Rightmove Plc · LSE:RMV
Rightmove — FY2024 Earnings Presentation
36 slides from Rightmove's earnings presentation, Feb 28, 2025
Slide 1: Full Year Results for the year ended 31 December 2024
Full Year Results for the year ended 31 December 2024
Slide 2: Overview
Overview 1. Rightmove’s platform and network effects remain strong – and strengthening every day 2. FY 2024 results show business is delivering – strategically, operationally, financially 3. Innovation and Delivery continuing at pace 4. Underlying end-markets and platform strength support confidence
Slide 3: A compelling investment case
A compelling investment case Strong The leading Together with: Significant value foundations platform creation A clear, expanded UK property Central position growth strategy A larger, diversified market in the property Rightmove Large and growing ecosystem Targeted Digital platform Over c.25 Powerfu
Slide 4: Rightmove: Much-loved British brand that drives results
Rightmove: Much-loved British brand that drives results >90% >95% >85% 24k Awareness: Awareness: Direct traffic2 #1-3 keywords on UK public1 UK homemovers1 SEO (+33%) 3 National campaigns Social media / CRM Home / moving content Platform tools Source: Rightmove unless otherwise stated. 1. Source: Yo
Slide 5: Core: An increasingly powerful network effect
Core: An increasingly powerful network effect Consumer Partner Share of Consumer Time1 Agent Outcomes2 >8 out of 10 >7 out of 10 83% 75% Comscore SimilarWeb/data.ai Vendor instructions Tenants delivered Rightmove Zoopla OnTheMarket Prime Location • App: 4.8* rating • Data-powered; relationship-led:
Slide 6: 2024 KPIs
2024 KPIs (2022: £100.3m) Underlying Revenue ARPA1 Membership1 Operating Profit2 +7% +£93 +262 +4% £389.9m £1,524, +6% 19,047, +1% £273.9m (70.3% margin) (2023: £364.3m) (FY 2023: £1,431) (31 December 2023: 18,785) (2023: £264.6m) Underlying EPS3 Dividend per share Cash returned4 Site traffic5 26.2p
Slide 7: End-markets: Green shoots
End-markets: Green shoots Mortgage rates: Supportive trajectory1 Resale: Sales agreed2 and completions3 vs 2019 2 Year 5 Year 20% 5.60 10% 5.20 5.27 5.08 4.83 4.89 0% 3.68 3.74 (10%) 2.14 2.51 2.26 2.58 (20%) (30%) 2020 2021 2022 2023 2024 2025 YTD Jan-23 Apr-23 Jul-23 Oct-23 Jan-24 Apr-24 Jul-24 Oc
Slide 8: Financials
Financials
Slide 9: Core underpinning strong SGA revenue growth
Core underpinning strong SGA revenue growth Revenue (£m) 2024 2023 YoY growth Resale¹ 226.4 214.2 6% £5.3m £389.9m Lettings² 53.6 47.8 12% £5.7m Agency 280.0 262.0 7% £1.5m (£2.9m) New Homes 69.2 66.4 4% £16.0m Core 349.2 328.4 6% Other3 40.7 35.9 13% Total Revenue 389.9 364.3 7% £364.3m Strategic G
Slide 10: Product-led ARPA growth
Product-led ARPA growth Total ARPA Agency New Homes £1,524 £1,440 £1,987 Discretionary upgrades and incremental product the main ARPA +£93 / 6% +£84 / 6% +£162 / 9% driver for both New Homes and Agency 57% 60% 56% Optimiser Edge: Quickest adoption ever of a top-end package 43% 40% 44% Consistent gro
Slide 11: Membership: Strong retention
Membership: Strong retention Agency and New Homes membership New Homes Agency Agency membership 16,124, 19,014 18,785 19,047 +285 vs Dec-23 3,082 2,946 2,923 15,932 15,839 16,124 • High retention: 90% FY 2022 FY 2023 FY 2024 • >75% of partners with Rightmove for longer than 5 years New Homes net dev
Slide 12: Costs in line with guidance
Costs in line with guidance Underlying operating costs +£16m Underlying costs +£16.3m (+16%) YoY £2.0m £1.0m £0.7m £116.0m £10.5m £2.0m Investment in People the largest £99.7m increase: successful execution of SGA recruitment plans • c.60% of new heads in Technology roles Technology investment in cl
Slide 13: Continued strong cash generation
Continued strong cash generation Cash bridge 2 £283.8m Operating cash conversion1 of 108% (2023: 104%) Effective tax rate of 25.4% (2023: (£108.2m) 23.3%; UK corporate rate 25%) (£74.3m) Final dividend 6.1p per share; total dividend 9.8p per share (2023: 9.3p per share) (£65.7m) £41.3m £38.8m (£16.6
Slide 14: Capital allocation and guidance for 2025
Capital allocation and guidance for 2025 Capital allocation • Organic investment prioritised • Will continue to evaluate value-accretive M&A opportunities • All surplus cash to continue to be returned to shareholders FY25 Guidance • Revenue growth of +8% to +10% • Membership to grow around 1% • ARPA
Slide 15: Business & Strategic Update
Business & Strategic Update
Slide 16: Strategic model: Capturing a larger share of a larger opportunity
Strategic model: Capturing a larger share of a larger opportunity Penetration Penetration across property market segments down the value chain Residential Commercial Data monetisation Sales Lettings Sales Leasing Data Services Third-Party Advertising 1. Core 2. Commercial Agents, Developers, Find Li
Slide 17: Strategic Growth Areas
Strategic Growth Areas Commercial Rental Services Mortgages >60% user time1 Double-digit referencing segment share >80% user time3 Right to play >60% of visitors unique to Rightmove2 Lead to Keys: leading end-to-end solution Trusted property market consumer brand 2024 revenue +11% +31% +116% growth
Slide 18: Network effect: Strengthened by data every day
