24 April 2019
RENT.COM.AU QUARTERLY ACTIVITIES REPORT FOR Q3 FY19
Rent.com.au Limited (ASX: RNT) (“RENT” or “the Company”), Australia’s Number 1 website dedicated to rental property, presents its quarterly activities report for the three months ending 31st March 2019.
4% Revenue improvement (12% EBITDA improvement) over previous quarter
Renter Product revenue grew 32% over previous quarter
Record quarter for Renter Resumes, total now over 525,000
RentPay rental payments product launched in the RENT App
“It was pleasing to return to revenue growth, with revenue up 4% on the December quarter to $535k and EBITDA improving 12% to a loss of $572k,” said RENT Chief Executive Officer Greg Bader.
Broadly, RENT’s revenue is made up of two core inputs:
1.Revenue from Renter Products
2.Revenue from Advertising Products
“We have seen strong growth in Renter Products revenue (was up 32% on the previous quarter) off the back of the changes we have made to the positioning of our RentCheck product, as well as the more significant changes we’re still making to our RentBond product,” commented Mr Bader.
“Advertising Sales continue to be a challenge, however the changes we’ve made in this area are starting to bear fruit. While Advertising Sales revenue declined 13% relative to the December quarter (which had benefited from the impact of Christmas marketing budgets) it increased 9% compared to Q1 FY19 and we are seeing significantly improved interest in our premium advertising options which we aim to convert into sales during the June quarter of 2019.
“We remain focused on the cost side of the business and the breakdown of Operating Costs between
Marketing, Cost of Sales (“CoS”), Labour and Other Overheads was largely consistent compared to the
Cost Breakdown (April 2019)
“With the strong growth in organic (not paid for) site traffic and continued performance of the RENT App (consistently ranked #3 RE app in the stores and the highest rated by users), we are gradually reducing our marketing spend in the June 2019 quarter.
“Staff costs account for nearly 50% of our total costs and out of our 23 staff, 50% of them are employed in Software/Product development – primarily working on the next generation of products and services that will take RENT beyond a simple portal and into a
Record number of Resumes for the Quarter
“We know that the first
RentPay Launched in the App
“We’ve previously said that RentPay is a critical component of our strategy to be relevant and useful to renters throughout the tenancy period.
“Integrating it into the RENT App so that tenants can see their payment history, get reminders and manage their rent payments directly from their phone is the first iteration. We intend to roll out further product enhancements in coming quarters, both strengthening our relationship with renters and transitioning our revenue streams to be more subscription/annuity in nature.
“RentPay has already morphed from a product imposed upon renters by agents who wish to access its significant time- saving features to now being a tool that delivers equal benefits to renters in the form of convenience and choice, while still retaining the benefits enjoyed by agents.
“This we believe is the key: RentPay needs to be a great tool for agents (and it is) but just as importantly, it needs to be a great tool for renters. We are seeing the changes in consumer behaviour across many different industries and real estate is not immune. People want convenience and simplicity in their services, and we see this as the future of rental payments.
“The next step is to open these benefits up to private landlords and smaller real estate agencies via our Property Manager Portal which is currently in development and expected to launch next quarter, along with a host of other features to make property management easier for all parties,” continued Mr Bader.
“Our goal is to be a substantial and influential voice within the renting industry; we need to expand beyond ‘finding a home’ and become an integral part of our customers’ journey during the tenancy period. We know that to achieve this we need to deliver value not only to renter, agent and landlord customers but also to the shareholders who have continued to support us in realising our goals.
“We must continue to invest in the next phase of our business. This does have a material short term impact on costs (and profitability) but it is a logical decision. I have previously forecast ‘break even’ at the end of Q4 this FY and without these investments in growth this is achievable, but reducing our future opportunities is not the right thing to do now.
“Every quarter has seen us move closer to realising our dream of materially changing the way renting works in Australia. We have surpassed 525,000 resumes in a little over 2 years, maintained over 600,000 unique visitors each month, and have grown to rank as a #3 against the two giant property portal incumbents. This in itself is an incredible achievement, but as we move into the tenancy period we will leverage our unique channel, our customer focus, our agility and our desire for change – we have already changed renting for the better, but we have only just started,” said Mr Bader.
“Cash remains tight in the business and we will need to raise funds imminently to continue our growth strategy. We are exploring a range of options including a Placement to institutional and sophisticated investors and a Rights Issue to all eligible existing shareholders.
We have also been approached and discussions are continuing with 3rd parties around collaboration with some of our products and services. Our lifestyle database (largest active DB in the country) and our Resume platform are just two examples of unique and useful tools that our customers have helped develop. We are open to sharing these services as a means to expand their traction in the market and/or if the relationship is business accretive to Rent,” concluded Mr Bader.
rent.com.au (ASX: RNT) is Australia’s #1 website dedicated to rental property.
Our rental only positioning allows RNT to legitimately advocate for renting and renters.
Renters in Suits
Properties on Pedestals
Flick the Forms
Our renters will always be presented in such a fashion as to maximise their chances of getting the home they want
We present our properties with additional and relevant information
Let’s automate where we can. We can’t remove the need for you to eyeball the property before signing (yet!), but we can remove
most of the paperwork
An easy way for a renter to verify their ID and check for any reported breaches in their tenancy history, giving them an edge on their application.
A convenience product that helps renters bridge the gap from one rental to another by financing their bond online.
A free and easy to use utility connection service to make moving hassle free – ensuring the lights are on and the water is hot when a renter moves in to their new place.
Renter (and Pet) Resume
Streamline your rental search with Renter Resume. Create it once and use it to apply for as many properties as you like.
Your rental payments in the palm of your hand. Make payments, track payments, view your rental history, and
P:+61 8 6145 2600
Quarterly report for entities subject to Listing Rule 4.7B
Quarterly report for entities subject to Listing Rule 4.7B
Introduced 31/03/00 Amended 30/09/01, 24/10/05, 17/12/10, 01/09/16
Name of entity
Consolidated statement of cash flows