Jayride Group Limited (ASX: JAY) provides transfer services. The Company offers a transfer comparison platform to compare transfer companies and book a transfer. Jayride Group serves customers worldwide.
The company, today on 11 March 2019, has come up with an update that it has secured a finance facility of A$3M (in two tranches of A$2M and A$1M) from Pure Asset Management Pty Ltd.
Mr. Rod Bishop, Managing Director of Jayride, said that, following the addition of ride-hailing companies like Lyft and Gett to the Jayride marketplace, as well as rapid expansion into new territories, the company is well positioned for continuous growth. He also emphasized that new funding will help the management ensure it can execute the company’s strategy while fully funding the growth of the company towards profitability.
As per the interim report for the half year ended 31 December 2018, the Company increased its revenue during the half-year to $1,419,435 vis-à-vis $793,835 reported as on 31 December 2017, an increase of 78.8% compared to the corresponding period. The loss for the Company after providing for income tax amounted to $4,336,740 (31 December 2017: $3,129,520). The performance was in line with the Company’s strategy to grow revenue through market capture including increased capital allocation into developing its technological advantage, building team capabilities and improving unit economics for future economic returns at scale.
The company registered a TTV growth in 1H FY19 driven by travellers in existing destinations. New destinations launch, already contribute 5%+ TTV, which is expected to grow further. Strong financial results were driven almost entirely from within existing destinations. The company’s significant step-change towards international expansion seems to be successful enough. This expansion in the global space is expected to drive revenues on & from 2H FY19. A significant metric, Cost of Customer Acquisition (CAC) was scaled up to launch new destinations with travellers for travel during December 2018 holiday period. From Jan 2019, CAC scaled back to normal levels while retaining strong results for TTV, Revenue, and GPAPA in new destinations.
Company’s International expansion has created a step-change in its market access (TAM). Demand for the new destinations has strongly outperformed the stated benchmark. The company is now leveraging Google organic search results through new SEO website to acquire new travellers at scale with no cost of traveller acquisition (CAC). The Jayride travellers can now compare and book the best local ride-hail and rideshare services at fixed prices around the world.
On the price-performance front, the stock has posted the YTD return of -20%. The company also has posted returns of -19.10%, -23.40% & -16.28% over the past six, three & one-month period, respectively. At the time of writing (11 March 2019, AEST 04:00 PM), the stock of the company traded at a price of $0.375, up 4.167% during the day’s trade with a market capitalization of ~$ 30.36 Mn. The stock opened the day at $ 0.365, reached the day’s high of 0.375 and touched the day’s low of $ 0.360, with an average daily volume of ~ 28,506. It had a 52-week high price of $ 0.540 and a 52 weeks low price of $ 0.330, with an average volume of, 18,560 approximately.
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