Rent.com.au Ltd · ASX:RNT
Rent.com.au — H1 FY2020 Earnings Presentation
24 slides from Rent.com.au's earnings presentation, Feb 26, 2020
Slide 1: Rent.com.au Investor Presentation Half Year FY2020
ASX Announcement 25 February 2020 RENT.COM.AU INVESTOR PRESENTATION HALF YEAR FY2020 Rent.com.au Limited (ASX: RNT) (“Rent.com.au” or “the Company”), Australia’s Number 1 website dedicated to renting, is pleased to present its results for the half year ended 31st December 2019. Please refer to the a
Slide 2: Investor Presentation Half Year Results FY20
Investor Presentation Half Year Results FY20
Slide 3: A record half-year for Rent.com.au
A record half-year for Rent.com.au Significantly improved financial performance has the core business nearing EBITDA breakeven. 13% 98% 40% $1.2m $0.7m ($0.7m) Revenue Gross Margin EBITDA Focussed on developing RentPay into the payments engine that will unlock the potential of the tenancy peri
Slide 4: Non-financial measures continue to surge
Non-financial measures continue to surge A material, top tier portal in our market. We listen and respond to our customers needs. 22% 6% 18% 680,000 118,000 390,000 Average Monthly New Renter Enquiries and Unique Visitors Resumes created Applications Site engagement metrics (bounce rate, pagev
Slide 5: Renting is becoming a mainstream attitude
Renting is becoming a mainstream attitude Every day there are more people renting in Australia, and every day the average Renter is younger and wealthier % of renter households in Australia$ • The rise of the “logical renter” (people choosing to rent) 49% • Changing economy, casualisation, job mobil
Slide 6: and millennials are the dominant force
and millennials are the dominant force Already at 52% and increasing, millennials (aged 22-37) are by far the largest segment of renters Renters£ 60% • Millennials are the most urbanised generation ever† 50% • They have the greatest spending power of any generation† 40% • They expect to move for wor
Slide 7: We listen to what our renters need
We listen to what our renters need By providing unique and useful features aimed at renters, we’re gaining renter support. We will continue to innovate and lead in renter services. Renter Resume Property Listings Unique Search Tools Pet Resume Renter Products 6
Slide 8: and greater numbers are responding
and greater numbers are responding Our SEO and site optimisation allows us to reduce our costs and our content creation sees increasing numbers of renters visit us for advice and support Rent.com.au Web/App Visits Views of Renter Advice Pages Organic traffic Paid Traffic 688,000 556,000 65% 249,000
Slide 9: with our influence being recognised
with our influence being recognised #1 Rated Property App in Australia (Apple and Google stores) Consistently rank in the Top 3 Real Estate Apps in Australia 5 1 6 2 19 3 Selected Others 156 11 152 n/a 122 n/a 20 February 2020 (Apple/AU/Lifestyle) 20 February 2020 (Google/AU/House & Home) 8
Slide 10: The Search Period
The Search Period
Slide 11: Renter Resume – growth accelerates
Renter Resume –growth accelerates Strong growth continues, new social media features added • App is a driver of resume creation, 50% of resumes created via App • A key tool for introducing products to customers, driving half of all product sales • Record numbers of new Renter Resume’s being created
Slide 12: RentCheck – now with endorsements
RentCheck –now with endorsements Allows Renters to present themselves positively when applying • New Endorsements feature adds additional value, unique to Rent.com.au • Record monthly RentCheck sales in January 2020 (26% up on previous record) • Additional product growth options under consideration
Slide 13: RentBond – 'Move Now Pay Later'
RentBond –‘Move Now Pay Later’ Strong revenue growth as application volumes lift • UX and marketing improvements lift application volumes, driving revenue growth over pcp • Move Now, Pay Later allows no cost repayment within 21 days, widening product appeal • Working with funding partner to lift app
Slide 14: RentConnect – partnership with AGL
RentConnect –partnership with AGL New partnership with a substantial, market leading provider • Renters have confidence of dealing with a substantial, market leading provider • Gives renters access to AGL’s Power on Guarantee, and they receive $100 gift card from RNT • Future opportunities to change
Slide 15: The Tenancy Period
The Tenancy Period
Slide 16: Tenancy – a significant opportunity
Tenancy –a significant opportunity and a logical extension of our customer relationship Period Customer is Active Active Market Size Customer Value Potential (number of homes) Tenancy Tenancy Tenancy 21x Search Search Search 27x 23x The scale of the Tenancy Period dwarfs that of the Search Phase in
Slide 17: that deepens our relationship with renter
that deepens our relationship with renter High relevance, high engagement, annuity revenue opportunity • Current rental payments systems common but benefits only agents • RentPay is a modern solution offering value to the renter (without losing agent benefits) • Digital wallet, wide choice of paymen
Slide 18: Strong progress being made
Strong progress being made MOU signed with Novatti (ASX:NOV) to partner on RentPay • Novatti to build wallet and payments capability, operate payments backend • Rent.com.au to develop site/app user experience, operate customer frontend/interactions • Novatti to take minority equity position in RentP
Slide 19: Financials
Lan. rent. Financials
Slide 20: Revenue
Half Year Results FY2020 $1,199k 1H FY20 1H FY19 % $1,108k $’000 $’000 Change $1,057k Renter Products 609 586 +4% REVENUE Advertising Sales 513 388 +32% Other Revenue 77 83 (7%) Total Revenue 1,199 1,057 +13% Cost of Sales (477) (693) (31%) EBITDA Gross Margin 722 364 +98% ($671k) Gross Margin % 60%
Slide 21: Rights Issue
Rights Issue • 1 new share for every 5 existing shares non-renounceable pro-rata issue @ $0.05 per share • Fully underwritten by Pinnacle Corporate Finance; existing shareholders have committed ~24% of total • RentPay opportunity expected to transform not only Rent.com.au but also the entire rental
Slide 22: Outlook
Outlook • Record customer numbers through first six weeks of the current quarter • New partnerships building towards potential, existing products continue to grow • Advertising Sales recovery continues, and new growth opportunities presenting • RentPay development on track for H2 FY2020 launch, paym
Slide 23: Corporate Information
Corporate Information Financial information Greg Bader Chief Executive Officer 20+ years experience as a senior executive with proven success in Share price (31-Jan-20 close) $0.05 rapidly growing technology businesses Former senior executive at iiNet, where he grew business services Shares on i
Slide 24: Thanks
Thanks Hello Carat Contact: investors@rent.com.au www.investors.rent.com.au