Network effect: Strengthened by data every day Direct B Data Signals M monetisation Pageviews M K Consumer CRM Surveys (Hotjar) K + B New Homes Surveys (SCT) Indirect Minutes on site M Developers M K monetisation Enhanced consumer profiles Valuations Leads + M Consumer Partner (AVM) B Future K Uniqu
Slide 19: Innovation: Increasing velocity, quality, breadth
Innovation: Increasing velocity, quality, breadth SGA and Other Partner Partner Products Core Partner Lifecycle New releases per year Move Consumer Transact Features Afford Find 2020 2021 2022 2023 2024 2025E Technology Headcount 100 107 143 177 220 (rebased to 100) 19 Source: Rightmove. Based on cu
Slide 20: 'Afford' domain: Multiple features and scaling
‘Afford’ domain: Multiple features and scaling November 2023 (link) Rightmove platform scale >1m 1.3m >60,000 Domain data scaling at pace Mortgage clicks Tracked properties Renovations calculated (5x FY23) from Sep (launch) to Dec July 2024 (link) Up to 25 new datapoints per consumer1 Domain data mu
Slide 21: Application of AI led by four value drivers
Application of AI led by four value drivers Data foundations Selected AI use cases A AI keywords Delight Consumers AI Location Content Power business growth Make It Mine A B C D Drive Always B MiP ML Model Value Delight Monetise Partner more Consumers data value efficient Drive Partner value Valuati
Slide 22: Select AI examples: Driving differentiated outcomes
Select AI examples: Driving differentiated outcomes AI keywords AI Location Content MiP ML Model AI keywords 22
Slide 23: Our products and services deliver exceptional outcomes
Core: Estate Agency Our products and services deliver exceptional outcomes Property Enhancement Branding Valuation product leads Exposure by Property Listing Type Rightmove share of voice correlates with number of instructions Average no. of High-quality new listings marketing products Standard Prem
Slide 24: Products drive packages, which drive ROI for agents
Core: Estate Agency Products drive packages, which drive ROI for agents 12x more brand views1 12x more valuation leads2 Double the instructions3 Essential Enhanced Optimiser Edge Essential Enhanced Optimiser Edge Essential Enhanced Optimiser Edge 2x ROI Essential → Enhanced 4 8x ROI Essential → Opti
Slide 25: Residential transaction value continues to grow
Core: Estate Agency Residential transaction value continues to grow TAM per branch1 +£10m +£6m Incremental +£10m TAM per branch 56 46 40 Average branch 30 TAM (£m) 2015 2024 2028 2034 1. Estimate of Resale and Lettings TAMs per Rightmove branch. 2015 and 2024: UK government resale transaction and re
Slide 26: Significant, diversified long-term runway
Significant, diversified long-term runway A significant and diversified opportunity today… …underpinned by long-term growth trends • UK population growth: +450k adults p.a. 2024-29 (2) • Constrained new home supply: 100k-160k starts p.a. 2024-29 (3) Find: Find: New Homes Commercial • Digitisation an
Slide 27: Conclusion
Conclusion rightmove
Slide 28: Outlook
Outlook • Our market data and platform network effects are strengthening every day • Product innovation and digitisation of the property ecosystem continue at pace, supported by AI • We remain committed to increase and diversify revenue and drive absolute profit growth • The Board has confidence in
Slide 29: Q&A
Q&A Strong foundations UK property market Large and growing Digital platform Capital-light = High returns on capital Sustainable business model B2B subscription- led, delivers in all market conditions 29 : The leading platform Central position in the property ecosystem Powerful data and network effe
Slide 30: Appendix
Appendix rightmove
Slide 31: Income Statement
Income Statement (£m) FY24 FY23 Revenue 389.9 364.3 Operating costs (exc. share-based incentives charges and transaction costs) (116.0) (99.7) Underlying Operating Profit 273.9 264.6 Underlying margin 70% 73% Transaction-related costs (9.2) - Share-based incentives charge (8.4) (6.5) Operating profi
Slide 32: Key performance indicators
Key performance indicators Period end membership FY 2024 FY 2023 FY 2022 Agency branches 16,124 15,839 15,932 New Home developments 2,923 2,946 3,082 Total 19,047 18,785 19,014 Growth 1% (1%) 0% Commercial partners 1,087 933 830 ARPA (£) FY 2024 FY 2023 FY 2022 Agency 1,440 1,356 1,278 New Homes 1,9
Slide 33: Package breakdown
Package breakdown Agency Packages (Independent agents) New Homes Packages Essential Essential Extra Enhanced Optimiser 20 Optimiser Edge Standard Access Gold Advanced 12,000 3,000 10,000 2,500 8,000 2,000 6,000 1,500 4,000 1,000 2,000 500 - - Dec-23 Dec-24 Dec-23 Dec-24 33 Source: Rightmove
Slide 34: The Rightmove Network Effect
The Rightmove Network Effect 34
Slide 35: Commitment to ESG
Commitment to ESG Environmental Social Governance Target to be net zero by 2040, and net 82% of employees say that Rightmove is Fully compliant with the UK zero (Scope 1 and 2) by 2030 a “great place to work” Corporate Governance Code Targets validated by SBTi Sunday Times ‘Best Place to Work’ 2024
Slide 36: Globally attractive financial metrics over 25 years
Globally attractive financial metrics over 25 years Revenues (£m) Underlying EBIT (£m) 2 15% CAGR since IPO 16% CAGR since IPO; investing for future growth (1) (1) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2006 2007 2008 2009 2010 2011 2012 2013 2