MiX Telematics Limited (MIX) Reports Q1 Miss on Revenues; Offers Outlook

MiX Telematics Limited (NYSE: MIX) reported Q1 EPS of $, versus $0.16 reported last year. Revenue for the quarter came in at $33.28 million versus the consensus estimate of $37.02 million.

First Quarter Highlights:

• Subscription revenue of R390 million ($28.4 million), an increase of 18.4% year over year, on a constant currency basis
• Net subscriber additions of over 15,000 bringing the total base to 691,922 subscribers, up 11% year over year
• Operating profit of R68 million ($4.9 million), up 58% year over year
• Adjusted EBITDA of R126 million ($9.2 million), up 35% year over year
• Adjusted EBITDA margin of 27.7%, up 460 basis points compared to the prior year quarter

“The first quarter marked a very strong start to the fiscal year. Subscription revenue grew more than 18% on a constant currency basis and adjusted EBITDA margin of close to 28% expanded over 450 basis points year-over-year,” said Stefan Joselowitz, Chief Executive Officer of MiX Telematics. “Our results were driven by ongoing robust demand globally from our premium fleet customers, across all verticals. MiX is well positioned to deliver against our long-term goals given our differentiated portfolio of products, a growing pipeline of global opportunities, and multiple levers to generate further margin accretion.”

Business Outlook

MiX Telematics has translated U.S. Dollar amounts in this Business Outlook paragraph from South African Rand at the exchange rate of R13.1760 per $1.00, which was the R/$ exchange rate reported by Oanda.com as of July 30, 2018.

Based on information as of today, August 2, 2018, the Company is issuing the following financial guidance for the full 2019 fiscal year:

• Subscription revenue - R1,624 million to R1,645 million ($123.3 million to $124.8 million), which would represent subscription revenue growth of 13.2% to 14.7% compared to fiscal year 2018. On a constant currency basis, this would represent subscription revenue growth of 13.5% to 15.0%. This constant currency growth is unchanged from our previous guidance.
• Total revenue - R1,864 million to R1,895 million ($141.5 million to $143.8 million), which would represent revenue growth of 8.8% to 10.7% compared to fiscal year 2018. On a constant currency basis, this would represent revenue growth of 9.1% to 10.9%. This constant currency growth is unchanged from our previous guidance.
• Adjusted EBITDA - R526 million to R545 million ($39.9 million to $41.4 million), which would represent an increase in Adjusted EBITDA of 19.0% to 23.3% compared to fiscal year 2018.
• Adjusted earnings per diluted ordinary share of 31.2 to 33.2 South African cents based on 587 million diluted ordinary shares in issue, and based on an effective tax rate of 28% to 31%. At a ratio of 25 ordinary shares to one ADS, this equates to adjusted earnings per diluted ADS of 59 to 63 U.S. cents.

For earnings history and earnings-related data on MiX Telematics Limited (MIX) click here.

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