Karooooo Ltd.

Hello and welcome to Kourou's fourth quarter and full year fiscal 2026 financial results presentation. On behalf of Kourou, we would like to thank you for joining us today. I'm Paul Weber, VP of Investor Relations and Strategic Finance. We are joined today by Zach Kalisto, Founder and Group CEO, Ocean Goy, Chief Financial Officer, and Carmen Kalisto, Chief Strategy and Marketing Officer. I would like to remind everyone that some of the statements that we make today regarding our business, operations, and financial performance may be considered forward-looking. Such statements are based on current expectations and assumptions. They are subject to several risks and uncertainties. Our actual results could differ materially. Please refer to the Safe Harvest Statement in our Form 20F, including the risk factors and the 6K that we filed yesterday. We undertake no obligation to update any forward-looking statements. During this call, we will present both IFRS and non-IFRS financial measures. The reconciliation of non-IFRS to IFRS measures is included in the 6K that we filed with the SEC yesterday. Our comments may refer to year-over-year comparisons unless we state otherwise. I will now pass the call over to Carmen.

Thanks, Paul. Welcome to Carew's fourth quarter and full year fiscal 2026 financial results presentation. As planned, FY26 marked another year of disciplined execution with contract subscription revenue growth accelerating to 19%, up from 15% in the prior year, despite foreign exchange headwinds resulting from the appreciation of the ZAR. Annual recurring revenue, or ARR, increased 18%, to $5,179 million and 38% to $325 million. Notably, momentum in our most mature markets of Africa strengthened meaningfully with ARR growth exiting the year in February at 23%, reinforcing our market leadership. Our strong execution also translated to significant free cash flow generation, FY26 adjusted free cash flow increased 90% to 809 million ZAR and reflects our ability to scale efficiently while delivering meaningful free cash flow and value to our customers. We also continued our track record of returning excess cash to shareholders as we declared a 1.50 US dollar dividend per share, an increase of 20% payable in July 2026. We achieved these results even as we made significant and planned upfront investments in sales and marketing to drive future recurring revenue, earnings, and adjusted free cash flow. During the year, we invested in our distribution network to support accelerated growth, enhance our platform with AI-powered video capabilities, and other additional features. And we commercially launched CardTrack Tag. These initiatives further strengthen our differentiated value proposition. Looking ahead to FY27, we aim to accelerate subscription revenue growth once again while delivering strong earnings per share growth. Despite providing a contracting gross profit margin outlook for FY27, the midpoint of our FY27 EPS outlook implies growth of 21% when compared to our FY2026 EPS excluding the secondary offering costs. We envision a slowdown in hiring in FY27 while we drive Salesforce efficiency and AI adoption. Before diving into the details, we'd like to provide a quick introduction to Kuru. We operate a SaaS platform for connected vehicles and mobile assets that delivers mission-critical operational intelligence to businesses. Our platform enhances operational efficiency, reduces costs, mitigates risk, improves safety and customer service, ensures compliance and empowers service delivery. We help businesses simplify decision-making to optimize their physical operations. We serve a large, underpenetrated market with strong, sustained demand driven by digital transformation, a constant need to improve operational efficiency and an increasing focus on safety and compliance. We are a founder-led business with a strong financial profile, a two-decade proven track record of execution excellence, and a cultural focus on disciplined capital allocation, operational efficiency, and driving healthy returns on invested capital. Our platform supports approximately 2.7 million subscribers across more than 125,000 businesses. spanning a diverse set of industries and with no customer or industry concentration risk. Importantly, our financial model is anchored by healthy ARR growth, high margin subscription revenue, and exceptional commercial ARR retention and powerful unit economics. Despite the strengthening of the czar, ARR increased 18% to 5,179 million czar and on a US dollar basis increased 38%, to $325 million. Our commercial customer ARR retention rate remained at 95%, and subscription revenue accounted for 98% of CarTrack revenue. We continue to scale our proprietary data asset, now generating more than 300 billion data points monthly, which we leverage to deliver impactful innovation, insights, and value to our customers. Finally, our LTV to CAC remains above nine times, underpinned by strong retention, disciplined capital allocation, and efficient distribution, which are embedded in our vertically integrated business model