Rightmove Plc · LSE:RMV
Rightmove — Investor Day (November 2023)
135 slides from Rightmove's investor day presentation, Nov 27, 2023
Slide 1: Rightmove Investor Day
Rightmove Investor Day November 27, 2023
Slide 2: Share of time spent and visits per year
85% share of time spent +2.2Bn visits/year 2 Source: Comscore, RM Analytics
Slide 3: Huge economic activity
Huge economic activity 1m+ Home 432Bn Mortgage transactions lending 1,5m+ 100k’s Employees in Rentals property service sector 300k+ 250k Commercial New homes transactions built 3
Slide 4: Many structural tailwinds
Many structural tailwinds Population growth +5m by 2045 Long Term Lifespan increase +1 year every 7 years Long Term Property value +3 to 5 % annual Long Term Technology +1 to 5 % annual Long Term productivity Housing shortage <+1% new/yr (base: 26M homes) Long Term Interest rates Short/medium term 4
Slide 5: Rightmove Vision and Five Business Pillars
Rightmove Vision To give everyone the belief that they can make their move Five Business Pillars Core Strategic Consumer Customer Growth Areas GoGreener Platform People AI 5
Slide 6: …which power our Strategic arc
…which power our Strategic arc 5 Pillars 2023 2024-2028 Be the place to find Consumer your home online The moving journey assistant Core Customer Advertising and Leads Deeper product Partnership Leveraging core Commercial, Data, Rental & Strategic Growth Areas platform Financial Services Platform Sc
Slide 7: …which power our Strategic arc
…which power our Strategic arc 5 Pillars 2023 2024-2028 2028+ Be the place to find Consumer your home online The moving journey assistant The home life partner Core Customer Advertising and Leads Deeper product Partnership A seamless tech rail system Leveraging core Commercial, Data, Rental & Strate
Slide 8: …which power our Strategic arc
…which power our Strategic arc 5 Pillars 2023 2024-2028 2028+ Be the place to find Consumer your home online The moving journey assistant The home life partner Core Customer Advertising Annual and Leads est:* Deeper productTarget**: 2028 Annual Partnership A seamless tech rail system Revenue Revenue
Slide 9: Our Strategic model for growth
Our Strategic model for growth Penetration Penetration across property market segments down the value chain Residential Commercial Data monetisation Sales Lettings Sales Leasing Data Services 3P Advertising Agents Developers Find Listings Listings Listings Listings Investors Display Afford Mortgage
Slide 10: …into a large Revenue opportunity £1,815m
…into a large Revenue opportunity £1,815m Penetration Penetration across property market segments down the value chain Residential Commercial Data monetisation Sales Lettings Sales Leasing Data Services 3P Advertising Agents Developers Find Listings £875m Listings Listings £150m Listings Investors D
Slide 11: We focus our investments in 2024
We focus our investments in 2024 Penetration Penetration across property market segments down the value chain Residential Commercial Data monetisation Sales Lettings Sales Leasing Data Services 3P Advertising Agents Developers Find Listings 1. ConsumerListings & Core Listings 4. Commercial Listings
Slide 12: Rightmove’s superior Data position
Rightmove’s superior Data position Letting Estate agency agency …powers new products… New Homes Consumer …reaching scale faster than anyone… Rightmove Data Platform Rental …further driving the Services Services Rightmove network effect… Financial …boosted by AI Commercial Services Labs Mortgage-in-
Slide 13: Rightmove’s superior Data position
Rightmove’s superior Data position Letting Estate agency agency …powers new products… New Homes Consumer …reaching scale faster than anyone… Rightmove Data Platform Rental …further driving the Services Services Rightmove network effect… Financial …boosted by AI Commercial Services Labs Mortgage-in-
Slide 14: Summary
Summary A superb and unique Consumer position Many structural tailwinds A resilient and broad platform for any market conditions Powered by data, we are poised for expansion into a £1,8Bn opportunity Long runway in Core + near term focus on Commercial, Mortgages, Rental Services Targeting double dig
Slide 15: Agenda
Strategy Johan Svanstrom, CEO 30 mins 13:30 Consumer & Customer: Product, Data & Technology Tarah Lourens, COO 30 mins 14:00 Core Customer: Estate Agency & New Homes David Anderson, CRO 30 mins 14:30 Coffee Break & Session A: Session B: 30 mins 15:00 Breakout Sessions Rightmove + Rental Services Dav
Slide 16: Product, Data & Technology
Tarah Lourens Chief Operating Officer Product, Data & Technology
Slide 17: A marketplace built on our unrivalled coverage
A marketplace built on our unrivalled coverage Consumer Customer The largest home moving Whole of audience market Rightmove Demand platform Supply 17
Slide 18: Strengthening the network for our next phase of growth
Strengthening the network for our next phase of growth Marketing products Knowing more that deliver about our outstanding, Consumer consumers measurable results Customer Product Data Increasingly Increasing tailored products relevance and for specific personalisation customer segments Demand Technol
Slide 19: Consumer
Consumer rightmove
Slide 20: Why do consumers choose Rightmove?
