- Digital Wine Ventures’ (DW8) flagship software service, WINEDEPOT, almost doubled its processed orders over the last quarter
- The service, a distribution platform for the wine industry, processed 7754 orders in the June quarter — a 93 per cent quarter-on-quarter increase
- The jump in sales translated to a 50 per cent increase in revenue, which reached $271,000
- The revenue shortfall, relative to the sales increase, was attributed to incentives from a support package program initiated during the quarter, which has since expired
- Digital Wine Ventures' shares are grey at market open, priced at four cents per share
Digital Wine Ventures’ (DW8) flagship software service WINEDEPOT almost doubled its processed orders during the last quarter.
The service, a distribution platform for the wine industry, processed 7754 orders in the June quarter — a 93 per cent quarter-on-quarter increase. Alongside the increase in orders, the company signed 39 new customers, a 111 per cent increase compared the previous quarter’s customer total.
The jump in sales translated to a 50 per cent increase in revenue, which reached $271,000.
While CEO Dean Taylor admits the quarter's revenue "underperformed" compared to other key stats, he says this was because of a support package program the company rolled out during the quarter. The incentives involved in the package helped draw the increased sales, but also negatively impacted revenue.
With the support package now expired, the company expects a clearer picture of the underlying revenue growth to emerge in the next quarter’s results.
With over six months of WINEDEPOT trading under its belt, Dean Taylor believes the company is ready to start scaling its operations.
“The trend lines across all key metrics are very encouraging and confirm that our technology and logistics platform is handling the compounding growth in customers, orders and cases shipped extremely well,” he said.
As part of the scaling process, the company is preparing to add a direct-to-trade marketplace service to WINEDEPOT. Dean went on to comment on the upcoming launch.
“To date, all of our growth has come from customers using our Smart Logistics Solution. While there appears to be plenty of latent demand for this proposition, the direct-to-trade marketplace will appeal to a much broader audience. Given the current market conditions, I expect an influx of wineries signing up to take advantage of our platform to reach trade buyers more cost-effectively,” he said.
Digital Wine Ventures' shares are grey at market open, priced at four cents per share at 10:18 am AEST.