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, up 12% year-over-year
(constant currency)
- Subscription revenue of $32.5 million, up 14% year-over-year
(constant currency)
- Annual recurring revenue (“ARR”) of $129.0 million, up 15%
year-over-year (constant currency)
- Net income of $2.3 million
- Adjusted EBITDA of $9.2 million, at an Adjusted EBITDA
margin of 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, up 10% year-over-year
(constant currency)
- Subscription revenue of $126.7 million, up 12%
year-over-year (constant currency)
- Net income of $4.5 million
- Adjusted EBITDA of $29.6 million, at an Adjusted EBITDA
margin of 20.4%
MiX Telematics Limited (“MiX Telematics” or the “Company”)
(NYSE: MIXT, JSE: MIX), a leading global Software-as-a-Service
(“SaaS”) provider of connected fleet management solutions, today
announced preliminary unaudited financial results, in accordance
with accounting principles generally accepted in the United States
(“GAAP”), for the fourth quarter and full fiscal year 2023, which
ended March 31, 2023.
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 25% and continued to
generate strong, positive free cash flow. Throughout the quarter,
we executed well against our plan and finished the year in-line
with our expectations.
“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
$32.5 million, compared to $31.3 million for the fourth quarter of
fiscal year 2022. The Field Service Management (“FSM”) business
acquired on September 2, 2022 contributed $2.4 million to the
subscription revenue for the fourth quarter of fiscal year 2023.
Subscription revenue increased by 14.2% on a constant currency
basis, year over year, of which 6.7% is attributable to the FSM
business acquisition. During the fourth quarter of fiscal year
2023, the Company’s subscriber base increased by a net 42,700
subscribers, mainly due to the Africa segment, with strong
contributions across the asset tracking and light fleet solution
categories. Subscription revenue represented 88.2% of total revenue
during the fourth quarter of fiscal year 2023.
The majority of the Company’s total revenue and subscription
revenue are derived from currencies other than the U.S. Dollar.
Accordingly, the strengthening of the U.S. Dollar against these
currencies (in particular against the South African Rand), has
negatively impacted the Company’s revenue and subscription revenue
reported in U.S. Dollars. Compared to the fourth quarter of fiscal
year 2022, the South African Rand weakened by 16% against the U.S.
Dollar. The Rand/U.S. Dollar exchange rate averaged R17.75 in the
fourth quarter of fiscal year 2023 compared to an average of R15.25
during the fourth quarter of fiscal year 2022. The impact of
translating foreign currencies to U.S. Dollars at the average
exchange rates during the fourth quarter of fiscal year 2023 led to
a 10.2% decrease in reported U.S. Dollar subscription revenue.
Total Revenue: Total revenue increased to $36.9 million,
compared to $36.1 million for the fourth quarter of fiscal year
2022. During the fourth quarter of fiscal year 2023, total revenue
increased by 11.6% on a constant currency basis, year over year.
Hardware and other revenue was $4.3 million, a decrease of 10.2%,
compared to $4.8 million for the fourth quarter of fiscal year
2022. During the fourth quarter of fiscal year 2023, hardware and
other revenue decreased by 5.2% on a constant currency basis, year
over year.
The impact of translating foreign currencies to U.S. Dollars at
the average exchange rates during the fourth quarter of fiscal year
2023 led to a 9.5% decrease in reported U.S. Dollar total
revenue.
Gross Margin: Gross profit was $22.7 million, compared to
$23.2 million for the fourth quarter of fiscal year 2022. Gross
profit margin decreased 260 basis points to 61.5%, compared to
64.1% for the fourth quarter of fiscal year 2022. The subscription
revenue margin during the fourth quarter of fiscal year 2023 was
68.3%, compared to 69.7% for the fourth quarter of fiscal year
2022.
Income From Operations: Income from operations was $3.6
million, compared to $3.8 million for the fourth quarter of fiscal
year 2022. Operating income margin decreased 70 basis points to
9.9%, compared to 10.5% for the fourth quarter of fiscal year 2022.
