MiX Telematics Reports Preliminary Unaudited Fourth Quarter and Full Fiscal Year 2023 U.S. GAAP Financial Results
Highlights:
Fourth Quarter Fiscal Year 2023:
- Net subscriber additions of 42,700, bringing the total base to over one million subscribers
-
Total revenue of
$36.9 million 12% year-over-year (constant currency) -
Subscription revenue of
$32.5 million 14% year-over-year (constant currency) -
Annual recurring revenue (“ARR”) of
$129.0 million 15% year-over-year (constant currency) -
Net income of
$2.3 million -
Adjusted EBITDA of
$9.2 million 25.0% (up 280 basis points from the prior quarter) -
Net cash from operating activities of
$9.2 million -
Free cash flow of
$3.4 million -
Board increases quarterly dividend by
12.5%
Fiscal Year 2023:
-
Total revenue of
$145.0 million 10% year-over-year (constant currency) -
Subscription revenue of
$126.7 million 12% year-over-year (constant currency) -
Net income of
$4.5 million -
Adjusted EBITDA of
$29.6 million 20.4%
MIDRAND,
Management Commentary
“Closing out the fiscal year, we are proud to have surpassed the one million subscriber milestone,” said CEO Stefan Joselowitz. “In addition, we expanded our adjusted EBITDA to
“As we move into fiscal year 2024, despite general uncertainties in the macro-economic environment, we remain confident that we have the necessary levers within our operational structure to maintain our balanced approach to growth, while delivering strong free cash flow and profitability. Our team continues to work towards delivering consistent ‘rule of 40’ performance in the medium-term. M&A still remains a key component of our long-term objectives, and our corporate development team is actively evaluating a range of potential prospects.”
Financial Results for the Three Months Ended March 31, 2023
Subscription Revenue: Subscription revenue increased to
The majority of the Company’s total revenue and subscription revenue are derived from currencies other than the
Total Revenue: Total revenue increased to
The impact of translating foreign currencies to
Gross Margin: Gross profit was
Income From Operations: Income from operations was
Net Income and Earnings Per Share: Net income was
Earnings per diluted ordinary share was 0.4
Adjusted EBITDA: Adjusted EBITDA, a non-GAAP measure, increased to
Adjusted Net Income and Adjusted Net Income Per Share: Adjusted net income was
Adjusted Effective Tax Rate: The Company’s effective tax rate was
Cash and Cash Equivalents and Cash Flow: At March 31, 2023, the Company had
Net cash provided by operating activities for the fourth quarter of fiscal year 2023 increased to
Net cash used in investing activities for the fourth quarter of fiscal year 2023 was
Net cash from financing activities amounted to
Financial Results for the Fiscal Year Ended March 31, 2023
Subscription Revenue: Subscription revenue increased to
The majority of the Company’s total revenue and subscription revenue are derived from currencies other than the
Total Revenue: Total revenue for fiscal year 2023 increased to
The impact of translating foreign currencies to
Gross Margin: Gross profit was
Income From Operations: Income from operations was
Net Income and Earnings Per Share: Net income was
Earnings per diluted ordinary share was 0.8
Adjusted EBITDA: Adjusted EBITDA, a non-GAAP measure, was
Adjusted Net Income and Adjusted Net Income Per Share: Adjusted net income was
Adjusted Effective Tax Rate: The Company’s effective tax rate was
Cash and Cash Equivalents and Cash Flow: Net cash provided by operating activities for fiscal year 2023 increased to
Net cash used in investing activities for fiscal year 2023 was
Net cash from financing activities amounted to
During the year, the South African Rand weakened against the
Preliminary Financial Information
The unaudited financial information set forth in this release is preliminary and subject to potential adjustments. Adjustments to the consolidated financial statements may be identified when audit work has been finalized for the year-end audit, which could result in potential differences from this preliminary unaudited condensed financial information. Actual results could differ materially. The Company expects to finalize its financial results and file its Annual Report on Form 10-K no later than June 14, 2023.
Quarterly Dividend
The last recent dividend payment of 4 South African cents (0.2
The details with respect to the dividends declared for holders of our ADSs are as follows:
Ex dividend on New York Stock Exchange (NYSE) |
Thursday, June 15, 2023 |
|
Record date |
Friday, June 16, 2023 |
|
Approximate date of currency conversion |
Monday, June 19, 2023 |
|
Approximate dividend payment date |
Thursday, June 29, 2023 |
Share Repurchases
In the fourth quarter of fiscal year 2023, the Company repurchased 838,431 ordinary shares on the open market at prevailing market prices, for a total consideration of
Conference Call Information
MiX Telematics management will host a conference call and audio webcast at 8:00 a.m. (Eastern Daylight Time) and 2:00 p.m. (South African Time) on Thursday, May 25, 2023 to discuss the Company’s financial results and current business outlook.
- The live webcast of the call will be available at the “Investor Information” page of the Company’s website, http://investor.mixtelematics.com.
-
To access the call, dial 1-877-451-6152 (within
the United States ) or 0-800-983-831 (withinSouth Africa ) or 1-201-389-0879 (outside ofthe United States ). The conference ID is 13738806. -
A replay of this conference call will be available for a limited time at 1-844-512-2921 (within
the United States ) or 1-412-317-6671 (withinSouth Africa or outside ofthe United States ). The replay conference ID is 13738806. - A replay of the webcast will also be available for a limited time at http://investor.mixtelematics.com.
About MiX Telematics Limited
MiX Telematics is a leading global provider of connected fleet and mobile asset solutions delivered as SaaS to over a million subscribers in over 120 countries. The Company’s products and services provide enterprise fleets, small fleets and consumers with solutions for efficiency, safety, compliance and security. MiX Telematics was founded in 1996 and has offices in
Forward-Looking Statements
This press release includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation, statements regarding our position to execute on our growth strategy, and our ability to expand our leadership position. These forward-looking statements include, but are not limited to, the Company’s beliefs, plans, goals, objectives, expectations, assumptions, estimates, intentions, future performance, other statements that are not historical facts and statements identified by words such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “seeks”, “estimates” or words of similar meaning. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in, or suggested by, these forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved.
Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of known and unknown risks and uncertainties, some of which are beyond our control including, without limitation:
- our ability to attract, sell to and retain customers;
- our ability to improve our growth strategies successfully, including our ability to increase sales to existing customers;
- our ability to adapt to rapid technological change in our industry and the use of artificial intelligence;
- competition from industry consolidation and new entrants into the industry;
- loss of key personnel or our failure to attract, train and retain other highly qualified personnel;
- our ability to integrate any businesses we acquire;
- the introduction of new solutions and international expansion;
- the impact of the global component shortage and supply chain disruptions;
- our dependence on key suppliers and vendors to manufacture our hardware;
- our dependence on our network of dealers and distributors to sell our solutions;
- our ability to navigate and adapt in adverse global economic and market conditions;
- businesses may not continue to adopt fleet management solutions;
- our future business and system development, results of operations and financial condition;
- expected changes in our profitability and certain cost or expense items as a percentage of our revenue;
- changes in the practices of insurance companies;
- the impact of laws and regulations relating to the Internet and data privacy;
- our ability to ensure compliance with export laws, customs and import regulations, economic sanctions and Export Administration Regulations;
- our ability to protect our intellectual property and proprietary technologies and address any infringement claims;
- our ability to defend ourselves from litigation or administrative proceedings relating to labor, regulatory, tax or similar issues;
- significant disruption in service on, or security breaches of, our websites or computer systems;
- our dependence on third-party technology;
- fluctuations in the value of the South African Rand;
-
economic, social, political, labor and other conditions and developments in
South Africa and globally; - our ability to issue securities and access the capital markets in the future; and
-
other risks set forth in our filings with the
U.S. Securities Exchange Commission.
We assume no obligation to update any forward-looking statements contained in this press release and expressly disclaim any obligation to do so, whether as a result of new information, future events or otherwise, except as required by law.
Use of Non-GAAP Financial Measures
This press release and the accompanying tables include references to adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income per share, adjusted effective tax rate, free cash flow and constant currency, which are non-GAAP financial measures. For a description of these non-GAAP financial measures, including the reasons management uses these measures, please see Annexure A titled “Non-GAAP Financial Measures and Key Business Metrics”. A reconciliation of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with GAAP is provided in Annexure A.
MIX TELEMATICS LIMITED CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share amounts) (Unaudited) |
||||||||
|
|
March 31,
|
|
March 31,
|
||||
ASSETS |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
33,738 |
|
|
$ |
29,876 |
|
Restricted cash |
|
|
981 |
|
|
|
781 |
|
Accounts receivables, net |
|
|
25,092 |
|
|
|
24,194 |
|
Inventory, net |
|
|
3,356 |
|
|
|
4,936 |
|
Prepaid expenses and other current assets |
|
|
11,463 |
|
|
|
9,950 |
|
Total current assets |
|
|
74,630 |
|
|
|
69,737 |
|
Property, plant and equipment, net |
|
|
32,274 |
|
|
|
36,779 |
|
Goodwill |
|
|
44,434 |
|
|
|
39,258 |
|
Intangible assets, net |
|
|
20,460 |
|
|
|
21,895 |
|
Deferred tax assets |
|
|
3,768 |
|
|
|
2,090 |
|
Other assets |
|
|
4,988 |
|
|
|
6,804 |
|
Total assets |
|
$ |
180,554 |
|
|
$ |
176,563 |
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Short-term debt |
|
$ |
5,597 |
|
|
$ |
15,253 |
|
Accounts payables |
|
|
8,052 |
|
|
|
6,120 |
|
Accrued expenses and other liabilities |
|
|
19,610 |
|
|
|
21,486 |
|
Contingent consideration |
|
|
— |
|
|
|
3,569 |
|
Deferred revenue |
|
|
6,692 |
|
|
|
5,295 |
|
Income taxes payable |
|
|
590 |
|
|
|
298 |
|
Total current liabilities |
|
|
40,541 |
|
|
|
52,021 |
|
Deferred tax liabilities |
|
|
8,972 |
|
|
|
12,357 |
|
Long-term accrued expenses and other liabilities |
|
|
4,344 |
|
|
|
3,368 |
|
Total liabilities |
|
|
53,857 |
|
|
|
67,746 |
|
|
|
|
|
|
||||
Stockholders’ equity: |
|
|
|
|
||||
MiX Telematics Limited stockholders’ equity |
|
|
|
|
||||
Preference shares: 100 million shares authorized but not issued |
|
|
— |
|
|
|
— |
|
Ordinary shares: 605.2 million and 608.8 million no-par value shares issued as of March 31, 2022 and March 31, 2023, respectively |
|
|
64,390 |
|
|
|
64,001 |
|
Less treasury stock at cost: 53.8 million shares as of March 31, 2022 and March 31, 2023 |
|
|
(17,315 |
) |
|
|
(17,315 |
) |
Retained earnings |
|
|
79,709 |
|
|
|
79,024 |
|
Accumulated other comprehensive income/(loss) |
|
|
3,909 |
|
|
|
(13,399 |
) |
Additional paid-in capital |
|
|
(4,001 |
) |
|
|
(3,499 |
) |
Total MiX Telematics Limited stockholders’ equity |
|
|
126,692 |
|
|
|
108,812 |
|
Non-controlling interest |
|
|
5 |
