Connexa Reports FY 2024 Audited Financial Results and Provides Review of Operations

Rhea-AI Summary

Connexa Sports Technologies Inc. (Nasdaq:YYAI) reported its FY 2024 audited financial results, showing a 15% decrease in revenue to $8.4 million, primarily due to inventory availability issues. Despite this, the company saw improvements in several areas:

- Gross margin increased to 41%, driving a 22% rise in gross profit
- Operating expenses reduced by 60%
- Operating loss improved by 71% to $6.4 million
- Net income improved by 38% compared to FY 2023

The company also launched its Slinger App and acquired 20% of Yuanyu Enterprise Management. A change-in-control is expected upon completion of the share exchange acquisition, pending Nasdaq approval.

Positive

• Gross margin improved to 41%, resulting in a 22% increase in gross profit
• Operating expenses reduced by 60%
• Operating loss improved by 71% to $6.4 million
• Net income improved by 38% compared to FY 2023
• Launch of Slinger App on iOS and Android platforms
• Acquisition of 20% stake in Yuanyu Enterprise Management

Negative

• Revenue decreased by 15% to $8.4 million
• Inventory availability issues, particularly for tennis launchers, led to significant reduction in Q4 sales
• Net loss of $15.6 million for FY 2024

Gross Margin Improves to 41% on 15% lower revenues
Operating expenses reduced by 60%
Operating loss improved 71%
Net income improved 38%

Windsor Mills, MD, Aug. 06, 2024 (GLOBE NEWSWIRE) -- Connexa Sports Technologies Inc. (Nasdaq:YYAI) reported audited operating results for the FY24 period ended April 30, 2024 and provided an update of operations.

For the fiscal year 2024 ended April 30, 2024, the Company reported revenue of $8.4 million compared to $9.9 million in the year-ago period – a decrease of 15 percent. Despite on-going high consumer demand, the revenue shortfall can be directly attributed to inventory availability issues stemming back to the end of Q3. Gross margin continued to improve to 41% driving a 22 percent increase in gross profit for the full year. Coupled with significant decreases in operating expenses, the company reported an operating loss for the year of $6.4M – an improvement of 71 percent over prior year. Correspondingly the company’s net income further improved by 38 percent over FY2023.

“The on-going challenges faced by the company since the end of Q3 with inventory availability, for our tennis launcher in particular, drove an unexpected and significant reduction in Q4 sales. Despite this, the underlying Slinger Bag business remains resilient with high levels of consumer demand. The impact of our consistent growth in gross margins, coupled with the reduction in our operating expense base are delivering strong improvements to both operating and net income results.” said Mike Ballardie, CEO.

“Within Q4 the company continued its progress by launching its Slinger App on both iOS and Android platforms and by also concluding the acquisition of 20% of Yuanyu Enterprise Management. The Company now expects the balance of this share exchange acquisition to close within the coming weeks subject to Nasdaq approval. As previously announced, at the conclusion of this transaction a change-in-control will take place, with Slinger Bag and all its associated assets and liabilities separating out of Connexa and into a private company” concluded Ballardie.

CONNEXA SPORTS TECHNOLOGIES, INC
CONSOLIDATED STATEMENTS OF OPERATIONS (IN US$)
YEARS ENDED APRIL 30, 2024 AND 2023

		APRIL 30, 2024				APRIL 30, 2023
NET SALES		$	8,398,049			$	9,922,799
COST OF SALES			5,004,375				7,144,335
							.
GROSS PROFIT			3,393,674				2,778,464
OPERATING EXPENSES
Selling and marketing expenses			1,565,006				1,928,198
General and administrative expenses			8,271,823				22,743,877
Research and development costs			-				65,164
Total Operating Expenses			9,836,829				24,737,239
OPERATING LOSS			(6,443,155	)			(21,958,775	)
NON-OPERATING INCOME (EXPENSE)
Total Non-Operating Income (Expenses)			(9,193,263	)			(3,319,050	)
NET INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE PROVISION FOR INCOME TAXES			(15,636,418	)			(25,277,825	)
NET INCOME (LOSS)		$	(15,636,418	)		$	(71,153,685	)

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 July 27, 2024 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”, “expected” 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.

FAQ

What was Connexa Sports Technologies' (YYAI) revenue for FY 2024?

Connexa Sports Technologies (YYAI) reported revenue of $8.4 million for FY 2024, which ended on April 30, 2024.

How did Connexa Sports Technologies' (YYAI) gross margin change in FY 2024?

Connexa Sports Technologies' (YYAI) gross margin improved to 41% in FY 2024, driving a 22% increase in gross profit for the full year.

What was the main reason for Connexa Sports Technologies' (YYAI) revenue decrease in FY 2024?

The main reason for Connexa Sports Technologies' (YYAI) 15% revenue decrease in FY 2024 was inventory availability issues, particularly for tennis launchers, which led to a significant reduction in Q4 sales.

What significant improvements did Connexa Sports Technologies (YYAI) report for FY 2024?

Connexa Sports Technologies (YYAI) reported a 71% improvement in operating loss to $6.4 million, a 60% reduction in operating expenses, and a 38% improvement in net income for FY 2024.