Collaborate Corporation delivers strong March quarter performance

By Trevor Hoey. Published at Mar 29, 2017, in Technology

Collaborate Corporation (ASX:CL8) could eclipse its 12 month record closing high of 2.6 cents after providing an extremely positive update regarding the company’s DriveMyCar business.

While management had already flagged a strong March quarter earlier in the month due to a robust performance in a normally unseasonal period, the figures released today reflect impressive trading on all metrics.

These have had a significant impact on the top line with gross revenue in the March quarter up 13% on the December quarter, the latter traditionally being the strongest three month period in the year.

Importantly, a 90% increase has been achieved in Net Rental Days Booked which captures all days in a booking including those days that are realised in the current month and those days that will be realised in future months.

As booking growth accelerated throughout March, and with many of the bookings for periods of more than 30 days, a significant proportion of revenue from these Net Rental Days Booked will be realised in the June 2017 quarter.

Based on confirmed bookings as at March 28, the forward revenues that will be realised in April 2017 already exceed the revenues achieved in April 2016.

However this company is in its early stages and interested investors should seek professional financial advice.

Importantly, management has reduced costs while growing revenues at a rapid rate, reflecting well on its credibility given the usual financial impost in growing businesses from the ground up.

The negotiation of a 35% reduction in the cost of DriveMyCar’s insurance policy should translate to a 10% improvement in gross profit commencing in the June 2017 quarter.

This has been central to the group’s overall cost-out achievements, and looking at the broader picture Chief Executive Chris Noone said, “With a higher revenue trajectory and lower costs, we look forward to reporting very strong results in the next quarter and beyond as the DriveMyCar business accelerates”.

Looking at some of the key takeaways from the March quarter performance, there was a 77% increase in Net Rental Days Booked in March compared with February 2017. Total Net Rental Days Booked in the March 2017 quarter exceeded 20,000 days.

CL8’s achievement of full utilisation from the fleet inclusion of 101 Subaru Imprezas, a development that only occurred in mid-February, is a reflection of DriveMyCar’s ability to quickly take advantage of new opportunities, indicating a thorough knowledge of end markets and its strong relationships with industry participants.

Rental days booked for UberX rentals increased 265% on a quarter on quarter basis. Rideshare rentals contributed 27% of gross revenue in the March 2017 quarter, up from 18% in the December 2016 quarter. This area of the business is shaping up as one that can deliver exponential growth off a relatively fixed cost base in the near to medium-term.

Where to invest $1,000 right now

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why is Australia’s leading small cap publication

Founded seven years ago, is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise. provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more. is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!