Software as a service for vehicles company Connexion Telematics (ASX: CXZ) has published record full-year results for the past financial year, stating it had “delivered a strong set of results against a backdrop of economic uncertainty”, caused by COVID-19.
In headline figures, Connexion’s revenues were up 131% to $8.2 million while net profit after tax grew 587% to more than $3 million, indicating that the company bucked the impact of COVID-19.
As a means of reassuring investors, Connexion said the effect of COVID-19 on its operations was “largely mitigated” by an increase in recurring revenues.
As part of the summary of its full-year results, Connexion said its proprietary SaaS product, OnTRAC, was currently being utilised by US carmaker General Motors, as part of its courtesy transportation program.
Other carmakers such as Cadillac have also opted for Connexion’s solution as part of its own “courtesy transportation alternative”.
Connexion said OnTRAC is currently the only SaaS courtesy transportation program solution software used by GM, which includes additional car brands such as Buick, GMC, Chevrolet and Cadillac.
The company claims OnTRAC is used daily by over 10,000 end-users, specifically at the dealership level.
Furthermore, Connexion said revenue derived from OnTRAC sales grew from an initial 23,000 pre-registered vehicles in the early part of last year, although the company’s plans for a strong 2020 were dented by the impact of COVID-19.
As a direct result of the various COVID-19-related lockdown measures, subscriptions decreased from 72,000 vehicles in March to 64,000 vehicles in June 2020 – a decline of 11%.
During the past year, Connexion generated over 2 million individual vehicle loan contracts through OnTRAC – a feat the company said added to the growing dataset available for “future monetisation opportunities”.
“Whilst Connexion has currently been impacted by COVID-19, those financial impacts are somewhat mitigated by the primary revenue source being based on the maximum number of courtesy vehicles managed online, and not directly linked to sales,” the company said.
To further supplement its strong trend-busting numbers and teflon COVID-19 immunity, Connexion said its consolidated total assets rose 71% from $3.3 million in June 2019 to $5.7 million in June this year.
Moreover, Connexion reported that its consolidated net assets increased from $1.7 million to $4.8 million over the same period – a jump of 182%.
Connexion said that continued improvement in the positive net asset position was a result of “operational performance, strong cash management and the elimination of all corporate debt”, whilst also reporting that its tech and support team had expanded by 33%.
The annual report also showed Connexion’s net cash inflow from operating activities had expanded to $1.5 million from $842,188 in 2019.
With financial performance hitting record numbers at Connexion, the company has, surprisingly, been without a permanent chief for the past three months since the cloak-and-dagger departure of previous managing director Guy Perkins.
Mr Perkins’ arrival at Connexion in August 2019 was, seemingly, positive and considered a good pick given the litany of his previous executive positions at multiple of IT and software companies, including as a founding director at Spookfish and chief executive officer of aerial imagery company NearMap (ASX: NEA).
However, with less than a year of tenure under his belt, Mr Perkins resigned his post under unknown circumstances in June this year. In his stead, existing director Aaryn Nania was named as the temporary successor to take the reins as interim chief executive officer, during the best run of performance in Connexion’s history.
Connexion declared that it is actively seeking a suitable permanent candidate to “lead the company’s growth strategy”.
“The board would like to thank its committed and innovative team, led by chief operating officer Tasso Koutsovasilis, for its dedication throughout the year. These strong results are a testament to the team’s unrelenting commitment to progress,” the company said.