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Edited Transcript of JAY.AX earnings conference call or presentation 29-Aug-19 5:00am GMT

Full Year 2019 Jayride Group Ltd Earnings Call

Sep 20, 2019 (Thomson StreetEvents) -- Edited Transcript of Jayride Group Ltd earnings conference call or presentation Thursday, August 29, 2019 at 5:00:00am GMT

TEXT version of Transcript

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Corporate Participants

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* Peter Charles McWilliam

Jayride Group Limited - CFO

* Rodney John Bishop

Jayride Group Limited - Co-Founder, MD & Executive Director

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Conference Call Participants

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* Adam Dellaverde

Taylor Collison Limited, Research Division - Equities Analyst

* Andrew Swaffer;Taylor Collison Limited;Portfolio Manager / Analyst

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Presentation

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Operator [1]

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Thank you for standing by, and welcome to the Jayride FY '19 Results and Q&A Conference Call. (Operator Instructions)

I would now like to hand the conference over to Mr. Rod Bishop, Managing Director. Please go ahead.

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Rodney John Bishop, Jayride Group Limited - Co-Founder, MD & Executive Director [2]

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Thank you, operator. Rod Bishop here, Managing Director of Jayride Group, together with Peter McWilliam, Chief Financial Officer. We will take you through a short introduction to Jayride's full year FY '19 financial results, and what a year it was. Thanks very much for joining. It's a rainy afternoon in Sydney. It good to be inside in a conference call. That's it. I know it's a busy time so we'll keep it 10 minutes, give or take.

This was the year where Jayride became a true global leader in transport and travel technology. That's a landmark thing. We were casting our mind back to 1st July last year and trying to think about how far we've come. 1st July last year, we were a local operator, right? We were in 5 countries. And all of our existing partners, whether it's Flight Centre or Expedia or Rome2Rio, were all pushing us and saying, guys, you've got something that works, but we're only interested in the transport industry, if you guys can make it turnkey global. And so that's what we did this year. And I mean 7 years in the making to get to that landmark.

Shortly, we'll go through the results. So I guess at a very high level, I'd like to recap on the slide. Every single world traveler needs transport for a seamless and connected trip, right? No one starts and finishes their journey at an airport when they travel. Every single person has a relationship with a travel brand that left them standing in the taxi rank, right? Not only is that ancillary revenue they've missed because they couldn't work out or maybe just didn't feel like it was worth the effort to go serve that, but it's also a crappy traveler experience, excuse the French. So that's 7.7 billion trips made by travelers around the world every year to and from airports alone, 7.7 billion trips. And until now, not really one credible, truly global transport-focused aggregate there to help travelers make the right choice. I mean travelers are spoiled for choice and there's no monopolies here. There's multiple options in literally every destination on earth.

And so how do you know who to choose? So this year, we expanded and we're yet to give the travelers that access to their choice to be able to get the local knowledge before they go and find the reviews that they can use. And this is our opportunity, essentially, to create the travelers' trust in global transport brand. So when you hit the road and you're going someplace new and you have that hotel brand you trust and that airline brand you trust, you know who is that transport brand you trust. Right now, no one car company on earth can possibly serve every one of those 7.7 billion trips at the 1,500 bus airports we serve in 81 countries. That's more than Uber. That's more than any other company you could name. And so when the travel industry, whether it's a traveler who wants trusted brand or a travel brand, who wants to be able to plug and play and turnkey has sought a solution, there hasn't really been one until now. And so this is what we've done this year.

And so if we were to talk about how we came to this, it's 7 years in the making. When we first started Jayride, we saw that transport for travelers was going to be the next big thing to crack. Travelers need seamless experiences and they couldn't get them. And the travel industry was quite hard at it, trying to work out how to address the transport and they knew that there would be technology, there would be the solution, and that's when we started. And so 7 years out, here we are and we finally shift to feature-complete products. I mean it goes to the difficulty of actually achieving the goal but also thinking about the market timing. I frankly think it couldn't be there. When we look at what's going on in both the transport industry and also the travel industry right now, we see opportunities converging on us. I mean in transport, you might have been of the opinion a couple of years ago that all transport will be one transport company, right, Silicon Valley-based, high tech, it's very compelling, you read about it in TechCrunch. But it was never really going to be the case. And now that everyone's starting to talk about profitability and ride-hail, there's going to be price competition in markets. We have Uber talking minimum wage. They no longer have a cost advantage over every other local incumbent. It's no longer Uber versus the transport industry. It's the transport industry. Simply put, it's dynamic and changing. And there didn't use to be apps and now there are. And similarly, there didn't use to be distribution to the travel industry and now Jayride is bringing it.