|
|
|
5 |
|
Total stockholders’ equity |
|
|
126,697 |
|
|
|
108,817 |
|
|
|
|
|
|
||||
Total liabilities and stockholders’ equity |
|
$ |
180,554 |
|
|
$ |
176,563 |
|
MIX TELEMATICS LIMITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) (Unaudited) |
|||||||||||||||
|
Three Months Ended March 31, |
|
Year Ended March 31, |
||||||||||||
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
Revenue |
|
|
|
|
|
|
|
||||||||
Subscription |
$ |
31,274 |
|
|
$ |
32,524 |
|
|
$ |
123,573 |
|
|
$ |
126,656 |
|
Hardware and other |
|
4,835 |
|
|
|
4,341 |
|
|
|
19,721 |
|
|
|
18,337 |
|
Total revenue |
|
36,109 |
|
|
|
36,865 |
|
|
|
143,294 |
|
|
|
144,993 |
|
Cost of revenue |
|
|
|
|
|
|
|
||||||||
Subscription |
|
9,468 |
|
|
|
10,304 |
|
|
|
36,683 |
|
|
|
40,073 |
|
Hardware and other |
|
3,480 |
|
|
|
3,878 |
|
|
|
15,176 |
|
|
|
14,054 |
|
Total cost of revenue |
|
12,948 |
|
|
|
14,182 |
|
|
|
51,859 |
|
|
|
54,127 |
|
Gross profit |
|
23,161 |
|
|
|
22,683 |
|
|
|
91,435 |
|
|
|
90,866 |
|
Operating expenses |
|
|
|
|
|
|
|
||||||||
Sales and marketing |
|
4,025 |
|
|
|
4,220 |
|
|
|
15,436 |
|
|
|
17,194 |
|
Administration and other |
|
15,336 |
|
|
|
14,832 |
|
|
|
61,550 |
|
|
|
62,107 |
|
Total operating expenses |
|
19,361 |
|
|
|
19,052 |
|
|
|
76,986 |
|
|
|
79,301 |
|
Income from operations |
|
3,800 |
|
|
|
3,631 |
|
|
|
14,449 |
|
|
|
11,565 |
|
Other (expense)/income |
|
(752 |
) |
|
|
830 |
|
|
|
(574 |
) |
|
|
1,689 |
|
Net interest expense |
|
216 |
|
|
|
279 |
|
|
|
510 |
|
|
|
287 |
|
Income before income tax expense |
|
2,832 |
|
|
|
4,182 |
|
|
|
13,365 |
|
|
|
12,967 |
|
Income tax benefit/(expense) |
|
655 |
|
|
|
(1,920 |
) |
|
|
(4,418 |
) |
|
|
(8,445 |
) |
Net income |
|
3,487 |
|
|
|
2,262 |
|
|
|
8,947 |
|
|
|
4,522 |
|
Less: Net income attributable to non-controlling interest |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net income attributable to MiX Telematics Limited |
$ |
3,487 |
|
|
$ |
2,262 |
|
|
$ |
8,947 |
|
|
$ |
4,522 |
|
|
|
|
|
|
|
|
|
||||||||
Net income per ordinary share: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.006 |
|
|
$ |
0.004 |
|
|
$ |
0.016 |
|
|
$ |
0.008 |
|
Diluted |
$ |
0.006 |
|
|
$ |
0.004 |
|
|
$ |
0.016 |
|
|
$ |
0.008 |
|
|
|
|
|
|
|
|
|
||||||||
Net income per American Depositary Share: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.16 |
|
|
$ |
0.10 |
|
|
$ |
0.41 |
|
|
$ |
0.20 |
|
Diluted |
$ |
0.16 |
|
|
$ |
0.10 |
|
|
$ |
0.40 |
|
|
$ |
0.20 |
|
|
|
|
|
|
|
|
|
||||||||
Ordinary shares: |
|
|
|
|
|
|
|
||||||||
Weighted average |
|
550,953 |
|
|
|
554,000 |
|
|
|
551,923 |
|
|
|
552,603 |
|
Diluted weighted average |
|
560,567 |
|
|
|
556,126 |
|
|
|
563,958 |
|
|
|
556,058 |
|
|
|
|
|
|
|
|
|
||||||||
American Depositary Shares: |
|
|
|
|
|
|
|
||||||||
Weighted average |
|
22,038 |
|
|
|
22,160 |
|
|
|
22,077 |
|
|
|
22,104 |
|
Diluted weighted average |
|
22,423 |
|
|
|
22,245 |
|
|
|
22,558 |
|
|
|
22,242 |
|
|
|||||||||||||||
MIX TELEMATICS LIMITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) |
||||||||
|
|
Year Ended March 31, |
||||||
|
|
|
2022 |
|
|
|
2023 |
|
Cash flows from operating activities: |
|
|
|
|
||||
Cash generated from operations |
|
$ |
26,591 |
|
|
$ |
24,171 |
|
Interest received |
|
|
404 |
|
|
|
733 |
|
Interest paid |
|
(400 |
) |
|
|
(911 |
) |
|
Income tax paid |
|
|
(7,193 |
) |
|
|
(2,045 |
) |
Net cash provided by operating activities |
|
|
19,402 |
|
|
|
21,948 |
|
|
|
|
|
|
||||
Cash flows from investing activities: |
|
|
|
|
||||
Acquisition of property, plant and equipment – in-vehicle devices |
|
|
(18,335 |
) |
|
|
(18,868 |
) |
Acquisition of property, plant and equipment – other |
|
|
(1,985 |
) |
|
|
(946 |
) |
Proceeds from the sale of property, plant and equipment |
|
|
60 |
|
|
|
71 |
|
Acquisition of intangible assets |
|
|
(5,897 |
) |
|
|
(5,307 |
) |
Cash paid for business combination |
|
|
— |
|
|
|
(3,739 |
) |
Net cash used in investing activities |
|
|
(26,157 |
) |
|
|
(28,789 |
) |
|
|
|
|
|
||||
Cash flows from financing activities: |
|
|
|
|
||||
Cash paid for ordinary shares repurchased |
|
|
(3,011 |
) |
|
|
(389 |
) |
Cash paid on dividends to MiX Telematics Limited stockholders |
|
|
(5,929 |
) |
|
|
(5,197 |
) |
Movement in short-term debt |
|
|
3,873 |
|
|
|
10,544 |
|
Net cash (used in)/from financing activities |
|
|
(5,067 |
) |
|
|
4,958 |
|
|
|
|
|
|
||||
Net decrease in cash and cash equivalents, and restricted cash |
|
|
(11,822 |
) |
|
|
(1,883 |
) |
Cash and cash equivalents, and restricted cash at beginning of the period |
|
|
46,343 |
|
|
|
34,719 |
|
Effect of exchange rate changes on cash and cash equivalents, and restricted cash |
|
|
198 |
|
|
|
(2,179 |
) |
Cash and cash equivalents, and restricted cash at end of the period |
|
$ |
34,719 |
|
|
$ |
30,657 |
|
Segment Information
Our operating segments are based on the geographical location of our Regional Sales Offices (“RSOs”) and also include our Central Services Organization (“CSO”). CSO is our central services organization that wholesales our products and services to our RSOs who, in turn, interface with our end-customers, distributors and dealers. CSO is also responsible for the development of our hardware and software platforms and provides common marketing, product management, technical and distribution support to each of our other operating segments.
