MiX Telematics Limited (NYSE:MIXT) Q1 2024 Earnings Conference Call August 2, 2023 8:00 AM ET

Company Participants

Paul Dell - Chief Financial Officer

Stefan Joselowitz - President and Chief Executive Officer

Conference Call Participants

Matt Pfau - William Blair

Alex Sklar - Raymond James

Operator

Good morning, everyone, and thank you for participating in today's Conference Call to discuss MiX Telematics Financial Results for the Fiscal First Quarter 2024 ended June 30, 2023. Joining us today are MiX Telematics President and CEO, Stefan Joselowitz; and the company's CFO, Paul Dell. Following their remarks, we'll open the call for any questions you may have.

I'd now like to turn the conference over to Mick Telematics' Chief Financial Officer, Paul Dell, as he reads the company's safe harbor statement regarding forward-looking statements. Paul, please go ahead.

Paul Dell

Thank you, and good morning, everyone. Before we continue, I'd like to remind all participants that during today's call, we will make certain forward-looking statements related to our business, which are subject to material risks and uncertainties that could cause our actual results to differ materially. For a discussion of the material risks and other important factors that could affect our results, please refer to those contained in our Form 10-K and other SEC filings, all of which available on the Investor Relations section of our website.

We will also be referring to certain non-GAAP financial measures. There is a reconciliation schedule detailing these results currently available in our press release which is located on our website and filed with the SEC.

With that, I would like to turn the call over to MiX Telematics' President and CEO, Stefan Joselowitz., Jos?

Stefan Joselowitz

Thank you, Paul. And good morning, everyone. MiX began fiscal 2024 with strong financial and operational results. We sustained our positive momentum and started the year with results ahead of our internal expectations. We continued to grow our subscriber base and on a year-over-year basis, constant currency ARR increased by over 15%, while our adjusted EBITDA margin expanded by 670 basis points. Our organization continues to perform well against a challenging macroeconomic backdrop.

Following our achievement of reaching 1 million subscribers in Q4 of last fiscal year, we added over 40,000 net new subscribers in Q1. Our growing subscriber base drives a high-quality globally diversified recurring SaaS revenue stream, which positions us well for continued profitable future growth.

Looking at our Q1 revenue in more detail, Subscription revenue comprised 89% of total revenue and was up nearly 16% year-over-year in constant currency, with 7% of the increase attributable to the FSM acquisition. Our results continue to be driven by strong performance within our Africa segment with particular strength across our asset tracking and light fleet categories.