In the fourth quarter of fiscal year 2023, Administration and other
costs included restructuring costs of $0.9 million as a result of
restructuring plans implemented, which accounted for a 250 basis
point decline in the operating income margin. The Company expects
the related cost savings and resultant operating income margin
improvement to take effect during fiscal year 2024. Operating
expenses of $19.1 million decreased by $0.3 million, or 1.6%,
compared to the fourth quarter of fiscal year 2022. It should be
noted that the FSM business contributed $1.5 million of the total
operating expenses for the fourth quarter of fiscal year 2023.
Net Income and Earnings Per Share: Net income was $2.3
million, compared to net income of $3.5 million in the fourth
quarter of fiscal year 2022. During the fourth quarter of fiscal
year 2023, net income included a net foreign exchange gain of $0.4
million before tax and a $0.7 million charge from the income tax
effect of net foreign exchange gains (which includes a $1.0 million
deferred tax charge on a U.S. Dollar intercompany loan between MiX
Telematics and MiX Telematics Investments Proprietary Limited (“MiX
Investments”), a wholly-owned subsidiary of the Company, offset by
a $0.3 million deferred tax credit on other foreign exchange
gains). During the fourth quarter of fiscal year 2022, net income
included a net foreign exchange loss of $0.8 million before tax and
a $2.0 million credit from the income tax effect of net foreign
exchange losses (which includes a $1.7 million deferred tax credit
on a U.S. Dollar intercompany loan between MiX Telematics and MiX
Investments and a $0.3 million deferred tax credit on other foreign
exchange losses).
Earnings per diluted ordinary share was 0.4 U.S. cents, compared
to 0.6 U.S. cents in the fourth quarter of fiscal year 2022. For
the fourth quarter of fiscal year 2023, the calculation was based
on diluted weighted average ordinary shares in issue of 556.1
million compared to 560.6 million diluted weighted average ordinary
shares in issue during the fourth quarter of fiscal year 2022. On a
ratio of 25 ordinary shares to one American Depositary Share
(“ADS”), earnings per diluted ADS were 10 U.S. cents compared to 16
U.S. cents in the fourth quarter of fiscal year 2022.
Adjusted EBITDA: Adjusted EBITDA, a non-GAAP measure,
increased to $9.2 million, compared to $8.2 million for the fourth
quarter of fiscal year 2022. Adjusted EBITDA margin, a non-GAAP
measure, for the fourth quarter of fiscal year 2023 increased 220
basis points to 25.0%, compared to 22.8% for the fourth quarter of
fiscal year 2022.
Adjusted Net Income and Adjusted Net Income Per Share:
Adjusted net income was $3.0 million, compared to $2.3 million for
the fourth quarter of fiscal year 2022. Adjusted net income per
diluted ordinary share was 0.5 U.S. cents, compared to 0.4 U.S.
cents in the fourth quarter of fiscal year 2022. At a ratio of 25
ordinary shares to one ADS, the adjusted net income per diluted ADS
was 13 U.S. cents compared to 10 U.S. cents in the fourth quarter
of fiscal year 2022.
Adjusted Effective Tax Rate: The Company’s effective tax
rate was 45.9%, compared to negative 23.1% in the fourth quarter of
fiscal year 2022. Adjusted effective tax rate, a non-GAAP measure
which excludes the impact of net foreign exchange losses and gains,
restructuring costs, acquisition-related costs and contingent
consideration remeasurement, net of tax, is the tax rate used in
determining adjusted net income. Adjusted effective tax rate was
29.3% compared to 37.0% in the fourth quarter of fiscal year
2022.
Cash and Cash Equivalents and Cash Flow: At March 31,
2023, the Company had $29.9 million of cash and cash equivalents,
compared to $33.7 million at March 31, 2022.
Net cash provided by operating activities for the fourth quarter
of fiscal year 2023 increased to $9.2 million compared to $4.7
million net cash provided by operating activities for the fourth
quarter of fiscal year 2022. The Company invested $5.7 million in
capital expenditures (including investments in in-vehicle devices
of $4.3 million), leading to free cash flow, a non-GAAP measure, of
$3.4 million in the quarter. The Company incurred negative free
cash flow of $2.5 million for the fourth quarter of fiscal year
2022 when the Company invested $7.3 million in capital expenditures
(including investments in in-vehicle devices of $4.9 million).
Net cash used in investing activities for the fourth quarter of
fiscal year 2023 was $5.7 million, compared to $7.3 million net
cash used in investing activities for the fourth quarter of fiscal
year 2022.