Literally, every man and his dog is talking about having a ride-hailing brand now. I mean whether you're Avis or Hertz and you're distributing your rental cars into there or if you're a car manufacturer like Tesla or Cruise Automation owned by GM or whether you're Google-owned Waymo. And every single one of these people's companies is starting to talk about getting ride service going, now offering door-to-door solutions to travelers. Some travelers are about to be spoiled for more choice, not less, right, more of an ecosystem, less of a monopoly. And so where will people go to choose. How will that compare, if not a marketplace. And that's the Jayride marketplace.

The travel industry (inaudible) work is seamless. I mean you can read the headlines, booking.com, GBP 100 million investment in the Manchester global transport HQ, but they don't have the technology that we've built. Similarly, Expedia, a lovely announcement right now. They'll give you ground transport for any flight that's stopping. And then I start to wonder how they're executing that and start to see if we can work with them on this. So transport converging towards a small fragmentation, very dynamic, travel converging towards us, words like the seamless experience or the connected trip. And all the big players, without the technology that Jayride has built, and they're here to help.

So what a year, from local transport platform to global transport platform in a single year. World's first platform where literally any transport company on earth can just simply list their services. We talk about going global overnight, right? We talk about plug-and-play into any large TMC, travel management company, or online travel agency you want, and they've never heard that before when we called them a small bus company or a car company in Bangladesh or the Dominican Republic or Bali. They never heard that before that they could access world travelers overnight through a single platform.

Similarly, the first platform where every travel brand can now plug and play the whole global industry. We only announced this in July, by the way, but we eventually completed our global rollout. So we've done most of FY '19 still being not quite a complete solution, but since the end of June, now 81 countries, 85% of the world's market access, all available turnkey through one connectivity, lots to say. The travel brands, they can now reach every dispatcher, every driver that they want to on earth. If we don't have it yet, we'll get it for you, free of charge. I mean that's something they were never able to do before, to have the whole world full of door-to-door traveler experience again overnight for long connection.

So the global rollout gets a lot of attention. We did the technology piece of that in the first half of the financial year, and we actually did a whole lot of other things. That's what we make at the start of the financial year, more value for travelers. It was all sorts of product feature enhancements. We pushed hard into organic traffic with ways to capture travelers at lower cost (inaudible). Organic traffic is now one of our top channels, if not our top channel partners. It's right up there competing with us. We launched whole new transport modes like ride-hail, and full-service patient assist transport that was a requirement of one of our travel management companies, a lot of stuff, and that was all H1.

And then taking a look to the second half of the year, really, just getting stuck into leverage. We can talk about countries and countries and countries till the cows come home, but what we need to do is we need to make a sustainable fast revenue growth and eventually profitable company. And so in 2H, we've got stuck in the leverage and that was about revenue growth. It was about the gross profit after paid acquisitions, certainly contributions to the company by metric, growth in that metric, and it exceeded all our expectations now. It exceeds our aspirational models even in the latest half, let alone what we're seeing in the latest weeks.

So even with all of that, all that we've done, all that we've come so far since July 1, 2018, I'd say that we're still about 1% done in terms of what we want to do.

So what do we want to do thinking ahead? I'd like to probably rather than help you digest the large set of numbers that we'll share today, I mean they're all there, and we're available to answer questions at the end.

I just want to focus us in on 1 million and 10 million passenger trips goals because it's a very straightforward thing. We're sitting here today, we're doing 100,000 passenger trips in the last quarter more today, right? 1 million passenger trips, it's about 2 to 2.5x today's run rate. And then 10 million on from that, and you'll sit and welcome and you'll say, well, that's a fair multiple for a small company in Australia.