Each RSO’s results reflect the external revenue earned, as well as its performance before the remaining CSO and corporate costs allocations. Segment performance is measured and evaluated by the chief operating decision maker (“CODM”) using Segment Adjusted EBITDA, which is a measure that uses income before income tax expense excluding the contingent consideration remeasurement, acquisition-related costs, non-recurring legal costs, net interest expense, net foreign exchange losses/gains, net loss/profit on sale of property, plant and equipment, restructuring costs, stock-based compensation costs, impairment of long-lived assets, depreciation, amortization, operating lease costs and corporate and consolidation entries. Product development costs are capitalized and amortized and this amortization is excluded from Segment Adjusted EBITDA.
The segment information provided to the CODM is as follows (in thousands and unaudited):
|
Three Months Ended March 31, 2022 |
|||||||||||
|
Subscription Revenue |
|
Hardware and Other Revenue |
|
Total Revenue |
|
Segment Adjusted EBITDA |
|||||
Regional Sales Offices |
|
|
|
|
|
|
|
|||||
|
$ |
19,139 |
|
$ |
2,391 |
|
$ |
21,530 |
|
$ |
9,642 |
|
|
|
3,302 |
|
|
460 |
|
|
3,762 |
|
|
1,452 |
|
|
|
3,488 |
|
|
315 |
|
|
3,803 |
|
|
358 |
|
|
|
4,218 |
|
|
1,424 |
|
|
5,642 |
|
|
2,499 |
|
|
|
1,119 |
|
|
245 |
|
|
1,364 |
|
|
425 |
|
Total Regional Sales Offices |
|
31,266 |
|
|
4,835 |
|
|
36,101 |
|
|
14,376 |
|
Central Services Organization |
|
8 |
|
|
— |
|
|
8 |
|
|
(2,338 |
) |
Total Segment Results |
$ |
31,274 |
|
$ |
4,835 |
|
$ |
36,109 |
|
$ |
12,038 |
|
|
Three Months Ended March 31, 2023 |
|||||||||||
|
Subscription Revenue |
|
Hardware and Other Revenue |
|
Total Revenue |
|
Segment Adjusted EBITDA |
|||||
Regional Sales Offices |
|
|
|
|
|
|
|
|||||
|
$ |
18,761 |
|
$ |
985 |
|
$ |
19,746 |
|
$ |
9,135 |
|
|
|
2,940 |
|
|
581 |
|
|
3,521 |
|
|
1,675 |
|
|
|
5,022 |
|
|
202 |
|
|
5,224 |
|
|
1,591 |
|
|
|
4,218 |
|
|
2,469 |
|
|
6,687 |
|
|
2,703 |
|
|
|
1,572 |
|
|
98 |
|
|
1,670 |
|
|
676 |
|
Total Regional Sales Offices |
|
32,513 |
|
|
4,335 |
|
|
36,848 |
|
|
15,780 |
|
Central Services Organization |
|
11 |
|
|
6 |
|
|
17 |
|
|
(2,380 |
) |
Total Segment Results |
$ |
32,524 |
|
$ |
4,341 |
|
$ |
36,865 |
|
$ |
13,400 |
|
|
Year Ended March 31, 2022 |
|||||||||||
|
Subscription Revenue |
|
Hardware and Other Revenue |
|
Total Revenue |
|
Segment Adjusted EBITDA |
|||||
Regional Sales Offices |
|
|
|
|
|
|
|
|||||
|
$ |
74,778 |
|
$ |
8,398 |
|
$ |
83,176 |
|
$ |
36,467 |
|
|
|
13,509 |
|
|
3,745 |
|
|
17,254 |
|
|
6,337 |
|
|
|
14,036 |
|
|
1,538 |
|
|
15,574 |
|
|
842 |
|
|
|
16,950 |
|
|
5,604 |
|
|
22,554 |
|
|
10,034 |
|
|
|
4,253 |
|
|
401 |
|
|
4,654 |
|
|
1,260 |
|
Total Regional Sales Offices |
|
123,526 |
|
|
19,686 |
|
|
143,212 |
|
|
54,940 |
|
Central Services Organization |
|
47 |
|
|
35 |
|
|
82 |
|
|
(10,168 |
) |
Total Segment Results |
$ |
123,573 |
|
$ |
19,721 |
|
$ |
143,294 |
|
$ |
44,772 |
|
|
Year Ended March 31, 2023 |
|||||||||||
|
Subscription Revenue |
|
Hardware and Other Revenue |
|
Total Revenue |
|
Segment Adjusted EBITDA |
|||||
Regional Sales Offices |
|
|
|
|
|
|
|
|||||
|
$ |
73,924 |
|
$ |
5,530 |
|
$ |
79,454 |
|
$ |
32,721 |
|
|
|
12,155 |
|
|
2,328 |
|
|
14,483 |
|
|
5,412 |
|
|
|
18,557 |
|
|
1,673 |
|
|
20,230 |
|
|
4,087 |
|
|
|
16,313 |
|
|
7,625 |
|
|
23,938 |
|
|
8,998 |
|
|
|
5,637 |
|
|
1,175 |
|
|
6,812 |
|
|
2,133 |
|
Total Regional Sales Offices |
|
126,586 |
|
|
18,331 |
|
|
144,917 |
|
|
53,351 |
|
Central Services Organization |
|
70 |
|
|
6 |
|
|
76 |
|
|
(10,409 |
) |
Total Segment Results |
$ |
126,656 |
|
$ |
18,337 |
|
$ |
144,993 |
|
$ |
42,942 |
|
The following table (unaudited and shown in thousands) reconciles total Segment Adjusted EBITDA to income before income tax expense for the periods shown:
|
Three Months Ended March 31, |
|
Year Ended March 31, |
||||||||||||
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
Segment Adjusted EBITDA |
$ |
12,038 |
|
|
$ |
13,400 |
|
|
$ |
44,772 |
|
|
$ |
42,942 |
|
Corporate and consolidation entries |
|
(3,034 |
) |
|
|
(3,497 |
) |
|
|
(10,243 |
) |
|
|
(10,716 |
) |
Operating lease costs (1) |
|
(448 |
) |
|
|
(320 |
) |
|
|
(1,611 |
) |
|
|
