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RMA Global Limited
ABN 69 169 102 523
Level 1, 112-114 Balmain Street
Cremorne, VIC, 3121
ASX Announcement
21 July 2022
Quarterly business update and Appendix 4C
FIRST GROUP CASHFLOW POSITIVE MONTH, STRONG US REVENUE GROWTH
Highlights
- June 22 first month of positive operating cashflows
- US reviews up 206% YOY
- US ARR up 207% YoY
- FY22 recurring revenue up 38% on FY21
- 4Q FY22 net operating cash flows improved 76% on 4Q FY21
- Significant uplift in consumer traffic
Quarterly performance
RMA Global Limited (ASX: RMY) ("the Company" or "RMA") has delivered strong revenue growth, with 4Q FY22 up 24% from 4Q FY21 driven mainly by subscription revenues.
Subscription revenue in 4Q FY22 increased 30% on 4Q FY21, with US subscription revenues increasing by c.215% over the same period, off a low base.
Promoter revenues, which are more seasonal than subscriptions, continue to perform with 4Q FY22 revenues up 14% from 4Q FY21.
Group revenues by product
(Thousands) | 4,500 | Subscriptions | Promoter | |||||||
4,000 | ||||||||||
3,500 | ||||||||||
AUD | 3,000 | |||||||||
2,500 | ||||||||||
2,000 | ||||||||||
1,500 | ||||||||||
1,000 | ||||||||||
500 | ||||||||||
0 | ||||||||||
4Q FY20 | 1Q FY21 | 2Q FY21 | 3Q FY21 | 4Q FY21 | 1Q FY22 | 2Q FY22 | 3Q FY22 | 4Q FY22 |
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RMA Global's CEO, Mr. Michael Davey, said "FY22 was an exciting year for RMA. More consumers and agents have benefitted from using our products and services than ever. Consumer traffic in the US has more than trebled in the last year and agent engagement globally remains high with over 540,000 reviews being collected on the platform in the last 12 months."
Unique users on the RMA platform (indexed to 100%)
2,500% | 500% | |||||||||||||
450% | ||||||||||||||
2,000% | 400% | |||||||||||||
growht | 350% | growth | ||||||||||||
1,500% | 300% | |||||||||||||
US Indexed | 250% | AU Indexed | ||||||||||||
1,000% | 200% | |||||||||||||
150% | ||||||||||||||
500% | 100% | |||||||||||||
50% | ||||||||||||||
0% | 0% | |||||||||||||
4Q | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | 4Q | ||
FY19 | FY20 | FY20 | FY20 | FY20 | FY21 | FY21 | FY21 | FY21 | FY22 | FY22 | FY22 | FY22 |
US (LHS) | AU (RHS) | |
Mr. Davey said, "Our investment in building a solid foundation to grow agents on the platform and increase usage metrics is driving financial outcomes with YoY quarterly cash revenues increasing by more than 22% for the eighth consecutive quarter. Net operating cash flows in June were also positive for the first time since listing. We expect to see regular positive cash flows later in the new financial year."
Quarterly cash flows
Receipts from customers | Net Operating cash flow | |
$6,000 | ||||||||
(Thousand) | $5,000 | |||||||
$4,000 | ||||||||
$3,000 | ||||||||
AUD | ||||||||
$2,000 | ||||||||
$1,000 | ||||||||
$0 | ||||||||
-$1,000 | ||||||||
-$2,000 | ||||||||
-$3,000 | ||||||||
4Q FY20 | 1Q FY21 | 3Q FY21 | 4Q FY21 | 1Q FY22 | 2Q FY22 | 3Q FY22 | 4Q FY22 |
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USA
Agents on the platform and reviews
The US focus for FY22 was to drive growth in agents and platform usage. As of 30 June 2022 there were 214,000 agents on the US platform with c.406,000 reviews, up 88,000 (70%) and 274,000 (206%) respectively compared with June 2021.
Once on the platform, agents collect reviews to attach to, and improve, their profile. This engages agents with the platform and encourages them to collect more reviews and ultimately to take up a subscription and benefit from the additional features RMA offers. Agent reviews are a leading indicator of paid subscriptions.
RMA has implemented several initiatives to accelerate review growth which have helped to increase reviews by 206% in the 12 months to 30 June 2022. These included:
- Agent leaderboard, which provides a comparable analytics dashboard of reviews collected vs properties sold for all agents in the agents' area. This is also a core driver of the Ratemyagent Awards;
- Extrapolating the agent leaderboard into a Company leaderboard to facilitate comparisons across teams and offices whereby real estate businesses may use RMA reviews for internal performance and customer satisfaction analysis;
- Continued automation of agent workflow systems, making review collection a seamless, automated part of an agent's regular processes;
-
Introduction of Agent Recognition Badges. These badges recognise agents who request and receive reviews for a high proportion of their property transactions, promoting transparency and trust with consumers. Badges differentiate agents from their peers and encourage agents to continue to engage on the platform to achieve and maintain a
"trusted agent" status.
