point in time, uh, we, uh, are just not trying to second-guess the market. We'll just continue being focused on growth of the business and the quality of the asset. Uh, we, you know, uh, uh, we're not going to—we tried to be that about two years ago. And it's really, really difficult with the SEO, all the SEC rules around that. Uh, you, you know, unless we go a very complex route to do that. And if we do that,
That is all, just the list.
Um, another question from Max SP,
What’s the operating system that I need? Or also general price hacks? It is driven by the camera and tag.
Zak Calisto: We've always said over time, the Southeast Asian market will mirror the ARPU of South Africa. That is, as countries like the Philippines, Indonesia, and Thailand start to become a bigger portion of the business, these are typically lower ARPU countries compared to New Zealand, the UAE, or Singapore. So over time, we believe that the Southeast Asian ARPUs will mirror South Africa. We do believe ARPUs will decrease as the business gets bigger, but that we knew from the outset. We've consistently told the market that. A question from Matthew at the conference. What portion of sales are coming from existing customers, new to Cartrack customers? Can you describe examples of use cases you're seeing for Tag?
We've always said over time, the Southeast Asian market will mirror the ARPU of South Africa. That is, as countries like the Philippines, Indonesia, and Thailand start to become a bigger portion of the business, these are typically lower ARPU countries compared to New Zealand, the UAE, or Singapore. So over time, we believe that the Southeast Asian ARPUs will mirror South Africa. We do believe ARPUs will decrease as the business gets bigger, but that we knew from the outset. We've consistently told the market that. A question from Matthew at the conference. What portion of sales are coming from existing customers, new to Cartrack customers? Can you describe examples of use cases you're seeing for Tag?
And what's the output southeast Asia? This quarter? How much dilution are you expected expecting? We probably said, over time, uh, southeast Asia Market will matter the order and that is as countries like Philippines, and Indonesia and Thailand, start to become a bigger portion of the business. These are typically lower or the countries compared to New Zealand, or the UAE or Singapore. So, that over time, we believe that the Southeast Asian are PS more Minnesota Africa. So, we do believe our foods will decrease as the business gets bigger, but that we knew from the outset,
And we've consistently told the market that
Uh, a question from Matthew at the conference.
Zak Calisto: I'm not going to go through the presentation now, but you know, our users for Tag is basically really, it allows us to track equipment or vehicles outside the GSM network. For that, there's lots of use cases. There's no shortage of use cases where that requirement is needed. What proportion of sales are coming from existing customers? The best way to look at that is that your net adds, which we present, that's typically new customers. You know, when you're selling to existing customers, typically what happens is when you do a fleet, basically pure fleet owners, if they've got 70 vehicles, they only do 10 vehicles. Or if they've got 12 vehicles, they only do three vehicles. Typically, fleet owners do the full fleet.
I'm not going to go through the presentation now, but you know, our users for Tag is basically really, it allows us to track equipment or vehicles outside the GSM network. For that, there's lots of use cases. There's no shortage of use cases where that requirement is needed. What proportion of sales are coming from existing customers? The best way to look at that is that your net adds, which we present, that's typically new customers. You know, when you're selling to existing customers, typically what happens is when you do a fleet, basically pure fleet owners, if they've got 70 vehicles, they only do 10 vehicles. Or if they've got 12 vehicles, they only do three vehicles. Typically, fleet owners do the full fleet.
What portion of sales are coming from existing customers? New-to-Cart customers? Can you describe examples of use cases for seeing, for tag?
Um, I'm not going to go through the presentation now. But, you know, our users will take is, it's basically really. It allows us to track, uh, to track, uh, equipment or vehicles outside the GSM network. And for that, there's lots of use cases. There's no shortage of these cases where that requirement is needed.
And what proportion of sales are coming from existing customers? The best way to look at that—is that your net adds, which we present, that's typically new customers,
Zak Calisto: So typically, when you are selling in the future to these fleet owners, it's really because they've sold vehicles and they've got new vehicles. And that would be basically not shown in your net additions. So your net additions is typically most of that business or is new customers. And then your churned business, a lot of that is really, you know, customers selling vehicles and buying new vehicles. I hope that explains and answers your question. Are there any regulatory or other technical issues with rolling out Tag to other markets beyond South Africa, Southeast Asia, and Europe? I'm not familiar with all the markets, but all the markets we've been rolling out, no. But once again, I'll say that I'm not familiar with all the markets and all the regulation. And typically, every country has got its own regulation. Let me just see if there's any more questions.
