JAYRIDE GROUP LIMITED — Call Transcript 2019

Sep 2, 2019

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ASX Announcement

3rd September 2019

FY19 Full Year Results Presentation Transcript

Jayride Group Limited (ASX:JAY) (“​ Jayride”​ or the “​ Company”​ ) the travel marketplace where travellers compare and book airport transfers today releases the transcript of the FY19 Full Year Presentation that took place on the 29th of August 2019.

Start of transcript

Rod Bishop:​ Thank you operator. Rod Bishop here, Managing Director of Jayride Group, together with Peter McWilliam, Chief Financial Officer. We're going to take you through a short introduction to Jayride's full year FY19 financial results. And what a year it was. Thanks very much for joining. It's a rainy afternoon in Sydney. It's good to be inside on a conference call. I know it's a busy time, so we'll keep it to 10 minutes give or take.

This was the year where Jayride became a true global leader in transport and travel technology. That's a landmark thing. We were casting our minds back to 1st July last year and thinking about how far we've come. 1st July last year we were a local operator. We were in five countries and all of our existing partners, whether it's Flight Centre or Expedia or Rome2Rio were all pushing us and saying guys, you've got something that works, but we're only interested in the transport industry if you can make it turnkey globally. So, that's what we did this year. I mean, seven years in the making to get to that landmark.

Shortly we'll go through the results, but at a very high level, I'd like to recap in this way. Every single world traveller needs transport for a seamless and connected trip. No one starts and finishes their journey at an airport when they're travelling. Every single person has a relationship with a travel brand that left them standing in the taxi rank. Not only is that ancillary revenue the brand has missed because they couldn't work it out, or maybe just didn't feel like it was worth the effort to do the transport, but it's also a terrible travel experience.

There are 7.7 billion trips made by travellers around the world every year to and from airports alone. 7.7 billion trips, and until now, not one credible truly global transport-focused aggregator to help travellers make the right choice. I mean, travellers

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are spoilt for choice and there are no monopolies here. There are multiple options in every destination on earth. So, how do you know who to choose?

This year we expanded, and now we get to give travellers that access to that choice. So, they'd be able to get the local knowledge before they go, and find the reviews that they can use. This is our opportunity, to create the traveller's trusted global transport brand so that when you hit the road and you're going someplace new – and you have that hotel brand you trust and that airline brand you trust – from now on you can also know who is that transport brand you trust.

Right now, no one car company on earth can possibly serve every one of those 7.7 billion trips at the 1,500 hundred plus airports we serve in 81 countries. That's more than Uber, that's more than any other company you could name. So, when the travel industry, whether it's the traveller who wants a trusted brand, or a travel brand who wants to be able to plug and play and turnkey has sought a solution, there hasn't been one until now. This is what we've done this year.

So, if we were to talk about how we came to this, it's seven years in the making. When we first started Jayride we saw that transport for travellers was going to be the next big thing for the travel industry to crack. Travellers need seamless experiences and they couldn't get them. The travel industry was hard at it, trying to work out how to address transport, and we knew that there would be technology that would be the solution and that's why we started. So, seven years, here we are, and we've finally shipped a feature complete product. I mean, it goes to the difficulty of actually achieving the goal.

Also, thinking about the market timing, I frankly think it couldn't be better. When we look at what's going on in both the transport industry and also the travel industry right now, we see industries converging on us. I mean, in transport you might have been of the opinion a couple of years ago that all transport will be one transport company, right. Silicon Valley based high tech, it's very compelling, you read about it in TechCrunch. You know, it was never really going to be the case, and now that everyone's starting to talk about profitability in ride-hail there is going to be price competition in markets. When you have Uber talking minimum wage, they no longer have a cost advantage over every other local incumbent. It's no longer Uber versus the transport industry, it's simply the transport industry – as dynamic and changing as ever. There didn't use to be apps and now there are. Similarly, there didn't use to be distribution to the travel industry and now Jayride is bringing it.

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Literally every man and his dog are talking about having a ride hailing brand now. I mean, whether you're Avis or Hertz and you're distributing your rental cars into there, or if you're a car manufacturer like Tesla or Cruise Automation owned by GM, or whether you're Google-owned Waymo, every single one of these companies are starting to talk about getting ride services going. Offering door-to-door solutions. So, travellers are about to be spoiled for more choice, not less. More of an ecosystem, less of a monopoly.

