Zoom2u continues to pile on the runs in Q3, with more growth yet expected in quarters ahead
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Zoom2u continues to hit growth metrics, as the tech play makes serious moves on lucrative markets in North America and Europe.
Logistics tech firm Zoom2u (ASX:Z2U) continues to deliver on its ambitious growth metrics in Q3, with revenue doubling compared to pcp.
There were upbeat numbers all-round, as the Z2U delivered revenue of $1.1 million in Q3 of FY22, 120% higher than the corresponding quarter last year.
That took Zoom2u’s year-to-date revenue to $3.7m, 58% more than last year.
Its GMV (gross merchandise value) was $3.5m for the quarter (up 96% on pcp), taking its total GMV year-to-date for FY22 to $14.5 million, an increase of 62% on pcp.
The company’s flagship SaaS product Locate2u continues to grow strongly, winning 120 new customers in the quarter, with most signing 12 month contracts.
“We have had a very strong Q3 of FY22. Traditionally the months of January and February are quiet as the ecommerce peak season has passed and many Australians are on vacation,” said Zoom2u’s founder and CEO, Steve Orenstein.
“However, we have seen tremendous growth relative to the same period in the prior year, with strong growth in GMV and revenue from the Zoom2u business,” he added.
Z2U’s core service is the Zoom2u platform, which is 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 platform passed 2.7 million completed deliveries in late March, as the market continues to shift towards customers with larger volume requirements.
To capture more of this market, Zoom2u is working with a number of large enterprise customers to trial the Platform. These trials have so far shown positive signs, and some could potentially lead to sales contracts.
Meanwhile, the Locate2U platform, which is a SaaS-based tracking delivery service that allows clients to manage their logistics in-house, is also gaining rapid traction globally.
During the quarter, 120 new customers were onboarded choosing a full year contract, bringing the platform to host a total of well over 300 customers.
Locate2U is starting to gain traction in the North American market, with a number of prospects in the region being added to the pipeline.
The platform is also expanding in the UK, with the first sales representative appointed in London, as the company looks for a rollout into European markets.
Historically, Zoom2u’s revenue in the first half (July to December) is stronger than the second half, with deliveries increasing over the period through to the holiday season, driven by large e-commerce volumes.
This means there could potentially be a long runaway ahead as we head into the second half of the calendar year.
And while Zoom2u executes on its global scaleup strategy, the company still managed to finish the March quarter with a healthy cash balance of $5.8m.
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.