RMA GLOBAL LIMITED ASX Announcement
26 April 2022
Quarterly business update and Appendix 4C
STRONG AGENT ENGAGEMENT IN US DRIVING PAID SUBSCRIPTIONS
Highlights
• US:
o 204,000 agents on the platform. At 31 March 2022: 199,000, up 77% YoY.
o 362,000 reviews on the platform. At 31 March 2022: 346,000, up 231% YoY.
o US subscription ARR at March 2022 of AUD $1.8m, up 240% on March 2021.
• Headline revenues:
o Recurring revenue in 3Q FY22 of $4.0m, up $1.0m (35%) from 3Q FY21.
o Group ARR of $17.2m, up 30% from March 2021.
• Cashflow: Net receipts from customers in 3Q FY22 of $4.5m, up $0.9m (24%) from 3Q FY21.
• Australian and New Zealand revenues: consistent Australian subscriptions, but strong growth in Promoter revenue and New Zealand subscriptions.
RMA Global Limited (ASX: RMY) ("the Company" or "RMA") is pleased to announce that the March 2022 quarter has seen a further consolidation of the success of the previous two quarters, achieving records in key metrics including agents on the platform, reviews, cash incomes and revenue.
Commenting on the March Quarter results, RMA Global's CEO, Mr. Michael Davey, said "I am delighted with how the business is building, hitting new records in all geographies for cash flows and revenues."
He said that, "With a strong pipeline of active agents on our platform, we anticipate delivering strong results in the coming quarter and being cash flow positive this calendar year."
Group revenues by geography
AUD(Thousands)
4,500
4,000 3,500 3,000 2,500 2,000 1,500 1,000
500
0
3Q FY20 4Q FY20 1Q FY21 2Q FY21 3Q FY21 4Q FY21 1Q FY22 2Q FY22 3Q FY22
AustraliaNZUS
Quarterly cash flows
Receipts from customersNet Operating cash flow
5,000
AUD(Thousands)
4,000
3,000
2,000
1,000
-
-1,000
-2,000
-3,000
3Q FY21
3Q FY21
4Q FY21
1Q FY22
2Q FY22
3Q FY22
USA
Agents on the platform and reviews
The US focus for FY22 is to drive growth in agents and usage of the platform. As at 31 March 2022 agents had c.346,000 reviews on the US platform, a 241,000 (231%) increase on March 2021. A third of US reviews were generated in 2Q FY22 alone which shows growing agent engagement with the platform.
At 31 March 2022 there were c.199,000 US agents on the platform, up 77% YoY. There are almost five times more US agents on the platform than in Australia.
Agents on the RMA platform
250
200
150
'000
100
50
0
0
6
12
18
24
30
36
42 48 54 60 Months since launch
66
72
78
84
90
96
102
108
114
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 take up a subscription and benefit from the additional features RMA offers. Agent reviews are a leading indicator of paid subscriptions.
Reviews, which are cumulative, are significantly outpacing new profile claims as agents on the platform continue selling properties. The more reviews an agent has on their profile, the more valuable their profile is to them and to property owners searching to employ an agent.
RMA has implemented several Initiatives to accelerate review growth including:
• 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; and
• Continued automation of agent workflow systems, making review collection a seamless, automated part of an agent's regular processes.
This acceleration in review collection is reflected in the chart below. As at 31 March 2022 there were c.346,000 reviews on the US platform, a c.241,000 (231%) increase on March 2021.
Agents on the platform vs reviews (cumulative)
380
362
400
360
380
340
Agentsontheplatform'000
320
300
280
260
240
220
200
180
160
140
120
100
80
60
40
20 -
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY19 FY19 FY20 FY20 FY20 FY20 FY21 FY21 FY21 FY21 FY22 FY22 FY22*
360
340
320
300
280
260
240
220
200
180
160
140
120
Reviews'000
100
80
60
40
20 -
* to 25 April 2022
Agents on the platform (LHS)Reviews (RHS)
*as at 12 January 2021
US Revenue
Monetisation initiatives delivered in the last quarter expanded the subscription product offering and made it easier for an agent to start a paid subscription. The Company introduced a 2-week trial period for all US subscriptions and launched a 'lite' tier priced at US$19 per month.
RateMyAgent now has an easy product entry-point to cater for the core group of c.300,000 agents that we believe sell c.80% of properties. drive the sector, as well as the large pool of low-transaction agents trying to be recognised and grow their business.
Initial results are encouraging, with over 300 trials initiated in March with a c.74% conversion rate from trials to a paid subscription.
In 3Q FY22, c.AU$438k in subscription revenue was earned, up 24% over 2Q FY22 and 289% over 3Q FY21.
We have also seen accelerated Promoter revenue driven by the RMA Awards and sales activity. Promoter revenue has grown to $171k in 3Q FY22, up 131% over 2Q FY22 and 588% over 3Q FY21.
US quarterly revenues
700
AUD (Thousands)
600
500
400
300
200
100
0
3Q FY20
4Q FY20
1Q FY21
2Q FY21
3Q FY21
4Q FY21
1Q FY22
2Q FY22
3Q FY22
SubscriptionsPromoter
Australia and New Zealand
Agents on the platform and reviews
At 31 March 2022 there were c.33,300 active agents in the market. Of these, c.25,700 (77%) active agents were on the platform, up 3,100 YoY. RMA defines an active agent as an agent with at least one property sale in the last 12 months.
Over RMA's history, 46,700 agents have claimed their profiles as at 14 April 2022 and collected over 1.24 million reviews. These review numbers are behind our confidence that the US reviews are likely to grow very quickly
Australia - Active agents on the platform vs reviews (cumulative)
50
Activeagentsontheplatform '000
45
40
35
30
25
Reviews '000
20
15
10
5 -
1,400 1,200 1,000 800 600 400 200 -
2Q | 3Q | 4Q | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q |
FY20 | FY20 | FY20 | FY21 | FY21 | FY21 | FY21 | FY22 | FY22 | FY22 |
Active & claimed profilesReviews (RHS)
In New Zealand 5,700 agents have claimed their profiles and collected 52,800 reviews.
The Australian and New Zealand experience of multiple reviews per agent is strong evidence of engagement with the platform and what we expect to see in the US.
ANZ Revenue
Subscriptions
The Company's growth initiatives and product offering facilitated ongoing growth in ANZ.
New Zealand is showing strong growth where quarterly subscription revenues have more than doubled from c.97k in 3Q FY21 to almost $200k in 3Q FY22.
Australian subscriptions remain strong, despite a seasonal slowdown due to the January holidays. Just over $2.1m was generated in subscriptions in 3Q FY22, up 16% on 3Q FY21.
ANZ Subscription ARRR
10,000
AUD (Thousands)
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
4Q | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q |
FY19 | FY20 | FY20 | FY20 | FY20 | FY21 | FY21 | FY21 | FY21 | FY22 | FY22 | FY22 |
NZ |
Australia
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RMA Global Ltd. published this content on 26 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 April 2022 00:39:09 UTC.