So, where will people go to choose? How will they compare if not a marketplace? That's the Jayride.com marketplace. The travel industry, for what it's worth, it sees it. I mean, you can read the headlines. Booking.com, £100 million investment in a Manchester global transport HQ. They don't have the technology that we've built. Similarly, Expedia have a lovely announcement right now. They'll connect you to the hotel for any flight that's delayed. Then I start to wonder how they're executing that and starting to see if we can work with them on it.

So, transport converging towards us; more fragmentation, very dynamic. Travel converging towards us; with words like the “seamless experience” or the “connected trip”. All the big players without the technology that Jayride has built, and we're here to help.

So, what a year. From local transport platform to global transport platform in a single year. The world's first platform where any transport company on earth can just simply list their services. We talk to transport companies about going global overnight. We talk to them about “plug and play” into any large TMC, travel management company, or online travel agency you want. They've never heard that before when we call them, a small bus company or car company in Bangladesh, or the Dominican Republic, or Bali. They've never heard that before, that they could access world travellers overnight through a single platform. Similarly, the first platform where every travel brand can now plug and play the whole global industry.

We only announced this in July, by the way, that we'd actually completed our global rollout. So, we've done most of FY19 still being not quite a complete solution but since the end of June, now 81 countries, 85% of the world's market access, all available turnkey, through one connectivity.

The travel brands, they can now reach every dispatcher, every driver that they want to on earth. If we don't have it yet we'll go get it for you free of charge. I mean, that's something they've never had the power to do before – to get the whole world full of

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door-to-door travel experience again overnight through one connection.

So, the global rollout gets a lot of attention. We did the technology piece of that in the first half of the financial year, and we actually did a whole lot of other things as well in that first half of the financial year.

More value for travellers, through all sorts of product feature enhancements. We pushed hard into organic traffic with ways to capture travellers at lower costs, and as a result of that, organic traffic is now one of our top channels if not our top channel. Partners is right up there competing with it. We launched whole new transport modes like ride-hail, and full-service patient assist transport that was a requirement of one of our travel management companies. A lot of releases. That was all in 1H.

Then taking a look to 2H, really just getting stuck into leverage. We can talk about countries and countries and countries, but what we need to do is we need to make a sustainable revenue growth – and eventually profitable – company. So, in 2H we got stuck into leverage.

That was about revenue growth and was also about the Gross Profit After Paid Acquisition (GPAPA), which is our key contribution-to-the-company, metric. You know, growth in that metric. It's exceeded all our expectations now. It's beaten our aspirational models even in the latest half, let alone what we're seeing in the latest weeks.

So, even with all of that, all that we've done, all that we've come so far since 1 July 2018, I'd say that we're still about 1% done in terms of what we've got to do. So, what do we want to do, thinking ahead? I'd like to probably – rather than help you digest the large set of numbers that we've shipped today, which are all there for you and we're available to answer questions at the end – I just want to focus us in on our 1-million and 10-million passenger trip goals.

It's a very straightforward thing, all right. We're sitting here today, we're doing 100,000 passenger trips in the last quarter more today. So, one million passenger trips is about two and a half times today’s run rates. Then 10 million on from that. You sit and look, and you say, well that's a fair multiple for a small company in Australia. So, what we're going to do and how we're going to do it becomes really important.

First, it's important to level-set, because 10-million passenger trips, we have bus companies on our platform that do that for themselves, local operators doing 10-million passenger trips, for example, SuperShuttle. For us to be a global marketplace and do that

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same volume is actually no big thing. Firstly, there's a funnel now. We previously couldn't access the whole world, now we can, and 6.6 billion trips a year go through airports we serve. That part is done. So, in FY20 and FY21 we get to leverage it. The API partners, the users of our website, everybody who comes requests a quote. We log the information and we send it to the transport companies and say, guys, this is the demand. These are the prices people want. These are the destinations people want, and they're able to bring those rates to market.

Or the on the partnership front. Our travel brands that have been so supportive, nonetheless haven't really pushed us. For years they've been waiting for us to go global. They wanted a single global turnkey solution and in July we finally announced it. That's July last month. So, the opportunity is for existing brands to leverage us more, I mean case in point, Flight Centre's been a strong supporter for a very long time but only really their Australian brands. For us to work with, for example, Flight Centre South Africa or Flight Centre India when we didn't have local coverage in those destinations, it was a non-starter, whereas now those brands are picking us up. So, there's a very straightforward thing now to lean into our existing partners, but also new partners too, who previously again wanted a turnkey solution for the whole world and we didn't have it to offer.

