Ituran Location and Control Ltd. (NASDAQ:ITRN) Q4 2022 Earnings Conference Call February 28, 2023 9:00 AM ET

Company Participants

Ehud Helft - EK Global Investor Relations

Eyal Sheratzky - Co-CEO

Eli Kamer - CFO

Udi Mizrahi - Deputy CEO and VP, Finance

Conference Call Participants

Chris Reimer - Barclays

Gavin Kennedy - Jefferies

Abba Horovitz - Old School Partners

Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Ituran Fourth Quarter 2022 Results Conference Call. [Operator Instructions] As a reminder: This conference is being recorded. You should have all received by now the company's press release. If you have not received it, please contact Ituran's Investor Relations team at EK Global Investor Relations at 1 (212) 378-8040; or view it in the news section of the company's website, www.ituran.co.il.

I will now hand the call over to Mr. Ehud Helft of EK Global Investor Relations.

Mr. Helft, would you like to begin?

Ehud Helft

Thank you, operator. Good day to all of you. And welcome to Ituran's conference call to discuss the fourth quarter and full year 2022 results. I would like to thank Ituran management for hosting this call.

With me on the call today are Mr. Eyal Sheratzky, the Co-CEO; Mr. Udi Mizrahi, Deputy CEO and VP, Finance; and Mr. Eli Kamer, the CFO. Eyal will begin with a summary of the quarter results, followed by Eli with a summary of the financials. We will then open the call for the question-and-answer session.

I would like to remind everyone that the safe harbor in the press release also covers the content of this conference call.

And now Eyal, would you like to begin, please?

Eyal Sheratzky

Thank you, Ehud. I'd like to welcome all of you to our full year and fourth quarter 2022 call, and I would like to thank you for joining us today.

We are clearly very pleased with our achievements throughout 2022. From a financial perspective, we showed continued growth with record full year revenue of $293 million, record full year EBITDA of $79 million. From a strategic perspective, we surpassed the 2 million subscriber mark. And our subscriber growth strongly accelerated in 2022, adding 185,000 net subscribers versus 113,000 in 2021, representing a 64% acceleration. We believe that this new, much higher subscriber net adds will continue into 2023. As we shared with you last quarter, our expectations for the growth rate in our global aftermarket subscriber base stand at between 180,000 to 200,000 net new subscriber adds annually. I want to add that it is harder to forecast the OEM subscriber base growth rate, as these depend on our OEM customer sales and doesn't depend on us.