(1,253 |
) |
Product development costs (2) |
|
(327 |
) |
|
|
(359 |
) |
|
|
(1,353 |
) |
|
|
(1,331 |
) |
Depreciation and amortization |
|
(4,020 |
) |
|
|
(4,401 |
) |
|
|
(14,951 |
) |
|
|
(15,609 |
) |
Impairment of long-lived assets |
|
(19 |
) |
|
|
(104 |
) |
|
|
(47 |
) |
|
|
(104 |
) |
Stock-based compensation costs |
|
(321 |
) |
|
|
(178 |
) |
|
|
(1,325 |
) |
|
|
(502 |
) |
Restructuring costs (3) |
|
5 |
|
|
|
(938 |
) |
|
|
(164 |
) |
|
|
(1,022 |
) |
Net (loss)/profit on sale of property, plant and equipment |
|
(7 |
) |
|
|
(7 |
) |
|
|
36 |
|
|
|
25 |
|
Net foreign exchange (losses)/gains |
|
(758 |
) |
|
|
367 |
|
|
|
(648 |
) |
|
|
1,110 |
|
Net interest expense |
|
(216 |
) |
|
|
(279 |
) |
|
|
(510 |
) |
|
|
(287 |
) |
Non-recurring legal costs (4) |
|
(61 |
) |
|
|
— |
|
|
|
(591 |
) |
|
|
— |
|
Acquisition-related costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(784 |
) |
Contingent consideration remeasurement |
|
— |
|
|
|
504 |
|
|
|
— |
|
|
|
504 |
|
Income before income tax expense |
$ |
2,832 |
|
|
$ |
4,188 |
|
|
$ |
13,365 |
|
|
$ |
12,973 |
|
|
|
|
|
|
|
|
|
||||||||
Description of reconciling items: |
|||||||||||||||
|
|||||||||||||||
Annexure A: Non-GAAP Financial Measures and Key Business Metrics
We use certain measures to assess the financial performance of the business. Certain of these measures are termed “non-GAAP measures” because they exclude amounts that are included in, or include amounts that are excluded from, the most directly comparable measure calculated and presented in accordance with GAAP, or are calculated using financial measures that are not calculated in accordance with GAAP. These non-GAAP measures include adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income per share, adjusted effective tax rate, free cash flow and constant currency information.
An explanation of the relevance of each of the non-GAAP measures, a reconciliation of the non-GAAP measures to the most directly comparable measures calculated and presented in accordance with GAAP and a discussion of their limitations is set out below. We do not regard these non-GAAP measures as a substitute for, or superior to, the equivalent measures calculated and presented in accordance with GAAP or those calculated using financial measures that are calculated in accordance with GAAP.
In addition to providing the non-GAAP financial measures mentioned above, we disclose ARR to give investors supplementary indicators of the value of our current recurring revenue contracts. ARR represents the estimated annualized value of recurring revenue for subscription contracts that have commenced revenue recognition as of the measurement date.
Non-GAAP Financial Measures
Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA and adjusted EBITDA margin are two of the profit measures reviewed by the CODM. We define adjusted EBITDA as net income before income taxes, net interest expense, net foreign exchange losses/gains, depreciation of property, plant and equipment including capitalized customer in-vehicle devices, amortization of intangible assets including capitalized internal-use software development costs and intangible assets identified as part of a business combination, impairment of long-lived assets, stock-based compensation costs, net loss/profit on sale of property, plant and equipment, restructuring costs, non-recurring legal costs, acquisition-related costs and the contingent consideration remeasurement. We define adjusted EBITDA margin as adjusted EBITDA divided by total revenue.
We have included adjusted EBITDA and adjusted EBITDA margin in this press release because they are key measures that the Company’s management and Board of Directors use to understand and evaluate its core operating performance and trends; to prepare and approve its annual budget; and to develop short and long-term operational plans. In particular, the exclusion of certain expenses in calculating adjusted EBITDA and adjusted EBITDA margin can provide a useful measure for period-to-period comparisons of the Company’s core business. Accordingly, the Company believes that adjusted EBITDA and adjusted EBITDA margin provide useful information to investors and others in understanding and evaluating its operating results.
