JAYRIDE GROUP LIMITED — Interim / Quarterly Report 2019

Oct 30, 2018

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ASX Announcement 31st October 2018

Quarterly Business Review Q1 FY19

Jayride Group has launched a record 10 new countries (+200% since June 2018), for travellers at 194 new airports (+31% since June 2018), with 359 new transport companies (+168% increase to growth rate), for a total of 3,000+ transport companies available on the platform (previously 2,000+).

These new countries are growing passenger trips over twice as fast as Jayride’s previous fastest new country launch (the US). In September already 5% of the Company’s total passenger trips were booked in newly launched and piloting countries, and the company expects this growth to accelerate.

Revenues from passenger trips booked for Q1 FY19 grew to a record AUD$815,000, which is Jayride’s 21st consecutive quarter of growth, and is growth of +10% quarter-on-quarter (vs Q4 FY18), +81% on pcp (vs Q1 FY18). The growth rate of +10% QoQ is seasonally consistent with pcp growth rate for this time of year and should accelerate as further new countries launch.

Jayride TTV for Q1 FY19 grew to AUD$3.14 million. Passenger trips booked for Q1 FY19 grew to 70,000. Net cash used for operating activities for Q1 FY19 was AUD$(0.97) million which continues the Company’s tight control of cash flow. The Company ended the quarter with AUD$2.53 million of cash.

SYDNEY, 31st October 2018 –​ Jayride Group Limited (ASX:JAY) (“​ Jayride”​ or the “​ Company”​ ) the e-commerce marketplace that allows travellers to compare and book airport transfers from 3,000+ transport companies, is pleased to report its activity highlights for the Q1 FY19 period ending 30th September 2018 along with Appendix 4C.

Jayride Group Limited (ACN 155 285 528)

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International Expansion Highlights

+200% growth in launched countries

Jayride Group has successfully commenced its new international expansion in Q1 FY19, which is continuing into Q2. The Company has launched 10 new countries (a growth rate of +200% since June 2018), increasing the number of countries served to a total of 15. Furthermore the Company has established a new record run-rate of +4 new country launches per month achieved in both September and October (compared to previously 5 countries total launched in 6 years). The Company has further pilots expected to launch from November 2018 onward.

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This successful launch schedule demonstrates strong commercial acceptance from transport companies in the new countries. For Jayride to consider a country “launched”, travellers must be 1 able to compare and book multiple ground transport companies at every commercial airport . This requires that transport companies recognise the value of being on the platform, which has now been strongly demonstrated. Furthermore, the cost of acquiring transport companies in new countries has not increased, and remains consistent with the cost for US and Australia.

1 Jayride considers those airports with greater than 25,000 international passenger trips per year to be commercial airports. Source data is the Airports Council International (ACI), “World Airport Traffic Dataset,” http://www.aci.aero.

Jayride Group Limited (ACN 155 285 528)

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+41% growth in market access

During Q1 FY19, and continuing into Q2, Jayride launched 194 new airports within the 10 new launched countries (a growth rate of +31% since June 2018). These airports service 864 million passenger trips per year, and increase Jayride’s total market access to 3 billion passenger trips per year, that is 39% of the world’s 7.7 billion total annual airport passenger trips to and from airports (a growth rate of +41% since June 2018).

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Date	Major Milestone	Jayride market access in passenger trips
		(% to target of 7.7 Bn trips)
May-18	Launch of new transport technology platform	2.1 Billion (27.2%)
Jun-18	Pilots commence in 19x countries
Jul-18	Launch of Canada	2.2 Billion (28.9%)
Aug-18	Launch of Italy	2.4 Billion (31.0%)
Sep-18	Launch of France	2.5 Billion (33.1%)
	Launch of Greece	2.6 Billion (33.8%)
	Launch of Hungary	2.6 Billion (33.9%)
	Launch of Malta	2.6 Billion (34.0%)
Oct-18	Launch of Spain	2.9 Billion (37.3%)
	Launch of Netherlands	2.9 Billion (38.2%)
	Launch of Austria	3.0 Billion (38.5%)
	Launch of Cyprus	3.0 Billion (38.6%)

Jayride Group Limited (ACN 155 285 528)

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Fastest passenger growth (as compared to US launch)

Early results from travellers in newly launched countries are strong. Traveller demand for these new countries is growing over twice as fast as Jayride’s previous best performance (US launch).

For newly launched countries, demand is measured in passenger trips booked (green line below) and benchmarked against the speed of the previous US launch (blue line below), in “months since launch”, this method is useful for analysing relative growth based on time spent in market.

