At time of writing, the share price of Yojee Ltd [ASX:YOJ] is up a whopping 47.44%, trading at 11.5 cents per share.
There had been muted signs of a revival for the Yojee share price in the lead up to today’s announcement after a prolonged downturn:
The latest news out of Yojee is that it has signed an important services agreement with a major logistics company.
Three-year SaaS agreement is a boon for Yojee’s share price
After coming out of a trading halt with the announcement, the Yojee share price flew up.
The three-year master services agreement is with Geodis Singapore Pte Ltd and will subject to termination and renew every 12 months.
With the potential for expansion, the SaaS (Software as a Service) agreement will govern multiple projects across the Asia Pacific region and proceed on a project by project basis.
The revenue derived from the agreement will be subject to Yojee’s SaaS pricing model with setup, subscription, professional service and transaction fees to be applied.
The company noted that there could be more news to come:
‘At this stage there is one project commencing with further potential projects to follow. The Company will provide market updates on projects as applicable.’
Yojee Managing Director Ed Clarke, remarked on the agreement:
‘We are excited to be selected for this opportunity as we have strategically aligned ourselves to the current needs of the market with innovative technology and are uniquely positioned both technically and geographically to understand and deliver a solution against the requirements of Geodis, a true global leader. This milestone validates our mantra of any business of any size, and also proves the capabilities of our world leading logistics technology.’
What does this mean for Yojee?
Yojee offers a powerful suite of products that use AI, machine learning and blockchain for logistics operations.
This includes ‘smart dispatching,’ a route optimisation algorithm, and blockchain-based data storage/audit trails.
As someone who used to work for a logistics company, all of these features would have been desirable at the time, with countless man hours spent on paperwork and stuck in traffic — not to mention the time management spent drawing up rosters and assigning jobs.
The main question is whether or not the company can continue inking new deals and growing revenue.
As per its most recent Quarterly Activity Report, it reported a $1.35 million loss through to 31 March 2019, $4.656 million in cash and cash equivalents and $188,000 in receipts from customers and other income.
Based on this information, the company appears to be working with a fine margin for error.
However, there could be significant potential for growth following the significant milestone Yojee achieved today.
Blockchain and AI are certainly the future and Yojee will be looking to capitalise on greater interest in applications of these technologies.
For Money Morning