A reconciliation of net income (the most directly comparable financial measure presented in accordance with GAAP) to adjusted EBITDA for the periods shown is presented below (in thousands and unaudited):
|
Three Months Ended March 31, |
|
Year Ended March 31, |
||||||||||||
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
Net income |
$ |
3,487 |
|
|
$ |
2,262 |
|
|
$ |
8,947 |
|
|
$ |
4,522 |
|
(Less)/plus: Income tax (benefit)/expense |
|
(655 |
) |
|
|
1,920 |
|
|
|
4,418 |
|
|
|
8,445 |
|
Plus: Net interest expense |
|
216 |
|
|
|
279 |
|
|
|
510 |
|
|
|
287 |
|
Plus/(less): Foreign exchange losses/(gains) |
|
758 |
|
|
|
(367 |
) |
|
|
648 |
|
|
|
(1,110 |
) |
Plus: Depreciation (1) |
|
2,728 |
|
|
|
2,527 |
|
|
|
10,693 |
|
|
|
9,743 |
|
Plus: Amortization (2) |
|
1,292 |
|
|
|
1,874 |
|
|
|
4,258 |
|
|
|
5,866 |
|
Plus: Impairment of long-lived assets |
|
19 |
|
|
|
104 |
|
|
|
47 |
|
|
|
104 |
|
Plus: Stock-based compensation costs |
|
321 |
|
|
|
178 |
|
|
|
1,325 |
|
|
|
502 |
|
Plus/(less): Net loss/(profit) on sale of property, plant and equipment |
|
7 |
|
|
|
7 |
|
|
|
(36 |
) |
|
|
(25 |
) |
(Less)/plus: Restructuring costs |
|
(5 |
) |
|
|
938 |
|
|
|
164 |
|
|
|
1,022 |
|
Plus: Non-recurring legal costs (3) |
|
61 |
|
|
|
— |
|
|
|
591 |
|
|
|
— |
|
Plus: Acquisition-related costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
784 |
|
(Less): Contingent consideration remeasurement |
|
— |
|
|
|
(504 |
) |
|
|
— |
|
|
|
(504 |
) |
Adjusted EBITDA |
$ |
8,229 |
|
|
$ |
9,218 |
|
|
$ |
31,565 |
|
|
$ |
29,636 |
|
Adjusted EBITDA margin |
|
22.8 |
% |
|
|
25.0 |
% |
|
|
22.0 |
% |
|
|
20.4 |
% |
|
|
|
|
|
|
|
|
||||||||
|
|||||||||||||||
Our use of adjusted EBITDA and adjusted EBITDA margin have limitations as analytical tools, and should not be considered as performance measures in isolation from, or as a substitute for, analysis of our results as reported under GAAP.
Some of these limitations are:
- although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements;
- Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs;
- Adjusted EBITDA does not consider the potentially dilutive impact of equity-based compensation;
- Adjusted EBITDA does not reflect tax payments that may represent a reduction in cash available to the Company;
- other companies, including companies in our industry, may calculate adjusted EBITDA differently, which reduces its usefulness as a comparative measure; and
- certain of the adjustments (such as restructuring costs, impairment of long-lived assets and others) made in calculating adjusted EBITDA are those that management believes are not representative of our underlying operations and, therefore, are subjective in nature.
Because of these limitations, adjusted EBITDA and adjusted EBITDA margin should be considered alongside other financial performance measures, including income from operations, net income and our other results.
Adjusted Net Income
Adjusted net income is defined as net income excluding net foreign exchange losses/gains, restructuring costs, acquisition-related costs and contingent consideration remeasurement, net of tax. During the current period, the adjusted net income definition has been updated also to exclude restructuring costs and contingent consideration remeasurement. The Company does not believe that such restructuring costs reflect its ongoing, core operations because of its non-periodic nature. Therefore, the adjusted net income definition has been updated in the current period to exclude restructuring costs, thereby allowing investors and others to understand and evaluate the Company’s operating results.
We have included adjusted net income in this press release because it provides a useful measure for period-to-period comparisons of our core business by excluding net foreign exchange losses/gains, restructuring costs, acquisition-related costs and contingent consideration remeasurement, net of tax and associated tax consequences, from earnings. Accordingly, we believe that adjusted net income provides useful information to investors and others in understanding and evaluating our operating results.
The following table (in thousands, except per share data, and unaudited) reconciles net income to adjusted net income for the periods shown:
|
Three Months Ended March 31, |
|
Year Ended March 31, |
||||||||||||
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
Net income |
$ |
3,487 |
|
|
$ |
2,262 |
|
|
$ |
8,947 |
|
|
$ |
4,522 |
|
Net foreign exchange losses/(gains) |
|
758 |
|
|
|
(367 |
) |
|
|
648 |
|
|
|
(1,110 |
) |
Income tax effect of net foreign exchange (losses)/gains |
|
(1,980 |
) |
|
|
708 |
|
|
|
(563 |
) |
|
|
3,500 |
|
Restructuring costs (1) |
|
(5 |
) |
|
|
938 |
|
|
|
164 |
|
|
|
1,022 |
|
Income tax effect of restructuring costs |
|
— |
|
|
|
(148 |
) |
|
|
(21 |
) |
|
|
(168 |
) |
Acquisition-related costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
784 |
|
Income tax effect of acquisition-related costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(182 |
) |
Contingent consideration remeasurement |
|
— |
|
|
|
(504 |
) |
|
|
— |
|
|
|
(504 |
) |
Income tax effect of contingent consideration remeasurement |
|
— |
|
|
|
116 |
|
|
|
— |
|
|
|
116 |
|
Adjusted net income |
$ |
2,260 |
|
|
$ |
3,005 |
|
|
$ |
9,175 |
|
|
$ |
7,980 |
|
|
|
|
|
|
|
|
|
||||||||
|
|||||||||||||||
Adjusted Net Income Per Share
Adjusted net income per share is defined as adjusted net income divided by the weighted average number of ordinary shares or ADS in issue during the period. During the current period, the adjusted net income per share definition has been updated also to exclude restructuring costs and contingent consideration remeasurement. The Company does not believe that such restructuring costs reflect its ongoing, core operations because of its non-periodic nature. Therefore, the adjusted net income per share definition has been updated in the current period to exclude restructuring costs, thereby allowing investors and others to understand and evaluate the Company’s operating results.
We have included adjusted net income per share in this press release because it provides a useful measure for period-to-period comparisons of our core business by excluding net foreign exchange losses/gains, restructuring costs, acquisition-related costs and contingent consideration remeasurement, net of tax and associated tax consequences, from earnings. Accordingly, we believe that adjusted net income per share provides useful information to investors and others in understanding and evaluating our operating results.
