PUDO Inc (CSE:PDO) (OTCQB:PDPTF), North America’s only carrier-agnostic parcel pick-up and drop-off network, posted full-year results on Friday that saw its revenue jump 34.6% year-over-year on the back of increasing parcel volumes and new services.
For its fiscal year ended February 29, 2020, the Toronto-based company reported revenue of $1.1 million, compared to 832,885 in fiscal year 2019.
The company said the revenue bump could be attributed to a “significant increase in Failed First Attempt parcel volume and new PUDO services launched in FY 2020 offset by a 10.9% decrease in member shipments.”
PUDO narrowed its full-year net loss to $2 million for the year, with basic and diluted loss of $0.08 per share, compared with a net loss of $3.4 million, with basic and diluted loss of $0.18 per share for the year ended February 28, 2019.
The company reported a full-year gross profit of $0.6 million, a 7.9% rise compared to the 2019 fiscal year. However, as a percentage of revenue, the gross profit in FY 2020 decreased 54.1%, due to a shift of revenue from border member shipments towards partner shipments which have greater direct costs.
"Overall, and notwithstanding economic and pandemic-related supply chain factors outside of our control, I am very pleased with the growth and performance of the company as it relates to expansion, and to increasing pay-as-you-go services with existing and new partners,” PUDO CEO Frank Coccia said in the results statement.
“We navigated some major adjustments this past year to streamline productivity and reduce operating expenses, and we successfully executed some long-awaited trials with major players. We are very well positioned to leverage this traction and accelerate PUDOpoint activations, parcel volume, and revenue," he added.
While the company continued to strategically manage the growth and development of the network throughout FY 2020, overall parcel volume increased by 25.3% compared to the year ended February 28, 2019
Parcel volumes during Q4 FY 2020 increased by 56.8% compared to Q4 FY 2019 and partner shipments increased by 98.5% in the same quarter over the same period in the year earlier. During the same time, member shipment volumes were down 1.9%, as a result of reduced cross border shopping demand.
In FY 2020, partner shipments represented 65.3% of the company's total parcel volumes, up from 51.2% in the prior fiscal year.
During FY 2020 total Failed First Attempt (FFA) parcel volume increased by 39.6% over FY 2019, while during Q4 FY 2020 FFA parcel volume increased 49.4% as compared to FFA parcel volume in Q4 FY 2019.
The company said that despite the global disruption to the e-commerce supply chain caused by the early 2020 onset of the coronavirus pandemic, “e-commerce as a whole and logistics in particular, adjusted at lightning speed” to recover and gain considerable ground.
“This underscores the importance of relationships and network integration during the critical last-mile,” the company noted.
In leveraging these sensibilities with consumers and like-minded business organizations, PUDO said it has a “wide-open opportunity” to grow its business from a consumer membership level, and by default involve the “many e-commerce ecosystem players that those consumer members conduct online business with; including those overseas.”
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