and company culture. During today's presentation, we will review both of Carew's operating segments, CarTrack and Carew Logistics. CarTrack is our operational intelligence SaaS platform. CarTrack operates at scale and has a very attractive financial profile. CarTrack's operating momentum is the primary driver of Carew's growth and strong financial performance. As per our FY26 outlook, CarTrack delivered exceptional results highlighted by accelerating subscription revenue growth. These results reflect the early returns from the strategic investments we've made in expanding our sales capacity and selling video and CarTrack tag to our existing customers in South Africa. In FY26, CarTrack generated approximately $4.8 billion in subscription revenue, an increase of 19% or 39% on a US dollar basis. A strengthening czar negatively impacted reported CarTrack subscription revenue in FY26. The 19% growth rate reflects a meaningful acceleration compared to 15% subscription revenue growth in FY25. CarTrack's operating profit margin was a healthy 28% in FY26. Karoo Logistics is our rapidly growing delivery-as-a-service offering that empowers large enterprise customers to scale their e-commerce and logistics operations. Karoo Logistics continues to demonstrate strong growth and operating momentum while delivering real value to our enterprise customers. We report Karoo Logistics separately as its delivery-as-a-service financial profile differs from CarTrack SaaS financial profile. Karoo Logistics is strategically important to us as it empowers our customers to scale their e-commerce and logistics operations through a capital-like model whilst driving high car-track customer retention. In FY26, Karoo Logistics' delivery-as-a-service revenue reached 540 million ZAR, an increase of 29% or 50% on a US dollar basis. Given Karoo Logistics' robust revenue growth, we are very excited about its long-term growth opportunity. Karoo delivered strong, consolidated financial results in FY26. Adjusted free cash flow increased 90% to 809 million ZAR, underscoring the durability and cash-generating power of our business. We continued our strong track record of returning excess cash to shareholders as we declared a record 1.50 US dollar dividend per share, an increase of 20%, payable in July 2026. Total revenue increased 20% to 5,479 million ZAR. Subscription revenue increased 19% to 4,844 million ZAR. Operating profit increased 8% to 1,415 million ZAR and adjusted earnings per share was 32.55 ZAR. FY26 operating profit was negatively impacted by growth-oriented investments to deliver accelerated growth, foreign exchange headwinds associated with the appreciation of the ZAR and a provision alignment in cost of sales. FY26 earnings per share was also negatively impacted by a higher tax rate due to the shift in timing of our dividend declaration. Hu Shen will provide additional context on these items during the financial discussion. As per our FY26 outlook, we accelerated subscription revenue growth from 15% to 19% whilst growing earnings. Q4 continued our track record of delivering profitable growth at scale. In Q4, we were a Rule of 60 company when adding our car track subscription revenue of 18% and our car track adjusted EBITDA margin of 44%. We note that our EBITDA margin does not include any stock-based compensation or SBC add-back, a stark contrast to SAS peers. Our rare financial profile translates to healthy return on invested capital. It's important to underscore just how differentiated our financial model has become in the context of the broader SaaS universe. We believe we are among the select few SaaS companies operating at a rule of 50 plus based on calendar year 2026 Gap Street estimates. Within a SaaS universe of approximately 140 companies, there are less than 10 companies operating at this combined level of growth and profitability. and Carew is the only small cap company. Our financial profile is incredibly rare in public markets, especially among small cap companies. Being part of this elite group reflects our unwavering commitment to disciplined and profitable growth. In addition, with an essentially unchanged share count over the last several years and no SBC compensation, growth in free cash flow translates directly into higher per share value, given the absence of dilution. This is a key point of differentiation relative to many SAS peers that fund growth with material equity issuance and SBC. Now, let's discuss our FY26 financial and operational highlights. In FY26, we accelerated our ARR growth. SAS ARR accelerated to 18%. and ARR growth in U.S. dollars accelerated to 38%, reaching $325 million. South Africa ARR growth accelerated to 23%. Karchak subscription revenue growth accelerated to 19%, underpinned by accelerating growth of 20% in South Africa. Karchak subscription revenue growth in U.S. dollars accelerated to 39%. CarTrack total subscribers increased 16% to approximately 2.7 million, driven by healthy growth across all regions. Notably, CarTrack delivered record Q4 subscriber net additions of 94,000. Also, Asia subscriber growth