The company is also executing on a global sales strategy following its acquisition of the Local Delivery Shopify App.

Logistics technology company Zoom2u (ASX:Z2U) has built product market-fit and is driving consistently strong growth as it builds out scale.

That was the picture which emerged from its positive half-year trading update this morning, where the company booked gross marketplace value (GMV) of $10.9 million, up 54% on the prior corresponding period (pcp).

The GMV growth flowed through to half-year revenues of $2.7m, a gain of 46% from the previous year.

The financial metrics were complemented by strong growth in new customers, along with accelerating momentum for Locate2u – Z2U’s SaaS-based tracking delivery service that allows clients to manage their logistics in-house.

 

Growing market

Z2U’s core service it’s a tech-based courier service that allows individually accredited drivers to make deliveries, with an algorithm-based platform that can respond flexibly to demand surges and provides detailed location data for customers.

The company’s results confirm that it’s established a first-mover advantage in logistics technology – a sector that’s already a $5bn market in Australia and expected to grow exponentially in the years ahead.

The company has already been operating for eight years after it was founded in 2014, with early backing from a group including Perennial Value Management and the billionaire Gandel family.

Among the 8,700 new customers the platform added in the December half, its client base now includes household names such as Australia Post, Best & Less, Couriers Please and JayCar.

The company added that H2 growth is already off to a good start, with metrics through January and early February tracking more strongly than the prior year period.

In addition, its Locate2u platform added 120 new customers including Bing Lee, Super Pharmacy, and ASX large cap waste management firm Cleanaway.

Also in the December half, Z2U completed the acquisition of the Local Delivery Shopify App in an $880,000 all-cash deal.

Integrating the Local Delivery app gives Zoom2u direct access to another 570 customers across more than 45 countries – thus providing additional leads for the Locate2u sales team.

The acquisition also gives Z2U an expanded presence in the huge UK and US markets, and in line with that market opportunity the first US-based sales representative has already started work.

Rounding out its global growth pipeline, Zoom2u also flagged traction in India where its on-ground sales team “has onboarded a number of new customers and continues to build out its pipeline”.

And while it executes on a global scale up, the company finished the December half with a healthy cash balance of $6.5m, which is net of funding costs for its acquisition of Local Delivery.

 

CEO view

Commenting on the results, CEO Steve Orenstein said the results reflect further market traction as clients see the value of deploying a leading technology solution in last-mile delivery.

“The Locate2u sales team is gaining traction with a range of small, medium and large businesses that recognize the need to offer transparent and efficient deliveries to their customers,” Orenstein said.

And along with its existing revenue growth, “early discussions with our new Local Delivery customers suggests a cross selling opportunity for the Locate2u product”, he added.

“I look forward to keeping Zoom2u shareholders up to date on our progress.”

This article was developed in collaboration with Zoom2u, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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