Connexion Mobility (ASX:CXZ) Reports Strong Q2 FY25 Performance
Financial Highlights
Connexion Mobility Ltd (“Connexion” or “the Company”) reported a robust financial performance for the quarter ended 31 December 2024 (Q2 FY25). The Company achieved total revenue of $2.8 million, marking a 6% increase over the prior quarter. Notably, subscription-based revenue and fixed-dollar SaaS revenue both reached all-time highs, contributing to the increase in gross profit, which rose 3% to $1.93 million.
Net Profit Before Tax (NPBT) surged 68% quarter-on-quarter to $0.96 million. The diluted earnings per share rose to 0.077 US cents, reflecting a significant 71% increase compared to the previous quarter.
Operational Achievements
Connexion continued to expand its mobility SaaS platforms, OnTRAC and Connexion, catering to US Automotive OEMs and franchised dealers. The Marketplace subscriptions showed emerging growth, while the OnDemand service progressed from pilot to general launch. Despite a focus on enhancing user engagement, operating cash flow decreased by 62%, amounting to $0.17 million for the quarter.
The Company added approximately 30 unique product sales during the quarter, consistent with previous performance.
Strategic Focus
The Company’s strategy emphasises product development and strengthening customer relationships to facilitate revenue growth. Connexion aims to solidify its position as a single platform for managing the logistics of fleet and mobility operations, with a focus on courtesy transportation solutions.
Managing Director and CEO Aaryn Nania stated, “We believe that deepening and expanding our customer relationships will ultimately lead to sales growth via our proprietary Marketplace.” Connexion remains committed to reinvesting earnings for future growth while managing costs diligently.
Outlook
Looking ahead, Connexion anticipates software adoption among Original Equipment Manufacturers (OEMs) and dealerships to improve customer experiences and operational efficiencies. The Company aims to leverage its existing user base to explore new revenue opportunities and expand its presence in the automotive retail sector.
All reported figures are in USD and are unaudited unless otherwise stated.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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