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SEC filingKarooooo reported Q1 FY2027 results with record subscriber additions and accelerated subscription revenue, reaffirming FY2027 EPS growth outlook of 18-23%.
Karooooo reported a strong first quarter for fiscal 2027, highlighted by accelerated Cartrack subscription revenue growth of 19% (21% in constant currency) and a record 142,472 net subscriber additions, up 70% year-over-year. Total subscribers surpassed 2.8 million, reflecting robust demand for Cartrack's Video and Tag products. Despite a strengthening South African rand that created foreign exchange headwinds, the company delivered record consolidated operating profit of ZAR410 million, up 16%. Cartrack's operating profit margin declined to 28% from 30% a year ago, as the company invested heavily in sales and marketing (up 32%) to drive growth. The LTV/CAC ratio remained healthy at over 9x. Karooooo Logistics also performed well, with DaaS revenue growing 46%. Management reaffirmed its full-year FY2027 guidance, expecting Cartrack subscription revenue of ZAR5.7-6.0 billion (18-24% growth), gross profit margin of 70-72%, operating profit margin of 27-30%, and Karooooo EPS of ZAR38.50-40.00, implying 18-23% growth over adjusted FY2026 EPS. The company also declared an interim dividend of USD1.50 per share. The results underscore the success of the company's strategic investment in sales capacity and product innovation, positioning it for continued accelerated growth.