JAYRIDE GROUP LIMITED — Interim / Quarterly Report 2020

Jan 27, 2020

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December Quarter Results and Appendix 4C Jayride Growth in Revenues, Profits and New Partnerships

28th January 2020 – Jayride Group Limited (ASX: JAY) (“Jayride” or the “Company”)​ , the global online

marketplace for airport transfers, is pleased to share with investors its highlights from the quarter ended 31st December 2019 (Q2 FY20).

• Record Net Revenues, $1.26m in Q2 FY20 up 64% year-on-year

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• ● Positive Gross Profit after Paid Acquisition (GPAPA) up to $0.63m in Q2 FY20 from $(0.03)m in FY19

• Margins on track: Gross Profit after Paid Acquisition (GPAPA) 50% margin in Q2 FY20

• Growth in Passenger Trips Booked to 123K, and Net Revenue per trip grew to $10.25

• Successful $5m capital raise completed; endorses Jayride’s strategy to accelerate growth

Co-founder and Managing Director Rod Bishop, said​ : ​ “This quarter Jayride delivered continued growth across the holiday travel season with outstanding increases to profitability compared to last year. After holiday promos in Q2 FY19 we were loss-making, whereas this Q2 we were profitable after variable costs. We saw a strong uplift in bookings from new travel partners via API in the tail end of Q2 continuing into Q3. We achieved record Net Revenues, maintained target 50% GPAPA margin in Q2 and beat target with 54% GPAPA margin for 1H. We are firmly on track towards building scale, market leadership and enhanced profitability for shareholders.”

Net Revenues Growth to $1.26m up 64% PCP. Positive GPAPA Profit, up $0.66m

The Company achieved its 26th consecutive quarter of growth in Net Revenues which grew to $1.26 million in Q2 FY20 (growth of 64% PCP). Pleasingly, the Company is now profitable after variable operating costs. Gross Profits after Paid Acquisitions (GPAPA) grew significantly on the prior corresponding holiday period. GPAPA was $0.63 million (growth of $0.66 million compared to $(0.03) million PCP).

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1 Gross Profit after Paid Acquisition (GPAPA) is Net Revenue less all paid traveller acquisition costs (e.g. advertising).

Jayride Group Limited (ACN 155 285 528)

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New Partnerships Online

In July 2019 Jayride announced the launch of its new global platform for airport transfers, allowing travel partners to implement Jayride’s API to add a turn-key global supply of airport transfers to their business.

Platform implementations can take up to 6 months from the date the agreement is signed. Costs to implement are paid by the partner and revenues commence once implementation is complete.

The first new partner launched in October, and other partners launched towards the end of Q2 FY20 which contributed revenues to the quarter from late November and December, and continues into Q3 FY20.

Further new partners are currently implementing the Jayride API for release during Q3 FY20.

Passenger Trips Booked Growth Continues to 123K Trips

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Over the last three years, the number of trips booked using Jayride’s platform has increased by 272% with each of Jayride’s six geographic regions now contributing to group revenue. Passenger Trips Booked grew to 123K in Q2 FY20, an increase of 45% year-on-year, and revenue per passenger trip grew to $10.25.

Comparing Q1 FY20 vs Q1 FY19, Passenger Trips Booked grew 61% year-on-year. In Q3 latest trading this growth rate has accelerated, Passenger Trips Booked is now growing 64% year-on-year.

Note the prior period of Q2 FY19 was a high comparative base for Passenger Trips Booked as the Company ran it’s launch campaign to kick-start the sale of transfers for holiday travellers in new global destinations. The campaign was loss-making as a one-off to kick-start adoption. All new countries are now growing at record-level GPAPA profitably and the loss-making campaign was not repeated in Q2 FY20.

Jayride has a disciplined approach to sales and marketing investments; for every dollar invested in sales and marketing Jayride expects to generate $2 of Net Revenue that quarter (50% Gross Profit after Paid

Jayride Group Limited (ACN 155 285 528)

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Acquisition Margin). Accordingly, capital is deployed agnostic of destinations, based on opportunities identified through data analysis, and in order to maximise returns.

North America, Jayride’s largest destination, grew substantially in the quarter driven by new US travel partnerships. Oceania was stable on Q1 as marketing investments were directed to grow other regions, Asia retained all-time highs, and Europe contracted during winter. The Company plans for Europe to grow strongly during upcoming quarters as Jayride is ready to capitalise on the upcoming travel peak season.

Successful $5m Capital Raise to Fuel Accelerating Growth

The Company raised $5.0 million in new financing in an oversubscribed upscaled round from existing shareholders, new institutional investors, board and senior management team members including the Chairman and Managing Director. $4.73 million cash was received during the quarter, and a final $0.27 million cash was received immediately after 31st December, for $5.0 million total received.

