Rent.com.au Ltd · ASX:RNT
Rent.com.au — H1 FY23 Earnings Presentation
26 slides from Rent.com.au's earnings presentation, Feb 22, 2023
Slide 1: Half Year Results H1 FY23
HALF YEAR RESULTS H1 FY23 22 FEBRUARY 2023 ASX: RNT
Slide 2: Results Summary
RESULTS SUMMARY REVENUE Search revenue down 15% due to lower Advertising Sales as developers reduce spend in difficult market conditions. $1.4m RentPay revenue grows 37% from low base driven by increasing customer numbers EBITDA Search portal remains EBITDA positive as lower Ad Sales revenue offset
Slide 3: About Us
ABOUT US
Slide 4: We believe Australia's renters deserve better
WE BELIEVE AUSTRALIA’S RENTERS DESERVE BETTER, SO WE’RE DETERMINED TO BE THE CHAMPION THEY NEED… …BY BUILDING TECHNOLOGY TO ENABLE AND EMPOWER AUSTRALIA’S RENTERS. 4
Slide 5: Improving the entire renting journey
IMPROVING THE ENTIRE RENTING JOURNEY 6 weeks 30 months SEARCH PHASE TENANCY PHASE Looking Applying Moving Living Ownership • Addresses important, short Search phase (5% of renters) • Addresses longer Tenancy phase (95% of renters) • Largest dedicated renter channel in Australia • Renter facing, agen
Slide 6: Building our community
BUILDING OUR COMMUNITY We have built Australia’s largest dedicated renting # 1 app store Top rated real estate app (Apple & Google) community, providing properties, process and advice to thousands of people every day ~ 700 Average monthly unique visitors thousand ~ 1.5 million Renter Resumes have be
Slide 7: Search Portal
SEARCH PORTAL
Slide 8: Incredibly tight rental market
INCREDIBLY TIGHT RENTAL MARKET AVERAGE PROPERTY LISTINGS ENQUIRIES PER PROPERTY JUL AUG SEP OCT NOV DEC JAN JUL AUG SEP OCT NOV DEC JAN 2022 2021 2022 2021 Fewer properties available for rent than previous year (less than 1% vacancy rates nationally) but demand continues = pushing up rents. Some sig
Slide 9: Search Portal Revenue: Renter Products
SEARCH PORTAL REVENUE RENTER PRODUCTS RENTCHECK RENTBOND RENTCONNECT $751k $682k H1 FY22 H1 FY23 H1 FY22 H1 FY23 H1 FY22 H1 FY23 Renter products continued to grow vs previous year, mainly driven by our utility connections product (RentConnect) with RentCheck and RentBond net revenue being in line wi
Slide 10: Search Portal Revenue: Advertising
SEARCH PORTAL REVENUE ADVERTISING ANNUAL CHANGE IN HOUSING APPROVALS† 45% 30% $829k 15% 0% -15% -30% -45% Sep-21 Sep-22 Oct-21 Dec-21 May-22 Oct-22 Dec-22 Feb-22 Jan-22 Mar-22 Apr-22 Jun-22 Jul-21 Nov-21 Jul-22 Nov-22 Aug-21 Aug-22 $535k With input cost increases (labour and materials shortages) and
Slide 11: RentPay
oN rentpay RENTPAY MADE FOR RENTERS
Slide 12: Why the tenancy period is important to us
WHY THE TENANCY PERIOD IS IMPORTANT TO US THE TENANCY PERIOD PROVIDES A 20X ADDRESSABLE MARKET IN TERMS OF VALUE, RENTING POPULATION, PHASES OF DURATION AND PEOPLE OCCUPANCY • Makes us relevant to ALL renters (everyone pays rent) SEARCH PHASE TENANCY PHASE • Provides a recurring (annuity) style inco
Slide 13: What we are solving – for tenants
WHAT WE ARE SOLVING – FOR TENANTS PAY YOUR WAY EARN CASHBACK BUILD CREDIT WHEN YOU WANT HOW YOU WANT UP TO $260 PER YEAR AND ACCESS A SAFETYNET Standard Current Instant Crypto Planned Other Customers using RentPay to pay their Origin Customers opting in to Scorebuilder have their electricity and/or
Slide 14: What we are solving – for agents
