MiX Telematics Limited (NYSE:MIXT) Q3 2023 Earnings Call Transcript

Stefan Joselowitz: Yes. I think it’s certainly a combination of a big focus on cost control, specifically what we would deem nonstrategic costs. So we certainly have been tightening our belt and we’ll continue to do so. Combined, of course, with increased revenue, which I guess, that’s where the magic happens. If you can grow your top line faster than the costs are being added on in the business, you unlock efficiency and drive margin expansion. And we’re certainly seeing that impact in our business as we’ve reported over the last couple of quarters, and we’re certainly expecting that expansion to continue.

Matt Pfau: Last one for me. You called out the M&A team, Joss. What are you seeing there in terms of pipeline and willingness of assets to potentially sell themselves?

Stefan Joselowitz: So certainly, we are — I’d call it improvement. I guess we’re — in terms of the conversations we’re having, I think the valuation expectations have moderated somewhat in terms of setting the size of the assets that we’re looking at. So I think these kind of times do play favorably into the hands of organizations such as ourselves that have strong unleveraged balance sheets that are cash flow positive as thankfully, we are starting to enter a phase of good cash generation again. And I think it does put us in a relatively strong position to potentially take advantage of opportunities that might come along. So certainly, the team is building a nice pipeline. We’re having some interesting conversations, nothing that’s clear and present as we speak, but certainly interesting stuff.

Operator: Ladies and gentlemen, that concludes our question-and-answer session. I’ll turn the floor back to Mr. Joselowitz for any final comments.

Stefan Joselowitz: Thank you, Melissa. Great job. We’d like to thank everyone for listening to today’s call and we look forward to speaking with you again when we report our fourth quarter and, of course, full year fiscal 2023 results shortly. Also, please stay tuned for details regarding our upcoming Investor and Analyst Day as we hope to see many of you there. Last, I would like to acknowledge the contributions of our worldwide team. Their tireless efforts and commitment to MiX were instrumental in our successful quarter. Thank you, guys, for your role in advancing our goal of being a top provider of fleet and mobile asset management solutions. Thank you, everyone, and have a wonderful day.

Operator: Thank you. This concludes today’s conference call. You may disconnect your lines at this time. Thank you for your participation.