Improving Cash Flow Performance

Net Cash used in Operating Activities in Q2 FY20 was $(1.37) million, an improvement of 25% year-on-year compared to $(1.84) million in Q2 FY19.

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Operational Cash Flow excluding grants, interest, and Receipts Movement (the difference between Net Revenues and Net Receipts) shows underlying performance of $(1.10) million, an improvement of 41% year-on-year compared to $(1.87) million in Q2 FY19.

Cash Receipts from Customers were $1.15 million on Net Revenues of $1.26 million in Q2 FY20. Net Revenues grew more strongly than cash receipts due to receipts movement caused by growth in bookings from new travel partners who pay on account with payments outstanding on 31st December 2019.

Jayride Group Limited (ACN 155 285 528)

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Those outstanding payments have been paid in January.

Total Cash Payments used in Operating Activities was $2.52 million in Q2 FY20, an increase of $0.15 million on Q1 payments of $2.37 million, following the successful completion of the capital raise.

Three notable movements impacted Operating Cash Flow: Profitability after variable operating costs grew to $158,000, an improvement of 30% on Q1 FY20; the Company spent $803,000 on new growth investments including business intelligence and engineering to drive future revenues; and the Company brought forward an interest payment on its debt facility from Q3 into Q2. Going forward, only one interest payment on that facility will be made per quarter on the final day of the quarter; Q3 interest will be more alike to Q1.

On 31st December Jayride had $4.5 million in cash and cash equivalents, plus an additional $0.3m settled at the start of January. Jayride is well funded to execute on its growth plans towards profitability.

The Company’s debt facility has $1 million undrawn which became available on 1st January 2020 subject to the terms of the facility disclosed to the market on 11th March 2019. The Company does not intend to consider drawing upon the facility at this time.

The Company has 16.3 million Share Options which are due to expire on the 31st March 2020 with an exercise price of $0.553.

Strategic Priorities and Latest Trading Update

As announced to the ASX on the 20th December 2019, Jayride’s three key strategic priorities for 2020 are:

• Continue to improve traveller experience and raise the bar on satisfaction, retention, and referral, to keep our travellers coming back to experience great ride service time and time again,

• Continue to improve our product and technology for booking rides with further automation, optimisation, and empowering self-service tools for travellers to get the high-quality service experience they need,

• Deliver the best transport options every time, in every destination, with the most high-quality options at the best prices including the most unique and inspiring destinations around the world.

Consistent with these priorities Jayride will deploy its capital into technology to build further scale and customer loyalty which will drive significant improvements in growth and unit profitability through improved traveller service and increased retention.

Jayride has a positive outlook for Q3 given the increasing contributions from new travel partners and strong underlying growth. Additional new travel partners are in progress of implementing the Jayride API to make bookings on the Jayride platform due for release this quarter.

At time of writing Jayride has completed the first two weeks of trading in 2020. Growth in Passenger Trips Booked is up 64% year-on-year in the first two weeks of January 2020 compared to the first two weeks of January 2019, with Passenger Trips Booked of 22,338 and 13,633 respectively.

Jayride Group Limited (ACN 155 285 528)

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Co-founder and Managing Director Rod Bishop, said​ : ​ “As we build towards our objective of 1-million passenger trips booked per year in FY21 we need to maintain 68% year-on-year growth rate. With the completion of the $5 million of new capital to deploy, new global destinations to leverage, and new partners implementing our API we affirm our confidence in achieving those rates. Latest trading has us at 64% year-on-year and we’re excited to accelerate from here.

“Our aspirational models show Jayride as cash flow break-even by 1-million passenger trips with $10 revenue per trip and $5 GPAPA per trip. We’ve exceeded those unit economics now for six months and have discovered many opportunities to further optimise and increase our revenue and GPAPA per trip as we scale towards profitability.

“The most important work over the next period is to take our traveller experience to the next level. We will be investing into optimising our technology for more streamlined bookings with more self-service, which will encourage greater traveller retention and optimise the Company’s operational cost.

“2020 will also be our first full year deployed across Europe during the European travel peak season. We are looking forward to delivering great results especially in Spain, Italy and France as we build across Q3-Q4.

“2020 will be a great year for Jayride.”

Jayride Group Limited (ACN 155 285 528)

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For more information please contact

Rod Bishop

Managing Director Email: corporate@jayride.com

ASX release authorised by Rod Bishop, Managing Director, Jayride Group Limited.