Why do consumers choose Rightmove? 20
Slide 21: We are the best known and most preferred brand
We are the best known and most preferred brand... 93% 3x of the UK population more people say they turn to Rightmove are aware of to look at property online Rightmove than our nearest competitor Source: Rightmove market tracker 21 YouGov Brand Index
Slide 22: A lot of people visit us...direct
A lot of people visit us...direct 2+ Billion 85% site visits / year of those visits are direct 22 Source: Rightmove data
Slide 23: We’re the place they turn to and return to first
We’re the place they turn to and return to first… Share of time spent on property portals Rightmove Other 34M Searches a day 100% 90% 80% 8.5 Minutes per visit 70% 60% 50% visits to our app 40% 21 per month 30% 20% 10% of our leads come 0% Jan-15 Nov-15 Sep-16 Jul-17 May-18 *** Mar-19 Jan-20 Nov-20
Slide 24: Deepening and expanding our role with consumers
Deepening and expanding our role with consumers 24
Slide 25: Knowing more about our consumers
Knowing more about our consumers Consumer Increasing relevance and personalisation Going beyond Find 25
Slide 26: Knowing more
Knowing more Encouraging users to register and sign in… …and capturing more data Nudges across our New features to drive Rightmove Profile core flow registration 42% of lead senders now use the site logged in 2M enhanced profiles will be captured this year 26
Slide 27: Personalisation
Personalisation Turning our home page into Making our search more Harnessing AI your home moving hub relevant to you to improve our search 27
Slide 28: Beyond Find
Beyond Find Helping consumers understand the value of a property Track a property Coming soon… New reason to visit and return Email alerts, Renovation calculator and Green information 28
Slide 29: Beyond Find
Beyond Find Lead to Keys Mortgages 29
Slide 30: Customer
Marketing products that deliver outstanding, measurable results Customer Increasingly tailored products for specific customer segments Supporting our customers beyond marketing 30
Slide 31: Supporting our customers to achieve their goals
Supporting our customers to achieve their goals Estate & Lettings Agents Get Market & retain Strategy & Decision Win instruction Complete transaction Invited Out Instructions Making Property Enhancement Property Enhancement Marketing products Branding Branding Direct response Improved Inclusive tool
Slide 32: Customer
Customer Marketing products that deliver outstanding, measurable results Increasingly tailored Supporting our products for specific customers beyon customer segments marketing 32
Slide 33: Marketing products that deliver outstanding, measurable results
Marketing products that deliver outstanding, measurable results The UK’s largest property seeking audience 1 2 3 Seamless and relevant Automatic, friction free Precise targeting integration into the search journey activation Robust data drive insights to demonstrate value to our customers 33
Slide 34: The UK’s largest property seeking audience
The UK’s largest property seeking audience Mindset of the general …and the mindset of the UK population Rightmove audience The largest, single audience of highly engaged home 8% hunters in the UK 21% 26% 43% Reliable and accurate first party data 66% 36% Want/need to move Not looking to move Want/ne
Slide 35: Design principles that maximise performance
Design principles that maximise performance 1. Precise Targeting: 2. Seamless and relevant 3. Automatic, friction-free +30% audience size integration : +60% engagement activation 35
Slide 36: A positive feedback loop to demonstrate value
A positive feedback loop to demonstrate value Website A Website B WWW Details Ad Rightmove Value Ad Details Value 36
Slide 37: Customer
Marketing products that deliver outstanding, measurable results Customer Increasingly tailored products for specific customer segments Supporting our customers beyond marketing 37
Slide 38: Increasingly tailored products for specific customer segments
Increasingly tailored products for specific customer segments Advanced Developer listing 38
Slide 39: Increasingly tailored products for specific customer segments
Increasingly tailored products for specific customer segments Advanced Developer listing Built For Renters listing 39
Slide 40: Increasingly tailored products for specific customer segments
Increasingly tailored products for specific customer segments Advanced Developer listing Built For Renters listing 40
Slide 41: Native Search Ads: variants that support differing needs
Native Search Ads: variants that support differing needs Developer Carousel Property Carousel Campaign Carousel Agent Carousel Video Built for New homes renters Estate Agency 41
