September 2024 Quarterly Activities Report

Carly Holdings Limited (ASX:CL8) is pleased to present its consolidated cash flow report and business update for the quarter ended 30 September 2024.

Carly has continued to deliver on its business objectives, achieving growth in active subscribers while reducing net cash used in operating activities. Growth in subscribers was attributed to increases in consumer subscribers, expansion of the corporate customer base and an increase in electric vehicle subscriptions driven by EV Trial. New product deployments continued with the deployment of CarlyNow in multiple automotive dealerships.

Key highlights include:

• 41% increase in Subscription Revenue vs September 2023 Quarter
• 44% increase in Customer Receipts vs September 2023 Quarter and 8% increase vs June 2024 Quarter, exceeding $1.6 million for the first time
• 24% decrease in Staff Costs vs September 2023 Quarter and 32% decrease vs June 2024 Quarter
• 8% decrease in Net Cash Used vs June 2024 Quarter
• Total fleet size of 536 which is an increase of 50% vs September 2023 Quarter
• The asset light fleet increased by 72% vs September 2023 Quarter and represented 32% of total fleet size as more automotive dealers and manufacturers seek subscription monetisation for their vehicles via Carly
• Owned vehicle fleet increased by 40% vs September 2023 Quarter and represented 68% of total fleet size
• The in-dealer subscription tool, CarlyNow and the try before you buy electric vehicle proposition, EV Trial continued to support growth in overall subscription numbers

The September 2024 Quarter saw the number of subscribers continue to increase and Customer Receipts increase by 8% vs June Quarter 2024, exceeding $1.6 million for the first time. Quarterly subscription revenue declined due to end of year positive revenue adjustments in the month of June 2024, which were reflected in the June 2024 Quarter. In the corporate sector, Carly has identified a number of industry segments that have a higher propensity for use of subscription vehicles due to the nature of demand or employee situation. Following success with early customers in these segments, Carly has continued to sign up multiple similar customers.

EV Trial www.evtrial.com.au, a simple and cost-effective way for car buyers to try an EV before they buy, continued to expand in the September Quarter, supported by the addition of owned and asset light electric vehicles. Corporate referral relationships have been established to drive demand for EV Trial for Business.

As highlighted in previous updates, Carly is witnessing a softening in the retail new car sales market as post Covid supply delays have largely been resolved and cost of living pressures weaken demand for new vehicle purchases. Both of these impacts are positive for Carly, increasing the potential supply of asset light vehicles as automotive dealers and manufacturers seek alternative revenue streams for excess vehicles and, on the demand side, consumers and businesses delay financing new vehicle purchases and opt for the lower risk and more flexible subscription option.

CarlyNow deployments continued in multiple dealerships in the September Quarter. CarlyNow enables automotive dealers to subscribe vehicles to customers who visit their dealership by leveraging Carly’s technology and operational expertise. A subscription can be created ‘on the fly’ by adding subscriber and vehicle details. Carly performs ID verification and affordability checks, processes payments, applies insurance to the vehicle and provides fleet management services. CarlyNow was developed to broaden customer acquisition channels and support growth of the asset light fleet.

Significant reductions were achieved in Staff Costs, reducing by 32% compared to the June 2024 Quarter. Product Manufacturing & Operating Costs increased as a natural consequence of a larger fleet and timing related items such as annual registration renewals and third party owner costs expensed in the prior quarter but invoiced and paid in the September 2024 Quarter.

Corporate

Payments to related parties and their associates in the September 2024 Quarter of $72,000 a reduction of $33,000 from the prior quarter.

Cash Balance at Quarter End and Funding

At the end of the June 2024 Quarter, the Company maintained a cash balance of $625,000, a decrease of $688,0000 from the June 2024 Quarter.

Carly is currently assessing a range of options in relation to the funding and financing arrangements of the business and the Directors continue to closely monitor cash flows.