Despite the re-emergence of Covid-19 uncertainty with the onset of the Omicron variant, Carly Car Subscription continued to achieve strong growth across key metrics versus the September 2021 Quarter. Subscription Transaction Value increased by 28% and Carly Revenue increased by 55% compared to the September 2021 Quarter. The higher increase in Carly Revenue compared to Subscription Transaction Value is due to the implementation of the strategy to bring owned and leased vehicles into the fleet, in addition to vehicles secured through the traditional asset light model. Under the new vehicle acquisition strategy Carly retains a higher proportion of the Subscription Transaction Value as revenue, which increased to 40% in the December 2021 Quarter vs 33% in the September 2021 Quarter. Carly Subscription receipts increased to 89% of Rental & Subscription Receipts, an increase of 7% since the September 2021 Quarter as the Company continues to reduce its focus on the more volatile car rental and rideshare rental revenue streams. 

As previously announced, a new subsidiary of Carly Holdings was established to control vehicles, via owning and financing, to provide a more reliable source of vehicles to match the increasing level of demand and achieve the substantial growth potential of car subscription. As of 31 December 2021, 46 vehicles were owned or leased and contributed 28% of Total Carly Revenue. This is an increase from 24 vehicles owned or leased as at 30 September 2021. The utilisation of owned and leased vehicles is currently ahead of initial modelling and expectations.

While the Carly revenue from owned/leased vehicles increased by 440% in the December 2021 Quarter versus the September 2021 Quarter, the quarterly results alone do not fully reflect the rapid growth in revenue and utilisation that was attained by the month of December 2021. The revenue for the month of December 2021 for owned/leased vehicles was 58% higher than the average monthly revenue recognised for the December 2021 Quarter. Given the recurring nature of a Carly Car Subscription, the revenue generated by these vehicles can be expected to continue into the March 2022 Quarter. 

Over the last two quarters, Carly has sought to confirm the thesis that it can acquire high demand vehicles, quickly have them subscribed by customers and generate a strong return on those assets. Given the performance to date, Carly has proven this thesis, and will look to expand the fleet of owned and leased vehicles. 

The ongoing focus on cost control delivered substantial savings in all cost areas except Advertising and Marketing which increased by a modest 18% vs the September 2021 Quarter as Carly increased marketing with the easing of restrictions and improved vehicle supply. Total cash outflow for expenses reduced by 12% in the quarter vs the September 2021 Quarter.