And so what we're going to do and how we're going to do it becomes really important. And it's important to level set. Because 10 million passenger trips, we have bus companies on our platform that do that themselves, local operators, doing 10 million passenger trips, for example, SuperShuttle. For us to be a global marketplace and do that long term actually is another thing. First, there's a funnel now. We previously couldn't access the whole world. Now we can, 6.7 billion trips a year go through the airports we serve. FY '20 and FY '21, we get to leverage those. The API partners, the users of our website, everybody who come to request a quote, we love the information and we send it to the transport company and say, guys, this is the demand. We needed to do price as people want. This is the destinations people want. And they're able to bring those rates to market. All the partnerships, right, the current brands have been so supportive, nonetheless haven't really pushed us. For years, they've been waiting for us to go global. They wanted a single global turnkey solution. And in July, we finally announced. That's July, last month. And so the opportunity for existing brands to leverage us more. I mean case in point, Flight Centre has been a strong supporter for a very long time but only really the Australian brands. For us to work with, for example, Flight Centre South Africa, Flight Centre India, when we didn't have local coverage in those destinations, it was a nonstarter, whereas now those brands, they're picking us up. So it's a very straightforward thing now to lean into ours existing partners, but also new partners too who previously again wanted a turnkey solution for the whole world and we didn't have it.

So the ability to just double and double again, these sorts of relationships, now that we've got the infrastructure built. It's not going to take a long time. It's not going to be very expensive anymore. The partners are on board, the organic platforms [stocked]. Transport companies are on board. They're dying for the insights. All the connections are made.

And so I guess the final thing I'd talk to you about how to make this happen from 1 million to 10 million passenger trips. It's just about the traveler experience. We've said for a very long time that traveler experience is the reason we're in the game, giving travelers the seamless experience so that when they have a brand, they'll take on holiday around the world, they can have a brand for transport, too. We've always nailed that discovery and booking experience, right? That discovery piece, we've always had it. By making sure that you can always discover everything, everywhere, well, now that's new. And so we think about how a traveler, who maybe had experienced Jayride once and done very well, whether it's in Sydney or JFK, now all of a sudden can also say, well, that worked, I'll give it a go in the Dominican Republic or Bali, and for us to be there ready and waiting with a solution, that's sticky. And so what we're really thinking about traveler experience now, it's an opportunity for us to lean hard into retention. You can see there's some retention numbers in the back of the slide deck and retention figures have gone up.

Finally, here's a thing that has worked for you before and you would have loved to be able to use it in ABC destinations. It just wasn't working there yet and now it is. So it's a very straightforward thing to reach out to all of those people who have traveled with us in the past to get them to come back and lean heavily into Net Promoter Score, lean heavily into retention and get them to come taken to convert.

So near-term objective, 1 million; long-term objective, 10 million passenger trips. Very straightforward way to do it. Just simply connecting transport companies and travelers for a great traveler experience and really filling an empty haul in the travel industry, something that's been an opportunity for years but that no one could really quite go on yet. The economics of it makes sense. We improved that and it lasted a while. The global rollout is possible. We've done it already. So now it's just about leading into that and it is kind of scaling into the foundations.

With that in mind, I'm going to pass you over now to our CFO, Peter McWilliam, who will talk to you about the current results.

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Peter Charles McWilliam, Jayride Group Limited - CFO [3]

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Thank you, Rod, and hello, everybody. This financial year, the major financial objectives were complete a global rollout of our transport platform and then to leverage this platform to increase net revenue from passenger trips as well as the gross profit after paid acquisitions. Today, I'd like to provide some insights about the performance in these areas as well as what we'll be focusing on next, before finishing with a quick review of our cash performance and then answering some questions.

So let's take a look at net revenue from passenger trips. Jayride's revenue over the period increased 71% across all regions and 441% in new regions between H1 and H2, which delivered 18.5% of the total revenue from passenger bookings in H2.

Following the completion in the global rollout, revenue from international regions outside Australia now exceeds 65%, which we believe demonstrates great strategic value as well as a resilience in our revenue mix.

Performance improvements can be attributed to decreasing refunds, margin improvements and increasing the number of bookings to travel on the platform. There is significant scope to continue to improve all of these areas, particularly with our new big data insights, showing us where we need to optimize our content, which is already producing results. Overall, we are pleased with the improved performance, particularly the growth of international markets and what it says about our 1 million passenger trips objective as well as the potential strategic value of the asset.