Agents on the platform vs reviews (cumulative)
450 | 450 | ||||||||||
406 | |||||||||||
400 | 400 | ||||||||||
346 | 350 | ||||||||||
350 | |||||||||||
'000 | 300 | 283 | 300 | ||||||||
Agents on the platform | 250 | 250 | Reviews '000 | ||||||||
199 | 214 | ||||||||||
200 | 200 | ||||||||||
185 | 176 | ||||||||||
150 | 133 | 146 | 150 | ||||||||
105 | |||||||||||
112 | |||||||||||
100 | 100 | 126 | 100 | ||||||||
75 | 79 | ||||||||||
57 | |||||||||||
51 | |||||||||||
50 | 30 | 50 | |||||||||
- | - | ||||||||||
4Q FY20 | 1Q FY21 | 2Q FY21 | 3Q FY21 | 4Q FY21 | 1Q FY22 | 2Q FY22 | 3Q FY22 | 4Q FY22 | |||
Agents on the platform (LHS) | Reviews (RHS) | *as at 12 January 2021 | |||||||||
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US Revenue
Monetisation initiatives delivered in the 2H FY22 expanded the subscription product offering and made it easier for an agent to start a paid subscription.
- The 2-week trial period for all US subscriptions introduced last quarter continues to be a major contributor to organic subscription growth;
- The "lite" tier continues to prove an easy product entry-point to cater for the core group of c.300,000 agents that we believe sell c.80% of properties; and
- A number of minor process flow and customer experience improvements focusing on agent onboarding and review collection which is translating into increased subscription conversion with c.80% organic trial subscriptions converting to paid subscriptions.
In 4Q FY22, c.AU$528k in subscription revenue was earned, up 21% over 3Q FY22 and 215% over 4Q FY21.
The first US Awards were held in January, which had a large seasonal impact on Promoter revenues. Promoter continued to do well through the subsequent seasonal downturn in 4Q FY22 with revenues up 408% on 4Q FY21, albeit off a low base.
US quarterly revenues
(Thousands) | 700 | |||||||||
600 | ||||||||||
500 | ||||||||||
AUD | ||||||||||
400 | ||||||||||
300 | ||||||||||
200 | ||||||||||
100 | ||||||||||
0 | ||||||||||
4Q FY20 | 1Q FY21 | 2Q FY21 | 3Q FY21 | 4Q FY21 | 1Q FY22 | 2Q FY22 | 3Q FY22 | 4Q FY22 | ||
Subscriptions | Promoter |
Australia and New Zealand
Agents on the platform and reviews
RMA continues to be the platform of choice for real estate agents in Australia with c.78% of the c.33,100 active agents in Australia having claimed their profile. RMA defines an active agent as an agent with at least one property sale in the last 12 months.
Over RMA's history, 47,800 agents have claimed their profiles as of 14 June 2022 and collected over 1.28 million reviews. These review numbers are behind our confidence that the US reviews are likely to grow substantially and very quickly
In New Zealand 6,400 agents have claimed their profiles and collected 58,000 reviews.
The Australian and New Zealand experience of a large number of reviews per agent is strong evidence of agent engagement with the platform and what we expect to see in the US.
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ANZ Revenue
Subscriptions
Subscriptions in Australia, a mature market, reflect solid YoY growth with 4Q FY22 subscription revenues of $2.1m, up c.10% on 4Q FY21. Interest rate hikes and inflationary pressures are starting to have an impact on the market with the number of active agents in the market decreasing by c.1.2% since February.
New Zealand, influenced by similar market forces to Australia, remains a growth market and subscription revenues in 4Q FY22 increased by c.80% on 4Q FY21 and by c.18% on 3Q FY22.
Promoter
Promoter is a digital advertising product that enables agents and agencies to showcase their reviews and profile across social media platforms and Google. Revenues are more seasonal than subscriptions with the RMA Awards in February providing a seasonal uplift in the third quarter.
ANZ Promoter revenues increased to $1.1m in 4Q FY22, up 5% on 4Q FY21.
Promoter revenue
AUD (Thousands) | 1,200 | |||||||||
1,000 | ||||||||||
800 | ||||||||||
600 | ||||||||||
400 | ||||||||||
200 | ||||||||||
0 | ||||||||||
4Q FY20 | 1Q FY21 | 2Q FY21 | 3Q FY21 | 4Q FY21 | 1Q FY22 | 2Q FY22 | 3Q FY22 | 4Q FY22 | ||
Australia | NZ |
Mr. Davey said, "In the US, Australia and New Zealand we continue to focus on building a solid foundation for our platform, to consistently deliver value to our agents and grow a quality recurring revenue business."
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RMA Global Ltd. published this content on 20 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 July 2022 22:53:04 UTC.