Cycliq Group Ltd Reports Impressive Q4 2024 Performance
CYQ (CYQ) Share Update July 2024 Wednesday 24th
Cycliq Reports Strong Q4 Performance with 32% Increase in Customer Receipts
Cycliq Group Ltd (ASX: CYQ) has released its Appendix 4C Quarterly Report for Q4 2024, showcasing a remarkable 32% increase in customer receipts compared to the same period last year.
Instant Summary:
- Successful launch of Cycliq's Fly6 Pro camera.
- 32% increase in customer receipts for Q4 2024 compared to Q4 2023.
- Net cash inflow from operations was $316,000.
- Stock of Fly12 Sport devices depleted globally during UpRide 4th Birthday sale.
- Legal proceeding initiated by Cycliq Research and Development (HK) Limited.
Q4 Performance
Cycliq Group Ltd reported a significant increase in customer receipts for Q4 2024, reaching $1.427 million, a 32% rise from $1.076 million in Q4 2023. This impressive growth is largely attributed to the successful launch of the Fly6 Pro device.
The Fly6 Pro is Cycliq's most advanced product to date, featuring 4K video recording, 5Ghz Wi-Fi downloads, and up to 7 hours of battery life in a robust IP67 housing. This new product sets a high benchmark for Cycliq's future premium offerings.
Sales Boost and UpRide 4th Birthday Sale
The June 2024 UpRide 4th Birthday sale also contributed to the sales boost, with global stock of Fly12 Sport devices being depleted. UpRide has generated over 13,000 curated and geolocated cycling incident submissions since its inception in 2020, providing valuable data for improving cycling safety and product development.
Opportunities and Outlook
Looking ahead to Q1 of FY2025, Cycliq plans to replenish stock in global warehouses and implement software and logistical improvements to streamline distribution and reduce shipping costs in the USA, its largest market. These preparations are crucial for the anticipated Black Friday sales period.
Corporate Update
On 20 June 2024, Cycliq announced it had received a Writ of Summons for a legal proceeding initiated by Cycliq Research and Development (HK) Limited. The company is actively defending the claim and challenging the jurisdiction of the court.
Additional ASX Information
The company reported a net cash inflow from operations of $316,000 for the quarter. Operational expenses included product and manufacturing costs ($398,000), administration and corporate costs ($146,000), and staff costs ($322,000). Payments to related parties amounted to approximately $43,000, comprising Director services ($38,000) and Non-Director Services ($5,000).
The strong Q4 performance and successful product launch are likely to positively impact Cycliq's stock price. The increased customer receipts and strategic preparations for future sales periods demonstrate the company's growth potential and operational efficiency. However, the legal proceeding could introduce some uncertainty and risk.
Investor Reaction:
Investors and analysts have reacted positively to Cycliq's strong Q4 performance and the successful launch of the Fly6 Pro. The significant increase in customer receipts is seen as a strong indicator of the company's growth trajectory. However, some caution is advised due to the ongoing legal proceeding.
Conclusion:
Investors should keep an eye on Cycliq's stock as the company continues to show strong performance and growth potential. The upcoming replenishment of stock and preparations for the Black Friday sales period could further boost the company's financials. Monitoring the legal proceeding's outcome will also be crucial for assessing long-term impacts.