Okay. So let's take a bit of a look at the GPAPA performance. Jayride delivered new record gross profit after paid acquisition performance over the calendar year with particularly strong performance in H2. FY '19 represents a breakout year for Jayride, particularly the results in the H2 after the completion of global rollout. Jayride increased its gross profit after paid acquisition in FY '19 from $500,000 to $1 million and improved its GPAPA margin from 26% to 32%. The GPAPA margin in H1 was 6% before significantly increasing to 51% in H2. H1 performance data was polluted by the new region launches, meaning, we can expect better performance in coming periods.

Interestingly, GPAPA margin in new destinations matched the performance of existing destinations, although being very early in its maturity curve. We're pairing this performance with the 441% growth of net revenue per passenger trips in new destinations. It's clear why we are very pleased with the result. We're very happy with our performance at GPAPA level and believe there is significant scope to continue to improve performance in this area as we continue to add to long-tail unique content.

So now that we've made great inroads with opening up future revenue and GPAPA growth, we want to flag that in the upcoming period, we'll be sinking our teeth into improving our operational costs line. Operational costs primarily include onshore and remote costs, onshore and remote people costs that are fulfilling functions, that have not yet been automated as well as some variable costs like merchant fees and transaction fees.

In terms of technical challenges, there'd be many other marketplaces that have automated these functions before us. We just committed to solving GPAPA for efficiency at being the first global solution for transfers. Improvements in this line will rapidly propel us towards breakeven and allow us to achieve our targeted 40% operating margin in the long term.

Okay. I'd now like to have a little bit of a chat about our cash performance. Jayride cash burn from operating investing activities in FY '19 was negative $5.6 million compared to FY '18 of $5.5 million. In terms of value created, Jayride increased its market access and delivered breakout GPAPA performance and is showing strong engagement with global travel partners hinting at future performance. Overall, we believe we created significant value with the fund invested into the asset. Cash burn during the year increased in the middle quarters to $1.8 million before dropping to $0.9 million in Q4, after the global rollouts costs had washed through and after we started to see some of those great results landing.

Jayride finished the period with $1.4 million in cash and a $950,000 R&D claim which we received a couple of days ago. We're continuing to improve performance along with access to a $1 million debt facility in January 2020 and potentially $9 million from exercise option before March 2020. We know we can continue to navigate towards breakeven. Thank you.

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Rodney John Bishop, Jayride Group Limited - Co-Founder, MD & Executive Director [4]

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Thank you, Peter. That concludes the formal part of our results presentation. Again, the slide deck has been published, and it's a lot to go through there but, hopefully, all the information people seek. And we're available now to take your questions.

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Questions and Answers

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Operator [1]

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(Operator Instructions) Your first question comes from Andrew Swaffer with Taylor Collison.

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Andrew Swaffer;Taylor Collison Limited;Portfolio Manager / Analyst, [2]

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Look, just if we look to Slide 30, I think it is, where it shows the bookings by quarter where the original destinations have fallen in quarters 3 and quarter 4 from quarter 2. Do you mind just talking to what seasonality there is in those figures? And then looking beyond this year and if we start to look out towards the target of 1 million trips by 30 June 2021, what growth are you expecting from the original destinations?

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Rodney John Bishop, Jayride Group Limited - Co-Founder, MD & Executive Director [3]

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Thanks, Andrew. Good to have you on the call. So to talk about what our strategy has been, it's pretty straightforward. The new destinations, the key thing that we had to validate was rapid revenue growth. And then in the core destinations, given our objective to push through the profitability, the key thing that we had to demonstrate was massively increasing our profit margin of every single passenger trip. And so when we look to what we were trying to achieve, it was actually 2 objectives, and we've laid them out. So to this extent possible, what we were going to do in original core destinations was maintaining the same volume wherever possible and see how far we can take margins, either in terms of TTV margins or improvements of cancellation or refund line, playing around with cancellation policies, playing around about everything there. So the intent was to hold those locations to strict profit objectives, even if that meant passing up on some of maybe the easy, less profitable revenues. So it has more to do with the strategy in the period, the fact that it remains stable as opposed to growth. In -- if you wanted to see how we think about that, actually Slide 6 that is part of the deck has a very nice presentation. You can see that although the passenger trips booked and revenues, although revenues did go up, passenger trip book was largely flat. Gross profit after paid acquisition, that GPAPA line, actually increased 300% in the new countries across (inaudible). So that's the sort of work that we were doing. It has less to do with seasonality and more to do with how we were gearing up organic and gearing down paid commensurately in terms of how users will search.

