Travel is certainly back with airport transfers marketplace Jayride reporting improved business metrics across the board as momentum builds.

As noted earlier this month, the company has seen passenger trips booked grow to a new high of 199,100 in the fourth quarter of FY2023, up 46% from the previous corresponding quarter (PCP).

This has also delivered corresponding increases in revenue (up 42% to $1.55m) and cash receipts from customers (up 64% to $2.24m).

Jayride Group (ASX:JAY) adds that this has delivered a 45% increase in stand-still operating cash flow to $725,000 and a 20% increase in contribution profit, which measures the profitability of operations after covering fixed costs, to $682,000.

Likewise, while operating cash flow is still operating in deficit, it has still improved by 37% with just $32,000 leaving the company.

While there are few certainties in business, the increased momentum that the company is experiencing raises the probability that positive operating cash flow could be just around the corner.

“Travel is back, and Jayride is delivering on the anticipated Q4-Q1 Northern Hemisphere peak summer season. We are executing our strategy to grow trips and enhance unit economics toward cash flow positive,” managing director Rod Bishop said.

He added that European trips were up 104% PCP, which more than offset Asian trips remaining flat from the third quarter of FY2023.

“FY23 is Jayride’s biggest year yet. We grew +99% vs FY22, and are set to grow again in FY24 with more trips booked and enhanced unit economics,” Bishop noted.

“We have significantly enhanced our offering over recent quarters with major business improvement initiatives that will drive growth across the period. Alongside this growth we will carefully manage our cost base.

“We look forward to a larger and cash flow positive Jayride for FY24.”

Taking flight into the future

Bishop added that the company had already started the first quarter of FY2024 on a positive note, explaining that the run rate of 1 million per year that it enjoyed in June has continued into July.

“July is on track to be larger than June, in the month to date up +77% vs prior July, with potential to exceed our objective of a 1 million+ run rate for passenger trips booked for our first full month,” he highlighted.

The company is already on track to record 85,000 trips in July, well up from the record of 75,000 trips in June.

Strategies are also in place to expand net revenue per trip, which had increased to $7.77 in Q4 FY2023.

These include enhancements to unit economics in new regions, and a focus on further growth in those selected channels and destinations that are already trading above the target $10 net revenue per trip.

Further support for this growth is expected to come from the improvement it carried out in FY2023 such as completion of the brand refresh, the acquisition, integration and optimisation of AirportShuttles.com in Q3 as well as the launch of paid search and social media marketing for the website during Q4 and continuing into the current quarter.

Other work includes the expansion of the Europe Growth Hub and related initiatives, including the launch of the company’s multilingual Jayride.com website, localisation into Spanish launched during Q4, and the ability to launch further European languages throughout FY2024.

New initiatives such as Ride Tracker for drivers, which was launched in June and will be launched for travel agents in the current quarter, are also expected to contribute to this growth.

Jayride noted that since Ride Tracker was launched, one major travel brand partner has already increased their quote requests to Jayride by +100%, with scope to grow further.

This article was developed in collaboration with Jayride Group, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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