Here's why the Yojee (ASX:YOJ) share price is up 31% today

The software company's shares are on fire today, and here's why…

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It's only Monday, but already the Yojee Ltd (ASX: YOJ) share price is off to a flying start this week. Yojee shares are up a healthy 31.11% at the time of writing, trading at 17 cents a share. That comes after the company previously closed at 14 cents a share last Friday.

So what might be going on today to cause such a dramatic jump in this software company's valuation?

A business update…

Well, it appears that a business update that Yojee released to investors this morning just before the market open might be the primary catalyst for this move today.

In this update, Yojee informed the markets that it has signed a major expansion agreement with an "existing global enterprise customer". This agreement will, according to Yojee, "clear the way for deployment from one country at present to 18 additional countries across APAC [Asia Pacific Region].

Yojee said the agreement covered "major parts of the customers' operations including distribution and warehousing logistics along with ecommerce". It is also effective for a minimum term of 3 years across these 18 countries.

Here's some of what Yojee managing director Ed Clarke had today on this announcement:

We are pleased to report this latest development, coming only a short time following announcing an expansion order in the Philippines last week with the same global enterprise customer. Importantly, this significantly increases Yojee's directly addressable revenuegenerating parcel movements…

Our embedded growth roll-out strategy is materialising as expected and supports our goal of rolling-out to 126 Logistics Hubs over 3 years with global enterprise customers whom we are already working with operating in APAC. With nearly $20m of cash to fund this growth, our team is confident and focused on creating great customer outcomes.

Evidently, investors are sharing in this optimism today, judging by the performance of the Yojee share price today so far

About the Yojee share price

Yojee is an ASX tech company specialising in cloud-based logistics. Its online platform is supplied on a software-as-a-service (SaaS) model, with customers paying a monthly fee to use the service. Although the Yojee share price is on fire today, the company's success over the past year or two has been more patchy.

Yojee shares are currently down more than 35% from the 52-week high of 29 cents that we saw back in September last year. They are also down 20% year to date so far in 2021. However, the company is up 167% over the past 5 years.

At the current Yojee share price, the company has a market capitalisation of $171.65 million.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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