Increasing travel has proven to be a boon for airport transfers marketplace Jayride, allowing it to break records for both the number of passenger trips booked and net revenue in the fourth quarter.

Passenger trips booked grew to a record 199,100 during the quarter, up 46% over the previous corresponding quarter, while revenues grew 42% to $1.55m due in no small part to the Northern Hemisphere summer peak season that is currently underway.

This is backed by the International Air Transport Association releasing its May 2023 traffic data showing continued strong growth in air travel demand to near May 2019 (pre-pandemic) levels.

Adding further interest, the net revenue per trip rose to $7.77 during the quarter, up from $7.57 in the previous quarter.

Significantly for Jayride Group (ASX:JAY), it also achieved a run rate of 1 million trips booked per year in the last two weeks of June, a milestone that it had flagged back in April this year.

And it is not stopping there.

The company completed major releases in June to further grow the business, including multilingual launch and driver location tracking.

It is also on track to deliver a new travel agents portal in July as it marches towards delivering positive cash flow in the current financial year.

“Jayride is delivering on the anticipated Q4-Q1 Northern Hemisphere summer peak season and is continuing to execute our strategy to grow trips and unit economics to cash flow positive,” managing director Rod Bishop said.

“This summer started with a stronger March and is continuing later with a stronger late June than in the previous year. In Europe, Q4 is up +104% vs Q3. In Asia, trips remained flat as we continued to focus on unit economics and enhancing our revenue per trip. We exit Q4 with a run rate of 1 million passenger trips booked per year.”

He added that the 2023 financial year was the company’s biggest year yet with greater than 99% growth over the previous year, hitting the 1 million trip run rate and net revenue per trip approaching the key $10 per trip milestone.

All of these together will take Jayride towards becoming cash flow positive.’

Outlook

Looking into the 2024 financial year, the company expects to deliver continued growth towards major milestones in trips and revenues.

This will be assisted by the ongoing Northern Hemisphere peak summer travel season, which could take it well past the 1 million trip per year milestone.

Jayride is also progressing strategies to expand net revenue per trip with enhancement 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.

Other supporting elements are the recent investments in brand refresh, price optimisation in new destinations, acquisition of AirportShuttles.com website, multilingual launch, driver location tracking launch, and upcoming launch of the new Jayride.com travel agents portal.

This article was developed in collaboration with Jayride, 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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