accelerated to 23% in Q4, and Asian net subscriber additions increased 41% in FY26. CardTrack profitability was impacted by planned, upfront sales and marketing operation expenses that delivered accelerated subscription revenue growth of 19% despite foreign exchange headwinds associated with the strengthening czar. For additional context, subscription revenue growth accelerated to 39% in U.S. dollars. We are a Rule of 60 company and our adjusted free cash flow increased 90% to 809 million ZAR in FY26. Our balance sheet remained strong and unleveraged and we ended the quarter with net cash and cash equivalents of 746 million ZAR. We also declared a dividend per share of 1.50 US dollars, an increase of 20% payable in July 2026. Our healthy subscription gross margin, efficient customer acquisition, and attractive commercial customer ARR retention rate continue to drive our healthy unit economics. In Q4, our subscription gross margin was 71%, our LTV to CAC ratio remained above 9 times, and our commercial customer ARR retention rate was 95%. Our unit economics remain healthy despite the significant increase in sales and marketing expenses during Q4, and we remain committed to profitable growth as we pursue the expansive growth opportunity ahead of us. In FY26, we secured significant enterprise customer wins across diverse industries and geographies. Underscoring the flexibility of our platform, the richness of our feature set, and our ability to service a universe of industries, this broad-based adoption strengthens our conviction in the magnitude of our long-term growth opportunity. FY26 subscriber growth increased 16% and we surpassed 2 million subscribers in South Africa during Q4. This achievement highlights South Africa's two-decade track record of sustained growth and operational excellence in South Africa, driven by its focus on product innovation, customer centricity, and disciplined execution. In FY26, South Africa's subscription revenue accelerated to 20% to 3,468 million ZAR, a significant achievement when compared to the growth rate of 15% in the prior year. Importantly, South Africa exited the fiscal year in February with ARR growth of 23%. South African subscriber and subscription revenue growth are a clear signal that our strategy continues to drive results. The pace of growth reflects our deliberate strategy to cement our leadership position in South Africa through a balanced combination of subscriber additions and selling video and contract tag to our existing customers. We are committed to building our distribution capabilities to service the demand for our customers, from both new customers and existing customers, and we are confident that our investment in sales capacity this year will have a positive impact on CarTrack subscriber growth in FY27. We are optimistic about the market opportunity in South Africa and believe there is a long runway to drive strong subscriber growth. We ended FY26 with approximately 336,000 subscribers in Southeast Asia and the Middle East, an increase of 23% with most of the subscribers in Southeast Asia. Importantly, our results demonstrate that our recent investments in sales capacity are beginning to yield tangible returns. In Q4, subscriber growth accelerated, driving record net additions of 17,447 an increase of 82%. For the full year, net subscriber additions increased 41%, reflecting the strengthening momentum of our customer acquisition engine in the region. FY26 subscription revenue growth was 17% and 20% on a constant currency basis. The pace of subscription revenue growth in the region was impacted by the faster growth of certain countries that generate lower ARPU. As the second largest contributor to group revenue, Southeast Asia continues to present the most compelling growth opportunity for the group in the medium to long term. We plan to continue with a strong yet prudent drive to increase sales and marketing in Southeast Asia, and we anticipate our investments to have a positive impact on subscriber growth in the region. Southeast Asia is a vast, underpenetrated market for sophisticated fleet management and video-based solutions, and we are well positioned to capitalize on the opportunity. We ended FY26 with approximately 228,000 subscribers in Europe, an increase of 14%. FY26 subscription revenue growth was 22% and 19% on a constant currency basis. We continue to expand our customer base and drive our distribution capabilities in the region. We have partnered with leading OEMs to provide easy access to our platform, seamlessly integrating their connected vehicle data to our platform through application programming interfaces. We expect these partnerships to contribute to our results in the medium term. In addition, we are experiencing encouraging demand for our proprietary compliance technology in the region as customers seek to simplify compliance with evolving legislation and enforcements. In Q4, Karoo Logistics continued to build scale and delivered revenue of 145 million ZAR, an increase of 32% and a 9% operating profit margin. Growth was driven by demand of e-commerce