JAYRIDE GROUP LIMITED — Interim / Quarterly Report 2024

Oct 30, 2023

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Growth and margin improvement measures underway, to cash flow positive for FY24 – September Quarter Results and Appendix 4C

31st October 2023 – Jayride Group Limited (ASX: JAY) (“Jayride” or the “Company”), the world leading global travel marketplace for airport transfers presents its Quarterly Business Review and Appendix 4C for the quarter-ended 30th September 2023 (Q1 FY24).

• Passenger trips booked grew to record levels in Q1 FY24, up +50% vs Q1 FY23. All regions grew vs PCP,

• Net revenue grew in Q1 FY24, up +24% vs Q1 FY23,

• Contribution profit margin declined from 44% to 42% in Q1 FY24 due to lower net revenue per trip,

• Margin improvement measures underway including to grow contribution profit, and also fixed cost savings of 15% enacted in October – streamlines fixed cost base and improves efficiency,

• Net cash receipts declined in Q1, inline with normal seasonality, as transport companies were paid for trips booked in the prior quarter. Averaged over two quarters, net receipts are in line with revenues,

• $2 million capital raise completed successfully in October to strengthen balance sheet,

• Guidance reaffirmed –Jayride is positioned to be cash flow positive for FY24.

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Executive Chairman Rod Cuthbert, said “We are pleased to start FY24 with passenger trips booked growing to a record level. We are disappointed with our revenue growth rate and our contribution profit margin which are impacted by lower net revenue per trip, as select channels and Asian destinations provided volume at lower margins. We remain focussed on work to significantly improve our profitability, including through enhancing contribution margins, and reducing non-variable costs. This includes work to grow volume through our higher-yielding travel agents channel, and work to enhance net revenue per trip in those lower yielding channels and destinations. In addition we have continued our cost savings agenda and reduced our fixed cost base by 15% to make Jayride more streamlined and efficient.

Q1 marks the bottom of our annual cash flow cycle, with the Company positioned for growth into December trading and then the next Northern Hemisphere peak summer season. This seasonality, and increasing returns on those investments we have already made, underpin our confidence that earnings and cash flows are positioned to improve. We reaffirm guidance for Jayride to be cash flow positive for FY24 with a strong 2H.

Jayride Group Limited (ACN 155 285 528) – 1

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Cash receipts and cash flow

In Q1 FY24 cash flows were inline with the end of Northern Hemisphere summer season:

• Cash receipts from customers were $999K in Q1 FY24,

• Stand-still operating cash flows were $(742)k in Q1 FY24.

The Company expects Q1 FY24 to mark the bottom of its cash flow cycle due to normal annual seasonality, and the Company’s upcoming cash flow positive inflection point.

Net cash receipts from customers declined in Q1 through normal operations and in line with annual seasonality, as transport companies were paid for travel that was booked in the prior quarter during the Northern Hemisphere peak summer season. This resulted in a $1.2 million movement in net cash receipts when compared to the prior quarter. Net cash receipts are in line with net revenues when averaged over the last two quarters.

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Operating costs were stable for Q1 FY24. Cash payments for operating costs were higher due to payments for professional services which accrued throughout the year, resulting in $172K of additional cash payments during the quarter.

Cash payments for business improvement costs were higher as the Company made final payments related to the closing out of its business improvement initiatives. At the start of October, the Company completed its project to reduce its business improvement cost base, and expects the business improvement costs to be $1.25M per quarter going forward. Related party remuneration payments totaled $132K during the quarter.

On 30 September 2023 the Company held $740K of cash and cash equivalents, and an additional $407K of undrawn credit line facility which it can draw at its election for $1.15 million of total liquidity. In October the Company completed a capital raising of $2.0 million to strengthen its balance sheet. The Company’s total liquidity in Q2 is $3.15 million.

The Company expects Q1 FY24 to mark the bottom of its cash flow cycle. The Company expects to be cash flow positive for FY24, with the cash flow positive inflection point in the lead up to next Northern Hemisphere summer as a result of ongoing growth in volume and margin improvement measures, resulting in a strong 2H FY24.