The following tables (unaudited) reconcile diluted net income per ordinary share or ADS to diluted adjusted net income per ordinary share or ADS for the periods shown:
|
Three Months Ended March 31, |
|
Year Ended March 31, |
||||||||||||
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
Net income per ordinary share – diluted |
$ |
0.006 |
|
|
$ |
0.004 |
|
|
$ |
0.016 |
|
|
$ |
0.008 |
|
Effect of net foreign exchange losses/(gains) to net income |
|
0.001 |
|
|
|
(0.001 |
) |
|
|
0.001 |
|
|
|
(0.002 |
) |
Income tax effect of net foreign exchange (losses)/gains |
|
(0.003 |
) |
|
|
0.001 |
|
|
|
(0.001 |
) |
|
|
0.006 |
|
Restructuring costs (1) |
# |
|
|
0.002 |
|
|
# |
|
|
0.002 |
|
||||
Income tax effect of restructuring costs |
# |
|
# |
|
# |
|
# |
||||||||
Acquisition-related costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.001 |
|
Income tax effect of acquisition-related costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
# |
||
Contingent consideration remeasurement |
|
— |
|
|
|
(0.001 |
) |
|
|
— |
|
|
|
(0.001 |
) |
Income tax effect of contingent consideration remeasurement |
|
— |
|
|
# |
|
|
— |
|
|
# |
||||
Adjusted net income per ordinary share – diluted |
$ |
0.004 |
|
|
$ |
0.005 |
|
|
$ |
0.016 |
|
|
$ |
0.014 |
|
|
|
|
|
|
|
|
|
||||||||
|
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
# Amount less than |
|||||||||||||||
|
Three Months Ended March 31, |
|
Year Ended March 31, |
||||||||||||
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
Net income per ADS – diluted |
$ |
0.16 |
|
|
$ |
0.10 |
|
|
$ |
0.40 |
|
|
$ |
0.20 |
|
Effect of net foreign exchange losses/(gains) to net income |
|
0.03 |
|
|
|
(0.02 |
) |
|
|
0.03 |
|
|
|
(0.05 |
) |
Income tax effect of net foreign exchange (losses)/gains |
|
(0.09 |
) |
|
|
0.03 |
|
|
|
(0.03 |
) |
|
|
0.16 |
|
Restructuring costs (1) |
* |
|
|
0.04 |
|
|
|
0.01 |
|
|
|
0.05 |
|
||
Income tax effect of restructuring costs |
* |
|
|
(0.01 |
) |
|
* |
|
|
(0.01 |
) |
||||
Acquisition-related costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.04 |
|
Income tax effect of acquisition-related costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.01 |
) |
Contingent consideration remeasurement |
|
— |
|
|
|
(0.02 |
) |
|
|
— |
|
|
|
(0.02 |
) |
Income tax effect of contingent consideration remeasurement |
|
— |
|
|
|
0.01 |
|
|
|
— |
|
|
* |
||
Adjusted net income per ADS – diluted |
$ |
0.10 |
|
|
$ |
0.13 |
|
|
$ |
0.41 |
|
|
$ |
0.36 |
|
|
|
|
|
|
|
|
|
||||||||
|
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
* Amount less than |
|||||||||||||||
Adjusted Effective Tax Rate
The adjusted effective tax rate is defined as income tax benefit/expense excluding the income tax effect of net foreign exchange losses/gains, restructuring costs, acquisition-related costs and contingent consideration remeasurement divided by income before income tax expense excluding net foreign exchange losses/gains, restructuring costs, acquisition-related costs and contingent consideration remeasurement. During the current period, the adjusted effective tax rate definition has been updated also to exclude restructuring costs and contingent consideration remeasurement. The Company does not believe that such restructuring costs reflect its ongoing, core operations because of its non-periodic nature. Therefore, the adjusted effective tax rate definition has been updated in the current period to exclude restructuring costs, thereby allowing investors and others to understand and evaluate the Company’s operating results.
A reconciliation of the effective tax rate (the most directly comparable financial measure presented in accordance with GAAP) to the adjusted effective tax rate for the periods shown is presented below (in thousands and unaudited):
|
Three Months Ended March 31, |
Year Ended March 31, |
|||||||||||||
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
Income before income tax expense |
$ |
2,832 |
|
|
$ |
4,182 |
|
|
$ |
13,365 |
|
|
$ |
12,967 |
|
Net foreign exchange losses/(gains) |
|
758 |
|
|
|
(367 |
) |
|
|
648 |
|
|
|
(1,110 |
) |
Restructuring costs (1) |
|
(5 |
) |
|
|
938 |
|
|
|
164 |
|
|
|
1,022 |
|
Acquisition-related costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
784 |
|
Contingent consideration remeasurement |
|
— |
|
|
|
(504 |
) |
|
|
— |
|
|
|
(504 |
) |
Income before income tax expense excluding net foreign exchange losses/(gains), restructuring costs, acquisition-related costs and contingent consideration remeasurement |
$ |
3,585 |
|
|
$ |
4,249 |
|
|
$ |
14,177 |
|
|
$ |
13,159 |
|
|
|
|
|
|
|
|
|
||||||||
Income tax benefit/(expense) |
$ |
655 |
|
|
$ |
(1,920 |
) |
|
$ |
(4,418 |
) |
|
$ |
(8,445 |
) |
Income tax effect of net foreign exchange (losses)/gains |
|
(1,980 |
) |
|
|
708 |
|
|
|
(563 |
) |
|
|
3,500 |
|
Income tax effect of restructuring costs |
|
— |
|
|
|
(148 |
) |
|
|
(21 |
) |
|
|
(168 |
) |
Income tax effect of acquisition-related costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(182 |
) |
Income tax effect of contingent consideration remeasurement |
|
— |
|
|
|
116 |
|
|
|
— |
|
|
|
116 |
|
Income tax expense excluding income tax effect of net foreign exchange (losses)/gains, restructuring costs, acquisition-related costs and contingent consideration remeasurement |
$ |
(1,325 |
) |
|
$ |
(1,244 |
) |
|
$ |
(5,002 |
) |
|
$ |
(5,179 |
) |
|
|
|
|
|
|
|
|
||||||||
Effective tax rate |
|
(23.1 |
) % |
|
|
45.9 |
% |
|
|
33.1 |
% |
|
|
65.1 |
% |
|
|
|
|
|
|
|
|
||||||||
Adjusted effective tax rate |
|
37.0 |
% |
|
|
29.3 |
% |
|
|
35.3 |
% |
|
|
39.4 |
% |
|
|
|
|
|
|
|
|
||||||||
|
|||||||||||||||
Free Cash Flow
Free cash flow is determined as net cash provided by operating activities less capital expenditure for investing activities. We believe that free cash flow provides useful information to investors and others in understanding and evaluating the Company’s cash flows as it provides detail of the amount of cash the Company generates or utilizes after accounting for all capital expenditures including investments in in-vehicle devices.