And so think ahead. It's important to think ahead. I don't want anybody to infer that this is the maximum amount of revenue or passengers we can access in a massive market like Australia or New Zealand, right? When I think about what's coming, what you'll see is the following. There's a large number of partners who, for them, existing partners, they're the low-hanging fruit that they're going to adopt would be the new destinations. They never previously had access to those and so now they're going to start to consume them. But also, what you're seeing when you see, for example, new organic pages getting built for Google Search but also new channel partners who previously would like our turnkey solution for the world, that wasn't us, now it is us. When these partners come on, their booking activity is likely to be top-notch across all the destinations. So you'll see as we come out of this period that actually all destinations will increase, I'd say probably more low-hanging fruit than the new ones since we're fresh out of the gate, but all destinations are continuing to increase.

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Andrew Swaffer;Taylor Collison Limited;Portfolio Manager / Analyst, [4]

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So in terms of -- I mean how should we think about that likely growth from those original destinations? Or are you trying to say don't focus too much on original or new, focus on the overall picture?

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Rodney John Bishop, Jayride Group Limited - Co-Founder, MD & Executive Director [5]

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Yes. I'm interested to know how this distinction plays out. We've focused over the last 12 months and the narrative had to be because we're launching new destinations, hey, here's a destination, here's a destination. But at some point, we really need to start presenting to market this understanding of origin and destination in a similar way to how Webjet does. It's a gap at the moment. I think what you guys would love to understand is, for example, if we've got a traveler in the U.S. and they're already traveling with us around the U.S., Jayride can grow the value of our business in the U.S. by opening up the Dominican Republic, right? For example, Punta Cana Airport is now a top seller and that traveler is now spending their money with us but in a different country. So that's kind of codes in a new destination, but it's actually, in a way, growth in the U.S. as well, who is a U.S. customer returning in the U.S., domiciled in the U.S., spending USD. So we're turning to try to make this clear for everyone, but if you want to think about it in terms of destinations, a return to growth in the existing destinations and continued strong growth in the new destinations should be how it maps out. Incrementally more low-hanging fruit in the new places, but as partners come on, they should be booking us everywhere.

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Andrew Swaffer;Taylor Collison Limited;Portfolio Manager / Analyst, [6]

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Great. But a very pleasing statistic is the average trips per customer. This time last year, you were saying 4.2 trips per year. Now you're saying 5 trips per year. So that's meaningful that -- so what are the main factors driving that improvement?

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Rodney John Bishop, Jayride Group Limited - Co-Founder, MD & Executive Director [7]

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It's actually -- it's even still better than that, Andrew. The 4.2 was calendar year '18 and we presented now FY '19. So it's actually only 6 months' change and that passenger trips per traveler figure ticking up almost 20% over 6 months is great. I've put it in the appendix or rather I've put it in the back just because, again, I think we need to work out ways to talk better to our traveler audience in terms of where our demand is coming from, who our travelers are. And so we'll try to get some sort of refined messages to market as we go forward from here. Different travelers are different. There's a bit of complexity in just making it a very simple message.

So how to think about retention, what's driving it? More destinations. More destinations drives us. There's a great little analogy the team remembers here where our foreign language couple who was staying in a hotel across the street from our office came to our reception to try to book their onward journey to Tahiti, I think, simply because it worked for them in Sydney and they wanted to use us again in Tahiti. The website, of course, at the time wasn't live in Tahiti. So they actually came to our office to try to book it with reception because why would we only exist in 5 countries? They didn't even consider that, that could be possible. Of course, they'll open in Tahiti. It looks like incredible online business. It must be everywhere. So it's a very simple behavior once you got a brand that sticks. Nobody's particularly passionate about ground transport, right? We're passionate about our hotels that we stay in or the business class flights we take or something along these lines. Transport is one of those things where it's tricky, but I don't aspire to it. And so if I can find something that just simply works, I'm likely to be retained, and that's certainly the behavior that we see. We're going out, for example, strongly with coupons and messages about new countries to our existing travelers and they just return to book in some new country that we weren't live in 6 months ago. So yes, we expect retention to continue to increase. And when I talk about scale and its foundations, I mean, destinations, but I also mean who our travelers are. That's the core foundation (inaudible).

