Locate Technologies Leverages AI Amid Mixed Q3 Revenue Results
Locate Technologies Limited reported flat group revenue for Q3 FY25, with Locate2u growing 10% while Zoom2u declined 11%. The company continues to embed AI as a strategic growth and cost optimization tool.
- Group revenue steady at $1.4 million for Q3 FY25
- Locate2u revenue up 10% to $681k, Zoom2u down 11% to $720k
- Group EBITDA loss narrows to $91k excluding one-off expenses
- 4% reduction in operating expenses for both business units over 12 months
- $500k placement to wholesale investors and directors pending shareholder approval
Steady Revenue with Divergent Business Unit Performance
Locate Technologies Limited has released its Q3 FY25 results, revealing a flat group revenue of $1.4 million compared to the prior corresponding period (pcp). This overall stability masks contrasting performances within its two main business units. Locate2u, the company’s logistics technology platform, posted a 10% revenue increase to $681,000, driven by new sales targeting medium-sized enterprises and ongoing platform enhancements. Conversely, Zoom2u, which includes 2u Enterprises, experienced an 11% revenue decline to $720,000, primarily due to reduced volumes from enterprise customers.
EBITDA and Cost Management
The group reported an EBITDA loss of $91,000 for the quarter, excluding expenses related to employee share option plans and a one-off payroll tax payment. Zoom2u achieved a positive EBITDA of $306,000, while Locate2u recorded a loss of $60,000. Notably, the company has implemented cost reduction initiatives resulting in a 4% decrease in operating expenses for both Zoom2u and Locate2u over the last twelve months. These savings reflect ongoing efforts to optimize operations amid fluctuating revenue streams.
AI as a Core Growth and Efficiency Driver
Central to Locate Technologies’ strategy is the integration of artificial intelligence across its operations. The company emphasizes an “AI first, then headcount” approach, leveraging AI to augment or automate roles before expanding staff. This strategy aims to enhance scalability, reduce costs, and improve customer service. Current AI applications include machine learning for proof of delivery verification, AI chatbots for customer data queries, and AI tools to accelerate development and personalize support. Locate2u is also developing AI-as-a-Service offerings to empower its customers to deploy AI within their logistics operations.
Capital and Market Position
In April 2025, Locate Technologies completed a $500,000 placement to wholesale investors and directors, with $150,000 committed by directors pending shareholder approval at the upcoming Extraordinary General Meeting on 1 May 2025. The company holds $1.27 million in cash as of 31 March 2025 and maintains a market capitalization of $11.3 million. With over 199 million shares on issue and a shareholder base exceeding 1,500, Locate Technologies continues to position itself as a scalable delivery platform connecting businesses and consumers through fast, transparent logistics services.
Looking Ahead
Locate Technologies is focused on completing enterprise implementations, rolling out new billing engine features, and expanding its sales engine to acquire SME customers globally. The company’s commitment to AI-driven innovation and cost discipline will be critical as it seeks to convert revenue growth into sustainable profitability. Investors will be watching closely for the outcomes of the upcoming EGM and the impact of AI deployments on operational efficiency and customer experience in the coming quarters.
Bottom Line?
Locate Technologies’ AI-driven strategy offers promise, but mixed unit results and modest EBITDA losses underscore the challenge ahead.
Questions in the middle?
- Will director participation in the $500k placement receive shareholder approval at the EGM?
- How quickly can AI initiatives translate into meaningful cost savings and revenue growth?
- Can Zoom2u reverse its revenue decline amid reduced enterprise volumes?