Slide 42: Customer
Increasingly tailored Marketing product products for specific deliver outstand customer segments measurable resu Customer Tools that support our customers beyond marketing 42
Slide 43: The Premium Price Guide
The Premium Price Guide Leveraging our position to benefit both sides of the network and generate future platform value Future platform Creates Receive value report report Enhanced/new products Deeper insights for customers Customer Consumer New consumer interaction points Receives Engage alert with
Slide 44: The Premium Price Guide
The Premium Price Guide Leveraging our position to benefit both sides of the network and generate future platform value Future platform Creates Receive value report report Enhanced/new products Deeper insights for customers Customer Consumer New consumer interaction points Receives Engage alert with
Slide 45: The rental journey today
The rental journey today Enquiry, viewing Move-in, home set-up & Referencing Contract sign & payments & offer renewals 10+ Hours Agent 2.5 hours qualifying leads 2 hours extra for failed 6+ hours to progress Variable time negotiating 6 hours spent on viewings references tenancy renewals Tenant Most
Slide 46: Lead to Keys
Lead to Keys Leveraging our position to benefit both sides of the network and generate future platform value Future platform value Customers Consumers Data captured across Save 116 working Greater sense of the home moving days per year control, convenience journey of a single platform New interactio
Slide 47: Supporting our customers to achieve their business goals
Supporting our customers to achieve their business goals Estate & Lettings Agents Get Win Market & retain Complete Strategy & Decision Invited Out instruction Instructions transaction Making Marketing products n/a Inclusive tools Premium tools 47
Slide 48: Platform capability
Platform capability Product Data Technology 48
Slide 49: Accelerating the pace of innovation
Accelerating the pace of innovation 42 Total Customer Chargeable products 38 35 31 27 25 21 19 17 14 15 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 2 2 3 6 8 12 14 17 Consumer enhancements and New Features 22 24 49 Source: Rightmove
Slide 50: Continued investment in the capability of our platform
Continued investment in the capability of our platform Starting to scale Increasing our use Solid progress on our new Data of AI our cloud journey platform 50
Slide 51: AI presents us a wealth of opportunity
AI presents us a wealth of opportunity, both near and medium term Solutions being explored in 2024 Deliver value for customers 5 Enhance our consumer Identified over 100 12 experiments and Building our capability experience opportunities counting… 8 Drive internal efficiency 6 51
Slide 52: Summary
Summary Marketing products Knowing more that deliver Marketing Knowing more about our outstanding, solutions Consumer consumers measurable results Customer Product Data Increasingly Increasing tailored products relevance and for specific personalisation customer segments Demand Technology Supply Goi
Slide 53: Core Customer: Agency & New Homes
Dave Anderson Chief Revenue Officer Core Customer Agency & New Homes
Slide 54: Rightmove’s Core business
Rightmove’s Core business Agency (Sales & Lettings) New Homes • c.7,500 companies • c.450 companies • c.16,000 branches • c.3,000 developments • Av. 881k listings on RM 75% £333m 15% • 20k listings on RM revenue 2022 revenue • Av. tenure on RM: 15 years • Av. tenure on RM: 13 years • Goal to influen
Slide 55: Rightmove’s Core business
Rightmove’s Core business Agency (Sales & Lettings) New Homes • c.7,500 companies • c.450 companies • c.16,000 branches • c.3,000 developments • Av. 881k listings on RM 75% £333m 15% • 20k listings on RM revenue 2022 revenue • Av. tenure on RM: 15 years • Av. tenure on RM: 13 years • Goal to influen
Slide 56: Extreme demand in the Lettings market is embedded
Extreme demand in the Lettings market is embedded Supply & Demand of Lettings indexed to January 2019 Demand R12 Index Avail. Stock R12 Index Leads per property 6m av. 250% 400% 350% 200% 300% 250% 150% 200% 100% 150% 100% 50% 50% 0% 0% Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21
Slide 57: The UK property market proves resilient in the face of challenges
The UK property market proves resilient in the face of challenges Housing transactions1 and HPI2 2007-2022 (UK) 2017: UK GE COVID HPI Transactions Brexit 2019: UK GE 1,800 Mini £400,000 2015: UK GE Budget 2013: Help 1,600 2010: UK GE to Buy £350,000 1,614 1,400 1,476 Global Financial Crisis £300,000
