Yojee (ASX:YOJ) share price slides despite 63% revenue growth in FY21

We take a look at the software and logistics company's earnings result

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The Yojee Ltd (ASX: YOJ) share price has sunk into the red in the opening of trade on Tuesday after the software and logistics company reported its FY21 earnings.

Yojee shares are now changing hands at 23.5 cents apiece, a 2.08% drop from the open.

Let's investigate further.

Yojee share price sinks following wider net loss after tax

  • Revenue from ordinary activities grew 63% year-on-year to $1.06 million from $654,000
  • Software revenue increased from $435,000 to more than $860,000
  • Network revenue decreased to $203,240 from the year before
  • Loss after tax attributable to members increased 83% from the year prior to $11.3 million
  • Cash and cash equivalents increased more than 300% to $18.4 million in FY21
  • Net cash flows from financing increased to $19.5 million, due to $20 million in proceeds from issue of securities at 20 cents per share
  • Loss on earnings per share (EPS) increased from 68 cents to $1.06 per share.

What happened in FY21 for Yojee?

In a potential positive for the Yojee share price, the company increased its revenue from ordinary activities by almost 63% to $1.06 million in FY21.

The bulk of this revenue came from an increase in the company's software revenue, which almost doubled from $435,000 to $860,000 over the year. Network revenue came in quite flat from FY20 at just over $200,000.

This came through the income statement and increased the net loss after tax by 83% from the year prior, from $6.2 million to $11.3 million.

As a result, the total comprehensive loss for FY21 came in at $10.3 million, a significant increase from the $5.9 recognised last year.

Earnings per share also came in behind FY20, recording a loss per share of $1.06 versus 68 cents a year ago.

Despite these headwinds, Yojee left FY21 with $18.4 million in cash, an increase of more than 300% from the year prior.

When analysing its financial statements, we see net cash flows from financing increased to $19.5 million, and this was from the issuance of securities throughout the year which raised an additional $20 million for Yojee. This explains the large increase in Yojee's cash balance from last year to now.

Yojee also stated it has 4 "global enterprise leaders" contracted as of FY21, and more than 100 "leading trucking companies" in its network.

What did management say?

Speaking on the year that was, Yojee managing director Ed Clarke said:

Our SaaS [software as a service] company has experienced incredible growth and monumental agreements over the last year. Solving the biggest problems and making our customers delighted is at the heart of Yojee's success, which we believe will continue to be our competitive advantage in the future and help us grow even faster.

Touching on future technology plans for the business, Clarke added:

A suite of platform enhancements is currently being beta tested with plans for wider rollout throughout 2022 giving us additional revenue streams from new and existing customers. In addition, discussions are well advanced to add to our enterprise customer base as well as growth in the SME space.

What's next for Yojee and its share price?

Yojee's management is "budgeting (revenue) to continue to grow at double-digit rates throughout 2022".

The company also has a "suite of platform enhancements" that are currently in beta testing and set for rollout over the coming year.

From the upgrades, Yojee expects to see additional revenue streams from existing customers. It has also been active in adding to its "enterprise customers base as well as growth in the SME space".

Given the uncertainties still surrounding the Covid-19 pandemic, management did not provide specific revenue or earnings guidance in its FY21 report.

The Yojee share price has climbed 20% this year to date and has gained 33% over the last 12 months. These results have outpaced the S&P/ASX 200 index (ASX: XJO)'s return of about 25% over the past year.

The author Zach Bristow has no positions 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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