The GetSwift Ltd (ASX: GSW) share price is up 10% to a record high of $1.73 this afternoon and up 470% over the past 5 years despite the software-as-a-service delivery logistics business releasing no news to the market.
The GetSwift business model is synchronised to the growth of the digital economy as its software lets online delivery companies assign drivers and routes in the most timely and cost effective manner possible. For example, GetSwift boasts it has a contract with UK food delivery giant Just Eat (owner of Menulog) to provide its software to Just Eat's UK online food delivery business.
The company also boasts that it has signed up major clients such as the Commonwealth Bank of Australia (ASX: CBA), Pizza Hut and tobacco maker Phillip Morris.
All this might sound impressive, but GetSwift delivered revenues of just $184,000 for the six-month period ending June 30, 2017. In total it delivered an operating cash loss for the six-month period of $496,000, with $15.7 million in cash on hand.
At $1.73 the market is ascribing it a valuation of around $125 million, although it has flagged that investors should expect "cash outflows to increase over the next few quarters". This looks a stock to watch from the sidelines given its lack of cash flows and ritzy valuation.
