Connexion Mobility grows revenue and expands with GM Canada despite profit dip

Connexion Telematics Limited ( (AU:CXZ) ) has provided an update.

Connexion Mobility reported that it continued supplying its mobility SaaS platforms to U.S. automotive OEMs and franchised dealers in the March quarter, while expanding operations into Canada and being selected as the sole software supplier for GM Canada’s Enhanced Exposure Program. The company delivered quarterly revenue of $3 million, up 5% with gross profit rising 11% to $1.9 million, though net profit before tax fell 31% to $0.6 million due to higher SG&A, as it invests in R&D, AI-enabled enhancements and broader customer relationships to diversify revenue, strengthen its position in courtesy transportation management and explore capital deployment options including potential M&A.

Product development during the quarter included new rental, analytics, payment, verification and AI support features, alongside customisation and multi-lingual capabilities to keep its mobility and fleet management platforms competitive. Connexion ended the quarter with $5.9 million in net cash and investments and no debt, and is prioritising reinvestment in the business and the deepening of OEM and dealership relationships to drive long-term shareholder value through more sustainable and diversified earnings per share.

More about Connexion Telematics Limited

Connexion Mobility Ltd is an Australian-listed software company that provides mobility software-as-a-service platforms, including OnTRAC and Connexion, to automotive original equipment manufacturers and franchised dealers. Its systems help manage courtesy transportation fleets such as loaner cars, shuttles and ride-hail, with a primary market focus on U.S. automotive retail and an expanding presence in Canada.

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Technical Sentiment Signal: Sell

Current Market Cap: A$17.43M

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