Zoom2u Technologies Limited (ASX:Z2U) has released its report for the quarter ending June 2023, reporting a strong increase in revenue from its Locate2u business.
Locate2u records 160% growth
Locate2u has recorded revenue of over $500,000 for the fourth quarter of the 2023 financial year. This is 160% growth compared to the same period last year. It now contributes 41% of group revenue.
The group revenue recorded in the quarter was $1.3 million. This is a growth of 47% when compared to the same quarter in 2022.
Founder and CEO of Zoom2u, Steve Orenstein, is pleased with the growth path of the group. “As economic conditions deteriorate and businesses look for ways to operate more efficiently, we are seeing more opportunities for the Locate2u product. Businesses can use Locate2u to allocate routes to drivers more efficiently and can use route optimization to save time and money when making their deliveries.”
The Zoom2u business continues to maintain and grow revenue with a steady 11% increase in revenue in the quarter, compared to the same period last year, driven by a focus on profitable bookings.
There has been some decline in volume, which should be viewed in the context of the current economic conditions.
Cost optimisation
Zoom2u has optimised processes and attained operational efficiencies which has enabled a reduction in headcount of 33. “Staff cost is the biggest element of our cost base today. We have made some staff reductions and continue to make those as we’ve done in previous quarters. It’s always challenging to remove staff members. I think it’s the right thing to ensure when we are spending money we are getting a return on investment.”
New products to be released
Locate2u offers GPS tracking software that gives a business the opportunity to track the live location of their fleet of vehicles and assets. It also offers booking management that enables businesses to plan, schedule and dispatch deliveries much easier and faster.
A key new feature that will be on offer soon, is a rates and billing engine. Orenstein is excited about adding this to benefit courier companies. “If you are a business managing your own fleet of drivers, Locate2u works really well. It does things like route optimization, it gives live tracking to your customers. But it doesn’t allow a courier company to use it, because they can’t actually bill their customers. So we are building that. We are very close to getting that released out to the market.”
The Company is also building what it calls a carrier module. Orenstein says this will resolve a lot of problems courier companies are experiencing with overflow work. “If you are a business and you have a large amount of volume on certain days and you don’t have capacity within your own network, essentially your customers will suffer. With our carrier module we will connect you with other carriers in your area. That will be a global platform. Retail and e-commerce businesses will be able to make sure that their products actually get delivered every single day when they want them to be delivered.”
Cash used in operations
The Group managed to reduce its operating cash burn as a result of the cost savings and revenue growth achieved. Cash used in operating activities for the fourth quarter was $0.45 million. That’s 71% below quarter one of this financial year, and 34% lower than the previous quarter. The company remains focused on cost control and growth in Locate2u revenues. The business believes it will assist in reducing cash burn even further over the coming months. The Group’s total cash balance in June 2023 topped $3.8 million. This is set to cover at least 8 quarters of operating cash burn, based on the final quarter of 2023’s rate. Orenstein is optimistic about the future. “We continue to win new customers, upsell to existing customers and develop the product to meet new as well as existing customers’ needs.”
About the author
Mia is a multi-award-winning journalist. She has more than 14 years of experience in mainstream media. She's covered many historic moments that happened in Africa and internationally. She has a strong focus on human interest stories, to bring her readers and viewers closer to the topics at hand.
