SINGAPORE - Karooooo Limited (NASDAQ:KARO), a provider of mobility software-as-a-service (SaaS) platforms, reported better-than-expected third-quarter fiscal 2025 results, with earnings per share (EPS) beating analyst estimates and revenue slightly surpassing expectations.
The company reported Q3 EPS of ZAR7.68, ZAR0.50 above the analyst estimate of ZAR7.18, representing a 21% YoY increase. Revenue for the quarter came in at ZAR1.16 billion, marginally higher than the consensus estimate of ZAR1.15 billion and up 14% from the same quarter last year.
Karooooo's subscriber base grew 17% YoY to 2.22 million, with net quarterly subscriber additions increasing 15% YoY to 86,617. The company's core Cartrack business saw subscription revenue rise 14% to ZAR1.029 billion, accounting for 98% of total revenue.
CEO and Founder Zak Calisto commented, "We delivered another strong quarter of customer growth. Importantly, we have now settled in our newly built central office in Rosebank, South Africa, and look forward to strong organic growth in South Africa."
The company highlighted its expansion in Europe and strong growth in Southeast Asia, where subscription revenue grew by 26% on a constant currency basis. Karooooo also introduced new fuel validation software to help customers improve operational efficiency and reduce costs.
Karooooo's operating profit increased 18% to ZAR325 million, demonstrating the company's ability to maintain profitability while investing in growth. The company's balance sheet remains strong, positioning it to capitalize on market opportunities in the mobility SaaS sector.
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