Net cash from financing activities amounted to $1.5 million for
the fourth quarter of fiscal year 2023, compared to $0.4 million
used during the fourth quarter of fiscal year 2022. The cash from
financing activities during the fourth quarter of fiscal year 2023
mainly consisted of short-term debt facilities utilized of $3.0
million, offset by dividends paid of $1.2 million and ordinary
shares repurchased of $0.3 million. The cash used in financing
activities during the fourth quarter of fiscal year 2022 mainly
consisted of ordinary shares repurchased of $2.2 million and
dividends paid of $1.4 million, offset by facilities utilized of
$3.2 million.
Financial Results for the Fiscal Year Ended March 31,
2023
Subscription Revenue: Subscription revenue increased to
$126.7 million, compared to $123.6 million for fiscal year 2022.
The FSM business acquired on September 2, 2022 contributed $5.6
million to the subscription revenue during fiscal year 2023.
Subscription revenue increased by 11.9% on a constant currency
basis, of which 4.5% is attributable to the FSM business
acquisition. During fiscal year 2023, the Company’s subscriber base
increased by a net 186,700 subscribers. Subscription revenue
represented 87.4% of total revenue during fiscal year 2023.
The majority of the Company’s total revenue and subscription
revenue are derived from currencies other than the U.S. Dollar.
Accordingly, the strengthening of the U.S. Dollar against these
currencies (in particular against the South African Rand) following
currency volatility, has negatively impacted the Company’s revenue
and subscription revenue reported in U.S. Dollars. Compared to
fiscal year 2022, the South African Rand weakened by 14% against
the U.S. Dollar. The Rand/U.S. Dollar exchange rate averaged R16.99
during fiscal year 2023 compared to an average of R14.86 for fiscal
year 2022. The impact of translating foreign currencies to U.S.
Dollars at the average exchange rates during fiscal year 2023 led
to a 9.4% decrease in reported U.S. Dollar subscription
revenue.
Total Revenue: Total revenue for fiscal year 2023
increased to $145.0 million, compared to $143.3 million for fiscal
year 2022. Total revenue increased by 10.3% on a constant currency
basis. Hardware and other revenue was $18.3 million, a decrease of
7.0%, compared to $19.7 million for fiscal year 2022. Hardware and
other revenue increased by 0.3% on a constant currency basis.
The impact of translating foreign currencies to U.S. Dollars at
the average exchange rates during fiscal year 2023 led to a 9.1%
decrease in reported U.S. Dollar revenue.
Gross Margin: Gross profit was $90.9 million, compared to
$91.4 million for fiscal year 2022. Gross profit margin decreased
110 basis points to 62.7%, compared to 63.8% for fiscal year 2022.
The subscription revenue margin during fiscal year 2023 was 68.4%,
compared to 70.3% for fiscal year 2022.
Income From Operations: Income from operations was $11.6
million, compared to $14.4 million in fiscal year 2022. The
operating income margin decreased 210 basis points to 8.0%,
compared to 10.1% in fiscal year 2022. Operating expenses of $79.3
million increased by $2.3 million, or 3.0%, compared to fiscal year
2022. The increase in operating expenses was mainly due to a $0.8
million and $0.9 million increase in acquisition-related costs and
restructuring costs, respectively.
Net Income and Earnings Per Share: Net income was $4.5
million, compared to net income of $8.9 million in fiscal year
2022. During fiscal year 2023, net income included a net foreign
exchange gain of $1.1 million before tax and a $3.5 million
deferred tax charge on a U.S. Dollar intercompany loan between MiX
Telematics and MiX Investments, a wholly-owned subsidiary of the
Company. During fiscal year 2022, net income included a net foreign
exchange loss of $0.6 million before tax and a $0.6 million credit
from the income tax effect of net foreign exchange losses (which
includes a $0.4 million deferred tax credit on a U.S. Dollar
intercompany loan between MiX Telematics and MiX Investments, as
well as a $0.2 million deferred tax credit on other foreign
exchange losses).
Earnings per diluted ordinary share was 0.8 U.S. cents, compared
to 1.6 U.S. cents in fiscal year 2022. For fiscal year 2023, the
calculation was based on diluted weighted average ordinary shares
in issue of 556.1 million compared to 564.0 million diluted
weighted average ordinary shares in issue during fiscal year 2022.
