Executive Summary
Connexa Sports Technologies posted a material top-line contraction in QQ1 2024, recording USD 0.705 million in revenue, a year-over-year decline of 77.4% and a sequential drop of 22.7%. The gross margin stood at 38.6% (USD 0.272 million gross profit), but the company generated a substantial operating loss of USD 3.256 million and a net loss of USD 4.220 million for the quarter, driven primarily by elevated SG&A (USD 3.521 million) and a USD 0.966 million interest expense. Despite negative profitability, the company maintains a liquidity cushion anchored by USD 18.211 million in cash and short-term investments, with net cash provided by financing activities of USD 1.615 million and a modest operating cash outflow of USD 0.073 million in the quarter. The lack of quarterly earnings visibility is notable, but Connexa’s balance sheet shows significant liquidity headroom (cash and short-term investments) to support ongoing commercialization efforts around its Slinger device family and Gameface AI analytics. The absence of a formal forward-looking guidance limits near-term predictability, underscoring the higher-risk, high-variance profile of a small-cap sports tech company positioned for early-stage revenue growth.
Key Performance Indicators
QoQ: -22.74% | YoY:-77.41%
QoQ: -51.51% | YoY:-69.52%
QoQ: -190.39% | YoY:-75.51%
QoQ: 66.97% | YoY:-398.46%
Key Insights
Revenue: USD 704,899; YoY: -77.41%; QoQ: -22.74%
Gross Profit: USD 272,121; YoY: -69.52%; QoQ: -51.51%
Operating Income: USD -3,255,195; YoY: -75.51%; QoQ: -190.39%
Net Income: USD -4,220,745; YoY: -398.46%; QoQ: 66.97%
EPS (Diluted): USD -1.91; YoY: +95.06%; QoQ: +72.75%
Margin context: Gross margin 38.6%; Operating margin -4.62%; Net margin -5.99%
Cash flow: Operating cash flow USD -72,646; Free cash flow USD -72,650; Net cash from financing USD +1,614,958; End cash USD 1,711,283
Liquidity ind...
Financial Highlights
Revenue: USD 704,899; YoY: -77.41%; QoQ: -22.74%
Gross Profit: USD 272,121; YoY: -69.52%; QoQ: -51.51%
Operating Income: USD -3,255,195; YoY: -75.51%; QoQ: -190.39%
Net Income: USD -4,220,745; YoY: -398.46%; QoQ: 66.97%
EPS (Diluted): USD -1.91; YoY: +95.06%; QoQ: +72.75%
Margin context: Gross margin 38.6%; Operating margin -4.62%; Net margin -5.99%
Cash flow: Operating cash flow USD -72,646; Free cash flow USD -72,650; Net cash from financing USD +1,614,958; End cash USD 1,711,283
Liquidity indicators: Cash + short-term investments USD 18,211,283; Total current assets USD 21,184,400; Total current liabilities USD 13,747,072; Current ratio 1.54x; Quick ratio 1.42x; Cash conversion cycle markedly negative at -647 days due to payables timing and inventory dynamics.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
704.90K |
-77.41% |
-22.74% |
| Gross Profit |
272.12K |
-69.52% |
-51.51% |
| Operating Income |
-3.26M |
-75.51% |
-190.39% |
| Net Income |
-4.22M |
-398.46% |
66.97% |
| EPS |
-1.91 |
95.06% |
72.75% |
Key Financial Ratios
operatingProfitMargin
-462%
operatingCashFlowPerShare
$-0.03
freeCashFlowPerShare
$-0.03
Management Commentary
Transcript not available for QQ1 2024 earnings. No management call quotes were supplied in the accompanying data, so thematic highlights or quotes from executives could not be extracted. Investors should consider additional primary sources (press releases, investor presentations) for qualitative guidance until transcripts are published.
Transcript not available for QQ1 2024 earnings.
— N/A
Transcript not available for QQ1 2024 earnings.
— N/A
Forward Guidance
No explicit forward guidance was provided for QQ1 2024 in the supplied data. Given the revenue decline and continued operating losses, the near-term path to profitability hinges on revenue acceleration from Slinger and Gameface AI monetization, improved gross margin through product mix or scale efficiencies, and disciplined SG&A. Key factors to monitor include: (1) trajectory of unit sales or subscription revenue for Slinger devices and AI analytics; (2) cost containment to reduce burn rate; (3) capital-structure actions that minimize dilution while sustaining liquidity; (4) partnerships or licensing opportunities that expand addressable markets in pickleball, padel, and performance analytics. If management articulates a tangible revenue growth plan or introduces meaningful cost optimization, the outlook could shift meaningfully toward breakeven or EBITDA profitability.