Jayride Group Limited (ACN 155 285 528) – 2

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Business performance dashboard

In Q1 FY24 stand-still EBITDA was $(15)K, down from +$17K in the prior quarter which benefited from the Northern Hemisphere summer peak season.

Stand-still EBITDA is the profit after the operating costs of the Company, excluding any discretionary business improvement costs. During the period it benefited from growth in trips with stable operating costs, but was impacted by reduced net revenue per trip which flowed onto contribution profit margin.

• Net revenue was $1.55 million,

• Contribution profit was $654K,

• Stand-still EBITDA (pre-growth and business improvement investments) was $(15)K,

• Net revenue per trip was $7.34,

• Contribution margin was 42%.

With ongoing volume growth and margin improvement measures underway, Jayride expects net revenue per trip and contribution margin to both trend higher in Q2 and beyond.

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	Trips	Net Revenue	Variable Cost	Contribution	Contribution	Contribution	Stand-Still
Quarter	(#)	/ Trip ($)	/ Trip ($)	/ Trip ($)	Margin (%)	Proft ($K)	Proft ($K)
Q1 FY23	141,000	$8.89	$4.25	$4.64	52%	$654K	+$70K
Q2 FY23	153,000	$7.40	$4.12	$3.28	44%	$502K	$(183)K
Q3 FY23	153,000	$7.57	$4.20	$3.37	45%	$513K	$(180)K
Q4 FY23	199,100	$7.77	$4.34	$3.43	44%	$682K	+$17K
Q1 FY24	211,100	$7.34	$4.23	$3.10	42%	$654K	$(15)K

Jayride Group Limited (ACN 155 285 528) – 3

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Passenger trips booked grows

In Q1 FY24 passenger trips booked grew to 211K, up 50% from 141K in Q1 FY23, a record level, and above pre-pandemic highs for the sixth consecutive quarter:

• All destinations grew vs the prior corresponding period,

• in particular, Asian destinations grew +160% vs the prior corresponding period,

• Trips booked reached peak levels in July with 85K trips for the month, then reduced thereafter inline with

normal seasonality for the Northern Hemisphere summer peak season.

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Net revenue per trip

In Q1 FY24 net revenue grew to $1.55 million, up 24% from $1.25 million in Q1 FY23, and consistent with the seasonally strong, record level achieved in Q4 FY23.

		Revenue	Revenue	Refund	Net	Net Rev	Net Rev
Quarter	Trips	Booked	Refunded	Rate %	Revenue	/ Trip	V PCP
Q1 FY23	141K	$1,563K	$(310)K	20%	$1,253K	$8.89	+157%
Q2 FY23	153K	$1,394K	$(259)K	19%	$1,134K	$7.40	+186%
Q3 FY23	153K	$1,403K	$(251)K	18%	$1,152K	$7.57	+97%
Q4 FY23	199K	$1,893K	$(347)K	18%	$1,546K	$7.77	+42%
Q1 FY24	211K	$1,841K	$(293)K	16%	$1,548K	$7.34	+24%

Jayride Group Limited (ACN 155 285 528) – 4

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Net revenue per trip in Q1 FY24 disappoints, work underway to improve unit economics

• Net revenue per trip declined from $7.77 to $7.34 in Q1 FY24,

• Net revenue per trip was impacted by higher volume of trips in Asian destinations where net revenue per trip is lower. This was mitigated by continued improvement in refund rates. The Company sees ongoing scope for improvement in net revenue per trip in future quarters,

• Revenue per trip in Asia declined from $5.18 to $4.71 and further optimisation is required,

• Revenue per trip in other markets expanded from $8.89 to $8.94, with further room to grow,

• Revenue per trip from the newly launched travel agent portal is high at $14.95, with further room to grow volume through the channel, so as to improve the whole of Company returns.

Two strategic initiatives are being implemented to grow net revenue per trip

1. A focus on expanding volume through channels which command higher net revenue per trip (including travel agents following the recent travel agents portal launch), and

2. A focus on improving net revenue per trip through channels and destinations which have lower net revenue per trip (including optimisation in Asia and with a select large travel brand partner).