So, the ability to just double and double again these sorts of relationships now that we've got the infrastructure built, it's not going to take a long time and it's not going to be very expensive anymore. The partners are on board, the organic platform is built, the transport companies are onboard, they're dying for the insights. All the connections are made.

So, I guess the final thing I'll talk to you about how to make this happen, from 1-million to 10-million passenger trips is just about the traveller experience. We've said for a very long time that the traveller experience is the reason we're in the game, giving travellers this seamless experience so that when they have a set of brands that they take on holiday with them around the world, they can have a brand for transport too.

We've always nailed that discovery and booking experience. That discovery piece, we've always had it. But, making sure that you can always discover everything everywhere, that's new, right.

So, we think about how a traveller who maybe had experienced Jayride once, and done very well with it in Sydney or JFK, now all of a sudden can also say: “That worked. I'll give it

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a go in the Dominican Republic or Bali”. For us to be there ready and waiting with a solution, you know, that's the key. So, what we're really thinking about traveller experience now is it's an opportunity for us to lean hard into retention. You can see there are some retention numbers in the back of the slide deck and retention figures have gone up, rightly so. Here's a thing that has worked for you before and you would love to be able to use it in A, B, C destination and previously it just wasn't working there yet. Now it is. It's a very straightforward thing to reach out to all of those people who have travelled with us in the past to get them to come back. To lean heavily into Net Promoter Score. To lean heavily into retention and get them to convert.

So, near-term objective, 1-million. Long term objective, 10-million passenger trips. A very straightforward way to do it, simply connecting transport companies and travellers for great traveller experience, and really filling an empty hole in the travel industry, something that's been an opportunity for years but that no one could quite go and get.

The economics of it make sense. We've proved that in the last little while. The global rollout is possible, we've done it already. So, now it's just about leaning into that and really just scaling into the foundations.

With that in mind, I'd like to pass you over now to our CFO Peter McWilliam who will talk to you about the current results.

Peter McWilliam: ​ Thank you, Rod, and hello everybody. This financial year the major financial objectives were complete the global rollout of our transport platform, and then to leverage this platform to increase Net Revenue from Passenger Trips as well as the Gross Profit After Paid Acquisition. I'd now like to provide some insights about the performance in these areas as well as what we'll be focused on next, before finishing with a quick review of our cash performance and then answering some questions.

So, let's take a look at Net Revenue from Passenger Trips: Net Revenue over the year increased 71% across all regions, and 443% in new regions between H1 and H2 (now 18.5% of the total revenue from passenger bookings in H2). Following the completion of the global rollout revenue from international regions outside of Australia now exceeds 65% which we believe demonstrates great strategic value as well as a resilience in our revenue mix.

Performance improvements can be attributed to decreasing refunds, margin improvements, and increasing the number of bookings that travelled on the platform.

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There is significant scope to continue to improve all of these areas, particularly with our new big data insights showing us where we need to optimise our content, which is already producing results. Overall, we are pleased with the improved performance, particularly the growth of international markets and what it says about how one million passenger trips objective as well as the potential strategic value of the asset.

Okay, so let's take a bit of a look at the GPAPA performance: Jayride delivered new record Gross Profit After Paid Acquisition performance over the calendar year, with particularly strong performance in H2. FY19 represents a breakout year for Jayride, particularly the results in H2 after the completion of the global rollout. Jayride increased its Gross Profit After Paid Acquisition in FY19 from AU$500,000 to AU$1 million and improved it's Gross Profit After Paid Acquisition margin from 26% to 32%. The Gross Profit After Paid Acquisition margin in H1 was 6% before significantly increasing to 51% in H2. H1 performance data was polluted by the new region launches, meaning we can expect better performance in coming periods.

Interestingly, Gross Profit After Paid Acquisition margins in new destinations matched the performance of existing destinations, although being very early in its maturity curve. When pairing this performance with the 441% growth of Net Revenue from Passenger Trips in new destinations, it's clear why we're very pleased with the result. We're very happy with our performance at the Gross Profit After Paid Acquisition level and believe there is significant scope to continue to improve performance in this area as we continue to add long-tail unique content.