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Operator [8]

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(Operator Instructions) Your next question comes from Adam Dellaverde with Taylor Collison.

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Adam Dellaverde, Taylor Collison Limited, Research Division - Equities Analyst [9]

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Can we talk through GPAPA margin just in terms of the improvement you saw second half, how that dynamic is playing out as we enter FY '20 in the first quarter? And what influences that as you talk about different channels, whether it's partner channel or whether it's organic?

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Rodney John Bishop, Jayride Group Limited - Co-Founder, MD & Executive Director [10]

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Okay. There is a slide with a bit of forward outlook, Slide 23, which talks to the start to the FY. And so this July, so present July because it's the latest complete set of numbers I've got. August, as we're still in August, I don't have those yet. But July, in terms of gross profit after paid acquisition is up 231% over previous corresponding period of July 2018. So that's an example how things are going. They're going gangbuster. You see week-on-week improvement in this metric since we've sat down to really focus on it. And I think the thing that might have confused people or, I guess, not been obvious, even to us, I mean, when we put a large promotional campaign in place across the November, December period of last calendar year to really promote the new regions, we spent a lot of money, right, and primarily on coupons, but also paid media, all sorts of different things, encoded all of that to cost of customer acquisition, just to be honest about it and be very transparent. What they did though is that if you were looking at those periods, it wouldn't have necessarily been clear to a casual observer that the door has opened on this about 6 quarters ago, and it's just continued to open ever since. So that gross profit after paid acquisition margin took us by surprise in the latest period. We didn't realize it could go this high. The previous aspirational model that we had, had it at something like 35%, now at 51%. There's 2 things that are driving that. First is better channel mix. So previously, I guess, the life of the company, we were very heavily leveraging paid media, for example, Google AdWords. And in December, if you remember, we launched pretty heavily into organic traffic. And subsequently, organic traffic is right up there. It's been top consumer direct channel for ever since. That traffic is obviously free and so your cost of customer acquisition comes right down on the back of it.

And the second thing is just really building out good strong relationships with channel partnerships. So we do pay away some of our commission to channel partners, but the bookings are profitable. And the thing that we've found as we've launched new regions is this is a very, very fast scaling method to get good reach. You've got an installed partner who all of a sudden can flip on new countries. I mean that scales. It doesn't require any further acquisition costs -- sorry, any further growth investment to get set up, and the acquisition cost is manageable. And so these 2 things are, I guess, hands down better than the previous method of doing it, which was paid acquisition, very costly paid acquisition. Don't like it anymore. We've got a better method. Adam, does that answer your question?

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Adam Dellaverde, Taylor Collison Limited, Research Division - Equities Analyst [11]

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Yes. I guess the 231%, I mean, I don't have the figure for last July, but if I look at first half '18, it looks like you did about a 15% GPAPA margin in that period. So should I be thinking you're carrying forward a similar rate to the second half or is this still an improving trend?

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Rodney John Bishop, Jayride Group Limited - Co-Founder, MD & Executive Director [12]

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Still an improving trend. I can talk candidly, July was our best month on record.

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Adam Dellaverde, Taylor Collison Limited, Research Division - Equities Analyst [13]

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I guess as those dollars are coming in, as extra dollars are coming in, what's the -- there was some talk around some investment in operations. So I -- how do you see operational costs scaling going forward relative to the basic set in the second half '19?

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Rodney John Bishop, Jayride Group Limited - Co-Founder, MD & Executive Director [14]

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It's a really good question. So the approach that we've taken, and if there's any black spot to draw on our P&L, this is the one to watch, I think. The approach that we've taken to pursue that path to profit and put ourselves on it is to pick one cost line at a time and just pick it apart, really understand and then to the best degree possible optimize. So for example, you'll see that we did a -- as the growth cost line has come down, we had certain growth-focused resources in the company. We were focused on the global rollout or the launch of the organic traffic. And then subsequent to those projects being delivered, those contracts were entered. So that was a way to reduce growth costs. Then we leaned hard into customer acquisition. So similarly, organic and channel partners demolishing our paid media spend, that was again leaning hard into that cost center and getting on top of it.

