Key Points – Karooooo posted a strong Q1, with total revenue up 22% to ZAR 1.56 billion and operating profit up 16% to a record ZAR 410 million, despite pressure from a stronger South African rand. – Subscriber growth accelerated sharply, with Cartrack topping 2.8 million…
bscribers and delivering a record 142,472 net additions, led by a 92% jump in South Africa net adds. – Management reaffirmed fiscal 2027 guidance for accelerating subscription revenue growth and healthy EPS growth, while noting that sales and marketing investment will continue but at a slower pace than in fiscal 2026. Karooooo (NASDAQ:KARO) reported a stronger start to fiscal 2027, with management highlighting accelerating subscription revenue growth, record subscriber additions and record operating profit despite foreign exchange pressure from a stronger South African rand
Carmen Calisto, Chief Strategy and Marketing Officer, said Cartrack subscription revenue grew 19% in the first quarter, or 21% in constant currency. Annual recurring revenue increased 19% to ZAR 5.43 billion and rose 22% in constant currency. In U.S. dollar terms, ARR increased 32% to $335 million, according to the company.
Karooooo said total revenue increased 22% to ZAR 1.56 billion, while total subscription revenue rose 19% to ZAR 1.35 billion. Operating profit increased 16% to a record ZAR 410 million. Earnings per share rose 11% to ZAR 9.53, Chief Financial Officer Hoe Shin Goy said.