orders and the adoption of our service by our customers. Karoo Logistics supports our strong financial performance by immersing our platform into large customers' operations, contributing to strong customer retention. Karoo Logistics also enables us to learn about the operational and logistics challenges confronting our large customers. During Q4, Karoo Logistics surpassed 1 billion ZAR in cumulative payments to drivers since Karoo acquired it in 2021. This milestone highlights Karoo Logistics' continued efforts to create sustainable economic opportunity for thousands of drivers in South Africa while supporting the growing logistics ambitions of leading retailers, fast food companies and e-commerce platforms in South Africa. In addition, the thousands of drivers we have on the road daily successfully executed more than 8 million deliveries in FY26. We see a large opportunity for Karoo Logistics going forward as large businesses seek to increase their e-commerce offerings and optimize their logistics capabilities through a capital-like model. As we reflect on our FY26 priorities, we believe we successfully cemented our leadership position in South Africa, expanded our distribution capabilities across regions, and drove broader engagement with our platform, including the adoption of video and AI-assisted video. As we aim to accelerate our growth and deliver strong earnings per share growth in FY27, our strategic priorities for FY27 are as follows. First, we plan to continue to cement our leadership position in our markets by balancing new customer acquisition with broader adoption of video and contract tag. Second, we intend to drive sales force efficiency while accelerating subscription revenue growth. And finally, we aim to harness AI to enhance the capabilities of our platform, drive operating efficiencies throughout the business, and accelerate the speed of execution and pace of innovation. We've seen a lot of discussion around whether AI could disrupt SaaS models over the last few months, and it's a valid question for the broader SaaS sector. But our model is structurally differentiated from most SaaS companies. We believe our platform and financial model possess unique resilience that will enable us to thrive in the AI era. Our platform is built around a proprietary system of record that relies on IoT devices installed and maintained on customers' physical assets in the field. This is not data that can be sourced by an LLM. It's generated through physical hardware that our auto technicians install and actively service across more than 20 countries. Our proprietary data asset collected from these IoT devices is large, vast, proprietary, and central to our differentiation. We have been collecting this proprietary data for more than 20 years, and we believe it provides us with a compounding data advantage. In addition, We tailor each IoT device installation to the individual requirements of our customers, enabling the collection of customer-specific data that helps solve their unique business and operational challenges. Our platform is also deeply embedded in customers' day-to-day operations, from ERP and CRM systems to logistics, safety, and compliance workflows. This level of operational integration makes us an indispensable part of how these businesses function daily. AI can assist decision-making, but it can't own fleet safety and physical logistics operations, install telemetry devices in physical assets, and service telemetry devices in the physical world. Our platform is mission-critical and keeps assets and people safe and productive, and that's not something that can currently be automated away by an AI agent. Furthermore, unlike most SaaS business models, our model is not seed-based. Growth is driven by penetration of physical assets, vehicles, equipment, and machinery, and by the continued expansion of those physical asset bases globally. That creates a durable, long-term growth engine that isn't dependent of headcount or end-user licenses. This insulates us from the seed compression or user license risk that many software players face, particularly as AI automates knowledge worker tasks. From a financial perspective, our business is difficult to displace. Our ARPU is roughly $10 per month, which is exceptionally low relative to the all-in cost of operating a vehicle or asset, inclusive of fuel, driver payroll, insurance, and maintenance expenses. And yet, the ROI we deliver is high. That makes our offering both indispensable and uneconomic to disrupt. especially given that we are embedded in our customers' workflows and daily operations. Add to this that our vertically integrated footprint across 20-plus countries, 95% commercial customer ARR retention, robust profitability, recent growth acceleration, and strong free cash flow generation, and you can see why we feel confident that AI will serve as a tailwind to our platform, enhancing automation, functionality, and insights whilst accelerating innovation, rather than being a threat to our business model. With that said, I will now pass the call over to Hei Hsien.

