Rent.com.au Ltd · ASX:RNT
Rent.com.au — Shareholder Meeting (November 2019)
33 slides from Rent.com.au's shareholder meeting presentation, Nov 29, 2019
Slide 1: Annual General Meeting 2019
as S ae hf apes . ai Nero tide ~ aes Meeting 2019
Slide 2: Agenda
Agenda • Welcome by the Chairman • Voting on Resolutions • Presentations • 2019 Review by the Chief Executive Officer • Financial Results by the Chief Financial Officer • What’s Next by the Chief Executive Officer • Questions
Slide 3: Proxy Votes
Proxy Votes Discretionary Total Total Resolution For Against Abstained Excluded (Voted For) For Against 1 Adoption of Remuneration Report 31,946,606 4,177,812 496,556 13,939,438 41,716,686 88.6% 11.4% 2 Re-election of Mr Phil Warren as a Director 72,864,647 4,926,456 596,556 13,889,439 - 93.7% 6.3%
Slide 4: CEO Presentation
CEO Presentation
Slide 5: Our Vision – Renting made Easy
Our Vision – Renting made Easy Recognise that renters are here to stay - demystify the process and make the experience equitable, easy and consistent Our Philosophy Renters Properties Flick Home for in Suits on Pedestals the Forms Renters Our renters will always be We present our properties Let’s au
Slide 6: It's been a big year
It’s been a big year And a credit to our customers, our staff and of course our Investors, we continue to deliver on our “renting made easy” promise to customers • Record product sales to Renters • Our new Apps are the highest rated real-estate Apps • Record Renter Resume growth • Last QTR our best
Slide 7: Renters are here to stay
Renters are here to stay 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% • Slowing economy, casualisation of the workforce • Flexibili
Slide 8: and increasingly dominated by Millennials
and increasingly dominated by Millennials 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 are also the most educated and well travelled 40% • They want (expect) to move fo
Slide 9: So our products continue to evolve: Renter Resume
So our products continue to evolve Renter Resume Strong growth continues, new features added GROW for sharing on social media • Migration to App (for resume creation) continues, after only one year we are seeing nearly 50% of resumes created on our App • Renter Resume remains our key tool for introd
Slide 10: So our products continue to evolve: RentBond
So our products continue to evolve RentBond NEW Major product upgrade, allows customers to “Move Now, Pay Later” • Changing funders during FY19 allowing a broader range of moving costs and larger loan sizes to be financed • New Move Now, Pay Later feature which allows repayment within 21 days at no
Slide 11: So our products continue to evolve: Endorsements
So our products continue to evolve Endorsement s Improves utility of the RentCheck product, NEW increases value for Renters • Allows a customer to request an endorsement from their previous / current real estate agent, positive reporting via their Renter Resume • Included as an additional feature wh
Slide 12: So our products continue to evolve: Suburb Reviews
So our products continue to evolve Suburb Reviews Continues to grow, in discussion with 3rd parties, GROW looking at “off site” monetisation opportunities • Australia’s largest lifestyle database, covers over 95% of the country and the data is constantly being refreshed (real data by real customers)
Slide 13: So our products continue to evolve: RentConnect
So our products continue to evolve RentConnect To launch ready for the new year rush, a new SOON partner and a new way of doing things • Significant change to our Utility connection products, allows us to capitalise on our strengths (engaging our customer at the start of their journey) • Has the pot
Slide 14: Renters are responding overwhelmingly
Renters are responding overwhelmingly Growing numbers of new renters are engaging with our website and app, strong growth in all key customer metrics • Strong Organic traffic growth, reduced marketing spend % Organic Unique Visitors • Our “Blog” rapidly becoming the #1 source for Renter Advice 64% 5
Slide 15: Renters are responding overwhelmingly
Renters are responding overwhelmingly And our Apps, after only 12 months are a core part of our solution • Broadens our customer appeal, modern interface • Ranks strongly in both stores • More Renter Resumes per User (than Web) • Integrated platform allows inclusion of new services (RentPay) We are
Slide 16: Giving rent.com.au a stronger voice for change
Giving rent.com.au a stronger voice for change We are “proudly” different, by focusing on value to our customer we: • Build our awareness/support = builds our influence, facilitates greater change • Build a relationship = we support our customer into Tenancy Exceeding Expectations at the start Earns
