From past quarterly reports the June qtr has been generally weaker, so I was hoping that last qtrs surprisingly low revenue was an anolmaly. Unfortunately, not so. The further decline in revenue needs a bit of reflection as to we're they are at. The spin and lack of specifics in these reports is frustrsting.
Firstly, I no longer see YOJ as having a developed platform and strategy where they are just in sales mode ramping up rollout to increasing numbers of customers.
They seem to have gone back in part into a development phase.
They have to control costs, so reading bewteen the lines they've focused on work in hand and solid implementation of Geodis, Landmark and let the existing sales force tick away on current leads. Revenue doesn't seem enough to have received full fees from geodis from their pricing guides, so they may be in a period of working with them on technology enhancements to suit their needs, which would be a positive if it increases functionality of the system for other multinationals, sort of what they did with projects for ups and dbschenker previously.
The SendYojee product is now decribed as a Singapore test bed, so I think we're seeing a strategy shift here away from that approach to focus on the Saas product. Just as blockchain drifted off into the basement locker, for possible future revival one day.
I'm actually encouraged if they are deferring growth for development around their big client needs to take them to the next level. But I don't know and only guessing.
Ultimately we'll only know that they're realising their potential when consistent revenue growth comes through, but that seems 3 to 4 quarters away once current contracts are bedded down and a much longer runway than I had hoped before revenue covers costs.
Still confident in management in trying to build a long term business rather than just gaming the sharemarket as so many spec stocks do, but need to put these back in the bottom draw for some time now, until they can prove some growth.
YOJ Price at posting:
7.2¢ Sentiment: Hold Disclosure: Held
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