“We are pleased to report strong third quarter results, which were highlighted by 25 per cent year over year growth in subscription revenue. Our focus on selling fully-bundled deals is paying off as we had an increased number of enterprise customers opt for the pure subscription structure rather than pay for the hardware up front,” commented Stefan Joselowitz, chief executive officer of MIX Telematics on their financial results for the third quarter of 2014.
[DATA Mix:MIX Telematics Limited], a global provider of fleet and mobile asset management solutions, offers products and services such as enterprise fleets, small fleets and security solutions like vehicle tracking.
The group’s total vehicles under subscription increased by 26 per cent year over year, bringing the total to over 428,500 subscribers while adjusted earnings before Interest, taxes, depreciation, and amortization (EBITDA) are currently at 66 million rand, a 21 per cent adjustment.
Total revenue for the period also rose 3.8 per cent from 298.6 million rand to 309.8 million rand.
The company stated that growth in subscription revenue and vehicles under subscription are based on expected growth rates related to market conditions.
Operating profit on the other hand was 38.4 million rand compared to 42.9 million for the Q3 2013 due to expected losses incurred by their start-up operation in Brazil, as well as an increase by 3.8 million rand in sales and marketing costs, as part of the company’s expansion strategy.
MIX Telematics also incurred costs when listing on the New York Stock Exchange as a US listed company.
Joselowitz added that the company landed a substantial amount of new deals, expanded their bus and coach industry and increased their presence in the oil and gas fleet space.
“Our enterprise fleet segment landed substantial deals in the quarter, while our passenger vehicle segment continued to demonstrate strong growth. Of note, adoption of our solutions in the bus and coach industry continues to expand. Our dominance in oil and gas was also in evidence again this quarter as we added vehicles to existing customers’ fleets and secured several new deals, including a significant deal with Lind Gas in Brazil,” he said.