Slide 17: Financial Results
Financial Results 17
Slide 18: FY19 Financial Performance
FY19 Financial Performance $2.3m FY19 FY18 REVENUE $2.2m $1.7m $’000 $’000 Change $0.7m Revenue 2,164 2,335 -7% Gross Margin 847 777 +9% EBITDA -$2.1m -$2.3m Gross Margin % 39% 33% Operating Costs (2,969) (3,100) -4% EBITDA (2,122) (2,323) +10% -$5.8m • Laser focus on profitability drove improvement
Slide 19: Diversifying Revenue
Diversifying Revenue Revenue Sources From Renters From Other 100% 93% 89% • Following refocus in FY17, RENT has been steadily diversifying 75% revenue away from relying on Agents • Sales of Products to Renters and sales from Advertising to 50% Renters has now grown to 93% of revenue • Leveraging our
Slide 20: Advertising Sales Revenue
Advertising Sales Revenue Advertising Sales Revenue • FY19 advertising drop not restricted to RNT: $992k “Australia is in an advertising recession” Morgan Stanley August 2019 $781k “National ad spend records lowest figures in a decade” $738k AdNews April 2019 • Turn around taking shape, Oct19 best r
Slide 21: Renter Products Revenue
Renter Products Revenue Renter Product Revenue • Good start to FY20, projecting ~10% growth over 1H FY19 $1,232k $1,115k $585k Forecast H1 FY19 H1 FY20 $525k • Revenue increased and profit margins also improved: • New Equifax agreement for RentCheck components • Fair Go Finance agreement improves co
Slide 22: Operating Efficiency
Operating Efficiency Marketing Effectiveness (Revenue/Marketing Cost) • Insourced search engine marketing after four successful 245% years with Accordant will deliver further savings. • Continued investment in search engine optimisation and 201% non-listings content, social media etc. • Overhead cos
Slide 23: Summary
Summary Quarterly Results $620k • Q1 FY20 was the best quarterly EBITDA $580k $513k $528k • Sept 2019 was the best monthly result ever • Dec quarter usually slower but on track for: • H1 YoY revenue growth of 10% - 20% • H1 YoY EBITDA improvement of 20% - 30% ($391k) ($425k) ($578k) ($650k) Q2 FY19
Slide 24: What's Next
~ : rent. What's Next
Slide 25: The tenancy period, a significantly greater opportunity
The tenancy period, a significantly greater opportunity And is a logical extension of our customer relationship Period Customer is Active Active Market Size Customer Value Potential Property Search Tenancy Period Property Search Tenancy Period Property Search Tenancy Period Average Time to Average T
Slide 26: RentPay is the foundation
RentPay is the foundation Payments are a logical platform for RNT to transition with our customer into the Tenancy period • Our prior acquisition has given us experience/capability • Rental payments are something that every renter needs/uses • Finding a new rental presents a key opportunity to onboa
Slide 27: but will morph in key areas
but will morph in key areas Consumer Led – traditional products require an Agent to be subscribed to the solution, then renters are coerced into using the product • RentPay will become Consumer led, Renters will want to use the service • RentPay will operate “invisibly”, any Renter can use the produ
Slide 28: but will morph in key areas
but will morph in key areas Financial Flexibility – We will break the link (in time and $) between what a Renter pays, and an Agent receives • RentPay will move from being only transactional, we will collect, hold and pay, supports new services • Complete financial flexibility for the Renter but on-
Slide 29: To deliver significant disruption and growth
To deliver significant disruption and growth This has the potential to change how Renting works, increased financial flexibility and control for the renter • Multiple Revenue Opportunities (Saving, Finance, Banking) • Renting as a Service (RaaS), bundling of utilities • Enables Property Management p
Slide 30: Tenancy is the logical extension of our effort to date
Tenancy is the logical extension of our effort to date Development work is under way and we have a shortlist of potential payment partners Potential RentPay Market Cap at different Market Penetration Rates (% Renters) $127.9m • Launch H2 FY20 • App-based for Renters • Significant Growth Opportunity
Slide 31: Summary
rent. Summary
Slide 32: Summary
Summary • Delivering the best search experience, features and information available for renters anywhere in the market – #1 ranked AU real estate app • Strong growth in customer engagement metrics (new Renter Resumes, organic traffic, advice pageviews etc), growing our Renter army. • Our performance
Slide 33: Thanks
Thanks Hello Carat Contact: investors@rent.com.au www.investors.rent.com.au