So, now that we've made great inroads with opening up future revenue and Gross Profit After Paid Acquisition growth we want to flag in the upcoming period we'll be sinking our teeth into improving our operational cost line. Operational costs primarily include onshore and remote people costs that are fulfilling functions that have not yet been automated as well as some variable costs like merchant fees and transaction fees.

In terms of technical challenges, there have been many other marketplaces that have automated these functions before us. We just committed to solving Gross Profit After Paid Acquisition efficiency and being the first global solution for transfers. Improvements in this line will rapidly propel us towards break even and allow us to achieve our target of 40% operating margin in the long term.

Okay, I'd now like to have a little bit of a chat about our cash performance: Jayride's cash burn from operating and investing activities in FY19 was negative AU$5.6 million

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compared to FY18 of AU$5.5 million. In terms of value created, Jayride increased its market access and delivered breakout GPAPA performance and is showing strong engagement with global travel partners hinting at future performance. Overall, we believe we create a significant value with the funds invested into the asset.

Cash burn during the year increased in the middle quarters to AU$1.8 million before dropping to AU$0.9 million in Q4 after the global rollout costs had washed through and after we started to see some of those great Gross Profit After Paid Acquisition results landing. Jayride finished the period with AU$1.4 million in cash and a $950,000 R&D claim due, which we already received a couple of days ago. With continued improved performance along with access to an additional $1 million in our debt facility in January 2020 and potentially $9 million from options before March 2020 we know we can continue to navigate towards break even. Thank you.

Rod Bishop:​ Thank you, Peter. That concludes the formal part of our results presentation. Again, the slide deck has been published and there's a lot to go through there, hopefully all the information people seek, and we're available now to take your questions.

Operator:​ Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question. Your first question comes from Andrew Swaffer with Taylor Collison. Please go ahead.

Andrew Swaffer:​ (Taylor Collison, Analyst) Hi gents, thanks for the detailed information there. Look, if we look to slide 30, I think it is, where it shows the bookings by quarter where the original destinations have fallen in quarters 3 and 4 from quarter 2, do you mind just talking to what seasonality there is in those figures? Then looking beyond this year and if you start to look out towards the target of one million trips by 30 June 2021, what growth are you expecting from the original destinations?

Rod Bishop: ​ Thanks, Andrew. Good to have you on the call. So, to talk about what our strategy has been, it's pretty straightforward. The new destinations, the key thing that we had to validate was rapid revenue growth. In the core destinations, given our objective to push through to profitability, the key thing that we had to demonstrate was massively increasing our profit margin of every single passenger trip. So, when we looked to what

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we were trying to achieve in each it was actually two objectives, and we laid them out.

To the best extent possible what we were going to do in original core destinations was maintain the same volume wherever possible and see how far we can take the margins, either in terms of TTV margins or improvements at the cancellation and refund line, playing around with cancellation policies, playing around with everything there. So, the intent was to hold those locations to strict profit objectives even if that meant passing up on some of the maybe easy-but-less-profitable revenues. So, it has more to do with the strategy in the period, the fact that it remains stable as opposed to grew.

If you wanted to see how we think about that, slide 6 at the start of the deck has a very nice presentation. You can see Passenger Trips Booked and Revenues – although Revenues did go up, Passenger Trips Booked was largely flat – but Gross Profit After Paid Acquisition, that GPAPA line, actually increased 300% in the original countries half-over-half. So, that's the sort of work that we were doing. It has less to do with seasonality and more to do with how we were gearing up organic, and gearing down paid search, commensurably in terms of how users will search.

If I think ahead - and it's important to think ahead – I don't want anybody to infer that this is the maximum amount of revenue or passengers we can access in a massive market like Australia or New Zealand.

When I think about what's coming, what you'll see is the following: There are a large number of partners who for them, existing partners, there is a lot of low-hanging fruit that they're going to adopt, that would be in the new destinations. They never previously had access to those and so now they're going to start to consume them. Also, what you're seeing when you see for example new organic pages getting built for Google search, but also new channel partners who previously would like our turnkey solution for the world, that wasn't us, now it is us. When these partners come online, their booking activity is likely to be carte blanche across all the destinations. So, you'll see as we come out of this period that actually all destinations will increase, and say probably more low-hanging fruit in the new ones, since we're fresh out of the gate, but all destinations are continuing to increase.

