Q2 Activity Report and 4C

?Hub Expansion Strategy on Track

Highlights:

• Enterprise customers and hubs expand, validating Company’s strategy and exponential revenue growth capacity with revenue up 58% on prior quarter to AU$531k (up 160% same quarter prior year), Cash Receipts up 56% on prior quarter to $346k
• Success with Container and Pallet hub strategy which results in higher revenue per transaction and expansion into Europe; key drivers in quarter where recurring type revenue being the main contributor to results
• 11 live hubs (3 hubs going live late in reporting quarter not yet contributing meaningfully to revenue), further 3 under implementation plus advanced discussions for further hubs across all 4 enterprise clients
• Strong cash runway (AU$15.4m) to support hub development, along with the promising ‘Smart Connected Warehouse’ product in beta phase places the Company in an exceptional position for further growth across coming quarters and in the longer term

Yojee noted Q2 FY2022 Revenue of AU$531k - implying a ARR of AU$2.12m. The Dec quarter represents a YoY growth of 160% and a 58% increase on the prior quarter (Q1 FY22). 14 Hubs are now live, which is 14% of their planned 126 hubs. Transactional volume was down from 680,000 'planned deliveries' in Q1 to 366,139, which they attribute to "movement types and patterns" - this is something I'd like to investigate more.

Overall reasonable announcement, nothing to blow your socks off; growth is large yes, but coming off a small base, this growth will 'slow' as more hubs are implemented so will be interesting to see how the market reacts to this, as I believe this is factored into thir current price. Hub implementation is something I'll keep an eye on in the lead up to their annual.

Full announcement here.

Disc: Held.

Announcement from Yojee (YOJ) this morning:

Yojee Rebounds and Delivers Accelerated Growth Post Covid Impacts 

HIGHLIGHTS

• October saw 184% YoY growth for the same month, also well up on recent months and the Company remains confident of strong continued year on year growth in FY2022 despite a Covid significantly impacted September quarter
• Multiple countries remain on track for hubs to go live by end of the calendar year, including imminent Europe go-live, inline with its embedded logistics hub growth pathway rollout with existing global enterprise clients
• Yojee Labs and its IoT Product have gained further traction, and the new ‘YoRate’ pricing module is moving into live testing, the Company's most significant product release this year
• Well funded (A$17.2m at bank 30 September 2021) and positioned to continue strong growth journey with all enterprise clients in advanced stages of further expansion discussions 

No surprises that I'm bullish on this company and their outlook. I see supply chain logistics as a huge growth area and Yojee are taking the right steps to furthering their market share moving forward.

Happy to hear some contrarian views on this, so if you do have some bear cases please let me know. Currently this is slightly overweight in my portfolio (IRL and Strawman).

Read the full announcement here.

Yojee Expands Beyond APAC

Great announcement from Yojee this morning deploying its Logistics Platform into an additional country, in Europe – the first outside of APAC. What strengthens this is the fact that this signing is with an existing global enterprise client.

"The agreement with the Client who has operations in over 100 countries, is the first outside of APAC and marks Yojee’s entry into Europe. Implementation will begin immediately and go-live is expected within two months."

I see this as a really big step for the company - Europe is a large market that is clearly on their radar to expand further into. They continue to execute on their growth strategy, reinforces my thesis for the company.

Disc. Held IRL and SM

Another good announcement from Yojee today:

- Yojee receives further order from existing global Enterprise Client to deploy its Platform into the Philippines, continuing its expansion through its next phase of growth in APAC

- Client now live in 8 countries, representing majority of client’s regional presence

- Yojee moves to two customers and 2 hubs total in the Philippines

- Well funded (A$19.4m at bank, 30 June 2021) and positioned to work through deployments and change process of digitising land transport, one of the world’s largest industrial sectors

Continuing the trend and theme from this company of late; expanding it's presence in South-East Asia, and moreover the APAC region. Anticipating this to reach an inflection point whereby the network-effect takes hold and more customers continue jump on.

Yes, these certainly tick the box for all "buzz-words" - however the company is actually delivering, managing to walk their talk. 

Good cash in the back too. 

Disc; held IRL and Starw portfolio. 

Followed for years, conviction continues to grow. 

Yojee signs another global top 10 logistic group:

Yojee Signs 4th Global Top 10 Logistics Group

HIGHLIGHTS

? Yojee signs CEVA Logistics in Singapore on a multiyear agreement

? The first logistics hub deployment in Singapore is expected to be live in August

? Supports the provision and usage of Yojee’s software and network capabilities nationwide

Yojee announced that it has signed agreements with CEVA Logistics Singapore Pte Ltd, to deliver its solutions, in Singapore. The agreements support the provision for, and usage of, Yojee's leading network capabilities for domestic logistics nationwide. Implementation of Yojee’s solutions is planned to commence in August. The agreements are for an initial term of 2 years. Yojee's charges are broadly in line with the fee structure presented in the Investor Presentation dated 8 July 2021. CEVA Logistics, a world leader in third-party logistics, provides and operates transportation and supply-chain solutions for large- or medium-size national and global companies. CEVA Logistics offers a broad range of services in both Contract Logistics and Freight Management thanks to its approximately 78,000 employees and 1,000 facilities in more than 160 countries. CEVA Logistics is part of the CMA CGM Group, a world leader in shipping.

The more logistics groups Yojee adds, the stronger their network effect becomes. I belive this is strengthened even furter given it is focused on the Asian region where road-rail-ship freight is more difficult to track and trace.