MiX Telematics Limited (NYSE:MIXT) Q3 2023 Results Conference Call January 26, 2023 8:00 AM ET

Company Participants

Paul Dell - Executive VP, CFO and Director

Stefan Joselowitz - President, CEO and Executive Director

Conference Call Participants

Alex Sklar - Raymond James

Matt Pfau - William Blair

Operator

Good morning, everyone, and thank you for participating in today's conference call to discuss MiX Telematics' Financial Results for the Fiscal Third Quarter 2023 ended December 31, 2022.

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 up for any questions you may have.

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

Please go ahead, Paul.

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 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 discussion of 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 are 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.

Joss?

Stefan Joselowitz

Thank you, Paul, and good morning, everyone. Thank you all for joining us. For our third quarter of fiscal 2023, we delivered another strong quarter of financial and operational results. Our results were highlighted by record organic subscriber growth, a 520 basis point sequential improvement in our adjusted EBITDA margin and a strong return to positive free cash flow generation. We achieved another record quarter of organic subscriber growth with an increase of over 44,000 net new subscribers, primarily driven by growth in Africa. At the end of the quarter, we had more than 959,000 subscribers, which was up 21% year-over-year.

Financially, we generated $37.8 million of total revenue and delivered 17% year-over-year growth in ARR on a constant currency basis, ending the quarter with $131.8 million of annual recurring revenue.