PUDO Inc. Reports FY 2020 Third Quarter End Results and Outlook

PUDO Inc. (“PUDO” or the “Company”) (CSE:  PDO; OCTQB: PDPTF), North America’s only carrier-neutral parcel pick-up and drop-off network (the “Network“), today filed interim financial results (unaudited) and operational highlights for its third quarter which ended November 30, 2019 (“FY 2020”). The Company continued to see growth during Q3, specifically in partner shipments making use of its Canadian Network of PUDOpoints, increasing 15.4% as PUDO’s customers grew their business and deposited parcels in a larger number of Network locations.

Financial Results Summary

PUDO Inc.
Condensed Interim Consolidated Statements of Loss and Comprehensive Loss
(Expressed in Canadian Dollars)
(Unaudited)

Performance this quarter reflects the momentum gained as the Company continues to stabilize its Network, suite of logistics services, and customer base in direct response to increased demand from contracted and piloting stakeholders within the e-commerce ecosystem.

Highlights include:

During Q3 of Fiscal Year 2020, PUDO continued to show revenue growth associated with ongoing demand for partner services which continues to reinforce the potential of the Company’s vision and corporate priorities. In this quarter, overall revenue was up 13.8% compared to the same quarter in the previous year. Strong growth in partner shipments was tempered by continued softness in member shipments sent to the Company’s associated US border points. This weakness is in the context of overall reduced demand for cross border shopping influenced by factors that include the lower value of the Canadian dollar relative to the U.S. dollar.

As in the prior quarter, the Company continued to build parcel volume through the expansion of services to Canadian shipping partners. The Company continued to evolve and expand its current pilot programs with new and current partners offering them new services and expanding the footprint of PUDO’s existing suite of services as Network utilization grows.

As e-commerce continues to gain traction, large shippers and marketplaces are seeking out PUDO directly to help reduce friction in the fulfillment of orders to consumers as well as harnessing the potential of the Network when consumers/shippers need to drop parcels off at a convenient counter location.

Operational Analysis

While the Company continued to strategically manage the efficiencies of the Network throughout Q3 FY 2020, overall parcel volume increased by 5.2% compared to the three month period ended November 30, 2018 (“Q3 FY 2019”). During this quarter, Q3 FY 2020, partner shipments increased 15.4% over the same quarter in the previous year. During the same three month period, member shipment volumes were down 9.8% compared to the previous year, as a result of continued reduced cross border shopping demand. In Q3 FY 2020, partner shipments represented 65.3% of the Company’s total volumes, up from 61.4% in the prior fiscal year. During the nine months ended November 30, 2019 overall parcel volumes increased by 13.9% relative to the nine months ended November 30, 2018 in the prior year.

Outlook

The Company continues to work with existing and potential new partners to maximize parcel delivery and returns logistics through all levels of the ecosystem, to refine and integrate IT, and anticipate congestion. Together with current and potential partners, PUDO is reaching targets and satisfying requirements, and this bodes well for the future, and for expansion.  One of PUDO’s partners took time in Q3 to reorganize efforts for parcel expansion with their new and existing customers. To manage the large growth potential, they are making changes to their systems including integrations with PUDO. Their new volume is expected to begin arriving in PUDO’s Network late in Q4 FY 2020 or early in Q1 FY 2021. Planning efforts have expanded confidence in PUDO’s partnerships, and there remains tremendous potential for greater expansion of the PUDO Network and parcel volumes.

The Company remains focused on attracting new opportunities with other significant logistics 3PL partners capable of supporting accelerated Network expansion on significant volumes and across multiple revenue streams.

A complete copy of the unaudited condensed interim financial statements for the three and nine month periods ended November 30, 2019 can be found on the CSE website at www.thecse.com and on SEDAR at www.sedar.com.

SOURCE PUDO Inc.