Revenue up 29 percent for the quarter ending January 31, 2024
Operating expenses reduced 26% year-to-date
Operating loss improved 38% year-to-date
Net income improved 92% for Q3 and 96% year-to-date
Revenue on track for estimated 5% growth in FY24
Windsor Mills, MD, March 07, 2024 (GLOBE NEWSWIRE) -- 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 $100, respectively, and we now expect to launch the freemium version in the next few weeks."
CONNEXA SPORTS TECHNOLOGIES, INC
CONSOLIDATED STATEMENTS OF OPERATIONS (IN US$) (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.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 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.
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