WHAT WE ARE SOLVING – FOR AGENTS CERTAINTY, SPEED, EASY RECONCILIATIONS, BETTER TENANTS Tenant funds into RentPay and we take care of all the complexity of time and value shifting, agent receives their expected rental payments instantly on the day they want it (compatible with most PM systems). Help
Slide 15: Customers
CUSTOMERS ACTIVE (PAYING) CUSTOMERS 4,212 • >$75 million in rent processed by RentPay since launch (now more than $1.7 million in rent per week) 3,875 • More than $1.6 million in average daily trust account balance 3,433 • Also appeals to estate agents seeking efficiency. Currently recruiting sales
Slide 16: Accelerating growth
ACCELERATING GROWTH $75m • $75 million in rental payments processed by RentPay since re-launch • 25% improvement on time taken to grow from $50m previous $50m milestone (and over 100% improvement on first milestone) • Accelerating rate of growth expected to continue as customer base expands $25m Oct
Slide 17: Marketing
MARKETING As the first port of call for Gen Z and Millennials to look up a product, organic social media channels establish credibility and engage users in our brand. Third party (influencer) endorsement of RentPay further enhances credibility and extends reach. 17
Slide 18: Average Revenue Per User (ARPU)
AVERAGE REVENUE PER USER (ARPU) ARPU PER MONTH • Base fee of $2/month covers cost of bank transactions – in many $4.46 cases this is covered by the agent rather than tenant $4.37 • Add on products: $4.09 $4.01 • Scorebuilder – line of credit, helps build credit score and $3.89 provides funds for lif
Slide 19: Significant addressable market
SIGNIFICANT ADDRESSABLE MARKET POTENTIAL ANNUAL RENTPAY REVENUES (VARIOUS ARPU’S & MARKET SHARES†) The size of the opportunity with RentPay is immense, $36 million all renters pay rent – over $60 billion worth a year. With RentPay they can now get value and flexibility for that by making their rent
Slide 20: Outlook
OUTLOOK
Slide 21: Outlook
OUTLOOK • Refreshed core Rent.com.au search portal to improve site performance (to grow organic user base further) • Product extensions / growth options being pursued for key renter products • RentPay customer acquisition focus – stepped up external marketing to consumers and currently recruiting sa
Slide 22: Corporate Information
CORPORATE INFORMATION
Slide 23: Corporate Information
CORPORATE INFORMATION Ordinary Shares Top shareholders (1) % Share price (20 February 2023 close) $0.033 Bevan Slattery (HNW – holder since 2021) 12.9% Ordinary Shares on issue 513,654,211 Greg Bader (CEO – holder since 2016) 4.1% MARKET CAPITALISATION $17.0m Jason Carroll (HNW – holder since 2016)
Slide 24: Seasoned Board
SEASONED BOARD GARRY GARSIDE NON-EXECUTIVE CHAIRMAN Experienced property developer and investor Founded Prime Health Group before merging it with Westpoint Healthcare to form Endeavour Healthcare MBA (University of WA) SAM MCDONAGH NON-EXECUTIVE DIRECTOR 20+ years experience in senior manage
Slide 25: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM GREG BADER CHIEF EXECUTIVE OFFICER 20+ years proven success as a senior executive in rapidly growing technology businesses Former senior executive at iiNet, Chief Technology Officer and then Chief Business Officer MSc/MBA (Murdoch University) JAN FERREIRA CHIEF OPER
Slide 26: Thank You
THANK YOU Contact: investors@rent.com.au 08 6145 2609