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Comparing the speed of the new countries to the benchmark of the Company’s US launch:

• In the first three months since launch (Q1 FY19), the newly launched countries have surpassed a level of traveller demand that took seven months to achieve in the US. Demand from passengers is growing at a rate over twice as fast as Jayride’s US launch.

• In September 2018 already 5% of the Company’s total passenger trips came from newly launched and piloting countries, far ahead of internal forecasts.

These early results are promising and management believes that if these rates of growth are continued, the Company is on track to exceed its projections. Whilst these are early results, they place Jayride’s current international expansion as the Company’s fastest yet, by a wide margin.

Jayride Group Limited (ACN 155 285 528)

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Growth 83%+ in Jayride brand traveller-direct channels

In a stronger than expected outcome, in September 83% of passenger trips booked in new countries were traveller-direct – either returning Jayride travellers, or new travellers acquired through Jayride branded channels like search engines. This is a powerful result, as it demonstrates the scalability and product-market-fit of Jayride’s traveller acquisition and retention strategies.

In parallel, Jayride’s existing travel partners are currently implementing Jayride’s new countries, and the Company expects the first partner launches in the new countries in coming months.

Size and potential in new countries

Q1 FY19 performance and rapid new-market traction supports an optimistic outlook for further international expansion.

When compared to the US launch, the new countries launched since July are showing strong 2 product-market fit, and achieving faster growth rates, despite a smaller absolute market .

Jayride’s US performance over three years of US operation has grown to a TTV run rate of AUD$6.7 million. However, for Jayride partners and other travel industry brands, Europe is the larger market, with some individual European countries, like Italy and France, frequently 3 providing as much traveller demand as the US .

Short-term objectives for international expansion include adding additional countries, and assisting Jayride partners to commence bookings in the new countries.

Speaking to the early traction and long-term objectives, Rod Bishop, Managing Director of Jayride said, “These are early days for the expansion, and yet the product-market fit and traction is already very strong. We’re excited.”

“Looking ahead, we see a truly global market for Jayride. In a future landscape, if Jayride’s traveller demand matures in a way that is consistent with the growth of other global travel brands, then no single country, not even the US, may ultimately account for more than 10-15% of Jayride’s total business.”

2 Jayride’s newly launched countries serve 864 million passenger trips at airports per year (11.2% of the world’s total 7.7 billion trips). This is smaller than the US which serves 1.65 billion passenger trips per year (21.4% of world market).

3 Many comparable travel brands show penetration in individual European countries at higher rates than the US. An example travel brand in 6-months to September generated 6.5% of traffic in France, 6.3% in Italy, as compared to 6.4% in US. Source data is SimilarWeb, “Booking.com Overview,” https://www.similarweb.com/website/booking.com

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Other Activity Highlights

Revenue growth highlights

Revenues from Commissions and Fees for passenger trips booked, Jayride’s key financial performance metric, grew to AUD$815,000 in Q1 FY19; which is growth of 10% over the previous quarter (Q4 FY18), and growth of 81% over pcp (Q1 FY18).

Q1 each year is seasonally the slowest quarter and the growth rate of +10% QoQ is consistent with the time of year (the prior corresponding period Q1 FY18 also grew at +10% over Q4 FY17).

This quarter is Jayride’s 21st consecutive quarter of revenue growth.

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Key metrics

Other key metrics grew inline with revenue. In Q1 FY19 –

• TTV grew to AUD$3.14 million booked for the quarter;

• Passenger trips booked grew to 70,000 passenger trips booked for the quarter.

Jayride Group Limited (ACN 155 285 528)

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Resourcing new pilots: Asian destinations, and rideshare

Jayride was able to accelerate the Company’s technology development to bring it ahead of schedule. The technology development is in-part funded by the Company’s Research and Development Tax Incentive which for the FY18 period was larger than expected (AUD$850,000), and received one quarter ahead of the original expected timeline.

With the extra funding ahead of schedule, the Company brought on contractor team members to accelerate the release of new software, and embark on new pilots in parallel to the Company’s main stream of international expansion. Technology and pilots brought forward include:

1. Pilots for new destinations, including Asian destinations

Integration was commenced, and pilot now underway, for enhanced technology to support Asian markets. In particular, a significantly improved payments technology which supports additional international currencies and remittance methods.

This technology allows Jayride to accelerate launches into non-European destinations, including Asian destinations; including to charge travellers in local Asian currencies, and remit to transport companies in Asian countries using local remittance methods.

2. Pilots for two new transport verticals, including rideshare

In May 2018, Jayride’s new transport technology platform was launched to remove technical restrictions from the Company. In addition to accelerating internationalisation, the platform creates further opportunities for the Company to expand its offering into new complementary transport verticals beyond today’s shared shuttle and private car services.