So typically, when you are selling in the future to these fleet owners, it's really because they've sold vehicles and they've got new vehicles. And that would be basically not shown in your net additions. So your net additions is typically most of that business or is new customers. And then your churned business, a lot of that is really, you know, customers selling vehicles and buying new vehicles. I hope that explains and answers your question. Are there any regulatory or other technical issues with rolling out Tag to other markets beyond South Africa, Southeast Asia, and Europe? I'm not familiar with all the markets, but all the markets we've been rolling out, no. But once again, I'll say that I'm not familiar with all the markets and all the regulation. And typically, every country has got its own regulation. Let me just see if there's any more questions.
And then, you know, when you're selling to existing customers, typically what happens is when you do a fleet, where people—fleet owners—if they've got 70 vehicles, they only do 10 vehicles, or if they've got 12 vehicles, they only piece vehicles. Typically, fleet owners do the full fleet. So, typically when you are selling in the future to the fleet owners, it's really because they've sold vehicles and they've got new vehicles, and that would be basically not showing in your net positions. So your net additions—typically, most of that business is new customers. And then your trip—
Insurance business. A lot of that is really, you know, customers selling vehicles and buying new vehicles. Exactly. Explains and answers your question.
Uh, are there any regulatory or, uh, are there technical issues with rolling out, TAG, to other markets beyond South Africa, Southeast Asia, and Europe? Um,
Regulation, and typically every country’s got its own regulation.
And we just see if there's any more questions.
Zak Calisto: William Siro, how much are you expecting the improved South African macro conditions to accelerate fundamental performance going forward? William, we've always done well in South Africa in really tough times and in good times. I think us doing well now is really on our ability to scale, our ability to add more people, our new building, the infrastructure we're developing. I think the fact that the economic environment is looking good gives us a tailwind. But I think a lot of it is not because of the economic situation right now. I think it's really just because of our ability to execute in the way we've been building teams. Matthew from Conference, looking at the South African subscribers over the next five years, what proportion do you think could be interested in Cartrack Tech or Veridia Analytics?
William Siro, how much are you expecting the improved South African macro conditions to accelerate fundamental performance going forward? William, we've always done well in South Africa in really tough times and in good times. I think us doing well now is really on our ability to scale, our ability to add more people, our new building, the infrastructure we're developing. I think the fact that the economic environment is looking good gives us a tailwind. But I think a lot of it is not because of the economic situation right now. I think it's really just because of our ability to execute in the way we've been building teams. Matthew from Conference, looking at the South African subscribers over the next five years, what proportion do you think could be interested in Cartrack Tech or Veridia Analytics?
Um, William, uh, zero. How much?
You’re expecting the improved South African macro conditions to accelerate fundamental performance. Going forward with this done—well, in South Africa, it's really tough times. And in good times...
And I think I still, well, now it really is on our ability to scale, our ability to add more people, our new building, the infrastructure we are developing. And I think the fact that the economic environment is looking good keeps us a tailwind. Uh, but I think a lot of it is not because of the economic, uh, situation right now. I think it's really just because of our ability to execute in the way we've been building teams.
Zak Calisto: Matthew, to be honest with you, I cannot answer that because whatever I say, I might be wrong. So I prefer not to answer that. Next question from Max Spoeder. Is the subscriber growth in South Africa diluting IP growth? On a group level, it remains rather 4% compared to the target 6%. The target of 6% would be at February 2026, so it would be at year end. And I think we might be lagging slightly what we expected, but we're largely on track. A question from GB. What would you do differently if you were a private company and not a public company? What would be the difference in your strategies? There would be absolutely no difference in our strategy. We are focused on building a business. We're not building a business so that we can put lipstick on it and we can sell it.
Matthew, to be honest with you, I cannot answer that because whatever I say, I might be wrong. So I prefer not to answer that. Next question from Max Spoeder. Is the subscriber growth in South Africa diluting IP growth? On a group level, it remains rather 4% compared to the target 6%. The target of 6% would be at February 2026, so it would be at year end. And I think we might be lagging slightly what we expected, but we're largely on track. A question from GB. What would you do differently if you were a private company and not a public company? What would be the difference in your strategies? There would be absolutely no difference in our strategy. We are focused on building a business. We're not building a business so that we can put lipstick on it and we can sell it.