Slide 58: The semi counter-cyclical nature of the Core business
The semi counter-cyclical nature of the Core business New Homes Estate Agency Transactions Slower Market Agency & New Homes revenue growth (YoY) 25% 20% 2022 20% 16% 17% 2021 14% 15% 11% 10% 2020 10% 9% 2019 5% 4% 2018 0% 2016 2017 2018 2019 2017 2016 2015 2014 2013 Faster Market Agency & New Homes
Slide 59: The semi counter-cyclical nature of the Core business
The semi counter-cyclical nature of the Core business Transactions Slower Market Agency & New Homes revenue growth (YoY) 25% 20% 2022 20% 16% 17% 2021 14% 15% 11% 10% 2020 10% 9% 2019 5% 4% 2018 0% 2016 2017 2018 2019 2017 2016 2015 2014 2013 Faster Market Agency & New Homes revenue growth 2012 15%
Slide 60: We’re in the next market cycle
We’re in the next market cycle Key impacts New Homes Estate Agency 2021: COVID rebound 35% 32% 2022: Mini-budget 30% 2023: cost-of-living crisis, 25% interest rate rises, global conflict 20% 15% 13% 11% 10% 9% 8% 5% 5% 2% 0% -2% -5% -10% -9% -11% -15% H1 2021 H2 2021 H1 2022 H2 2023 H1 2023 2021 val
Slide 61: And we have a strong platform for growth
And we have a strong platform for growth New Homes £2.14bn2 £330m1 Estimated marketing spend in 2022, new homes 2022 estimated commission pool spent on Marketing & People +£1,600m People Costs +£255m Additional Marketing Spend £240m 2022 Revenue1 £53m - 2022 Revenue2 1 Agency marketing 15% of agent
Slide 62: And we have a strong platform for growth
And we have a strong Agency platform for growth £3.8bn 1 estimated Sales & Lettings pool in 2022 of which: £2.14bn 2022 estimated commission pool spent on Marketing & People New Homes £330m1 Estimated marketing spend in 2022, new homes +£1,600m People Costs +£255m Additional Marketing Spend £240m £5
Slide 63: We deliver the best value to advertisers
We deliver the best value to advertisers 190m We continue to deliver exceptional value… Multiple times nearest competitor Applicants 83% 5x visits a month Landlord instructions 80% 4x Vendor instructions 90% 9x 1.3b Sales outcomes 85% 6x minutes a month Lettings outcomes 87% 7x 63 Source: Dezrez dat
Slide 64: Consistent growth driven by product innovation
Consistent growth driven by product innovation 2021 2022 2023 c. 9% growth vs. 2022 5%1 9% growth vs. growth vs. 2019 2021 Product Led Pricing Led New Homes Native Local Valuation 60% of growth in 2023 40% of growth in 2023 Search Advert Alert enhancement delivered through delivered through Core cus
Slide 65: Our proposition supports all agents
Our proposition supports all agents Webinars Premium Price Guide Opportunity Manager Sold By Me Rightmove Plus Local Valuation Alert ed Agent Auto Feature Property Rightmove Discover Training Hub Bespoke reports Featured Property Be Native Search Advert Local Home Page Featured Agen Best Price Guide
Slide 66: Our proposition supports all customers
Our proposition supports all customers Core Listings Proposition Best Price Guide Training/Education Hub Bespoke reports Webinars CELA qualification Branded listings Account Management Rightmove Plus Paid-for Products NEW Property Promotion Branding Valuation Premium tools Premium Listing Featured A
Slide 67: And created a repeatable package structure
And created a repeatable package structure Core Listing Cost Product Allowance Product spend beyond commitment + Sold By me + Opportunity Manager Product + Native Search Ad Product + Premium Price Product Guide Core Core Core Essential Essential Extra Enhanced Optimiser 2020 Optimiser Edge Launch La
Slide 68: And created a repeatable package structure
And created a repeatable package structure Core Listing Cost Product Allowance Product spend beyond commitment + Sold By me + Opportunity Manager + Sold By me + Native Search Ad + Opportunity + Premium Price Manager Guide Essential Essential Extra Enhanced Optimiser 2020 Optimiser Edge Launch Launch
Slide 69: And created a repeatable package structure
And created a repeatable package structure Core Listing Cost Product Allowance Product spend beyond commitment + Sold By me + Opportunity Manager + Sold By me + Native Search Ad + Opportunity + Premium Price Manager Guide Essential Essential Extra Enhanced Optimiser 2020 Optimiser Edge Launch Launch
Slide 70: But Rightmove is more than marketing
But Rightmove is more than marketing Self-serve data Data reports & tools in partnerships Rightmove + Training & Education 70
Slide 71: But Rightmove is more than marketing
But Rightmove is more than marketing Data partnerships • Lead mapping report Self-serve data Data reports & tools in • Market dynamics & competition partnerships Rightmove + • Delivered through our trusted Account Managers Training & Education 71
