Like for many ASX small caps, 2020 has been pretty tumultuous for fibre-network operator Superloop (ASX:SLC).

But after increasing its focus on costs and preparing for the loss of some revenue during the peak of the market chaos in March, the company had some good news for the market this morning.

Traffic on its Asia-Pacific fibre network has actually grown by more than 30 per cent “within a matter of weeks” across March and April, the company said.

Superloop attributed the increase to the shift towards work-from-home practices, as well as a pickup in activity for video conferencing and streaming services.

The company said it remains on track to achieve the mid-point of its sales guidance for the June 2020 financial year.

Back in early March, RBC Capital Markets analyst Garry Sherriff flagged potential headwinds for Superloop in connection with a reduction in traffic on its network for two key revenue streams — hotel guest wifi and shopping centres.

Superloop also expected a decline in those areas, but the company’s announcement this morning also indicates its been one of the beneficiaries of the new work-from-home paradigm, which has emerged as a key investment theme in the wake of the crisis.

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Superloop said the rise in traffic across its Asia-Pacific markets had also taken place on its existing network infrastructure, which meant it had extra capacity to handle further traffic volume without additional capital expenditure.

The company said annualised revenues from its fibre network came in at $5.3m for the March quarter, which compares favourably with the December-half total of $7.8m.

Contract lengths during the period varied from one year to five years. Superloop said it also benefited from accelerated book-to-bill cycles, which allowed it bill customers faster and manage cashflow — initially outlined as a key strategic focus of the business when the COVID-19 crisis hit in early March.

Investors approved of the update, sending Superloop shares to a new 2020 high of $1.16 after the stock fell as low as 45c during the height of the market selloff.


In other ASX tech news today:

Cloud-based (SaaS) logistics platform Yojee Ltd (ASX:YOJ) also rose strongly in morning trade, after signing a three-year services agreement with Kuehne + Nage, a logistics provider based in the Phillipines.

The deal will see Yojee’s SaaS platform integrated into Kuehne + Nage’s ecommerce fulfilment centre. Yojee said revenues from the deal were “not financially material at this stage and due to the variability and difficulty in estimating country and transaction volumes”.

Investors sent Yojee shares more than 25 per cent higher in morning trade to 3.3c, still off from the 12-month high of 12c reached last July.