Rent com au : Quarterly Trading Update

ASX Announcement 19th January 2017

RENT.COM.AU QUARTERLY ACTIVITIES REPORT

Rent.com.au Limited (ASX: RNT) ("RENT" or "the Company"), Australia's Number 1 website dedicated to rental property, presents its quarterly activities report for the three months ending 31st December 2016.

Key Highlights:

 Delivering on revenue growth and innovation:

• Record Revenue result for the quarter to $390k, an 11% improvement on previous quarter

• Record Product sales, including RentBond and RentCheck

• Strong support for new Renter Resume and Pet Resume initiatives drives product adoption

• Development of key new products and site enhancements will continue in Q3 FY17

   Delivering on operational efficiency:

• 45% improvement on previous quarter's EBITDA result

• Forecasted savings achieved, monthly cash burn reduced

• Organic traffic to rent.com.au now 30% of total visitors

 Well-funded, $5.8m cash on hand as of 31st December 2016

RENT Chief Executive Officer, Mr Greg Bader, who was appointed in August 2016 to lead RENT through its commercialisation phase, said the Company continues to achieve or exceed targets relating to revenue generation and product take-up by renters in the Australian market.

"This is our first full quarter following our move to a more sustainable cost structure and we're seeing the benefits of that move, along with revenue growth, reflected in our improving financial results.

"More importantly, we have managed to do this whilst increasing our customer's experience and their engagement with the RENT value proposition."

$ Thousands

400

300

Revenue (Quarterly)

$352k

$390k

200 $223k

$272k

100

0

Q3 FY16 Q4 FY16 Q1 FY17 Q2 FY17

"During the quarter we released several product changes and enhancements which have started to contribute to our improved top line. In fact the December quarter is our highest ever revenue quarter," Mr Bader said.

$ Thousands 0.0

EBITDA (Quarterly)

Q3 FY16 Q4 FY16 Q1 FY17 Q2 FY17

(500.0)

(1,000.0)

-$1,270k

(1,500.0)

(2,000.0)

(2,500.0)

-$1,893k

-$2,719k

-$2,296k

(3,000.0)

"The cost savings and growing revenue line mean significant EBITDA improvements and we reiterate our previous guidance of cashflow breakeven during FY18.

"The credit goes to our passionate team at RENT. The business has been through considerable changes over the last half year and despite restructuring our cost base, we have managed to lift on all key financial measures whilst releasing more customer products and site functionality than at any time in our history," Mr Bader concluded.

40,000

Renter Resumes Created Since Launch

30,000

20,000

10,000

0

20-Oct 3-Nov 17-Nov 1-Dec 15-Dec 29-Dec

Renter Resume, which was created to meet the needs of Australian renters, continues to perform strongly with an average of more than 500 customers per day creating a resume and using it to enquire or apply online for a rental property.

December saw the launch of Pet Resume, another initiative designed to help renters as well as agents and landlords. Our research shows that approximately 50% of properties do not state clearly if pets are allowed or not. The Pet Resume is a practical and user-friendly way for renters to start that conversation with a landlord. Approximately one third of new Renter Resumes also have a Pet Resume attached.

5,000

Product Sales (Quarterly)

4,000

4,417

3,000

2,000

1,000

1,814

2,530

2,931

0

Q3 FY16 Q4 FY16 Q1 FY17 Q2 FY17

Following the launch of Renter Resume during the quarter, we significantly improved the take up rates of our RentBond and RentCheck products by positioning them within the process flow of resume creation and property enquiry. As a result, adoption rates are at all time highs. Aligned with the product repositioning we changed service provider arrangements where appropriate to ensure our customer needs and expectations continue to be met.

Outlook

Whilst current revenue and cost performance is impressive, further revenue-generating products remain scheduled for delivery this quarter.

Existing Products Repositioning and simplification of existing product suite will improve profitability	
Listing Fees Free and modestly paid models for agents and landlords listing, feature set of paid model saves time and effort with a property reward plan to encourage adoption	Launching Q3 FY17
3rd Party Referrals Our renters are a large and important market segment, we will present them with tailored products and services from relevant partners; for example - a renter friendly broadband plan	Launching Q3 FY17

Development of an industry first, success based Agent Smart Plan listings product is in advanced development. Like the Landlord Smart Plan launched late in Q2 FY17, these new products generate a fee to RENT from the real estate agent upon the successful placement of a tenant by RENT. Initial feedback from real estate agent partners has been positive and the proposed Agent Smart Plans are expected to launch in Q3 FY17.

With renters being an important and growing segment of the Australian property market, RENT is working with several channel partners to develop a range of renter-oriented products for its customers, scheduled to also be launched in FY17.

Development of new revenue opportunities continue and coupled with the strong cost focus within the business, the Company maintains its guidance of cashflow breakeven during FY18.

ENDS

Further information: John Gardner / Justine Barret, Citadel-MAGNUS [phone]

About rent.com.au

rent.com.au (ASX:RNT) is Australia's #1 website dedicated to rental property.

Our rental only positioning allows RNT to legitimately advocate for renting and renters.

Our Rules Renters in Suits

Our renters will always be presented in such a fashion as

to maximise their chances of getting the home they want

Properties on Pedestals We present our properties with additional and relevant information

Flick the Forms

Let's automate where we can. We can't remove the need

for you to eyeball the property before signing (yet!), but we can remove most of the paperwork

Our Products

	Check to see if you are shown as a good tenant and add it to your resume to stand out from the crowd.
	Great convenience product helping renters bridge the gap from one rental to another by financing their bond online.
	Hassle free moving - get someone else to ensure the lights are on and the water is hot when you move in - for free!

Renter (and Pet) Resume