Slide 72: But Rightmove is more than marketing
But Rightmove is more than marketing Self-serve data & Self-serve data tools in Rightmove + Data reports & tools in partnerships Rightmove + • Market share report • Best & Premium Price Guide • Ad Manager Training & Education 72
Slide 73: But Rightmove is more than marketing
But Rightmove is more than marketing Training & Education Self-serve data Data reports & tools in • CELA qualification partnerships Rightmove + • Webinars with market leaders • Training courses Training & Education 73
Slide 74: And we’re improving year on year
And we’re improving year on year Portal Performance vs. Competition1 Positive sentiment vs. competition1 Mean score amongst customers of OTM, Zoopla and Rightmove Rightmove % 10/10 positive sentiment vs. next competitor OTM Zoopla Rightmove They have innovative +150% products and tools They deliver
Slide 75: Market Share
Market Share1 77% 78% 79% 80% 81% 83% 82% 84% 85% 4 5 3 Find a pro Digital pr Rightmove Launches 2000 2001 2002 2003 2004 Prime Location Launch Smart H Launch 1 Market share 2009 – 2014 HITWIZE 2015-2022 Comscore 2023 75
Slide 76: Summary
Summary The core business strong, resilient and well positioned for continued growth There is plenty to play for in the core advertising space. And even more opportunity as we help customers run more efficient businesses Continued product innovation will underpin our long-term growth ambitions 76
Slide 77: Breakout Sessions
Breakout Sessions Product Demonstrations Rental services & Lead to Keys Ian Chapman – Head of Product Rightmove Plus & Premium Price Guide Matthew Bramall – Head of Product Fo r um Theatre Meet the team Consumer Proposition Gallery David Hainsworth – Head of Product Customer Products James Bassil –
Slide 78: Rightmove Financial Services
Dave Cray Managing Director, Financial Services Rightmove Financial Services
Slide 79: Overview of the UK mortgage market
Overview of the UK mortgage market 30% 26m dwellings - 8.5m residential mortgages Purchase driven by #Transactions Product Purchase Transfer £131 billion £212 billion £1.66 trillion (same lender) outstanding debt 70% Remortgage £89 billion (other lender) Refinance £432 billion of driven by residenti
Slide 80: The mortgage market is mostly intermediated
The mortgage market is mostly intermediated Consumers No easy way to find or choose 15% 85% Lenders Brokers Concentrated Fragmented Top 6 = 72% 5,000+ companies Top 10 = 85% No standout brands 80
Slide 81: The mortgage market is mostly intermediated
The mortgage market is mostly intermediated Consumers Estate No easy way to find or choose Agents Mortgage revenues 15% 85% important Refer in branch Lenders Brokers Concentrated Fragmented Top 6 = 72% 5,000+ companies Top 10 = 85% No standout brands 81
Slide 82: Our strategy - build on our lead generation strength
Our strategy - build on our lead generation strength 2.2 billion visits 15.5 billion minutes on site 5x more leads There is a lot of love for the Rightmove brand 82
Slide 83: We will become the turn-to-first destination for mortgages
We will become the turn-to-first destination for mortgages Consumers Agent Customers Lenders Brokers 83
Slide 84: We will become the turn-to-first destination for mortgages
We will become the turn-to-first destination for mortgages Consumers Agent Customers Mortgage marketplace on Rightmove Revenue Growth More opportunities to win Lenders Brokers All of the borrowers in the UK All of the borrowers in the UK Highly qualified leads Highly qualified leads Smart targeting
Slide 85: We will become the turn-to-first destination for mortgages
We will become the turn-to-first destination for mortgages Consumers Agent Customers Mortgage marketplace on Rightmove Revenue Growth More opportunities to win Network Effect Lenders Brokers All of the borrowers in the UK All of the borrowers in the UK Highly qualified leads Highly qualified leads S
Slide 86: We value the lead generation opportunity at c.£250 million
We value the lead generation opportunity at c.£250 million TAM – £38 million TAM – £130 million • Mostly direct • Mostly brokered • Assume lenders good at • Mostly introduced retention Product Purchase • Purchase and Remortgage • Procuration fees for Product Transfer £131 billion unit economics the
Slide 87: The Mortgage in Principle (MiP)
The Mortgage in Principle (MiP) “How much can I borrow?” 87
Slide 88: The Mortgage in Principle (MiP)
The Mortgage in Principle (MiP) “How much can I borrow?” Introducing £1.3 billion / month of potential lending 88