On a ratio of 25 ordinary shares to one ADS, earnings per diluted
ADS was 20 U.S. cents compared to 40 U.S. cents in fiscal year
2022.
Adjusted EBITDA: Adjusted EBITDA, a non-GAAP measure, was
$29.6 million, compared to $31.6 million for fiscal year 2022.
Adjusted EBITDA margin, a non-GAAP measure, for fiscal year 2023
decreased 160 basis points to 20.4%, compared to 22.0% in fiscal
year 2022.
Adjusted Net Income and Adjusted Net Income Per Share:
Adjusted net income was $8.0 million, compared to $9.2 million in
fiscal year 2022. Adjusted net income per diluted ordinary share
was 1.4 U.S. cents, compared to 1.6 U.S. cents for fiscal year
2022. At a ratio of 25 ordinary shares to one ADS, the adjusted net
income per diluted ADS was 36 U.S. cents compared to 41 U.S. cents
in fiscal year 2022.
Adjusted Effective Tax Rate: The Company’s effective tax
rate was 65.1%, compared to 33.1% for fiscal year 2022. Adjusted
effective tax rate, a non-GAAP measure which excludes the impact of
net foreign exchange losses and gains, restructuring costs,
acquisition-related costs and contingent consideration
remeasurement, net of tax, is the tax rate used in determining
adjusted net income. Adjusted effective tax rate was 39.4% compared
to 35.3% in fiscal year 2022.
Cash and Cash Equivalents and Cash Flow: Net cash
provided by operating activities for fiscal year 2023 increased to
$21.9 million compared to $19.4 million net cash provided by
operating activities for fiscal year 2022. The Company invested
$25.1 million in capital expenditures (including investments in
in-vehicle devices of $18.9 million), leading to negative free cash
flow, a non-GAAP measure, of $3.2 million for the year. The Company
incurred negative free cash flow of $6.8 million in fiscal year
2022 when the Company invested $26.2 million in capital
expenditures (including investments in in-vehicle devices of $18.3
million).
Net cash used in investing activities for fiscal year 2023 was
$28.8 million, which includes $3.7 million paid by MiX Telematics
North America for the acquisition of Trimble's FSM business,
compared to $26.2 million net cash used in investing activities for
fiscal year 2022.
Net cash from financing activities amounted to $5.0 million for
fiscal year 2023, compared to $5.1 million used during fiscal year
2022. The cash from financing activities during fiscal year 2023
mainly consisted of short-term debt facilities utilized of $10.5
million, offset by dividends paid of $5.2 million and ordinary
shares repurchased of $0.4 million. The cash used in financing
activities during fiscal year 2022 mainly consisted of dividends
paid of $5.9 million and ordinary shares repurchased of $3.0
million, offset by facilities utilized of $3.9 million.
During the year, the South African Rand weakened against the
U.S. Dollar from R14.49 at March 31, 2022 to R17.98 at March 31,
2023 and as a result, cash decreased by $2.2 million due to foreign
exchange losses.
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
U.S. cents) per ordinary share and 1 South African Rand (5 U.S.
cents) per ADS was paid on March 2, 2023 to ADS holders on record
on February 17, 2023. A dividend of 4.50000 South African cents per
ordinary share and 1.12500 South African Rand per ADS will be paid
on June 29, 2023 to ADS holders on record as of the close of
business on June 16, 2023.
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 $0.3
million. For the full fiscal year 2023, the Company repurchased
1,166,659 ordinary shares on the open market at prevailing market
prices, for a cumulative consideration of $0.4 million.
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 (within South Africa) or 1-201-389-0879
(outside of the 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 (within South Africa or outside of the 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 South Africa, the
United Kingdom, the United States, Uganda, Brazil, Australia,
Romania and the United Arab Emirates as well as a network of more
than 130 fleet value-added resellers worldwide. MiX Telematics
shares are publicly traded on the Johannesburg Stock Exchange (JSE:
MIX) and MiX Telematics American Depositary Shares are listed on
the New York Stock Exchange (NYSE: MIXT). For more information,
visit www.mixtelematics.com.
