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Connexion share price doubles after strong quarterly report

Technology
ASX:CXZ      MCAP $27.90M
25 July 2019 23:28 (AEST)

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Automotive software company Connexion’s share price has doubled this morning following the release of it quarterly activities report.

The company reported total revenue at $1.7 million during the last quarter and an increase in cash position of $939,000.

The smart-car technology developer says its aim is to revolutionise tech in the automotive industry.

As part of this focus, Connexion finalised the roll out of warranty program with Chevrolet and Cadillac, called the Courtesy Transportation Program and Cadillac Courtesy Transportation Alternative, respectively.

The programs, initiated late last year, offer transport services for customers having their vehicles serviced under warranty.

On top go this, subscriptions for the company’s OnTRAC program in partnership with General Motors have reached over 70,000. The software acts as a fleet managing device.

The company says dealership analytics, reporting and user functions will continue to be enhanced, while new opportunities with General Motors will be explored.

New partnerships with various original equipment manufacturer vehicle dealerships in America and Australia are also set to be pursued.

Subscriptions have reached close to 5000 for another of Connexion’s vehicle management services, Commercial Link.

This brought the company’s subscription revenue to $1.6 million last quarter, up from $1.3 million in the previous quarter.

According to Connexions, monthly subscription revenue is expected to be $550,000 to $600,000 going forward.

To top it all off, Connexion announced at the end of May that it is officially cent debt free.

Connexion’s share price has increased by 91.67 per cent today, currently sitting at $0.023 per share.

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