Zoom2u Technologies Achieves Positive EBITDA and Revenue Growth in Q1 FY25
ZOOM2U TECHNOLOGIES LIMITED (Z2U) Share Update October 2024 Tuesday 29th
Zoom2u Technologies Reports First Positive EBITDA Since IPO
Zoom2u Technologies Limited (ASX: Z2U) has announced its first positive EBITDA since its IPO in September 2021, alongside a 17% increase in revenue for Q1 FY25.
Instant Summary:
- First positive Group EBITDA of $73k since IPO.
- 17% increase in Group revenue to $1.53 million.
- Locate2u revenue increased by 12% to $0.66 million.
- Positive cash from operating activities of $37k.
- Zoom2u on-demand delivery platform revenue grew by 8% to $0.72 million.
- Cash balance of $1.76 million as of 30 September 2024.
Financial Performance
Zoom2u Technologies has reported a significant milestone in its financial performance for the quarter ended 30 September 2024. The company achieved a positive Group EBITDA of $73,000, marking an improvement of approximately $430,000 over the prior corresponding period (pcp), where a loss was recorded. This achievement is notable as it is the first time the company has reported a positive EBITDA since its initial public offering (IPO) in September 2021.
Group revenue for Q1 FY25 was $1.53 million, reflecting a 17% increase from the $1.31 million reported in the same quarter last year. This growth was driven by a 12% increase in revenue from the Locate2u business, which contributed $0.66 million to the total revenue. The Zoom2u on-demand delivery platform also saw an 8% increase in revenue, amounting to $0.72 million for the quarter.
Operational Highlights
Zoom2u's operational performance was bolstered by positive cash flow from operating activities, which amounted to $37,000, a significant improvement from the negative cash flow of $390,000 reported in the pcp. The company ended the quarter with a cash balance of $1.76 million, positioning it well for future growth and investment opportunities.
The company attributed its revenue growth to the successful signing of enterprise customers for its Locate2u platform, including major players like Winning, Designer Transport, and Roller Truck. These partnerships have enhanced the platform's functionality and integration into enterprise operations, driving increased adoption and revenue.
Future Outlook
Looking ahead, Zoom2u is preparing for its peak delivery period in Q2, which is traditionally the busiest season due to the festive period and increased e-commerce activity. The company is optimistic about further revenue growth during this period, supported by its strong performance in Q1.
The positive EBITDA and revenue growth reported by Zoom2u Technologies are likely to have a favorable impact on the company's stock price. Investors may view the first positive EBITDA since the IPO as a sign of the company's improving financial health and operational efficiency. The growth in revenue, particularly from enterprise customers, suggests a strong demand for Zoom2u's services, which could drive future profitability.
Investor Reaction:
Analysts are likely to react positively to Zoom2u's financial results, noting the company's successful transition to positive EBITDA and its ability to secure significant enterprise customers. The improvement in cash flow and revenue growth may boost investor confidence in the company's strategic direction and potential for future growth.
Conclusion:
Investors should consider Zoom2u Technologies' recent financial performance as a positive indicator of the company's growth potential. With the upcoming peak delivery season and continued focus on enhancing its platforms, Zoom2u is well-positioned to capitalize on market opportunities. Investors are encouraged to monitor the company's progress and strategic developments closely.