December 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 31 December 2024.

Carly has continued to deliver on its business objectives and achieved growth in active subscribers. 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.

Key highlights include:

• 41% increase in Customer Receipts vs December 2023 Quarter and 5% increase vs September 2024 Quarter, exceeding $1.7 million for the first time
• 9% increase in Subscription Revenue vs September Quarter 2024 and the highest ever revenue result achieved since launch
• 11% decrease in Staff Costs vs December 2023 Quarter including redundancy costs following headcount reduction
• 18% decrease in Advertising and Marketing costs vs December 2023 Quarter and 13% decrease vs September 2024 Quarter, despite the increase in consumer and corporate subscribers
• 30% decrease in Net Cash Used in Operating Activities vs December 2023 Quarter
• The asset light fleet represented 34% of total fleet size vs 32% at the end of the September 2024 Quarter as more automotive dealers and manufacturers seek subscription monetisation for their vehicles via Carly
• Review of fleet of vehicles saw Carly dispose of $556,000 of vehicles during the quarter

The December 2024 Quarter saw the number of subscribers continue to increase and Customer Receipts increase by 41% vs December 2023 Quarter, exceeding $1.7 million for the first time. Quarterly subscription revenue once again increased, following positive revenue adjustments reflected in the June 2024 Quarter, to record the highest revenue result ever achieved. 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. During the quarter, Carly reviewed its fleet of owned vehicles based on utilisation and customer requirements which resulted in Carly disposing of $556,000 of vehicles during the quarter.

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 December Quarter.

Advertising & Marketing costs decreased, despite the increase in subscribers, due to continued optimisation of digital marketing campaigns and the strong performance of consumer and corporate referral channels. During the December 2024 Quarter, Australian headcount was reduced by five FTE and Manila headcount was reduced by two FTE as the Company sought to reduce costs while continuing to strive for increased sales. These headcount reductions have eliminated over $210,000 in Staff Costs per Quarter, commencing from March 2025 Quarter.

Corporate
Payments to related parties and their associates in the December 2024 Quarter of $72,000. No change from the prior quarter.

Cash Balance at Quarter End and Funding
At the end of the December 2024 Quarter, the Company maintained a cash balance of $500,000, a decrease of $125,0000 from the September 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.