Slide 89: The Mortgage in Principle (MiP)
The Mortgage in Principle (MiP) “How much can I borrow?” MiP submissions Interest Revenue share model Rate Rises 9000 Data and insights we can leverage 6000 + Joint Applicants + Home 3000 Movers Launch 0 July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept Oct 89
Slide 90: The Mortgage in Principle (MiP)
The Mortgage in Principle (MiP) “How much can I borrow?” MiP submissions Interest Revenue share model Rate Rises 9000 Data and insights we can leverage Scale by driving MiP submissions 6000 with our lender partner + Joint Applicants + Home 3000 Movers Launch 0 July Aug Sep Oct Nov Dec Jan Feb Mar Ap
Slide 91: The Mortgage in Principle (MiP)
The Mortgage in Principle (MiP) “How much can I borrow?” MiP submissions Interest Revenue share model Rate Rises 9000 Data and insights we can leverage Scale by driving MiP submissions 6000 with our lender partner + Joint Applicants + Home 3000 Movers Launch 0 July Aug Sep Oct Nov Dec Jan Feb Mar Ap
Slide 92: Broker Product – Consumer choice powered by our Customers
Broker Product – Consumer choice powered by our Customers Single Broker Multiple Brokers 1st lead generated! Powered by our Customers Choice for our Consumers 92
Slide 93: Broker Product – Consumer choice powered by our Customers
Broker Product – Consumer choice powered by our Customers Single Broker Multiple Brokers 1st lead generated! Powered by our Customers Choice for our Consumers Hybrid revenue share model – aligning our interests with our customers 93
Slide 94: In 2024 we will launch Remortgage on Rightmove
In 2024 we will launch Remortgage on Rightmove* Addressing the 8.5 million residential mortgages Powered by 6.5 million we expect to track 180,000 / month who tell us their moving situation Video concept picture of Remo in TAP 94 * Launching in ‘24 for scaling in ‘25
Slide 95: Our 5-year plan grows mortgage revenues to £25m
Our 5-year plan grows mortgage revenues to £25m Lead Generation 2024 2025 2026 2027/2028 Direct to Lender Expand MiP Digital Applications Buy to Let + Renters Lending Innovation Broker Launch Customer Brokers – Expanding & Scale Broker Products & Efficiency Broker Innovation Remortgaging Single Lend
Slide 96: Our 5-year plan grows mortgage revenues to £25m
Our 5-year plan grows mortgage revenues to £25m Lead Generation 2024 2025 2026 2027/2028 Direct to Lender Expand MiP Digital Applications Buy to Let + Renters Lending Innovation Broker Launch Customer Brokers – Expanding & Scale Broker Products & Efficiency Broker Innovation Remortgaging Single Lend
Slide 97: Beyond Lead Generation, we see opportunities to digitise more
Beyond Lead Generation, we see opportunities to digitise more and leverage our data Lead Generation Broking Lending £250m £1.1 billion £4.3 billion (mortgages) (mortgage acquisition) 97
Slide 98: Beyond Lead Generation, we see opportunities to digitise more
Beyond Lead Generation, we see opportunities to digitise more and leverage our data Lead Generation Broking Lending £250m £1.1 billion £4.3 billion (mortgages) (mortgage acquisition) • Broker digital front end • End-to-end digital application • Broker efficiency tools • Data powered lending innovati
Slide 99: Summary
Summary The largest and most engaged audience Distribution at near-zero cost of acquisition Help for consumers, while adding value to customers Deep expertise in data and digitising journeys Every mortgage starts with a property, and every property journey starts on Rightmove 99
Slide 100: believe it
rightmove % believe it
Slide 101: Rightmove Commercial
Andy Miles Rightmove Commercial
Slide 102: In Summary: plan to accelerate growth into TAM of £150m
In Summary We’re laying out a plan to accelerate growth into a total addressable market of £150m 102
Slide 103: The largest tenants search for space online on Rightmove
The largest tenants search for space online on Rightmove 103 Source: Rightmove Commercial internal lead analysis, mix of customer leads (not 1 specific customer), July 2022 to June 2023
Slide 104: The value at stake in large commercial property transactions is exceptionally high
The value at stake in large commercial property transactions is exceptionally high £10s millions of rent £100s millions capital value 104
Slide 105: In the UK this is a £1.4 trillion asset class with TAM of £150m
In the UK this is a £1.4 trillion asset class with TAM of £150m £1.4 Trillion: Value of UK commercial real estate £1.5 billion: Approx UK agent commission pool Rightmove initial TAM = £150m 105 Sources: Rightmove analysis using Land Registry data and Rightmove data.
