Carly Holdings (ASX:CL8) hits 100pc subscription revenue growth

• Carly Holdings (CL8) has seen its subscription revenue growth hit 100 per cent
• The increase was clocked across Q1 of FY24 so far referenced against the September quarter of 2022
• The company’s fleet has grown to more than 250 vehicles
• Financed vehicles make up the vast majority of the company’s revenue growth
• The company sees an improving commercial car market with future fleet growth locked in
• Shares last traded at 1.9 cents

Carly Holdings (CL8) has provided an update to its shareholders and the market, reporting a 100 per cent growth in subscription revenue.

Only last month, the car subscription service provider notched an 82 per cent increase in FY23, indicating a sharp rise since then.

The 100 per cent increase occurred in July and August when compared to the September quarter of 2022. Over the June quarter of 2023, the increase is 11 per cent.

Record transactions, along with revenue, were achieved in August, with an annualised revenue run rate of $3 million, representing a $500,000 increase.

Carly’s fleet expanded in August to 257 vehicles, marking a 252 per cent increase over September 2022. The owned and financed fleet contributed 86 per cent to subscription revenue growth, with 71 per cent of the total fleet falling under this category.

“During July and August, Carly continued to draw down on the $10m asset finance facility announced in March 2023, with 45 vehicles being purchased and delivered in the period,” the company wrote on Wednesday.

“Market feedback suggests that availability of asset-light vehicles is improving, and Carly expects to receive delivery of new asset-light vehicles in the December Quarter 2023.”

CL8 shares last traded at 1.9 cents.