As we become expectant to be able to order just about anything same-day and know alarmingly accurately exactly where it is until the doorbell rings, delivery tech company Zoom2u Technologies (ASX: Z2U) looks set to benefit as their first FY results show, highlighted by a 63% increase in revenue to $4.63m
Despite the rise in revenue, Zoom2u also reported a significant NPAT loss, which ballooned 340% to -$4.9m, including IPO costs of $400k. However, this result was largely expected given it is the Company’s first year post-IPO where the focus has been on growth and investment to set them up for the years to come.
The Company has two core products, the Zoom2u platform and their SaaS offering – Locate2u, which allows businesses to show customers exactly where their parcel is on the road and its route.
Between the two products, Zoom2u believes there is a $20 billion addressable market – with the majority being the vast potential for Locate2u, which is seeing favourable global trends as consumer higher expectations towards their deliveries begin to evolve.
The Zoom2u platform was able to break into this addressable market with the assistance of the Covid-19 lockdowns, as deliveries became one of the most vital necessities of lockdown life. Especially as us Melbournians sat there patiently waiting for the doorbell to ring just to feel the rush of seeing another person.
The Locate2u segment is where the company is also seeing the majority of its relative growth, which saw a 1500% rise in revenue compared to the year prior. And now is being used outside transport/couriers, with chemists, food and alcohol delivery services, and even pet deliveries beginning to use the technology.
In the Company’s letter to shareholders, CEO Steve Orenstein and Chair Drew Kelton said, “It has been an extremely busy and successful 12 months for our businesses, as we execute on our mission to empower customers to thrive through our last mile technology innovations”.
“Our two core products, the Zoom2u Platform and the Locate2u Software as a Service (SaaS) product have both delivered exceptional growth over the past 12 months, and are well placed to continue to grow strongly into the future.
“Whilst demand for the Zoom2u service was undoubtedly assisted by the Covid-19 lockdowns in Sydney and Melbourne in the August to October 2021 period, Zoom2u volumes throughout the 2022 year were consistently higher than in 2021. We have continued to find opportunities to assist retailers and e-commerce businesses, who are looking to offer their customers a fast, transparent and reliable delivery experience. These businesses view the delivery experience as a means to differentiate from their competitors and are an integral part of their service offering.
This is the first full year result for the Company following their IPO in September 2021 which raised $8 million at a $0.20 Offer Price, giving the Company a market cap of $34.7m at the time.
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