Nuheara Limited (ASX: NUH) (Company or Nuheara) has commenced FY21 strongly with invoiced sales revenue of $3.5m for the first quarter (Q1). This was driven by a solid recovery from COVID-19 related manufacturing delays experienced in the previous quarter with the shipment of 6,595 units (65% IQbuds2 MAX, 35% Other), plus Phase I of an agreement with technology multinational HP Inc for the development of an ear bud variant by Nuheara that satisfies HP’s own use case.
- Invoiced quarterly revenue up 543% on same period last year: FY21 Q1 total also exceeds total FY20-revenue by 103%.
- Increased diversification of income streams: Invoiced $1.8m in Product (Nuheara branded products) and $1.7m in Services (OEM/HP).
- New orders of 2,111 units for the quarter. Q1 is seasonally the smallest retail quarter of the year, plus reduced Direct To Consumer (DTC) marketing spend to focus on clearing backorders.
- Increase in Average Sales Price (ASP) to $417 for IQbuds2 MAX orders: Sales momentum maintained with lower levels of discounting during the Quarter, resulting in increased margin.
- DTC Return on Advertising Spend (ROAS) for the quarter was marginally down at 1.74x. Expected to improve in Q2 as backorder diminished and shipping times reduce towards Ship On Order.
- FY21 Q1 cash receipts were up 18% ($532K) on same period last year. Reflects positive momentum in DTC despite lower marketing spend.
- Strong orderbook entering Q2: $1.05m IQbuds2 MAX plus $2.0m Services1 (HP OEM)
Full Report: Quarterly Activities Report – September 2020
Media and Investor Relations
Shane Murphy, FTI Consulting
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