Slide 106: International peers prove there is huge headroom for revenue growth
International peers prove there is huge headroom for revenue growth USA AU $225m revenue UK Mature Market Aus$75m1 / £40m revenue £12.3m revenue Mature Market Emerging Market Leading Business Leading Business 106 1 BNP Paribas Exane research, September 2023 estimates REA’s revenue from commercial at
Slide 107: Rightmove is the clear leader on Audience
Rightmove is the clear leader on Audience Market share of CRE portal visits Very high levels of Direct and 80% Organic Traffic 70% 60% 50% Very high brand 40% recognition 30% 20% 10% 0% Exceptional demand Rightmove Zoopla LoopNet UK Propertylink / supply data 107 Similarweb data, June ‘23
Slide 108: We have an excellent existing customer base
We have an excellent existing customer base c900 Total Commercial Customers c750 Subscribers c150 Transactional Mix of agents and owners All sectors Small customers to the largest global brokers and owners All transaction sizes 108 Numbers as of mid year
Slide 109: Rightmove is strongly positioned & is ready to accelerate
Rightmove is strongly positioned & is ready to accelerate Advantages Strong traffic leadership Very high brand recognition Large and diverse customer base Cross-over with residential customer base Proven execution: product and technology; sales; marketing 109
Slide 110: But there is work to do to achieve potential
But there is work to do to achieve potential Advantages Work to do Strong traffic leadership A bespoke product will unlock growth Very high brand recognition Sales and marketing investment will drive growth Large and diverse customer base Cross-over with residential customer base Proven execution: p
Slide 111: Rightmove Commercial will improve to serve market specific needs
Rightmove Commercial will improve to serve market specific needs Residential Commercial Office, Retail, Industrial, Leisure, Hospitality, Asset categories Houses, Flats, Land Land, + sub-classes Desks, Sq ft, eaves height, Category dimensions Bedrooms & Bathrooms zone As, rates, service charge etc.
Slide 112: We will ultimately serve all personas
We will ultimately serve all personas Demand Side Supply Side To Buy To Lease Owners Agents Small occupier Global agents Professional investor Professional investor Mid sized occupier with National multi branch advisors agents Owner occupier High net worth individual Large occupier with in-house Sma
Slide 113: We have a track record accelerating high potential business lines: New Homes
We have a track record accelerating high potential business lines: New Homes The playbook: New Homes Revenue (£m) • New consumer flow 80 70 • New products Covid 60 discounts 50 55 • Dedicated sales team 50 53 46 40 39 41 • Focused marketing 30 34 30 26 20 24 • New support tools 21 17 10 0 2008 2009
Slide 114: Enhancing the foundation: example product outputs for 2024
Enhancing the foundation: Some example product outputs for 2024 Build a new Commercialise Create a dedicated Commercial Real the current site Commercial Estate data model and language landing page + tailored search experience 114
Slide 115: New destinations for Commercial (illustrative)
New destinations for Commercial (illustrative) 115
Slide 116: Medium term: New products
Medium term: New products 116
Slide 117: Medium term: New products
Medium term: New products 117
Slide 118: Summary
Summary One of the last great industries to digitise Leading position today Large TAM to grow into Incredible platform leverage Execution track record 118
Slide 119: The story in numbers
Alison Dolan The story in numbers
Slide 120: Rightmove will look very different by 2028
Rightmove will look very different by 2028 2028 Revenue £600m+ Profit £420m+ • Stable growth in the core business, plus… • Accelerated growth in strategic growth areas 2023 Revenue c£360m1 • Means we will be bigger, more profitable and Profit c£263m1 more diversified • With higher growth rates yet t
Slide 121: Strategic growth areas will be material
Strategic growth areas will be material Strong core growth will sit alongside meaningful growth in numerous other business units 2023 % of 2028 % of 2023-2028 Revenue £m Revenue £m revenue revenue CAGR • Broader and diversified revenue Agency 72% Estate Agency 60% 18% • Increasing % of revenue for a