Andrew Swaffer: ​ (Taylor Collison, Analyst) Thank you. So in terms of - I mean, how should we think about the likely growth from those original destinations, or are you trying to say don't focus too much on original or new, focus on the overall picture?

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Rod Bishop: ​ Yeah, I'm interested to know how this distinction plays out. We've focused over the last 12 months, and the narrative had to be because we were launching new destinations, “hey, here's a destination, here's a destination”. At some point, we really need to start presenting to market this understanding of origin-and-destination in a similar way to how Webjet does. It's a gap at the moment. I think what you guys would love to understand is, for example, if we've got a traveller in the US and they're already travelling with us around the US, you know, how Jayride can grow the value of our business in the US as a source market by opening up the Dominican Republic for example. That's why Punta Cana Airport is now a top seller, and that same traveller is now spending their money with us but in a different country.

So, that booking is going to code to a new destination, but it's actually in a way, it’s growth in the US as well because it's a US customer returning in the US, domiciled in the US, spending USD. So, we do need to try to make this clearer for everyone, but if you wanted to think about it in terms of destinations, a return to growth in the existing destinations and continued strong growth in the new destinations should be how it maps out. Incrementally more low-hanging fruit in new places, but as partners come on, they should be booking us everywhere.

Andrew Swaffer: ​ (Taylor Collison, Analyst) Great, thank you. Look, a very pleasing statistic is the average trips per customer. This time last year you were saying 4.2 trips per year. Now you're saying five trips per year. So, that's meaningful, that. So, what are the main factors driving that improvement?

Rod Bishop:​ Actually, it's even still better than that. The 4.2 was calendar year '18 and we've presented now FY19, so it's actually only six months change. That the passenger-trips-per-traveller figure ticking up almost 20% over six months is great. I put it in the back just because again I think we need to work out ways to talk better to our traveller audience in terms of where our demand is coming from, who our travellers are, and so I'll try to get some sort of refined messages to market as we go forward from here. Different travellers are different. There's a bit of complexity in just making it a very simple message.

So, how to think about retention and what's driving it? More destinations. More destinations drive us. There's a great little analogy that the team remembers here where a foreign language couple who were staying in a hotel across the street from our office came to our reception to try to book their onward journey to Tahiti, I think, simply

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because it had worked for them in Sydney, they wanted to use us again in Tahiti.

The website of course at the time wasn't live in Tahiti. So they actually came to our office to try to book it with reception, because why would we only exist in five countries? They didn't even consider that that could be possible. “Of course, they're live in Tahiti. This looks like an incredible online business. It must be everywhere.” So, it's a very simple behaviour once you've got a brand that sticks.

Nobody is particularly passionate about grand transport, right? We're passionate about our hotels that we stay in, or the business class flights we take, or something along these lines. Transport is one of those things where it's tricky, but I don't aspire to it. So, if I can find something that just simply works, I'm likely to be returning.

That's certainly the behaviour that we see. We're going out, for example, strongly with coupons and messages about new countries to our existing travellers, and they just return to book in some new country that we weren't live in six months ago. So yes, please expect retention to continue to increase. When I talk about scaling into the foundations, I mean destinations, but I also mean who our travellers are. That's the core foundation we've got.

Andrew Swaffer: ​ (Taylor Collison, Analyst) Wonderful, I'll let someone else have a go. Thank you.

Operator: ​ Once again, if you wish to ask a question, please press star one on your telephone and wait for your name to be announced. I will now give you a short moment to register your questions. Your next question comes from Adam Dellaverde from Taylor Collison. Please go ahead.

Adam Dellaverde: ​ (Taylor Collison, Analyst) Hi guys, thanks for taking my call. My question, can we talk through GPAPA margin just in terms of the improvement you saw second half, how that dynamic is playing out as we enter FY20 in the first quarter and what are - what influences that as you talk about different channels, whether it's partner channel, whether it's organic?

Rod Bishop: ​ Okay. There is a slide with a bit of forward outlook, slide 23, which talks to the start of the FY. So, this July – I present July because it's the latest complete set of numbers I've got. August, as we're still in August I don’t have those yet. July in terms of Gross Profit After Paid Acquisition is up 231% over the previous corresponding period of July 2018, so it's an example of how things are going. They're going gangbusters. You see

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week-on-week improvement in this metric since we've sat down to really focus on it.