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, 2022
March 31, 2023
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
Africa
$
19,139
$
2,391
$
21,530
$
9,642
Europe
3,302
460
3,762
1,452
Americas
3,488
315
3,803
358
Middle East and Australasia
4,218
1,424
5,642
2,499
Brazil
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
Africa
$
18,761
$
985
$
19,746
$
9,135
Europe
2,940
581
3,521
1,675
Americas
5,022
202
5,224
1,591
Middle East and Australasia
4,218
2,469
6,687
2,703
Brazil
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
Africa
$
74,778
$
8,398
$
83,176
$
36,467
Europe
13,509
3,745
17,254
6,337
Americas
14,036
1,538
15,574
842
Middle East and Australasia
16,950
5,604
22,554
10,034
Brazil
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
Africa
$
73,924
$
5,530
$
79,454
$
32,721
Europe
12,155
2,328
14,483
5,412
Americas
18,557
1,673
20,230
4,087
Middle East and Australasia
16,313
7,625
23,938
8,998
Brazil
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:
- For the purposes of calculating Segment Adjusted EBITDA,
operating lease expenses are excluded from the Segment Adjusted
EBITDA. Therefore, in order to reconcile Segment Adjusted EBITDA to
income before income tax expense, the total lease expense in
respect of operating leases needs to be deducted.
- For segment reporting purposes, product development costs,
which do not meet the capitalization requirements under ASC 730
Research and Development or under ASC 985 Software, are capitalized
and amortized. The amortization is excluded from Segment Adjusted
EBITDA. In order to reconcile Segment Adjusted EBITDA to income
before income tax expense, product development costs capitalized
for segment reporting purposes need to be deducted.
- For the three months ended March 31, 2023, $0.4 million, $0.3
million, $0.1 million and $0.1 million of the restructuring costs
related to the Middle East and Australasia, North America, CSO and
Europe reporting segments, respectively.
- Includes legal related costs for a non-recurring patent
infringement matter, that has been resolved.
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
%
- Includes depreciation of owned assets (including in-vehicle
devices).
- Includes amortization of intangible assets (including
capitalized internal-use software development costs and intangible
assets identified as part of a business combination).
- Includes legal related costs for a non-recurring patent
infringement matter, that has been resolved.
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
- During the fourth quarter of fiscal year 2023, the Company
incurred significant restructuring costs due to restructuring plans
implemented as part of a cost saving initiative. The comparative
periods in the above table have been re-presented to reflect the
inclusion of such new adjustments. This resulted in an immaterial
decrease in the adjusted net income for the three months ended
March 31, 2022 and a $0.1 million increase in the adjusted net
income for fiscal year 2022.
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
- During the fourth quarter of fiscal year 2023, the Company
incurred significant restructuring costs due to restructuring plans
implemented as part of a cost saving initiative. The comparative
periods in the above table have been re-presented to reflect the
inclusion of such new adjustments. The adjusted net income per
diluted ordinary share remained unchanged for the three months
ended March 31, 2022 and fiscal year 2022.
# Amount less than $0.001
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
- During the fourth quarter of fiscal year 2023, the Company
incurred significant restructuring costs due to restructuring plans
implemented as part of a cost saving initiative. The comparative
periods in the above table have been re-presented to reflect the
inclusion of such new adjustments. The adjusted net income per
diluted ADS remained unchanged for the three months ended March 31,
2022 and increased by $0.01 for fiscal year 2022.
* Amount less than $0.01
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
%
- During the fourth quarter of fiscal year 2023, the Company
incurred significant restructuring costs due to restructuring plans
implemented as part of a cost saving initiative. The comparative
periods in the above table have been re-presented to reflect the
inclusion of such new adjustments. The adjusted effective tax rate
increased by 0.1% for the three months ended March 31, 2022 and
decreased by 0.2% for fiscal year 2022.
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-U.S. Dollar denominated currencies, we also calculate our
subscription revenue growth rate on a constant currency basis,
thereby removing the effect of currency fluctuation on our results
of operations.
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 U.S. Dollar/other
currencies
—
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 U.S. Dollar/other
currencies
—
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 U.S. Dollar/other
currencies
—
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 U.S. Dollar/other
currencies
—
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 U.S. Dollar/other
currencies
—
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 U.S. Dollar/other
currencies
—
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
MiX Telematics (NYSE:MIXT)
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