So the very next cost center to look into is definitely going to be operational cost. So Pete spoke to what operational cost is for the company. There's some team cost in there, and there's some other, I guess, semi-variable costs in there. A simple example would be we have very high touch customer service team who provides great traveler service. You can contact support@jayride.com and get your issue sorted out wherever on earth you are and in record time. Equally, I think we can get out of the way more. Yes, if you have to contact Jayride and speak to a human to get something done, I start to question, well, okay, well, that's caused by extraordinary circumstances, of course, but to edit a booking, to update, to delete, to cancel, to query something, how much of this can be made self-service because if it's self-service, it's a better traveler experience. And also, if it's self-service, then there's no cost to our company other than the initial build.

As we start to scale up to millions of passengers and tens of millions of passengers and as we start to think about how we're going to get those passengers maybe real time, in destination, if you have to wait to contact a human, that's just not going to work. And so to the best degree possible that we can lean hard into the technology, build great tools, self-service and automate, you'll be able to see improvements in that line. To give you a number in terms of how we think it can go, we actually outlined that on the aspirational economics side. And we think for serving 1 million passenger trips that operational costs needn't grow at all. In fact, it could come down slightly.

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Adam Dellaverde, Taylor Collison Limited, Research Division - Equities Analyst [15]

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Great. And I guess just -- there's a comment made about global travel partners hinting at future performance. Is that a hint that there's some sort of step change partnership potential coming this year? Or is that to do with the existing base? Can you help unpack that?

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Rodney John Bishop, Jayride Group Limited - Co-Founder, MD & Executive Director [16]

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Yes. Sure. So certain channel partners would never have approached a 5-country company. They want to be able to turn on global airport transfers in one hit, airport transfers being a vertical that they would like to have access to, but they've got a product pipeline that's a mile long. And if it's not global, then you're last on the line, they have all these other things to do, tends to be the sentiment. So by going global, all of a sudden, we've made it very easy for these cars to build a compelling business case. So the business case takes a couple of different forms, either -- here's a partner who hasn't previously worked with us but now wants to. NRMA is a public example of a partner that we announced recently where for NRMA to offer global airport transfers to all NRMA blue members all around the world. That's compelling. And also for it to be turnkey, very simple, NRMA members getting a discount on our website. That's straightforward. It's a very clear value-add. So something like that we would never have done before. We now have a whole pipeline full of those deals, any of which could come off in this coming financial year.

The second is to think about partners who have been in for a long time, maybe doing things on a piecemeal basis, using us as possibly some backfill supply. And then you think about what might happen when they book in new countries. There is a graph on, I guess, Slide 16, which shows a partner whose revenues across standard normal countries had been static every month forever who then upon seeing our new content becoming available in the new regions through the API simply turned on partner after partner after partner -- sorry, destination after destination after destination. And so you can see, again, a step-change there. That particular partner's passenger trip activity with us, I think, tripled over the course of just a couple of months and still growing. So yes, there's definitely opportunity there for some step-change events to the extent that our revenue is already quite diverse. The way that I'll read into top line is, there will just be constant incremental growth.

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Operator [17]

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There are no further questions at this time. I'll now hand back to Mr. Bishop for closing remarks.

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Rodney John Bishop, Jayride Group Limited - Co-Founder, MD & Executive Director [18]

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Thanks very much for attending, guys. I really appreciate the time and effort and interest in the company. I feel like we've had a great year. I feel like we go from being local to global in FY '19. After 7 years of trying to make that move, it finally happened, and I am very excited about what happens next. It's foundational. It's the first 1% that this company that's now built. I'm happy to say that 1% feels like a landmark. And so now to go forward from here, FY '20, FY '21, just really scale into those foundations, really optimize all of those relationships, provide value for transport companies like I've never seen before, convert all those quotes that we're already getting, work with new partners, turnkey the whole global airport transfers industry so that they can add meaningful ancillary revenues to their business and just make happy travels. So thinking about the couple of years ahead, we're very excited and looking forward to it and looking forward to sharing it with you. Thanks very much for your time.

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Peter Charles McWilliam, Jayride Group Limited - CFO [19]

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Thank you.