Karooooo Ltd (KARO) Q2 2025 Earnings Call Highlights: Strong Revenue Growth and Subscriber Expansion

GuruFocus.com10-16

Total Revenue: ZAR1,107 million, an increase of 16% year on year. Subscription Revenue: ZAR986 million, an increase of 15% year on year. Adjusted Earnings Per Share: ZAR7.35, an increase of 31% year ...

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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nKarooooo Ltd (KARO) Q2 2025 Earnings Call Highlights: Strong Revenue Growth and Subscriber Expansion\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-10-16 15:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/karooooo-ltd-karo-q2-2025-070046251.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Total Revenue: ZAR1,107 million, an increase of 16% year on year.\nSubscription Revenue: ZAR986 million, an increase of 15% year on year.\nAdjusted Earnings Per Share: ZAR7.35, an increase of 31% year ...</p>\n\n<a href=\"https://finance.yahoo.com/news/karooooo-ltd-karo-q2-2025-070046251.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"KARO","symbol_name":"Karooooo Ltd.","start_time":0,"source_url":"https://finance.yahoo.com/news/karooooo-ltd-karo-q2-2025-070046251.html","article_id":"2475938828","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2475938828","pubTimestamp":1729062046,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Total Revenue: ZAR1,107 million, an increase of 16% year on year.Subscription Revenue: ZAR986 million, an increase of 15% year on year.Adjusted Earnings Per Share: ZAR7.35, an increase of 31% year on year.Cartrack Gross Margin: Improved approximately 300 basis points year on year to 74%.Cartrack Subscribers: Increased 17% year on year to 2.14 million.Karooooo Logistics Revenue: ZAR101 million, an increase of 40% year on year.Dividend Paid: $1.08 per share, a total of $33.4 million, an increase of 27% per share year on year.GuruFocus has detected 4 Warning Signs with KARO.Karooooo Ltd  reported a strong Q2 with total revenue of ZAR1,107 million, marking a 16% year-on-year increase.The company achieved a record net subscriber addition of over 89,000 in Q2, an 18% increase year-over-year, bringing the total to over 2.1 million subscribers.Q: Karooooo Logistics reported revenue of ZAR101 million for Q2 FY25, showing muted quarter-on-quarter growth. What factors contributed to this stagnati","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"KARO":"Karooooo Ltd."},"translate_title":"Karooooo Ltd(KARO)2025年第二季度收益看涨期权亮点：强劲的收入增长和用户扩张","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"KARO":1},"content_text":"Total Revenue: ZAR1,107 million, an increase of 16% year on year.\nSubscription Revenue: ZAR986 million, an increase of 15% year on year.\nAdjusted Earnings Per Share: ZAR7.35, an increase of 31% year on year.\nCartrack Operating Profit Margin: 29%.\nCartrack Adjusted EBITDA Margin: 45%.\nCartrack Gross Margin: Improved approximately 300 basis points year on year to 74%.\nCartrack Subscribers: Increased 17% year on year to 2.14 million.\nNet Cash and Cash Equivalents: ZAR674 million.\nKarooooo Logistics Revenue: ZAR101 million, an increase of 40% year on year.\nKarooooo Logistics Operating Profit: ZAR9 million.\nFree Cash Flow: ZAR166 million.\nDividend Paid: $1.08 per share, a total of $33.4 million, an increase of 27% per share year on year.\n\n\nWarning! GuruFocus has detected 4 Warning Signs with KARO.\n\nRelease Date: October 15, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nKarooooo Ltd (NASDAQ:KARO) reported a strong Q2 with total revenue of ZAR1,107 million, marking a 16% year-on-year increase.\nCartrack's subscription revenue increased by 15% year-on-year to ZAR983 million, with a growth margin improvement of approximately 300 basis points to 74%.\nThe company achieved a record net subscriber addition of over 89,000 in Q2, an 18% increase year-over-year, bringing the total to over 2.1 million subscribers.\nKarooooo Logistics demonstrated robust revenue growth with a 40% year-on-year increase, reaching ZAR101 million in Q2.\nKarooooo Ltd (NASDAQ:KARO) maintained a strong balance sheet with net cash and cash equivalents of ZAR674 million, supporting its growth strategy.\n\n Negative Points \n\nKarooooo Logistics showed muted quarter-on-quarter growth, with Q2 revenue matching Q1 FY25 revenue, indicating potential operational challenges.\nThe company faced difficulties in executing share buybacks due to SEC rules, impacting liquidity management strategies.\nThere is a potential risk of decreased LTV to CAC ratios as the company plans substantial headcount increases, which may affect short-term efficiency.\nKarooooo Ltd (NASDAQ:KARO) experienced a drop in share price during a secondary public offering, leading to the termination of the offering.\nThe company anticipates lower ARPU in Asia as Singapore's contribution decreases, potentially impacting revenue growth in the region.\n\n Q & A Highlights \nQ: Karooooo Logistics reported revenue of ZAR101 million for Q2 FY25, showing muted quarter-on-quarter growth. What factors contributed to this stagnation, and do you anticipate double-digit annual revenue growth in the future? A: In Q1, we intentionally stagnated to increase our driver capacity and operational capabilities to meet demand. We expect better performance in Q3 and believe we can continue delivering double-digit growth.\nQ: Can you discuss the mix of record subscriber additions this quarter? Any changes in the commercial mix or larger enterprise net adds? A: Most of our growth was driven by SME businesses, although we did acquire some large enterprise customers. The SME sector remains the biggest contributor to our growth.\nQ: The quarter's gross margin, excluding logistics, appears to be a new record. What are the drivers, and how sustainable is this higher margin level? A: The increase is due to operational efficiencies. Our margins fluctuate within a tight band, and while we aim for growth, these margins will likely remain stable.\nQ: What is the major driving force for ARPU this quarter, and what can we expect for the next few quarters? A: Our new products are likely to increase ARPU. However, as Singapore becomes a smaller part of our business, ARPU in Asia may decrease to align with South African levels. Our revenue drive remains focused on customer acquisition.\nQ: Has the company participated in further share buybacks over the last quarter? A: We have not engaged in share buybacks due to SEC rules and our focus on increasing liquidity. We are enhancing investor relations to support growth in liquidity.\nQ: How is subscriber growth in Asia Pacific and the Middle East compared to management's expectations? What would be a good outcome in terms of numbers in three years? A: We have initiated a significant sales headcount increase and expect to grow over 30% year-on-year, starting in FY26.\nQ: Could you update on the secondary public offering of your shareholder, and what should be the long-term float expectation? A: I plan to sell about 6 million shares over the next five to six years responsibly. We terminated a recent offering due to unfavorable pricing but expect higher liquidity over time.\nQ: Why isn't the balance sheet leveraged if Karooooo doesn't make transformational acquisitions? A: We prefer maintaining a clean balance sheet and only consider debt if absolutely necessary. We aim to remain in a net cash position to be prepared for unforeseen circumstances.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2475938828"}