Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 90

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 4A
Chunk 90
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, formulate
business plans, make strategic decisions and assess operational efficiencies. Our calculation of the key business metrics and other measures
discussed below may differ from other similarly titled metrics used by other companies, securities analysts or investors.

Number of Subscribers and Subscription
Revenue

We have a strong track record
of increasing our subscriber base through growth in customers owing to of our proprietary platform with next-generation functionality
and software features, a sales-centric culture and our competitive pricing. We believe that our ability to attract a range of new customers
and increase our subscriber base is key to our business model.

We define our number of subscribers
at the end of any particular period as the total number of connected vehicles and equipment using our platform at the end of such period.
As at financial years ended February 28, 2025, and February 29, 2024, Cartrack had 2,302,236 and 1,971,532 subscribers, respectively,
which represents net subscriber growth of 330,704 or a 17% increase from period to period.

As at February 29, 2024, and February 28, 2023, Cartrack had 1,971,532
and 1,717,077 subscribers, respectively, which represents net subscriber growth of 254,455 or a 15% increase from period to period.

                                         As at February 28/29                                                                           Y-o-Y %  
                                                         2025                     2024                     2023 (2)                        2025  
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Subscribers (as at end of period)                                2,302,236                1,971,532                    1,717,077               

Subscription revenue is a key metric we use to evaluate
our business as we derive substantially all our revenue from Cartrack’s sale of subscriptions to its next-generation SaaS cloud
platform.

For the financial years ended February 28, 2025, February
29, 2024 and February 28, 2023, Karooooo’s subscription revenue was ZAR 4,068.2 million, ZAR 3,535.8 million and ZAR 3,010.0 million,
respectively, which represents a 15% and 17% increase, respectively, compared to the prior period, as a result of resilient subscriber
growth.

Cartrack’s subscription revenue increased 15% to ZAR