Contribution profit margin

In Q1 FY24 contribution profit margin was 42%, down from 44% in the prior quarter, due to net revenue per trip.

The impact of the decline in net revenue per trip was mitigated by an improvement in variable operating costs. Variable operating costs reduced to $4.23 per trip in Q1 FY24, from $4.34 per trip in the prior quarter.

In addition to work to grow net revenue per trip, the Company has also undertaken work to further reduce variable operating costs, including to downsize its customer support team by 20 roles, inline with Northern Hemisphere winter low season, from early October.

Operating and corporate costs stable

In Q1 FY24 operating and corporate costs were $690K, compared to $658K in the prior quarter.

Costs included a non-recurring redundancy payment amounting to $29K, and were otherwise stable. Operating costs continue to be carefully managed and have remained range bound for the last two years.

Jayride Group Limited (ACN 155 285 528) – 5

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Business improvement underway to drive growth, cash flow positive

Jayride has delivered a suite of enhancements to drive growth, efficiency and improved unit economics in FY24. As these projects have been delivered, the Company has then been able to take steps to deliver the expected efficiency gains and cost reductions. Taken together, with ongoing growth and efficiency improvements, the Company is confident of achieving cash flow positive for FY24.

Business improvements launched and gaining traction

In July and August Jayride launched its new portal for travel agencies.

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The unit economics of travel agent bookings are superior to other channels. Pre-pandemic travel agents commanded a higher share of Jayride passenger trips booked. This channel alone has potential to take the Company towards its trips growth objective, and towards its objectives of $10 net revenue per trip at 50% contribution profit margin.

	Net Revenue	Variable Cost	Contribution	Contribution
Unit Economics Scenario	/ Trip ($)	/ Trip ($)	/ Trip ($)	Margin (%)
Q1 FY24 overall Unit Economics	$7.34	$4.23	$3.10	42%
Travel Agents Unit Economics in New Portal	$14.95	$6.90	$8.05	54%

In addition to the travel agency launch, Jayride continues to benefit from its recent launches of multilingual and ride tracker, and further enhancements to grow volume and margins through its existing channels with major travel brand partners, including through optimisation of prices, destinations, and Preferred Partner status.

Jayride Group Limited (ACN 155 285 528) – 6

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Cost reductions completed to save 15% of costs

As disclosed on 11th October 2023, the Company has undertaken a cost savings activity which will decrease its annual fixed cost base by 15%, to save a total of $1.25 million per year from October 2023. In addition to these savings, the Company has recently reduced its customer service team by 20 roles following the completion of European summer peak season and enhancements to workflows.

Following these cost savings:

• The Company’s contribution profit margin is expected to improve as a result of lower customer service cost per booking,

• The Company's operating and corporate cost base is expected to be $650K per quarter,

• The Company’s business improvement investments (including capitalised costs) are expected to be under $1.25 million per quarter.

Previously the Company disclosed intent to reduce its business improvement and growth costs from $1.55

million to $1.25 million per quarter. As a result of this cost savings activity, this objective has been completed and these savings have been realised.

The cost to deliver these savings was $190K which has been incurred in Q2 FY24.

Latest trading in Q2 FY24

Latest trading in Q2 reflects the Company’s annual seasonality based around Northern Hemisphere seasons:

• The Northern Hemisphere winter low season continues through Q2, before building again in Q3 and Q4,

• In prior years September-October was the seasonal low point for trips booked before growth resumes,

• In the first 24 days of October trips booked are up +23% vs prior year, which is the Company’s largest October, with 48K trips booked to date for a month-end estimate of 59K trips.

Outlook – towards cash flow positive

Towards cash flow positive for FY24, the Company is increasing cash inflows and reducing business improvement costs:

Cash fow driver	FY24 outlook
Increasing cash infows	Contribution growth by winning market share and improving unit economics:
from operations	● Trips growth towards 1 million+ trips run rate,
	● Revenue per trip growth towards $10 net revenue per trip,
	● Contribution proft margin expansion towards 50%.
Reduced cash costs on	Operating and corporate costs remain stable,
business improvement	Cost savings completed in October reduce business improvement costs back
	to Q1 FY23 rates of $1.25M per quarter

Jayride Group Limited (ACN 155 285 528) – 7

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Q1 marked the bottom of the cash flow cycle for the year, as Jayride made payments for all bookings travelled across the peak season. The Company will now continue to progress towards cash flow positive for FY24.

