The telematics provider for transport MiX Telematics is returning to steady growth

MiX Telematics Limited (MIXT) has published a report for the third quarter of the fiscal year 2022. The company is rapidly recovering its previous growth rates, ending the period of decline due to the pandemic. In the quarter ended December 31, 2021, MiX Telematics revenue increased by 6.2% year-on-year to $36.2 million. At the same time, equipment sales increased by 17% to $5.9 million. 

The gross margin decreased slightly to 62%. Net profit was $0.6 million, compared to $5.9 a year earlier. The stock of cash and equivalents amounted to $35.9 million, and the company repurchased shares for $0.8 million. Against the background of COVID-19, MiX Telematics decided not to give forecasts for the current year. 

MiX Telematics supplies telematics solutions — software and hardware that collects data on the fleet’s operation (fuel consumption, travel time, route, etc.), analyze them, and visualizes them in the fleet management system. MiX Telematics is focused on companies with fleets of all sizes and indicates the possibility of reducing insurance and fuel costs as one of the main advantages of its solutions. In marketing, MiX Telematics uses horizontal connections when one fleet owner recommends the company’s solutions to another. 

In the past quarter, MiX Telematics attracted 20,300 new subscribers — the best result since the beginning of the pandemic. The recovery of the influx of subscribers is a positive signal, and in the coming quarters, MiX Telematics may show a noticeable improvement in financial indicators. In addition, the company’s management announced the possibility of achieving previously set long-term goals for profit and revenue growth.