The first new transport vertical being piloted is the addition of rideshare services to the platform. Rideshare services (a service type commonly offered by ride-hailing brands) may be popular alternatives for travellers, but are hard to discover and access when travelling internationally. Jayride has commenced a limited pilot with a well known international ridesharing service. If the pilot validates with travellers successfully booking rideshare services on Jayride, then Jayride can open rideshare as a new vertical alongside shared shuttle and private car services.

The second pilot transport vertical is adding a new class of pre-booked on-demand transport for a select B2B vertical, outside of the tourism sector, and to destinations other than airports.

Management looks forward to sharing more details as the pilots move towards full commercialisation.

Jayride Group Limited (ACN 155 285 528)

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Cash Flow Highlights

Tight cash control remains a core focus. Net cash used for operating activities for Q1 FY19 was AUD$(0.97) million. The Company ended Q1 FY19 with AUD$2.53 million of cash and cash equivalents. The attached Appendix 4C covers cashflow for Q1 FY19.

Continuation of trend

This was the second consecutive quarter with below AUD$(1.0) million operating loss, and Jayride management intends to continue to tightly control operating losses by taking the Company forward with international expansion in the most capital-efficient manner.

The company has been able to significantly increase growth activities, without a significant change in operating losses, as a result of:

• Increasing revenues;

• Low cost of international expansion using the new transport technology platform;

• Research and Development Tax Incentive and Export Market Development Grant.

Jayride is now positioned to further improve operating cash flows as a result of:

• Increasing revenues in new international destinations;

• Further improving unit economics, especially gross profit after paid customer acquisition;

• Optimising of collections, booking fees, and cancellation policies;

• Receipt of Export Market Development Grant;

• Conclusion of temporary engineering contract positions (funded by R&D Incentive).

Grants and tax incentives

Q1 FY19 includes a Research and Development Tax Incentive of $850,000, which was received and deployed one quarter ahead of schedule.

The Company expects to be eligible for FY18 Export Market Development Grant, and in FY19 to be eligible again for the Research and Development Tax Incentive. In FY19 it is expected that the incentive will increase, due to the Company’s increased research and development activity.

Jayride Group Limited (ACN 155 285 528)

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Cash flow detail

Net cash receipts during Q1 FY19 totalled AUD$0.69 million, being TTV of AUD$3.14 million, 4 less payments to transport companies, refunds, and working capital movements .

Cash payments towards operating activities during Q4 FY19 totalled AUD$(2.51) million as a result of increased research and development expenditure, and investment in commercial pilots of new transport service types.

For more information please contact

Rod Bishop

Managing Director Email: corporate@jayride.com

4 Cash receipts from customers differ from revenue due to the timing of the cash movements. Cash receipts have seasonal effects, e.g. quarters where larger volumes of advanced booking coincide with smaller volumes of travel. Net cash receipts from customers is the net amount as follows:

Cash received from retail fares booked, usually received at the booking date; Less cash refunded for retail fares refunded, usually paid at the refund date; Less cash payments to transport companies, usually paid after the travel date.

Jayride Group Limited (ACN 155 285 528)

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About Jayride Group Limited

Jayride.com provides seamless transport experiences for travellers by allowing them to compare and book airport transfers around the world. With Jayride.com, travellers can compare and book with 3,000+ transport companies, servicing destinations from over 500+ airports across North America, Europe and the Pacific.

The Jayride.com platform aggregates airport transfer 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 airport transfers 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 in 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.

Jayride Group Limited (ACN 155 285 528)

