Revenue grew 29% for the quarter ending January 31, 2024
Operating expenses reduced by 26% since the beginning of the year
Operating loss improved by 38% since the beginning of the year
Net income improved 92% in the third quarter and 96% year-to-date
Revenues on track for estimated 5% growth in FY24
WINDSOR MILLS, Md., March 7, 2024 (Globe Newswire) — Connexa Sports Technologies Inc. (Nasdaq:CNXA) reported its results of operations for the quarter and nine months ended January 31, 2024, providing an update and review of its operations.
Revenue for the third quarter ended January 31, 2024 was $2.1 million, an increase of 29% compared to $1.6 million in the prior year period, as the company caught up with unfulfilled orders reported at the end of the second quarter. It was reported that it became a dollar. . Higher marketing and general and administrative expenses increased his loss to $2.2 million in the quarter from $1.1 million in the year-ago period.
For the nine months ended January 31, 2024, the Company reported revenue of $7.5 million compared to $7.6 million in the prior year period, and gross margin increased from 31.2% to 37.8% year over year. . Operating loss improved significantly to $5.3 million, approximately 38% lower than the operating loss of $8.6 million in the prior year period.
“Despite ongoing challenges with inventory availability for our tennis launchers and pickleball launchers, our underlying slinger bag business remains resilient, with consistently high levels of consumer demand. If we had inventory to meet our on-book order demand, our sales would have increased by up to 10%. The impact of consistent gross margin improvements and operating expense reductions in the first nine months of fiscal 2024. The reductions have clearly led to significant improvements in both operating income and net income performance.Given current supply chain challenges, our FY2024 revenue forecast is expected to be This is revised to achieve approximately 5% growth,” said Mike Varady, CEO of Conexa Sports Technologies.
“Slinger bags continue to enjoy high levels of support from tennis consumers around the world, and we are currently seeing strong demand for our pickleball launcher,” he continued. “Unfortunately, U.S. consumer demand continues to outstrip supply, and we found ourselves short on inventory for several periods last quarter. We continue to work with our supply teams in Asia to We are increasing our inventory for the remainder of this financial year.”
As part of its Sport-as-a-Service vision, the company began beta testing its Slinger app for tennis, bringing its patent-pending AI algorithms and analytics to more than 1,500 avid tennis players around the world. The Slinger app, available for IOS and Android, records video of practice sessions and match play, analyzes plays, and provides specific, actionable feedback on how players can improve. Feedback from our beta testers over the past six weeks has been extremely positive, providing important insight and feedback to our AI engineers on which features and analytics will be most valuable to you as a player. This gave the AI team clear direction on the small improvements and upgrades needed.
“We see our AI platform as central to ‘enhancing’ Connexa’s brand portfolio across multiple sports disciplines. This provides real-time data and analysis for players across all sports disciplines. “Of course, the Slinger app is designed to be used as a standalone app or in conjunction with players who use the Slinger Bag his launcher,” commented Balady.
“This AI marketplace offers opportunities for additional future revenue growth based on subscriptions ranging from $15 per month and $100 per year, respectively, and we plan to launch a freemium version in the coming weeks,” he said. ” he concluded.
Conexa Sports Technologies Co., Ltd.
Consolidated Statement of Income (USD) (unaudited)
9 1/2 months ending January 31, 2024 and 2023
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9 months are over |
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3 months are over |
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January 31st |
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January 31st |
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January 31st |
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January 31st |
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2024 |
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2023 |
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2024 |
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2023 |
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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 |
||||||||||||
|
. |
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|
gross profit |
2,832,427 |
2,378,159 |
1,292,715 |
1,069,826 |
||||||||||||
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Operating expenses |
37.8 |
% |
31.2 |
% |
||||||||||||
|
sales 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 expenses |
– |
65,164 |
– |
3,638 |
||||||||||||
|
total operating expenses |
8,154,612 |
11,000,270 |
3,485,837 |
2,110,443 |
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operating loss |
(5,322,185 |
) |
(8,622,111 |
) |
(2,193,122 |
) |
(1,040,617 |
) |
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|
Non-operating income (expenses) |
||||||||||||||||
|
Total non-operating income (expenses) |
2,464,911 |
(9,671,802 |
) |
(1,579,506 |
) |
(5,790,155 |
) |
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Net operating loss before provision for revenue |
||||||||||||||||
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Income tax operations and reserves |
(2,857,274 |
) |
(18,293,913 |
) |
(3,772,628 |
) |
(6,830,772 |
) |
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shareholder letter
Further information for shareholders can be found in our open letter posted on our website at https://www.connexasports.com/investor-relations/.
About Conexa Sports Technologies:
Connexa Sports is a leading connected sports company providing products, technology and Sport-as-a-Service across a variety of sports disciplines. Connexa's mission is to reinvent sports through innovation driven by an unwavering focus on today's sports consumers.
contact address:
investors@connexasports.com
www.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 anticipated or implied by the forward-looking statements. There is a possibility.
The actual results are as follows: “Item 1A. “Risk Factors'' in our 10-K filing as of September 14, 2023 and our ability to continue as a going concern. Therefore, you should not rely on forward-looking statements, which speak only as of the date of this press release. However, you should review the factors and risks described in the reports we file with the SEC from time to time after the date of this press release.
Additionally, statements such as “we believe” and similar statements reflect our beliefs and opinions on the subject matter concerned. These statements are based on information available as of the date of this press release. Additionally, while we believe that the information provides a reasonable basis for these statements, that information may be limited or incomplete. Our statements should not be construed as an indication that we have thoroughly investigated or considered all relevant information. You are cautioned not to place undue reliance on these statements as they are inherently uncertain.
Although the Company believes that the expectations reflected in the forward-looking statements were reasonable at the time they were made, they cannot guarantee future results, levels of activity, performance or achievements. Further, neither we nor any other person assumes responsibility for the accuracy or completeness of these forward-looking statements. The cautionary statements contained or referred to in this section in connection with the forward-looking statements contained in this press release and any written or oral forward-looking statements that may subsequently be issued by us or on our behalf. matters must be carefully considered.