The following table (in thousands and unaudited) reconciles net cash provided by operating activities to free cash flow for the periods shown:
|
Three Months Ended March 31, |
|
Year Ended March 31, |
||||||||||||
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
Net cash provided by operating activities |
$ |
4,742 |
|
|
$ |
9,153 |
|
|
$ |
19,402 |
|
|
$ |
21,948 |
|
Less: Capital expenditure payments |
|
(7,259 |
) |
|
|
(5,726 |
) |
|
|
(26,217 |
) |
|
|
(25,121 |
) |
Free cash flow |
$ |
(2,517 |
) |
|
$ |
3,427 |
|
|
$ |
(6,815 |
) |
|
$ |
(3,173 |
) |
Constant Currency
Constant currency information has been presented to illustrate the impact of changes in currency rates on the Company’s results. The constant currency information has been determined by adjusting the current financial reporting period results to the prior period average exchange rates, determined as the average of the monthly exchange rates applicable to the period. The measurement has been performed for each of the Company’s currencies, including the South African Rand and British Pound. The constant currency growth percentage has been calculated by utilizing the constant currency results compared to the prior period results.
The constant currency information represents non-GAAP information. We believe this provides a useful basis to measure the performance of our business as it removes distortion from the effects of foreign currency movements during the period.
Due to the significant portion of our customers who are invoiced in non-
The following tables (in thousands, except year over year change) provide the unaudited constant currency reconciliation to the most directly comparable GAAP measure for the periods shown:
Subscription Revenue: |
|
|
|
|
|
|||
|
Three Months Ended March 31, |
|
Year Over Year Change |
|||||
|
|
2022 |
|
|
2023 |
|
|
|
Subscription revenue as reported |
$ |
31,274 |
|
$ |
32,524 |
|
4.0 |
% |
Conversion impact of |
|
— |
|
|
3,191 |
|
10.2 |
% |
Subscription revenue on a constant currency basis |
$ |
31,274 |
|
$ |
35,715 |
|
14.2 |
% |
Hardware and Other Revenue: |
|
|
|
|
|
|||
|
Three Months Ended March 31, |
|
Year Over Year Change |
|||||
|
|
2022 |
|
|
2023 |
|
|
|
Hardware and other revenue as reported |
$ |
4,835 |
|
$ |
4,341 |
|
(10.2 |
) % |
Conversion impact of |
|
— |
|
|
242 |
|
5.0 |
% |
Hardware and other revenue on a constant currency basis |
$ |
4,835 |
|
$ |
4,583 |
|
(5.2 |
) % |
Total Revenue: |
|
|
|
|
|
|||
|
Three Months Ended March 31, |
|
Year Over Year Change |
|||||
|
|
2022 |
|
|
2023 |
|
|
|
Total revenue as reported |
$ |
36,109 |
|
$ |
36,865 |
|
2.1 |
% |
Conversion impact of |
|
— |
|
|
3,433 |
|
9.5 |
% |
Total revenue on a constant currency basis |
$ |
36,109 |
|
$ |
40,298 |
|
11.6 |
% |
Subscription Revenue: |
|
|
|
|
|
|||
|
Year Ended March 31, |
|
Year Over Year Change |
|||||
|
|
2022 |
|
|
2023 |
|
|
|
Subscription revenue as reported |
$ |
123,573 |
|
$ |
126,656 |
|
2.5 |
% |
Conversion impact of |
|
— |
|
|
11,622 |
|
9.4 |
% |
Subscription revenue on a constant currency basis |
$ |
123,573 |
|
$ |
138,278 |
|
11.9 |
% |
Hardware and Other Revenue: |
|
|
|
|
|
|||
|
Year Ended March 31, |
|
Year Over Year Change |
|||||
|
|
2022 |
|
|
2023 |
|
|
|
Hardware and other revenue as reported |
$ |
19,721 |
|
$ |
18,337 |
|
(7.0 |
) % |
Conversion impact of |
|
— |
|
|
1,438 |
|
7.3 |
% |
Hardware and other revenue on a constant currency basis |
$ |
19,721 |
|
$ |
19,775 |
|
0.3 |
% |
Total Revenue: |
|
|
|
|
|
|||
|
Year Ended March 31, |
|
Year Over Year Change |
|||||
|
|
2022 |
|
|
2023 |
|
|
|
Total revenue as reported |
$ |
143,294 |
|
$ |
144,993 |
|
1.2 |
% |
Conversion impact of |
|
— |
|
|
13,060 |
|
9.1 |
% |
Total revenue on a constant currency basis |
$ |
143,294 |
|
$ |
158,053 |
|
10.3 |
% |
Key Business Metrics
Annual Recurring Revenue
We believe that ARR is a key indicator of the trajectory of our business performance and serves as an indicator of future subscription revenue growth. We define ARR as the annualized value of subscription contracts that have commenced revenue recognition as of the measurement date. ARR is calculated by taking the subscription revenue for the last month of the period, multiplied by 12. It provides a 12-month forward view of revenue, assuming unit numbers, pricing and foreign exchange rates (the average monthly exchange rates applicable to the last month of the period) remain unchanged during the year. Constant currency ARR growth has been determined by adjusting the prior financial reporting period results to the last month of the current period average exchange rates, determined as the average monthly exchange rates applicable to the last month of the period.
ARR does not have a standardized meaning and is not necessarily comparable to similarly titled measures presented by other companies. ARR should be viewed independently of revenue and is not intended to be combined with or to replace it. ARR is not a forecast and the active contracts at the date used in calculating ARR may or may not be extended or renewed.
ARR is included in the following table (in thousands and unaudited):
|
Year Ended March 31, |
||||
|
|
2022 |
|
|
2023 |
Annual Recurring Revenue |
$ |
127,116 |
|
$ |
128,989 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230523005937/en/
Matt Glover and Cody Cree
Gateway Group, Inc.
MIXT@gatewayir.com
+1-949-574-3860
Source: MiX Telematics Limited