During Q2 FY24, the Company intends to hold passenger trips stable through the Northern Hemisphere winter season with gains to market share. Thereafter, during Q3 FY24, trips should grow into the spring travel season in March, and then again during Q4 FY24 step up into the next Northern Hemisphere summer season.

Jayride expects to grow in FY24 towards its goals of 1 million+ passenger trips booked per year, $10+ net revenue per trip, and cash flow positive. The Company anticipates continued growth as a result of:

• Successful investments in brand refresh, price optimization in Asian markets, multilingual launch, ride tracker launch, enhanced partnerships with large travel brands, and the growth of the travel agents channel with attractive unit economics, following the launch of the travel agents portal in August,

• The ongoing structural shift to online booking of rides,

• The continued return of travel in Oceania and Asia, and

• The upcoming December travel season, followed by build up to next Northern Hemisphere summer.

Jayride is positioned to capture a once-in-a-generation opportunity and become the world leader in rides for travellers. The Company looks forward to providing further updates at its AGM on 23rd November 2023.

For more information please contact

Rod Cuthbert

Executive Chair Email: corporate@jayride.com

ASX release authorised by Rod Cuthbert, Executive Chair, Jayride Group Limited.

Jayride Group Limited (ACN 155 285 528) – 8

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About Jayride Group Limited (ASX:JAY)

Jayride Group is the world’s leading publicly listed airport transfers marketplace, where travellers compare and book rides around the world. With Jayride, travellers can compare and book with 3,700+ ride service companies, servicing 1,600+ airports in 110+ countries around the world which cover 95% of world airport trips, including across the Americas, Europe, Middle East, Africa, Asia and the Pacific.

The Jayride platform aggregates ride service companies and distributes them to travellers at Jayride.com, AirportShuttles.com, and via travel brand partners including other technology platforms, online travel agencies, travel management companies, and wholesalers. These travel brands implement Jayride APIs to sell door-to-door ride services that build traveller confidence and grow their core travel business.

Founded in 2012, Jayride Group is a global remote-first company incorporated in Australia and listed on the Australian Securities Exchange (ASX:JAY).

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) – 9

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

Name of entity
Jayride Group Limited
ABN	Quarter ended (“current quarter”)
49 155 285 528	30 September 2023
Consolidated statement of cash flows	Current quarter $A’000	Year to date (3 months) $A’000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) research and development (b) product manufacturing and operating costs (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	- 999- - -- - -- (519)- - -- (1,392)- (906)- - -- - -- (2)- - -- - 37- - --	- 999- - -- - -- (519)- - -- (1,392)- (906)- - -- - -- (2)- - -- - 37- - --
	(1,785)-	(1,785)-
Notes
2. Cash flows from investing activities 2.1 Payments to acquire: (a) entities (b) businesses (c) property, plant and equipment (d) investments (e) intangible assets (f) other non-current assets 2.2 Proceeds from disposal of: (a) entities (b) businesses (c) property, plant and equipment (d) investments (e) intangible assets (f) other non-current assets 2.3 Cash flows from loans to other entities 2.4 Dividends received (see note 3) 2.5 Other (R&D Tax incentive) 2.6 Net cash from / (used in) investing activities
	- -- - -- - 1- - -- (553)- - -- - -- - -- - -- - -- - -- - -- - -- - -- - --
		- --
		- -- - 1-
		- --
		(553)- - --
		- -- - -- - -- - -- - -- - -- - -- - --
		- --
	(551)-	(551)-
ASX Listing Rules Appendix 4C (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms
	Page 1 Appendix 4C