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

+Rule 4.7B

Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

Introduced 31/03/00 Amended 30/09/01, 24/10/05, 17/12/10, 01/09/16

Name of entity

	Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B	Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B	Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B
	+Rule 4.7B Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B Introduced 31/03/00 Amended 30/09/01, 24/10/05, 17/12/10, 01/09/16 Name of entity
	Jayride Group Limited
	ABN 49 155 285 528	Quarter ended (“current quarter”)
		30 September 2018
	Consolidated statement of cash flows	Current quarter $A’000	Year to date (12 months) $A’000
	1. Cash flows from operating activities
	1.1 Receipts from customers (1) 1.2 Payments for (a) research and development (b) product and manufacturing (c) advertising and marketing (d) leased assets (e) staff costs (f) administration and corporate costs 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Government grants and tax incentives 1.8 Other (provide details if material) 1.9 Net cash from / (used in) operating activities	- 686-	- 686-
		(519)- - -- (534)- (108)- (898)- (446)- - -- - 9- (2)- - -- - 838- - --	(519)- - -- (534)- (108)-
			(898)- (446)-
			- -- - 9- (2)- - -- - 838- - --
		- 974-	- 974-
	Notes
	1.2 (a) Research and development is the proportion of engineering cost recognised as an intangible asset on the balance sheet. Each period, Jayride may be eligible for a h d dlt t iti f tht th liibl t tht b lid f th R&D t iti l ild th -itlid
	researc an eveopmen ax ncenve; or a purpose, e ege amoun a m expenses.	y e came or e ax ncenve aso ncues oer noncapase
	2. Cash flows from investing activities 2.1 Payments to acquire: (a) property, plant and equipment (b) businesses (see item 10) (c) investments (d) intellectual property (e) other non-current assets 2.2 Proceeds from disposal of: (a) property, plant and equipment (b) businesses (see item 10) (c) investments (d) intellectual property (e) other non-current assets 2.3 Cash flows from loans to other entities 2.4 Dividends received (see note 3) 2.5 Other 2.6 Net cash from / (used in) investing activities
		(49)- - -- - -- - -- - --	(49)- - -- - -- - -- - --
		- -- - -- - -- - -- - -- - -- - --	- -- - -- - -- - -- - -- - -- - --
		(49)-	(49)-
	+ See chapter 19 for defined terms 1 September 2016
		Page 1

		Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B	Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B
	3. Cash flows from financing activities 3.1 Proceeds from issues of shares 3.2 Proceeds from issue of convertible notes 3.3 Proceeds from exercise of share options 3.4 Transaction costs related to issues of shares, convertible notes or options 3.5 Proceeds from borrowings 3.6 Repayment of borrowings 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other (provide details if material) 3.10 Net cash from / (used in) financing activities	- -- - -- - -- - -- - -- - -- - -- - -- - --	- -- - -- - -- - -- - -- - -- - -- - -- - --
		- --	- --
	4. Net increase / (decrease) in cash and cash equivalents for the period
	4.1 Cash and cash equivalents at beginning of quarter/year to date 4.2 Net cash from / (used in) operating activities (item 1.9 above) 4.3 Net cash from / (used in) investing activities (item 2.6 above) 4.4 Net cash from / (used in) financing activities (item 3.10 above) 4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of quarter	- 3,560-	- 3,560-
		- 974- - 49-	- 974- - 49-
		- --	- --
		- 8-	- 8-
		- 2,529-	- 2,529-
	5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts	Current quarter $A’000	Previous quarter $A’000
	5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (bank guarnatee) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)	- 2,529- - --	- 2,155- - 1,405- - --
		- --	- --
		- 2,529-	- 3,560-
	Notes
	6. Payments to directors of the entity and their associates		Current quarter $A’000
	6.1 Aggregate amount of payments to these parties included in item 1.2 6.2 Aggregate amount of cash flow from loans to these parties included in item 2.3		- 130- - --
	Notes
	6.1 Director fees, including managing director fees.
	7. Payments to related entities of the entity and their associates		Current quarter $A’000
	7.1 Aggregate amount of payments to these parties included in item 1.2 7.2 Aggregate amount of cash flow from loans to these parties included in item 2.3		- -- - --
	8. Financing facilities available Add notes as necessary for an understanding of the position	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000
	8.1 Loan facilities 8.2 Credit standby arrangements 8.3 Other (please specify)	- -- - -- - --	- -- - -- - --

• See chapter 19 for defined terms

1 September 2016

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Appendix 4C

Quarterly report for entities subject to Listing Rule 4.7B

9.		Estimated cash outflows for next quarter						$A’000
	9.1	(a) research and development			-				440-
	9.2	(b) product and manufacturing			-				--
	9.3	(c) advertising and marketing			-				420-
	9.4	(d) leased assets			-				110-
	9.5	(e) staff costs			-				628-
	9.6	(f) administration and corporate costs			-				401-
	9.7	Other (provide details if material)			-				--
	**9.8 **	Total estimated cash outflows			-				1,999-
10.		Acquisitions and disposals of business entities (items 2.1(b) and 2.2(b) above)		Acquisitions				Disposals
	10.1	Name of entity	-			--	-		--
	10.2	Place of incorporation or registration	-			--	-		--
	10.3	Consideration for acquisition or disposal	-			--	-		--
	10.4	Total net assets	-			--	-		--
	10.5	Nature of business	-			--	-		--

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

• 2 This statement gives a true and fair view of the matters disclosed.

Sign here:		Date:	31 OCTOBER 2018
	(Company secretary)
Print name:	HENRY KINSTLINGER

Notes

• 1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

• 2 If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report.

• 3 Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

• See chapter 19 for defined terms

1 September 2016

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