Thank you, Carmen. I will now discuss Karu's financial performance for Q4 and the full year FY2026. Please note, my comments may refer to year-over-year comparisons, unless we state otherwise. Quarter 4 extended CarTracks track record of durable growth at scale, driven by consistent executions, our resilient subscription revenue model, and attractive historic retention rates. In Quarter 4, subscriber increased 16% to approximately 2.7 million, subscription revenue increased 18% to 1,278 million rand, and operating profit was 324 million rand. CarTrack experienced record Q4 customer acquisition with net subscriber additions of 93,755 and increase of 19%. The record Q4 net subscriber additions reflects our strategic investment in sales capacity while cross-selling video and CarTrack tech to existing customer. CarTrack's strong financial performance continues to be fueled by SaaS revenue momentum. In Q4, CarTrack's revenue increased 17% to R1,304 million and CarTrack's subscription revenue increased 18% to R1,278 million. Subscription revenue comprised 98% of CarTrack's total revenue. For FY2026, CarTrack's revenue increased 19% to a record R4,939 million and contract subscription revenue increased 19% to R4,831 million. ARR growth increased 18%, reaching R5,179 million, despite currency headwinds associated with the strengthening of ZAR. In US dollar, ARR growth accelerated to 38%, reaching $325 million. Our proven and profitable SaaS business model continued to deliver strong consolidated results in Q4 and FY2026 with meaningful acceleration despite foreign currency headwinds. In Q4, Karoo's total subscription revenue increased 18% to R1,281 million, operating profit was R338 million, and adjusted earning per share was R7.18. For FY2026, KERU's total subscription revenue accelerated to 19%, to R4,844 million, operating profit was R1,415 million, and adjusted earning per shares was R32.55. For additional context, our FY2025 subscription revenue growth was 15%. FY2026 adjusted earning per share was R32.55. In USD, the adjusted earning per share increased 20% to $2.05. Q4 adjusted earning per share came in at R7.18, related to the following items we will discuss. The strengthening of DA against currency in our key markets create a headwind to our reported revenue, while majority of our cost of sales reflects depreciation of the in-vehicle IoT device at five-year exchange rates when XI is lower. The depreciation of the in-vehicle IoT device was a key component of our cost of sales. On top of that, our accelerated growth this year expanded our in-vehicle IoT device to increase by 45% and we aligned our provision in line with this accelerated growth. As a result, CarTrack gross profit margin was 70% compared to 75% in the same quarter in prior year, and subscription revenue gross profit margin was 71%. Importantly, we did not experience a disproportionate churn rate in Q4 compared to other quarters. Finally, a higher effective tax rate in this quarter reflects withholding tax from dividend payment made by our subsidiary to the holding company. Taken all together, these three items represented approximately 1 rand and 60 cents of earnings per share in this quarter. Excluding them, our quarter 4 earnings per share would have been stood at approximately 8 rand and 78 cents. Karu's adjusted earnings per share was 7 rand and 18 cents. Karthak's earnings per share contribution was 6 rand and 89 cents. and KERU logistic earning per share contribution increased 45% to $0.29. Our adjusted earning per share reflects our deliberate investment in sales capacity to accelerate subscription revenue growth and support durable long-term growth. In Q4, KERU's consolidated sales and marketing expense rose 37%, reflecting this strategy. This upfront sales and marketing expense do not align with the lifetime value of the recurring revenue, earnings, and free cash flow that these customers will generate. Importantly, our powerful unit economics remain strong and intact. Looking back, FY2026 was a year focused on accelerating subscription revenue growth while maintaining our strong subscriber growth. Our total subscriber growth increased 16% in FY2026, South Africa's subscriber growth rose 16%, and Asia's subscriber growth accelerated to 23%. Asia is our fastest growing region in terms of subscriber growth. Even with the stronger ZAR, our financial year 2026 says ARR growth was 18%, and in US dollar, our ARR growth accelerated to 38%. South Africa stood out with SAS ARR growth accelerated to 23% as compared to 17% in 2025. This marked the third consecutive year of ARR growth acceleration despite foreign currency headwinds associated with the appreciation of SAR. We believe the acceleration in ARR growth reflect the underlying momentum in the business and signals that our strategic initiatives are gaining traction. Cardstack continues to grow its subscription revenue across geographies, highlighted by acceleration in South Africa. FY2026 South Africa subscription revenue growth was 20% and acceleration from 15% in FY2025. We view this acceleration as a clear indicator that our efforts to extend our leadership position are translating into real, measurable performance. FY2026 Asia and Middle East subscription revenue growth was 17%, or 20% on a constant currency basis. The growth reflects an increase in subscriber from lower APU countries in the region, combined with the translation impact of a stronger ZAR. Europe subscription revenue growth was 22%, or 19% on a constant currency basis. Healthy performance across region reflects our strong execution and provide a solid foundation for our continued durable growth. We have a two-decade track record of strong free cash flow generation and FY2026 free cash flow generation was exceptional. FY2026 adjusted free cash flow increased 90% to R809 