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Carly (ASX:CL8) reports strong subscription revenue growth in March 2023 quarter

ASX News, Capital Compass, Consumer Discretionary, The Market Herald Boardroom
ASX:CL8      MCAP $3.488M
26 April 2023 17:33 (AEDT)

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Carly (CL8) has reported a strong uplift in its subscription revenue during the March 2023 quarter, following on from a strong December 2022 quarter.

For the three months to the end of March, the company posted a 76 per cent increase in subscription revenue year on year (YoY), as well as a 21 per cent increase compared to the last quarter.

During the March quarter, Carly’s average monthly subscription revenue reached a record $189,000, up from the $156,000 reported in the December quarter.

The company also highlighted its ongoing focus on cash management, reporting no change in net cash used in operating activities for the March quarter compared to the December 2022 quarter.

Further, Carly reported a 17 per cent quarter-on-quarter decrease in product manufacturing and operating costs over the three months to the end of March.

Subscription vehicle utilisation was up 88 per cent across the quarter, despite the addition of many new vehicles, proving the demand for Carly’s car subscription services.

Carly’s fleet size increased to 146 vehicles at the quarter’s end, with the company adding 27 new vehicles during the period.

This was made possible by having secured an asset finance facility of up to $10 million on March 22, 2023. It marks the company’s largest-ever asset finance facility.

Carly urged that it continued to place forward orders to acquire vehicles during the June 2023 quarter.

At the end of the March 2023 quarter, Carly had a cash balance of $962,000 — a decrease of $656,000 from the December 2022 quarter.

Shares in CL8 were down 3.45 per cent and trading at 2.8 cents at 1:37 pm AEST.

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