I think the thing that might not have been obvious, even to us, when we've put a large promotional campaign in place across the November December period of last calendar year to really promote the new regions, we spent a lot of money, primarily on coupons but also paid media, all sorts of different things, and coded all of that to customer acquisition just to be honest about it and be very transparent. What that did, is that if you were looking at those periods, it wouldn't have necessarily been clear to a casual observer that the jaws opened on GPAPA about six quarters ago. It's just continued to open ever since.

So, that Gross Profit After Paid Acquisition margin took us by surprise in the latest period. We didn't realise it could go this high. The previous aspirational model that we published had it at something like 35%. It’s now at 51%. There are two things that are driving that.

The first is better channel mix. Previously for the life of the company we were very heavily leveraging paid media, for example Google AdWords. In December if you remember we launched very heavily into organic traffic. Subsequently, organic traffic is right up there. It's been top consumer direct channel ever since. That traffic is obviously free, and so your cost of customer acquisition cost comes right down on the back of it.

The second thing is just really building out good strong relationships with channel partnerships. We do pay away some of our commission to channel partners, but the bookings are profitable. The thing that we've found as we've launched new regions is that this is a very, very fast scaling method to get good reach. You've got an API-installed partner who can all of a sudden can “flip on” new countries, I mean, that scales. It doesn't require any further growth investment to get set up and the acquisition costs are manageable. So, these two things, they're, I guess, hands down better than the previous method of doing it, which was paid acquisition. Very costly paid acquisition, I don't like it anymore now we've got better methods. Does that answer your question?

Adam Dellaverde: ​ (Taylor Collison, Analyst) Yeah, I guess the 231%, I mean I don't have a figure for last July, but if I look at the first half '18 it looks like you did about a 15% GPAPA margin in that period. So, should I be thinking you'll carry forward with a similar rate to the second half or is this still an improving trend?

Rod Bishop:​ Still an improving trend. I can talk candidly, July was our best month on record.

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Adam Dellaverde:​ (Taylor Collison, Analyst) I guess as those dollars are coming in, as those extra dollars are coming in, what's the - there was some talk around some investment in the operational side. How do you see operational cost scaling going forward relative to the base you've set in the second half of '19?

Rod Bishop:​ It's a really good question. So, the approach that we've taken - and if there is any black spot at all on our P&L this is the one to watch, I think – the approach that we've taken, we've pursued our path to profit and put ourselves on it is to pick one cost line at a time and just pick it apart, really understand it, and then to the best degree possible, optimise. So, for example, you'll see that the growth cost line has come down, that was - we had certain growth focused resources in the company who were focused on the global rollout, or the launch of the organic traffic, and then subsequent to those projects being delivered those contracts were ended. That was a way to reduce growth costs.

Then we leaned hard into customer acquisition. So similarly organic and channel partners are demolishing our paid media spend, that was again leaning hard into that cost centre and getting on top of it.

The very next cost centre to look into is definitely going to be operational cost. Peter spoke to what operational cost is for the company, and there's some team costs in there and there are some other, I guess, semi-variable costs in there. A simple example would be we have a very high touch customer service team who provide great travel at service.

You can contact support at Jayride.com and get your issues sorted out wherever on earth you are and in record time. Equally, I think we can get “out of the way” more. If you have to contact Jayride and speak to a human to get something done, I start to question, well okay, for sure that’s OK in extraordinary circumstances, of course. But to edit a booking, to update, to delete, to cancel, to query something, I ask, “how much of this can be made self-service?” If it's self-service it's a better traveller experience, and also if it's self-service there's no ongoing cost to our company other than the initial build.

So, we start to scale up to millions of passengers and tens of millions of passengers, and we start to think about how we're going to serve those passengers, maybe real-time, in-destination. If you have to wait to contact a human, that's just not going to work. So, to the best degree possible that we can lean in hard to the technology, build great tools, self-service and automate, you'll be able to see improvements in that line.

To give you a number, in terms of how we think it can go, we actually outlined that on the

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aspirational economics side. We think serving a million passenger trips that operational costs needn't grow at all. In fact, it could come down slightly.

