Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 93

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 4A
Chunk 93
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ization
of our platform and is an indicator of pricing efficiency, competitiveness and market positioning. ARPU is calculated on a quarterly basis
by dividing the cumulative subscription revenue for the quarter by the average of the opening subscriber balance at the beginning of the
quarter and closing subscriber balance at the end of the quarter. The result is then divided by three to reflect monthly ARPU. On an annual
basis, Cartrack’s ARPU is calculated as the average of the four quarterly ARPUs in that year. Cartrack’s ARPU has been fairly
consistent since inception. Given our economies of scale and vertically integrated business model, the monthly ARPU of approximately ZAR
158.

The following table shows our historical
ARPU for each of the periods presented:

                                                            As at February 28/29                                                              Y-o-Y %  
                                                            2025                      2025                   2024               2023 (2)         2025  
 ───────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
                                                            (U. S.$ (1))              (in R’s)                                                         
  Average Revenue Per Subscribers (a non-IFRS measure)                                              158                160                             

  (1)      For convenience purposes only, amounts in South African rand as at February 28,                                                                

  (2)      We have elected to omit discussion of the earliest of the three years covered                                                            
           by our consolidated financial statements presented in this annual report because that disclosure as at and for the financial year ended  
           February 28, 2023 was included in our annual report on Form 20-F (File No. 001-40300), filed with the SEC on June 13, 2024, under the    
           section titled “ Item 5. Operating and Financial Review and Prospects.”                                                                  
 ────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────

Adjusted Earnings Before Interest Depreciation Taxation
and Amortization (“ Adjusted EBITDA”) (a non-IFRS measure)

In addition to our results determined in accordance with
IFRS, we believe Adjusted EBITDA, a non-IFRS measure, is useful in evaluating our operating performance.

We use Adjusted EBITDA in our
operational and financial decision-making and believe Adjusted EBITDA is useful to investors because similar measures are frequently used
by securities analysts, investors, ratings