	Quarterly report for entities subject to Listing Rule 4.7B	Quarterly report for entities subject to Listing Rule 4.7B
Consolidated statement of cash flows	Current quarter $A’000	Year to date (3 months) $A’000
3. Cash flows from financing activities 3.1 Proceeds from issues of equity securities 3.2 Proceeds from issue of convertible debt securities 3.3 Proceeds from exercise of options 3.4 Transaction costs related to issues of equity securities or convertible debt 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	- -- - -- - -- - -- - 593- - -- (4)- - -- - --	- -- - -- - 593- - -- (4)- - --
	- 588-	- 588-
Notes
3.5 Jayride utilised $593K of a $1 million credit line facility during the period to support the growth of its on account business.
4. Net increase / (decrease) in cash and cash equivalents for the period 4.1 Cash and cash equivalents at beginning of period 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	- 2,518- (1,785)- (551)- - 588- (31)-	- 2,518- (1,785)- (551)- - 588- (31)-
	- 739-	- 739-
5. Reconciliation of cash and cash equivalents	Current quarter	Previous quarter
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (bank guarantee) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6)	- 739- - -- - -- - --	- 2,518- - -- - -- - --
	- 739-	- 2,518-
6. Payments to related parties of the entity and their associates		Current quarter $A’000
6.1 Aggregate amount of payments to related parties and their associates included i 6.2 Aggregate amount of payments to related parties and their associates included i	n item 1 n item 2	- 132- - --
Notes
7. Financing facilities Note: the term “facility" includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity.	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000
7.1 Loan facilities 7.2 Credit standby arrangements 7.3 Other (Short term borrowings) 7.4 Total financing facilities	- -- - 1,000- - --	- -- - 593- - --
	- 1,000-	- 593-
7.5 Unused financing facilities available at quarter end
		- 407-
7.6 Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any Notes
7.2 Line of Credit Facility funded by AMAL Trustees Pty Ltd, Interest Rate: 10.494%, secured by Accounts Receivable

ASX Listing Rules Appendix 4C (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms

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Appendix 4C

		Quarterly report for entities subject to Listing Rule 4.7B
8.	Estimated cash available for future operating activities	$A’000
8.1 8.2 8.3 8.4 8.5	Net cash from / (used in) operating activities (Item 1.9) Cash and cash equivalents at quarter end (Item 4.6) Unused finance facilities available at quarter end (Item 7.5) Total available funding (Item 8.2 + Item 8.3) Estimated quarters of funding available (Item 8.4 divided by Item 8.1)	(1,785)- - 739- - 407- - 1,146-
		- 0.64-
8.6	If Item 8.5 is less than 2 quarters, please provide answers to the following questions: 1. Does the entity expect that it will continue to have the current level of net operating cash f	lows for the time being and, if not, why not?
	No, the Company expects that it will have improved net operating cash flows in coming periods, as 1) the Company's operating cash flows are expected to improve in future periods, 2) the Company intends to move to a cash flow positive operation for FY24. In particular, net cash receipts from customers declined in Q1 through normal operations and in line with annual seasonality, as transport companies were paid for travel that was booked in the prior quarter during the Northern Hemisphere peak summer season. Cash receipts from customers are expected to improve in line with seasonality in Q2, Q3 and Q4.
	2. Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how
	Yes, the Company has taken multiple steps, including to raise further cash to fund its operations. The Company has taken multiple steps to improve operating margins and balance sheet position, including 1) improvements to operating margins, 2) a cost reduction activity to reduce 15% of fixed costs, 3) the Company has raised an additional $2 million in a capital raise completed in Q2.
	3. Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?
	Yes, the Company expects to be able to continue its operations and to meet its business objectives, because 1) the Company's operating cash flows are expected to improve in future periods, 2) the Company intends to move to a cash flow positive operation for FY24, 3) the Company has raised an additional $2 million in a capital raise completed in Q2.
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. Date: 30/10/2023 Authorised by: Rod Cuthbert, Executive Chairman

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.

Date: 30/10/2023

Authorised by: Rod Cuthbert, Executive Chairman

(Name of body or officer authorising release – see note 4)

Notes

• 1 This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter,

• 2 If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107:

• 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

• 4 If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release

• 5 If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation

ASX Listing Rules Appendix 4C (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms

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