MiX Telematics (MIXT) Tops Q3 EPS by 1c, Slight Miss on Revenues; Raises FY19 EPS/Revenue Guidance

MiX Telematics (NYSE: MIXT) reported Q3 EPS of $0.17, $0.01 better than the analyst estimate of $0.16. Revenue for the quarter came in at $35.7 million versus the consensus estimate of $35.74 million.

• Subscription revenue of R439 million ($30.5 million), up 16% year over year on a constant currency basis
• Net subscriber additions of 22,100, bringing the total subscriber base to over 736,000, up 11% year over year
• Operating profit of R87 million ($6.0 million), up 63% year over year
• Adjusted EBITDA of R156 million ($10.8 million), up 36% year over year
• Adjusted EBITDA margin of 30.3%, up 440 basis points year over year
• Net cash generated from operating activities of R133 million ($9.2 million)
• Free cash flow of R60 million ($4.2 million), up from R17 million ($1.2 million) compared to the third quarter of fiscal 2018

Company raises full-year guidance:

• Subscription revenue - R1,693 million to R1,701 million ($124.1 million to $124.6 million)
• Total revenue - R1,951 million to R1,969 million ($143.0 million to $144.3 million)
• Adjusted EBITDA - R571 million to R584 million ($41.8 million to $42.8 million)
• Adjusted earnings per diluted ordinary share of 36.4 to 38.6 South African cents. At a ratio of 25 ordinary shares to one ADS, this equates to adjusted earnings per diluted ADS of 66.7 to 70.7 U.S. cents. Refer to the Business Outlook section below.

“In Q3, MiX Telematics delivered another strong quarter, evidenced by 16% year over year subscription revenue growth, and Adjusted EBITDA margins that again exceeded 30%, and we are now focused on our recently revised long-term target of 35%-plus. Moreover, our attractive combination of strong growth and a highly scalable business model is leading to increased cash generation,” said Stefan Joselowitz, Chief Executive Officer of MiX Telematics. “Our results were driven by ongoing robust demand globally for our services from our customers across all verticals. Additionally, we are already seeing early traction with our newly announced light fleet solution, MiX Now, and have already closed several deals. We are confident the strength of our diversified portfolio of subscribers will enable us to maintain our market momentum for the balance of fiscal 2019 and beyond.”

GUIDANCE:

MiX Telematics sees FY2019 EPS of $0.67-$0.71, versus the consensus of $0.69. MiX Telematics sees FY2019 revenue of $143-144.3 million, versus the consensus of $144.88 million.

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

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