million, underscoring the strength of our operating model. Several factors contributed to this performance. Our adapter's book improved primary due to strong collection in February 2026, improved supplier terms, timing of tax payments, discipline management of uninstalled IoT device following a deliberate build-up in the prior year, and payments related to the construction of the South African head office reduced as the building was completed in previous years. As we pursue accelerated growth, we expect free cash flow to reflect our investment to drive growth. While quarterly fluctuations may occur due to the working capital dynamics and growth-oriented investment, we remain confident in our ability to consistently generate meaningful free cash flow. KERU's consistent free cash flow generation powers our disciplined capital allocation strategy and healthy return on invested capital and provision as well for future growth. Our balance sheet reflects our track record of durable growth at scale, profitability and cash generations. Our net cash on hand plus cash in bank and fixed deposit was RM746 million. Debtors' collection days remain healthy at 27 days and are within our historical norm. we declared a record dividend of $1.50 per share, an increase of 20% payable to our shareholders in July 2026. We believe that our ability to generate healthy cash flow is sustainable given our annuity business model coupled with our track record of consistent executions. As we reflect on our financial performance in FY2026, We delivered on our outlook with car track subscription revenue at the higher end of our initial outlook, even with stronger ZAR, and adjusted earning per share at the lower end of our initial outlook, primarily due to the planned growth-oriented investment and foreign currency headwinds. Moving on to our outlook for FY2027, we intend to accelerate subscription revenue growth once again, while delivering strong EPS growth. we are confident that our investment in sales capacity in FY2026 will have a positive impact on subscriber growth in 2027, and we plan to drive our growth by balancing subscriber growth with increased adoption of video and car track tech. We believe the increased sales efficiencies coupled with realizing other efficiency in the business due to scale and AI adoptions will support strong EPS growth. With that, Our guidance for FY2027 are as follows. CarTrack subscription revenue between R5,700 million to R6,000 million, which implies CarTrack subscription revenue growth between 18% to 24%, CarTrack's gross profit margin between 70% to 72%, CarTrack's operating profit margin between 27% to 30%, and Karoo's earning per share between R38.5 to 40%. Despite providing a contracting gross profit margin outlook for FY2027, assuming current exchange rates and accelerated growth, the midpoint of our earnings per shares outlook implies earnings per share growth of 21% in FY2027 when compared to our FY2026 earnings per share, excluding secondary offering costs. We envisage a slowdown in hiring in FY2027, while we drive Salesforce efficiencies. In closing, in Q4, we experienced strong momentum with SaaS ARR growth of 18%, even with foreign currency headwinds led by South Africa ARR growth of 23%. We also delivered record Q4 net subscriber additions, highlighted by accelerating growth in nature. while Q4 operating profit and adjusted earning per share were impacted by several items which we discussed earlier, the underlying business is performing well. Our adjusted free cash flow generation was exceptional, increasing 90% to R809 million. We also continue our track record of returning excess cash to shareholders as we declare a $1.50 dividend per share and increase of 20%. These results reflect the strength of our operating model, early returns on our investment in sales capacity, and our ability to scale efficiently while generating durable cash flow. As we look forward to FY2027, we are well-decision to accelerated growth and deliver meaningful earnings per share expansion. We remain committed to disciplined capital allocation, strong unit economics, and long-term value creations. And finally, we are confident in our ability to consistently generate meaningful free cash flow and healthy return on invested capital. With that, I will turn the presentation over to Zach Calisto for Q&A.

Hello everyone. Sorry, I was having a bit of a problem there to unmute myself. Thanks everybody for joining us today. I will now go into the questions. I will now go into the questions and I will answer the questions. The first question from Josh from Needham. As you start hiding, How are you thinking about using AI to drive more internal efficiencies, particularly with customer support and voice AI applications? Josh, we've been busy with this, I would say, for the last 18 months. At this point in time, we are using AI, but not quite at the point where we'd like to be using it. But quite frankly, it doesn't work as well as a lot of companies say it's working. And we've got our own AI team that's looking at it. We're continuously improving. And I certainly believe AI will get there. But at the moment, it still makes too many misinterpretations. And it still makes, it basically frustrates customers. So we are using it, but not as much as we want to use it. But I believe over time, we'll just get better at it and the AI tools will get better. And over time, this will be a big win for us. The second question from Josh, what are you seeing in pricing change in different markets? Do you have more pricing power in any particular region currently? I think the pricing chains, Josh, have been the same, have been quite consistent, I would say, for the last 10 years. The markets we operate in, there isn't this raising of our poos like you see in the North American market. It's very much about