Cycliq Group Boosts Revenue 18% Amid Strategic AI Partnership and Board Refresh
Cycliq Group Limited reported an 18% revenue increase to $2.9 million for the half-year ending December 2024, driven by higher transaction values and a revamped marketing strategy, despite a modest net loss of $211,214.
- Revenue up 18% to $2.97 million from prior year
- Net loss narrowed slightly to $211,214
- 10-year AI technology license signed with NVISO Group Ltd
- New non-executive directors appointed in November 2024
- Cash position strengthened to $1.12 million at period end
Revenue Growth Amid Operational Advances
Cycliq Group Limited has reported a solid half-year performance for the period ending 31 December 2024, with revenue climbing 18% to $2.97 million compared to $2.52 million in the previous corresponding period. This growth was primarily attributed to a higher average transaction value, reflecting the company's sharpened focus on product quality and customer engagement.
Despite this top-line improvement, the company recorded a net loss after tax of $211,214, a modest improvement from the $230,695 loss reported in the prior year. EBITDA also showed positive momentum, increasing by 13%, underscoring operational efficiencies beginning to take hold.
Strategic AI Partnership and Product Innovation
A key highlight of the period was Cycliq's strategic move to integrate advanced artificial intelligence technology into its product suite. In August 2024, the company inked a 10-year license agreement with NVISO Group Ltd (soon to be BeEmotion.ai Ltd) to embed AI-driven computer vision capabilities into its Fly camera range. This partnership aims to enhance cyclist safety through real-time threat detection and edge computing, positioning Cycliq at the forefront of smart cycling technology.
To support this initiative, Cycliq raised $352,000 in capital and committed $300,000 to research and development, signaling a clear investment in future product innovation. The company also initiated a review of its eCommerce platform and supply chain, with upgrades expected in 2025 to support scaling operations.
Marketing Success and Board Refresh
Operationally, Cycliq revamped its organic marketing strategy, leveraging social media platforms such as TikTok to generate viral content that amassed over one million views in August alone. This digital engagement translated into increased brand visibility and customer acquisition, reinforcing the company’s growth trajectory.
Governance changes were notable during the half, with the appointment of two new non-executive directors, Andrew Cotterill and Gareth Jakeman, in November 2024. Both bring expertise in scaling tech enterprises and strategy execution, complementing the existing board. Concurrently, Chris Mews resigned to focus on other commitments.
Financial Position and Outlook
Cycliq’s balance sheet showed improvement, moving from net liabilities of $11,980 at 30 June 2024 to net assets of $214,225 at 31 December 2024. Cash reserves nearly doubled to $1.12 million, providing a stronger liquidity buffer. The company also benefited from a $276,840 cash refund under the Federal Government's Research and Development Tax Incentive Scheme.
While the company continues to operate at a loss, management remains confident in Cycliq’s market opportunity and ability to generate sufficient cash flows from its core products, including the Fly 6 Pro and Fly12 Sport cameras. The directors have affirmed the going concern basis for the financial statements, supported by cash flow forecasts and potential capital raising avenues.
Looking ahead, Cycliq’s focus will be on executing its AI integration, expanding product features, and enhancing its digital sales channels. The establishment of an advisory board, including AI thought leader Professor Adam Osseiran, further signals the company’s commitment to innovation and strategic growth.
Bottom Line?
Cycliq’s revenue momentum and strategic AI partnership set the stage for a pivotal 2025, but sustained profitability remains a key challenge.
Questions in the middle?
- How will the AI integration with BeEmotion.ai impact Cycliq’s product competitiveness and revenue streams?
- What are the timelines and expected outcomes for the planned eCommerce and supply chain upgrades?
- How will the new board members influence Cycliq’s strategic direction and capital management?