Connexion Mobility Ltd (CXZ) announced its Q3 FY25 results, demonstrating continued growth in marketplace subscriptions and a strategic focus on R&D initiatives aimed at boosting sales for Original Equipment Manufacturers (OEMs) and large Dealer Groups. The company reported a 1% increase in revenue to $2.8 million, marking the tenth consecutive quarter of revenue growth. Gross profit saw a slight decrease of 1% to $1.9 million, while diluted earnings per share (EPS) decreased by 12% to 0.068 US cents. Net Profit Before Tax (NPBT) was $0.83 million, a 13% decrease compared to the prior quarter. Operating cash flow, however, surged by 293% to $0.66 million.
Connexion’s revenue growth was fueled by subscriptions and income linked to vehicle inventories. The company’s top priority is growing long-term shareholder value through sustainable and diversified earnings per share. Connexion is strategically investing in R&D to deepen customer relationships and drive sales growth. The company’s product enhancements focus on paid rental, reporting & analytics, marketplace, and DMS integrations. Sales efforts are geared towards deepening relationships with existing OEM counterparts and initiating new relationships with other departments and OEMs.
Connexion is also expanding its commercial partnerships, with increases in subscriptions for Tollaid and OnDemand. The company reported a rise in Customer Diversification AMRR (Annualized Monthly Recurring Revenue) by 81% at the end of March 2025, compared to June 2024. This metric measures revenue unrelated to the General Motors CTP program. During the quarter, Connexion repurchased 9.4 million shares at an average price of A$0.027 per share. At the end of the quarter, the company’s investment portfolio delivered a net return of +0.84%. Connexion’s management maintains a disciplined approach to costs, reinvesting earnings into long-term growth. They monitor global trade and tariffs, and their potential impacts on the automotive retail industry which may, in turn, affect the industry’s software needs.