Matthew from conference, looking at South Africa, subscribers over the next 5 years. What's the portion, do you think, could be in, uh, could be interested in contact of via analytics? Matthew, to be honest with you, I cannot answer that, um, because whatever I say, I might be wrong.
So, I prefer not to answer that.
Next question from Max. Uh, Spur, is this with cyber growth in South Africa, due to artwork growth.
On a group level, it remains at about 4% compared to the target of 6%.
Um, the target of 6% would be at February 2020, uh, 6, as I say, to be at year end. And I think we might be lagging slightly, uh, slightly what we expected, but we're largely on track.
A question from.
GB.
Zak Calisto: We're building the business on in terms of my succession planning. My family is a majority shareholder. We intend to stay that way. We fundamentally are looking long term at the business on a long term perspective. So we're running the business as if whether it's private or whether it's a public company, our mother brand remains the same. A question from Prashant Themkumar. Can you share a little more color on your bullishness for subscription growth in South Africa? What are the distribution services regarding growth? Are you reaching such an online new vehicle retailers? Okay. The question, the answer to that, Prashant, we're not doing anything different to what we've been doing over the last 10 years. And that is continuous improvements, whether it's our technology, whether it's our software platform, whether it's the training of the people. So frankly, there's no changes.
We're building the business on in terms of my succession planning. My family is a majority shareholder. We intend to stay that way. We fundamentally are looking long term at the business on a long term perspective. So we're running the business as if whether it's private or whether it's a public company, our mother brand remains the same. A question from Prashant Themkumar. Can you share a little more color on your bullishness for subscription growth in South Africa? What are the distribution services regarding growth? Are you reaching such an online new vehicle retailers? Okay. The question, the answer to that, Prashant, we're not doing anything different to what we've been doing over the last 10 years. And that is continuous improvements, whether it's our technology, whether it's our software platform, whether it's the training of the people. So frankly, there's no changes.
What would you do differently? If you were a private company and not a public company, what would be the difference in your strategies? There would be, you know, up to a difference in our strategy. Uh, we, uh, we are—we are focused on building a business. We're not building a business so that we can put lipstick on it and we can sell it. We're building the business, um, one, in terms of my succession planning. Uh, my family is a majority shareholder. We intend to stay that way, and we fundamentally are looking long term and at the business on a long-term perspective. So, we're running the business as if, whether it's private or whether it's a public company, uh, our modus operandi remains the same.
uh, a question from Kumar
Zak Calisto: It's just doing the same thing, but consistently improving with what we've done in the past. And we've got a 20-year track record of continuously improving on the past year. Another question from GB. You say you've got another question, but I don't see it. So I'm not quite sure. GB. Okay. Typically, what is the cost of your subscription as a percentage of the annual revenue for your customer? Typically, what is the cost of your subscription as a percentage of the annual revenue for your customer? GB, I don't really understand the question. I apologize for that. And with that, I've answered all the questions. I want to thank everybody for attending. And I look forward to speaking to everyone in three months' time again. Thank you. Bye-bye.
It's just doing the same thing, but consistently improving with what we've done in the past. And we've got a 20-year track record of continuously improving on the past year. Another question from GB. You say you've got another question, but I don't see it. So I'm not quite sure. GB. Okay. Typically, what is the cost of your subscription as a percentage of the annual revenue for your customer? Typically, what is the cost of your subscription as a percentage of the annual revenue for your customer? GB, I don't really understand the question. I apologize for that. And with that, I've answered all the questions. I want to thank everybody for attending. And I look forward to speaking to everyone in three months' time again. Thank you. Bye-bye.
Can you share a little more color on your bullishness for subscribing or to grow in South Africa? What are the distributions—seven? Garden, growth. All you need to check such an online use vehicle, retailers is okay. The question, the answer to that question—we are not doing anything different to what we've been doing over the last 10 years, and that is continuous improvements, whether it's our technology, whether it's our software platform, whether it's the training of the people. So, frankly, there are no changes. It's just doing the same thing but consistently improving on what we've done in the past, and we've got a 20-year track record of continuously improving on the past year.
Another question from TV.
And you say you've got another question, but I don't see it, so I'm not quite sure.
TV.
Okay. Typically, what is the cost of your subscription as a percentage of the annual revenue for your customer?
Typically, what is the cost of your subscription as a percentage of annual revenue for your customer? GV? I don't really understand the question. I apologize for that.