Slide 122: The core business will remain our primary revenue driver
The core business will remain our primary revenue driver But strategic adjacencies will drive meaningful growth, even short-term % of growth 2017 to 2023 4% 2% 3% 5% 2% 77% 7% 2017 Core Commercial Data Services Mortgages Rental Services Built for Renters Other 2023 % of growth 2023 to 2028 10% 5% 4%
Slide 123: Product-led ARPA growth will drive revenue in the core business
Product-led ARPA growth will Rightmove lead conversion drive revenue in the core business 5x 6x 7x 87% 9x 90% 4x 85% 83% • Increased sophistication of products, driven by depth of data. 80% • Simultaneous launch of new & refreshed products to segmented customer groups. • Premium products driving cri
Slide 124: Strategic Growth Areas
Strategic Growth Areas rightmove
Slide 125: Commercial business driven by customer & ARPA growth
Commercial business driven by customer & ARPA growth Average Customer numbers Near term revenues driven 2-year CAGR 3-year CAGR by customer growth 10% - 15% 10% - 15% Driven by quality of engaged 1,500+ Rightmove audience 830 900 1,050 - 1,200 2022 2023 H1 2025 2028 Over time, new chargeable product
Slide 126: A 5-year CAGR of 25% takes Commercial to £35m
A 5-year CAGR of 25% takes • c£3m to be invested in 2024 across product development and sales Commercial to £35m 2-year CAGR 3-year CAGR • Extent of engaged audience will continue to drive 15% - 20% 25% - 30% customer growth • Rightmove track record in leveraging audience to create £12.3M value for
Slide 127: Mortgage revenue growth from new routes to market
Mortgage revenue growth from new routes to market • Revenue share model with direct lender from MiP and broker submissions Mortgage in Principle (MiP) product MiP Leads Broker Leads • Growth from increasing MiP volume through: • widening funnel for borrowing personas & increased range of borrowing p
Slide 128: Mortgages will deliver £25m by 2028
Mortgages will deliver £25m by 2028 • Incremental c£1m to be invested in 2024 2-year CAGR 3-year CAGR 50% - 70% 60% - 70% • Mix of product investment to facilitate lender & broker integrations • Increased brand association with mortgage and broker choice • Material CAGR acceleration as platform now
Slide 129: Lead to Keys will drive near-term growth
Lead to Keys will drive near-term growth, with referencing and ancillary revenues driving mid-term growth Lead to Keys Branches Number of references and ancillary revenue per reference £12 to £14 % of Dual / Lettings customers taking L2K 35%+ Attachment Rates Referencing market share1 30% £7 to £8 £
Slide 130: Rental Services will deliver £25m in 2028
Rental Services will deliver £25m in 2028 c£1m to be invested in 2024 2-year CAGR 3-year CAGR Continued product investment to 25% - 40% 35% - 55% further embed L2K into agents’ RM+ systems While improving the referencing journey for both agents & tenant £3.2M Increasing sales capacity to scale both
Slide 131: Costs
Costs rightmove
Slide 132: Cost profile will change in the short term
Cost profile will change in the short term Investment Cost – Year 1 Cost profile to remain similar throughout the 5 years 14 12 £1m £1m £1m 10 £1m £3m Clear investment plan for an 8 incremental £10m in 2024 6 £3m 4 2 0 Cost growth mainly in Product Commercial Consumer & Core Mortgages Data Rental Se
Slide 133: Enabling us to deliver >£600m revenue and profit of >£420m in 2028
Enabling us to deliver >£600m revenue and profit of >£420m in 2028 Core Commercial RLTS Mortgages Capital allocation policy to remain unchanged: • Progressive dividend policy to continue Data Services BFR Other • Bolt-on M&A still assessed as part of strategic execution Revenue 9% CAGR Revenue 12% C
Slide 134: Summary
Summary A superb and unique Consumer position; strong value delivery to Customers Many structural tailwinds A resilient and broad platform for any market conditions Powered by data, we are poised for expansion into a £1,8Bn opportunity Long runway in Core + near term focus on Commercial, Mortgages,
Slide 135: Q&A
rightmove believe it