giving more to the customer as technology gets better and sort of retaining the same pricing. And then it really is about your unit economics and your pricing model working. And we've got a track record that our pricing model is correct, and it gives us the desired operating profit margins that we look at getting. So I don't see any pressures at this point, but I also don't see an opportunity to just raise prices for the sake of raising prices. Another question from Josh. What are the key focus regions for investment in FY27? I think fundamentally FY27 is going to be really about a lot of focus our productivity of our people. I'm not saying it's not good. I think it's actually, it's a mark of bleeding, but there's always room for improvement. And in FY36, we hired a lot of people across lots of regions, and we just need everybody to settle down a little bit more, and then we'll ramp up our human capital again. And is APAC still a key priority for incremental investments? Definitely, we did a lot during the last financial year, and we continue not to slow down, specifically in Southeast Asia. The places where we'll do a lot of slowdown will be predominantly in South Africa. I'll move on to Dylan. Thanks, Dylan. Dylan is from William Blake. Can you dig into the trials of strength in South Africa? Notable re-acceleration in the Rogers region and outtakes support sustained momentum, ramping reps, new products, loss of positive factors such as volume and wire attributes to this jet. Dylan, South Africa, just before COVID, we had a building and we had run out of space. And we were going to start building a building. Then COVID came and we couldn't build it. Then just when COVID finished, we built the building. We moved into this building approximately now 18 months ago. And this building has obviously been designed in a way that we can operate in a much more efficient way than we've ever done in the past. It's also allowed us to have more headcount and better systems and better processes, and we're starting to yield the results of that investment. I'll go to the next question from Alex from Brandon James. Zach, on gross profit margin, can you elaborate on the alignment of provision increase to cost of sales? Is this an accounting risk management and how long do you optimize your advisor's cost? Or is there a fair market value adjustment that orders are asked for? So the first thing, the auditors did not ask for it. They also picked up that there was an increase and they did audit what we had put to the table for the auditors already. So it wasn't a request from the auditors. It was more forward-looking because what happened during the acceleration, our PPE went up substantially. and we just wanted to make sure we've made cautious provisions and probably in hindsight we should have done this in Q2 or Q3 but we didn't really know how our acceleration was going to take shape so we decided to do it in Q4. we could have done a bit in Q2, Q3, but we only had the visibility of the power of our acceleration by Q4. So we, as management, decided to do it in Q4. But there's been, in actual fact, we've seen no extra churn than we've ever seen in the past, but our PPE is substantially larger than it was, and we just don't want surprises, and that's why we've decided to do it in Q4, just to make a bigger provision. The next question from Alex. Can you speak to the sales productivity you observed excepting FY26 and early FY26 gives you confidence to strong growth out of despite the lower hiring plans? And our outlook, Alex, is we're basically saying we expect, worst case, to continue at this current rate or to increase it. Despite us saying that we're going to slow down the hiring, that doesn't mean we're going to stop hiring. We're still going to continue hiring people, and we certainly believe we've got sufficient momentum and sufficient people with a bit of hiring that we can accelerate further in the current growth. So we feel very comfortable. We've had two months in this current financial year, and we're feeling very comfortable that we'll be able to deliver on this outlook. And historically, we've never failed on our outlook. The next question from Greedy Panica. These are back context Q4 cost of sales increase of 42% of $275,000 to $392,000 and they're related to why the provision in vehicle IT devices increases 45% while ARR increases 18%. So, Rudy... We've got the actuarial models to how we depreciate our PPE, and that aligns with the life cycle of revenue expected from that PPE. However, if you look at the amount, because we've got much stronger growth, the growth in our PPE in our balance sheet, that's gone up substantially, and that's where you've got to compare how much is more compatible to how much depreciation has got. And that's the relation that you've got to look at as opposed to the relationship to subscription revenue. Because now you've got many more devices, IT devices, in the depreciation cycle. obviously in our subscription revenue there's a lot of devices they've gone past the depreciation and they don't contribute to cost of sales because it's been fully depreciated yet they're still giving us revenue but now with accelerated growth you certainly have as a percentage of subscribers, there's a bigger percentage now that are still in the depreciation cycle. Hopefully I articulated that in a way that's easily understood. I'll move on to another question by Dylan from William Blair. Slight near-term margin headwinds make sense, especially as you see in revenue acceleration paying out. But how should we think about leverage for some of the upfront investments in ESR, sales market are likely to normalize a bit more in FY27. So, beyond that, you will see it coming through on our operating profit margin and clearly on our earnings per share. So, with that slowdown, what