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 3,600+ transport companies, servicing 1,500+ airports in 100+ countries 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 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

	+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	+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	+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”)
		31 December 2019
	Consolidated statement of cash flows	Current quarter $A’000	Year to date (6 months) $A’000
	1. Cash flows from operating activities
	1.1 Receipts from customers 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	- 1,148- (364)- - -- (626)- (123)- (848)-	- 2,519- (769)- - -- (1,061)- (228)- (1,660)-
		(393)- - -- - -- (165)- - -- - -- - --	(952)- - -- - -- (222)- - -- - 959-
		(1,371)-	(1,414)-
	Notes
	1.1 Net Revenues were $1,250K during Q2 FY20. Net Cash Receipts from customers lagged Net Revenues slightly this quarter due to strong growth in travel partners booking Jayride on account, and slightly slower collections over the Christmas period. 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 research and development tax incentive; for that purpose, the eligible amount that may be claimed for the R&D tax incentive also includes other non-capitalised expenses. 1.5 Two interest payments were made during Q2 FY20. Interest payments have historically been made on the Company's $2M financing facility once per quarter, at the start of the quarter, for the prior quarter. This quarter, the Company transitioned to make payments on the final day of each quarter. Accordingly two interest payments were made: A payment at start of October for the period ended 30th September, and a payment on 31st December for the period ended 31st December. The figure quoted includes both payments. Going forward, only one payment will be made per quarter, on the final day of each quarter.
	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
		(2)- - -- - -- - -- (10)- - -- - -- - -- - -- - -- - -- - -- - --	(2)- - -- - -- - -- (10)- - -- - -- - -- - -- - -- - -- - -- - --
		(12)-	(12)-
	+ See chapter 19 for defined terms 1 September 2016
		Page 1

	Appendix 4C		Quarterly report for entities subject to Listing Rule 4.7B	Quarterly report for entities subject to Listing Rule 4.7B
	3.	Cash flows from financing activities
	3.1	Proceeds from issues of shares	- 4,733-	- 4,733-
	3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 **3.10 **	Proceeds from issue of convertible notes Proceeds from exercise of share options Transaction costs related to issues of shares, notes or options Proceeds from borrowings Repayment of borrowings Transaction costs related to loans and borrowings Dividends paid Other (provide details if material) Net cash from / (used in) financing activities	- -- - 30- (238)- - -- - -- - -- - -- - --	- -- - 30- (238)- - -- - -- - -- - -- - --
			- 4,525-	- 4,525-
	Notes
	3.1	There are $5,003K proceeds from the issue of shares during Q2 FY20. Of this, cash receipts of $4,733K were received during Q2 and $270K were received in the first week of January during Q3. The full $5,003K has been received. The delay in cash settlement of the final $270K was due to banking availability during the holiday season.
	4. 4.1 4.2 4.3 4.4 4.5 **4.6 **	Net increase / (decrease) in cash and cash equivalents for the period Cash and cash equivalents at beginning of quarter/year to date Net cash from / (used in) operating activities (item 1.9 above) Net cash from / (used in) investing activities (item 2.6 above) Net cash from / (used in) financing activities (item 3.10 above) Effect of movement in exchange rates on cash held Cash and cash equivalents at end of quarter
			- 1,401- (1,371)- (12)- - 4,525- (30)-	- 1,446- (1,414)- (12)- - 4,525- (32)-
			- 4,513-	- 4,513-
	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 5.2 5.3 5.4 **5.5 **	Bank balances Call deposits Bank overdrafts Other (bank guarnatee) Cash and cash equivalents at end of quarter (should equal item 4.6 above)	- 4,513- - -- - --	- 1,401- - -- - --
			- --	- --
			- 4,513-	- 1,401-
	Notes
	4.4, 4.6, 5.1, 5.5	For clarity, these balances exclude the $270K of additional proceeds from issu	es of shares received first week of January, that are described in note 3.1
	6.	Payments to directors of the entity and their associates		Current quarter $A’000
	6.1 6.2	Aggregate amount of payments to these parties included in item 1.2 Aggregate amount of cash flow from loans to these parties included in item 2.3		- 218-
				- --
	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 7.2	Aggregate amount of payments to these parties included in item 1.2 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 8.2 8.3	Loan facilities Credit standby arrangements Other (please specify)	- 3,000- - -- - --	- 2,000- - -- - --
	Notes
	8.1	The debt facility totals $3M of which $2M is drawn and the remaining $1M is undrawn. The undrawn debt facility of $1M became available on 1st January 2020 subject to the terms of the facility disclosed to the market on 11th March 2019.

• See chapter 19 for defined terms 1 September 2016 Page 2

Appendix 4C

Quarterly report for entities subject to Listing Rule 4.7B

Quarterly report for entities subject to Listing Rule 4.7B	Quarterly report for entities subject to Listing Rule 4.7B	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 9.2 (b) product and manufacturing 9.3 (c) advertising and marketing 9.4 (d) leased assets 9.5 (e) staff costs 9.6 (f) administration and corporate costs 9.7 Other (provide details if material) 9.8 Total estimated cash outflows	(364)- - -- (600)- (123)- (848)- (393)- (60)-
	(2,388)-
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:
(Director/Company secretary) Print name:

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:
	(Director/Company secretary)
Print name:

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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