Karooooo (KARO) UBS’s 2025 Global Technology and AI Conference summary

Business overview and market position

• Operates a SaaS platform focused on telematics, fleet management, AI, and logistics, with 2.5 million subscribers in 24 countries.

• South Africa generates over 70% of revenue and holds 1.9 million subscribers, with a 40% market share.

• Competes with Geotab, Powerfleet, Netstar, and Ctrack in South Africa; faces smaller, less feature-rich competitors in Asia and local players in Europe.

• Fully vertically integrated, unlike many competitors who outsource parts of their business.

• Asia is the fastest-growing segment, with Europe also showing profitable expansion.

Growth strategy and regional performance

• South Africa still has significant growth runway, with new products like Cartrack-Tag and AI video driving upsell opportunities.

• Subscriber growth in Q2 was 15%, revenue growth 18%, and sales team expansion continues to support growth.

• Asia sales headcount targeted for a 70% increase, with 38% achieved by Q2; expected to drive subscription revenue growth into the mid- to high 20s percent.

• ARPU in Asia expected to decrease over time as the region scales, aligning more with South Africa.

• Europe continues to build sales capacity and expand adoption.

Product innovation and cross-sell initiatives

• Focused on cross-selling new products (Tag and video) to existing customers, with low single-digit penetration rates currently.

• Video product offers a 2x-4x uplift in deal size at similar operating profit margins.

• Tag is an asset tracking device for non-vehicle equipment, expanding addressable market.

• Cross-sell strategy is prioritized to maintain competitive advantage and drive ARPU growth.

• New features are typically included in subscription tiers to drive retention, with hardware products requiring a dedicated sales process.