Connexa Reports Third Quarter and Nine Months 2024 Financial Results and Provides Review of Operations
March 07 2024 - 9:20AM
Connexa Sports Technologies Inc. (Nasdaq:CNXA) reported operating
results for the quarter and the nine month periods ended January
31, 2024 and provided an update and review of operations.
For the third fiscal quarter ended January 31,
2024, the Company reported revenue of $2.1 million compared to $1.6
million in the year-ago period – an increase of 29 percent - as it
caught up on unshipped orders reported at the end of the second
quarter. Increased marketing and general and administrative
expenses increased losses for the quarter to $2.2 million compared
to $1.1 million in the same period last year.
For the nine month period ended January 31,
2024, the Company reported revenue of $7.5 million compared to $7.6
million in the same period a year-ago, with gross margin increasing
to 37.8% compared to 31.2% year-over-year. Operating losses
significantly improved to $5.3 million, down approximately 38
percent from the $8.6 million operating loss reported in the same
period last year.
“Despite the on-going challenges with inventory
availability for both our tennis and pickleball launchers, the
underlying Slinger Bag business remains resilient, with
consistently high levels of consumer demand. Sales would have been
up to 10% higher had inventory been available to meet the order
demand on our books. The impact of our consistent improvements in
gross margins, coupled with the reduction in operating expenses
over the first nine months of the fiscal 2024, are clearly
delivering strong improvements in both operating and net income
results. Based on our current supply chain challenges, our revenue
expectation for fiscal 2024 is revised to deliver annual growth of
around 5% with on-going improvements in margin and the operating
expense base,” said Mike Ballardie, CEO of Connexa Sports
Technologies.
“Slinger Bag continues to enjoy high levels of
support by global tennis consumers and we are now experiencing
strong demand for our pickleball launchers,” he continued.
“Unfortunately consumer demand in the US continues to outstrip
supply and we have found ourselves out of inventory for several
periods during the last quarter. We continue to work with our Asian
supply team to ramp up inventory for the balance of this fiscal
year.”
As part of its Sport-as-a-Service vision, the
Company initiated beta testing of its Slinger App for tennis,
bringing its patent-pending AI algorithms and analysis to over
1,500 avid tennis players across the globe. Available on IOS and
Android, the Slinger App records practice sessions or matchplay
video, analyzes play and provides specific actionable feedback on
how the player can improve. Feedback from our beta testers over the
past 6 weeks has been very positive and provided important insight
and feedback to our AI engineers as to what features and analyses
are the most valuable to them as players. This has provided the AI
team with a clear direction of the needed minor improvements and
upgrades.
“We envision our AI platform as being at the
heart of ‘powering’ the Connexa portfolio of brands across multiple
sports verticals. It will deliver real-time data and analytics for
players across all of our sport verticals. Of course, the Slinger
App has been designed to be used both as a stand-alone app or in
conjunction with a player using their Slinger Bag Launcher,”
commented Ballardie.
He concluded, “This AI market provides an
opportunity for future supplemental revenue growth based on monthly
or yearly subscriptions in the range of $15 and $100, respectively,
and we now expect to launch the freemium version in the next few
weeks.”
CONNEXA SPORTS TECHNOLOGIES,
INCCONSOLIDATED STATEMENTS OF OPERATIONS (IN US$)
(UNAUDITED)NINE AND THREE MONTHS ENDED JANUARY 31,
2024 AND 2023
|
|
NINE MONTHS ENDED |
|
|
THREE MONTHS ENDED |
|
|
|
JANUARY 31, |
|
|
JANUARY 31, |
|
|
JANUARY 31, |
|
|
JANUARY 31, |
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
SALES |
|
$ |
7,485,708 |
|
|
$ |
7,632,940 |
|
|
$ |
2,069,559 |
|
|
$ |
1,605,783 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF
SALES |
|
|
4,653,281 |
|
|
|
5,254,781 |
|
|
|
776,844 |
|
|
|
535,957 |
|
|
|
|
|
|
|
|
. |
|
|
|
|
|
|
|
|
|
GROSS
PROFIT |
|
|
2,832,427 |
|
|
|
2,378,159 |
|
|
|
1,292,715 |
|
|
|
1,069,826 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES |
|
|
37.8 |
% |
|
|
31.2 |
% |
|
|
|
|
|
|
|
|
Selling and
marketing expenses |
|
|
1,282,965 |
|
|
|
1,374,674 |
|
|
|
735,575 |
|
|
|
270,722 |
|
General and
administrative expenses |
|
|
6,871,647 |
|
|
|
9,560,432 |
|
|
|
2,750,262 |
|
|
|
1,836,083 |
|
Research and
development costs |
|
|
- |
|
|
|
65,164 |
|
|
|
- |
|
|
|
3,638 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating Expenses |
|
|
8,154,612 |
|
|
|
11,000,270 |
|
|
|
3,485,837 |
|
|
|
2,110,443 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
LOSS |
|
|
(5,322,185 |
) |
|
|
(8,622,111 |
) |
|
|
(2,193,122 |
) |
|
|
(1,040,617 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-OPERATING INCOME
(EXPENSE) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Non-Operating Income
(Expenses) |
|
|
2,464,911 |
|
|
|
(9,671,802 |
) |
|
|
(1,579,506 |
) |
|
|
(5,790,155 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS FROM
OPERATIONS BEFORE PROVISION FOR INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATIONS
AND PROVISION FOR INCOME TAXES |
|
|
(2,857,274 |
) |
|
|
(18,293,913 |
) |
|
|
(3,772,628 |
) |
|
|
(6,830,772 |
) |
Shareholder Letter
Further information for shareholders can be
found in an open letter posted on our website at
https://www.connexasports.com/investor-relations/
About Connexa Sports Technologies:
Connexa Sports a leading connected sports
company delivering products, technologies, and Sport-as-a-Service
across a range of sport verticals. Connexa’s mission is to reinvent
sports through technological innovation driven by an unwavering
focus on today’s sports consumer.
Contact
Information:investors@connexasports.comwww.connexasports.com
Forward-Looking Statements
Forward-looking statements are subject to known
and unknown risks and uncertainties and are based on potentially
inaccurate assumptions that could cause actual results to differ
materially from those expected or implied by the forward-looking
statements.
Actual results could differ materially from
those anticipated in forward-looking statements for many reasons,
including the factors described in “Item 1A. Risk Factors” in our
10-K filing as of September 14, 2023 and our ability to
continue as a going concern. Accordingly, you should not rely on
these forward-looking statements, which speak only as of the date
of this press release. You should, however, review the factors and
risks we describe in the reports we will file from time to time
with the SEC after the date of this press release.
In addition, statements such as “we believe” and
similar statements reflect our beliefs and opinions on the relevant
subject. These statements are based on information available to us
as of the date of this press release. And while we believe that
information provides a reasonable basis for these statements, that
information may be limited or incomplete. Our statements should not
be read to indicate that we have conducted an exhaustive inquiry
into, or review of, all relevant information. These statements are
inherently uncertain, and you are cautioned not to rely unduly on
these statements.
Although we believe the expectations reflected
in the forward-looking statements were reasonable at the time made,
we cannot guarantee future results, level of activity, performance
or achievements. Moreover, neither we nor any other person assumes
responsibility for the accuracy or completeness of any of these
forward-looking statements. You should carefully consider the
cautionary statements contained or referred to in this section in
connection with the forward-looking statements contained in this
press release and any subsequent written or oral forward-looking
statements that may be issued by us or persons acting on our
behalf.
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