MiX Telematics is one of the world’s largest and fastest growing telematics organisations and its third quarter numbers from the current financial year show that much. In the latest report it released on its performance over the past few months, it did very well indeed, increasing in subscriber numbers, revenue and in Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA).
“Despite ongoing macro-economic headwinds and geopolitical unrest in key sales regions, our business continues to grow profitably. We have again posted an adjusted EBITDA margin in excess of 19% while investing in growth initiatives, particularly sales and marketing related efforts. This has improved our traction in the Americas where we had key wins in South America and the development of a strong North American pipeline in the quarter,” said Stefan Joselowitz, Chief Executive Officer of MiX Telematics.
However, while the EBITDA results are certainly impressive, seeing the company hit a near six million dollar figure after that 19 per cent bump, it’s the others MiX has released which are really impressive. For starters, the total number of subscribers went up by over 16 per cent year on year, bringing the organisations total to just shy of half a million (495,000) which even puts MiX ahead of industry standouts like TomTom, which only recently announced that it had broken the 400,000 vehicle barrier.
This boost in subscriber numbers led to a lot of extra subscription revenue, which reached new heights of $21.9 million for the quarter. This is up over 15 per cent since the same time last year, representing big growth for the company.
“Additionally, with our affordable Beam-e solution, we are in the early stages of tapping the incremental opportunity in asset tracking which is being adopted equally by our enterprise installed base and by consumers seeking a cost-effective solution for vehicle recovery,” said Joselowitz.
Other facts and figures about the company were also published, including total revenue for the third quarter reaching $30.4 million – which shows how much subscription revenue matters to MiX. This helped bolster gross profit to $19.9 million, compared with $17.8 million in the same period the year before.
Even though we still have a few weeks to go until the end of this financial year, MiX has made some predictions about what its previous 12 months of earnings and revenue will be like. It’s predicting a total revenue of $117.3 million, representing an annual growth of some 6.6 per cent. Subscription revenue throughout that same period is pegged at $86.1 million in a best case scenario. However it could theoretically be as low as $85.2 million depending on March income.
“Actual results may differ,” the company said in a statement, tempering any speculation that the company is on to a record year. However, executives remain quietly confident that that could be the case, with MiX Telematics reaching new heights in terms of revenue, profit and subscriber numbers.