Adam Dellaverde:​ (Taylor Collison, Analyst) Great, and I guess just there was a comment made - a comment made about global travel partners hinting at future performance. Is that a hint that there's some sort of step change partnership potential coming this year, or is that to do with the existing base? Can you help unpack that?

Rod Bishop: ​ Yeah, sure. So, certain channel partners would never have approached a five-country company. They want to be able to turn on global airport transfers in one hit. Airport transfers being a vertical that they would like to have access to, but they've got a product pipeline that's a mile long and if it's not global then you're last on the line, they have all these other things to do, that tends to be the sentiment. So, by going global, all of a sudden we've made it very easy for these guys to build a compelling business case.

The business case takes a couple of different forms. Either here's a partner who hasn't previously worked with us but now wants to. NRMA is a public example of a partner that we announced recently where for NRMA to offer global airport transfers to all NRMA Blue members all around the world, that's compelling. And then also for it to be turnkey – very simple, NRMA members getting a discount on our website – that's straightforward and it's a very clear value add. So, something like that we could never have done before. We now have a whole pipeline full of those deals, any of which could come off in this coming financial year.

The second is to think about partners who have been in for a long time, maybe doing things on a piecemeal basis, using us as possibly some backfill supply, and then you think about what might happen when they adopt the new countries. There's a graph on, I think, slide 16 which shows a partner whose revenues across standard normal countries have been static for every month for a year, who then upon seeing our new content becoming available in the new regions through the API simply turned on destination after destination after destination.

So, you can see again a step change there. That particular partners passenger trip activity with us tripled over the course of just a couple of months and is still growing.

So, yes, there's definitely the opportunity there for some step change events to the extent that our revenue is already quite diverse. The way that'll read at a top line is constant incremental growth.

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Adam Dellaverde: ​ (Taylor Collison, Analyst) Great, thank you.

Operator: ​ There are no further questions at this time. I will now hand back to Mr Bishop for closing remarks.

Rod Bishop: ​ Thanks very much for attending. We really appreciate your time, and effort, and interest in the company. I feel like we've had a great year. I feel like we go from being local to global in FY19. After seven years of trying to make that move, it finally happened, and I am very excited about what happens next. It's foundational, it's the first 1% of this company is now built, I'm happy to say it. It feels like a landmark.

So, now to go forward from here, FY20, FY21, just really scale into those foundations. Really optimise all of those relationships. Provide value for transport companies like they've never seen before. Convert all those quotes that we're already getting. Work with new partners to turnkey the whole global airport transfers industry so that they can add meaningful ancillary revenue to their business. And, just make happy travellers.

So, thinking about the couple of years ahead, we're very excited and looking forward to it, and looking forward to sharing it with you.

End of Transcript

For more information please contact

Rod Bishop

Managing Director

Email: ​corporate@jayride.com

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About Jayride Group Limited

Jayride.com is a world leading global airport transfers marketplace, which creates seamless experiences for travellers by allowing them to compare and book airport transfers around the world. With Jayride.com, travellers can compare and book with 3,300+ transport companies, servicing 1,500+ airports around the world, including the Americas, Europe, Middle East, Africa, Asia and the Pacific.

The Jayride.com platform aggregates ground transport companies and distributes them to travellers at Jayride.com; and via partnerships with other travel technology platforms, travel agencies and wholesalers. These partners implement Jayride.com APIs to sell ground transport and add new incremental ancillary revenue to their travel businesses.

Founded in 2012, Jayride.com is headquartered in Sydney, Australia.

For more information, please visit ​www.jayride.com

Forward-looking statements

This announcement contains forward-looking statements that involve risks and uncertainties. Indications of, and guidelines or outlook on, future earnings, distributions or financial position or performance and targets, estimates and assumptions respect of production, prices, operating costs, results, capital expenditures, reserves and resources are also forward-looking statements. These statements are based on an assessment of present economic and operating conditions, and on a number of assumptions and estimates regarding future events and actions that, while considered reasonable as at the date of this announcement and are expected to take place, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Company, the directors and management. We cannot and do not give any assurance that the results, performance or achievements expressed or implied by the forward-looking statements contained in this announcement will actually occur and readers are cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements are subject to various risk factors that could cause actual events or results to differ materially from the events or results estimated, expressed or anticipated in these statements.

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