we are definitely going to do is, and we're giving guidance to that, to, you know, re-hold the earnings per share growth in FY27. I'll now move to the next question from Dylan as well. Momentum with TAG, how much of ARPU's uplift versus wedge of drive new logos and maybe initial contribution from TAG inside an FY27 output? I think I can't give you numbers to that, Dylan. I haven't got the budgets in front of me at this stage, but I think fundamentally there is a contribution from TAG to our growth and from Bridger to our growth, and that's the level of contribution would probably be more significant in FY27 than it was in FY26 as we pick up momentum and as our teams get better at I will now move over to Scott from Roth. Isaac, how is contract tech progressing in South Africa? What's the current number of connected devices and what is the current thought process of commercial rollers in other countries? Scott, I do not have these numbers in front of me. I can always drop you an email with these numbers. So, at this point in time, we're now going to start rolling it out into Africa during F-127. And so, we expect it by the end of F-127 to have it throughout South Africa and the rest of Africa. Next question by Dylan from William Blair. Any impact from rising input costs to Audrey in ASR memory storage? Are you navigating supply chain dynamics? Yes, we've seen significant increases in memory. When I say significant, we're talking about 200% increases. We've adjusted our pricing using our long-existing pricing model that we do to cater for these memories. So it has been adjusted in our pricing. We don't believe this new pricing model will slow down our ability to sell and nor do I believe it will accelerate our subscription revenue because it won't have that much of a meaningful impact into the bigger picture given our large base that we currently already have and a lot of our costs that we see in is actually depreciation and this depreciation is actually of devices and memories that have been bought in the past at old pricing. Hopefully I've made myself understood there. I'll move over to Scott from Roth. How is the matter economic over an impact in demand and customer decisions, particularly related to rising gas prices I think, Scott, it's early days. It's very clear and very evident that there's substantial increases in fuel prices at this point in time. But we can't say we've now all of a sudden seen demand for our products because of that. So I can't attribute any of our growth to that, but I'm sure if the prices do not come down, then that will start impacting demand for our products. But at this point in time, it's not that obvious. It probably does exist, but it's not obvious. Another question from Scott. How is the ongoing adoption of AR cameras What are the current tax rates? And is that the primary drive of the Q4? So I think it's a multiple and it's a complex answer to that. In actual fact, ARPU in Q4 was very negatively impacted because of the strong rain, specifically in Q4. The rain really strengthened. AR camera is definitely a positive contributor to ARPU, and like I've said many times before, ARPU for us, because of our business model, does not imply higher margins, because it's more equipment, it's more data costs, more on-game costs, and that goes back to our pricing model, which still leaves us with very much the same operating profit margins. The next question from Goku writes, was the float better with our offering last year? Would you consider share buybacks over dividends? If yes, what is the valuation multiple-thumb rule below which you would buy back shares? Goku, you know, being on the NASDAQ, it's not always easy to buy shares back at this point in time, and we haven't got that on our radar at this point in time to do a share buyback. And, you know, if our investors do want back, in fact, their dividends and buy more shares with their dividends, but at this point in time, we haven't got buyback in mind. The next question from Ajant Pankuma says, What is the impact of the USA-Iran war on the business? How much of your business is in the Middle East? And what is the impact of iron, diesel, fuel prices? Prashant, I've answered part of your question into previous questions. And the impact of the US-Iran war, is I think it impacts really the oil price. We have got a good business in the UAE, but I think our business is being impacted slightly, and we can't measure at this stage how much impact it's really had, but there is impact there, but it's a small part of our bigger business, and in terms of fuel prices and demand for our products, I'm sure if this... We will see more demand, but at this point in time, it's not obvious. Then the last question from . It seems like ARPA was an area of issue. Is this related to cross-country Southeast Asia? How can we think about ARPA growth potential for this year? I'm not quite sure, Claire, what you mean, but I will attempt to answer your question. So ARPU in Q4 was negatively impacted because of the translation of currencies. And our ARPU will increase based on increasing more product to our customers. However, having said that, it also depends what markets grow faster. And at the moment in Southeast Asia, Philippines, Indonesia, Thailand are growing really very fast. However, their ARPUs are very similar to South Africa, and typically our ARPU in Asia is substantially better than South Africa because of Singapore, which has got a very high ARPU. But as Singapore becomes a smaller part of Asia, then the ARPU trend would be for the ARPU in Asia to come down. But it really is just geography-dependent, and it's not business-dependent. of what I'm trying to say. Anyway, that's the last question. I want to thank everybody for taking time to listen to Rishi and to Carmen and to me. And thank you. Bye-bye.