Executive Summary
Connexa Sports Technologies Inc delivered a striking QoQ revenue surge in Q3 2024, with revenue of USD 3.27 million and a gross margin of roughly 77.3%, reflecting a favorable product mix and scalable margin structure at the top line. Despite the sizable gross profit, the company reported a net loss of USD 0.41 million for the quarter and a modest cash-flow contribution from operations (USD 41.6 thousand). The balance sheet shows a strong current position (current ratio ~4.78) underpinned by a large accounts receivable balance and a sizable intangible asset base, with negative net debt contributions, but a materially constrained cash position (cash and equivalents of USD 83.7k at period end) and limited liquidity headroom if near-term obligations materialize. Overall, the quarter signals meaningful revenue traction and a path toward profitability if operating leverage and working capital are managed, but the business remains exposed to AR concentration risk, working capital intensity, and execution risk in scaling product adoption. The absence of disclosed earnings call transcripts or formal forward guidance in the provided data necessitates a cautious interpretation of sustainability and medium-term visibility. Within the Consumer Cyclical leisure tech space, YYAI sits as a micro-cap with a favorable gross margin, but needs to demonstrate durable revenue growth and cash-flow scale to justify higher investor confidence.
Key Performance Indicators
QoQ: 805.21% | YoY:58.14%
QoQ: 3 667.09% | YoY:95.60%
QoQ: 138.77% | YoY:124.18%
Key Insights
Revenue: USD 3.2727m (YoY +58.14%, QoQ +805.21%). Gross Profit: USD 2.5285m (YoY +95.60%, QoQ +3,667.09%). Operating Income: USD 0.5303m (YoY +124.18%, QoQ +138.77%). Net Income: USD -0.4112m (YoY -, QoQ -). EPS: USD -0.065 (Diluted -0.0646). YoY and QoQ metrics reflect a sharp top-line expansion with margin expansion on gross profit, but net income remains negative due to non-operating items and tax effects given the data inconsistencies; current ratio 4.78 and cash ratio 0.0205 indicate strong...
Financial Highlights
Revenue: USD 3.2727m (YoY +58.14%, QoQ +805.21%). Gross Profit: USD 2.5285m (YoY +95.60%, QoQ +3,667.09%). Operating Income: USD 0.5303m (YoY +124.18%, QoQ +138.77%). Net Income: USD -0.4112m (YoY -, QoQ -). EPS: USD -0.065 (Diluted -0.0646). YoY and QoQ metrics reflect a sharp top-line expansion with margin expansion on gross profit, but net income remains negative due to non-operating items and tax effects given the data inconsistencies; current ratio 4.78 and cash ratio 0.0205 indicate strong short-term liquidity on a functional basis but near-term cash needs persist. Cash flow from operations USD 41.6k and free cash flow USD 41.6k suggest limited discretionary cash generation in the quarter. Accounts receivable USD 12.39m dominates current assets, highlighting working capital intensity and potential collection risk if the receivables base does not stabilize.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
3.27M |
58.14% |
805.21% |
| Gross Profit |
2.53M |
95.60% |
3 667.09% |
| Operating Income |
530.29K |
124.18% |
138.77% |
| Net Income |
-411.21K |
89.10% |
69.90% |
| EPS |
-0.07 |
99.92% |
72.92% |
Key Financial Ratios
operatingProfitMargin
16.2%
operatingCashFlowPerShare
$0.01
freeCashFlowPerShare
$0.01
Management Commentary
Transcript data not provided for QQ3 2024. No earnings call transcript was supplied in the dataset, so management commentary themes, nuanced guidance, or quote-level insights cannot be extracted from an official QQ3 call. When available, future updates should incorporate management emphasis on product cadence, enterprise partnerships, and monetization of Gameface AI to contextualize the revenue trajectory and margin profile.
Forward Guidance
No explicit forward guidance for QQ4 2024 or beyond was provided in the data. Nevertheless, the company’s strong gross margin and a large addressable market in paddle/pickleball-related sports equipment suggest potential for revenue expansion as product adoption accelerates. Key factors to monitor include: (1) sustainability of the Q3 revenue spike and whether it reflects a repeatable order flow or a one-off push; (2) improvements in working capital management to reduce days sales outstanding and improve cash conversion; (3) progression of any monetization initiatives around Gameface AI and other analytics offerings; (4) capital allocation decisions as the company scales through potential debt or equity funding; (5) competitive dynamics and channel diversification in the leisure/sports equipment ecosystem.