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    RMY   AU0000013906

RMA GLOBAL LIMITED

(RMY)
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RMA Global : Quarterly business update and Appendix 4C

01/27/2022 | 06:06pm EDT

For personal use only

RMA Global Limited

ABN 69 169 102 523

Level 1, 120 Balmain Street

Cremorne VIC 3121

ASX Announcement

28 January 2022

Quarterly business update and Appendix 4C

STRONG AGENT ENGAGEMENT IN US DRIVING SUBS

Highlights

  • US:
    1. 185,000 agents on the platform. At 31 December 2021: 176,000, up 76% YoY. o 309,000 reviews on the platform. At 31 December 2021: 283,000, up 257% YoY.
  • Headline revenues: Recurring revenue in 2Q FY22 of $3.7m, up $1.1m (45%) from 2Q FY21.
  • Cashflow: Net receipts from customers in 2Q FY22 of $3.8m, up $0.8m (25%) from 1Q FY21.
  • Australian and New Zealand revenues: consistency in Australia and strong growth in New Zealand subscriptions.
  • COVID-19:Covid-19 restrictions in the last quarter and the Christmas holiday at the end of the current quarter greatly impacted property marketing and reviews in Australia and NZ.

USA

Agents on the platform and reviews

The US focus for 1H FY22 was to drive agent usage on the platform and grow. We generated a third of US reviews in 2Q FY22 alone, which indicates an uplift in agent engagement with the platform.

At 31 December 2021 there were c.176,000 US agents on the platform, up 76% YoY. By 27 January 2022 a further 9,000 agents have joined. There are now over 4 times more US agents on the platform than in Australia.

Agents on the RMA platform

200

180

US -185,000

160

140

'000

120

100

80

60

AUS - 45,100

40

20

0

NZ - 5,200

0

6

12

18

24

30

36

42

48

54

60

66

72

78

84

90

96

102

108

114

Months since launch

1

For personal use only

Once on the platform, agents collect reviews against their profile to take advantage of the benefits of the platform. This engages agents with the platform and encourages them to collect more reviews and ultimately take up a subscription to unlock the additional benefits of paid services. Agent engagement as reflected in reviews is a leading indicator of paid subscriptions.

As agents continue selling properties, reviews, which are cumulative, will significantly outpace agents joining. 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.

The strong acceleration in reviews experienced in 1Q FY22 continued into 2Q FY22 with c.98,000 reviews being collected, a QoQ increase of 89%. Over 200,000 reviews were collected in the 2021 calendar year, an increase of c.330% over 2020. As at 27 January 2022 there are c.309,000 reviews on the US platform.

US Agents on the platform vs reviews (cumulative)

240.0

309

340.0

320.0

220.0

300.0

200.0

185

280.0

'000

180.0

260.0

160.0

240.0

Agents on the platform

146

220.0

140.0

126

200.0

Reviews '000

180.0

120.0

112

185

100

160.0

133

100.0

140.0

80.0

75

105

120.0

100.0

60.0

57

79

45

80.0

39

51

40.0

28

60.0

23

30

14

18

17

40.0

20.0

13

8

9

20.0

-

-

3Q FY19

4Q FY19

1Q FY20

2Q FY20

3Q FY20

4Q FY20

1Q FY21

2Q FY21

3Q FY21

4Q FY21

1Q FY22

2Q FY22*

Agents on the platform (LHS)

Reviews (RHS)

*as at 12 January 2021

US Revenue

Subscriptions

While the primary focus in the US remains on growing agent usage, subscription revenues are growing. In 2Q FY22, c.AU$354k in subscription revenue was earned, up 44% over 1Q FY22 and 321% over 2Q FY21.

2

For personal use only

US Subscription ARRR

('000)

1,600

1,400

AUD

1,200

1,000

800

600

400

200

0

4Q FY20

1Q FY21

2Q FY21

3Q FY21

4Q FY21

1Q FY22

2Q FY22

Australia and New Zealand

Agents on the platform and reviews

In Australia 45,100 agents have claimed their profiles at 27 January 2022 and collected over 1.18 million reviews. An agent's profile remains on the platform when they exit the market and given RMA's maturity in Australia, a more relevant metric to measure the platform uptake in the market is the number of active agents on the platform. RMA defines an active agent as an agent with at least one property sale in the last 12 months.

At 31 December 2021 there were c. 34,200 active agents in the market, up 3,500 (11%) YoY. Of these, c.25,300 active agents had claimed their profile, up 3,100 YoY. This represents a 14% increase in the number of active agents on the platform and a 3% increase in market share.

Circa 77,000 reviews, a new record, were collected in 2Q FY22, up c.13,200 (21%) on 1Q FY22.

Australia - Agents on the platform vs reviews (cumulative)

70

1,200

60

1,000

Claimed profiles

50

800

'000

40

'000

Reviews

600

30

20

400

10

200

-

-

2Q FY20 3Q FY20 4Q FY20 1Q FY21 2Q FY21 3Q FY21 4Q FY21 1Q FY22 2Q FY22

Active & claimed profiles

Claimed profiles

Reviews (RHS)

3

For personal use only

In New Zealand 5,200 agents have claimed their profiles and collected 46,800 reviews.

The Australian and New Zealand experience of multiple reviews per agent is strong evidence of engagement with the platform and also what we expect to see in the US.

Revenue

Subscriptions

The Company's growth initiatives and product offering facilitated ongoing growth in Australian subscriptions and strong growth in New Zealand, despite Covid lockdowns and year-end holidays.

Australian subscriptions generated just over $2.1m revenue in 2Q FY22, up 2% from 1Q FY22 and 21% on 2Q FY21.

New Zealand subscription revenue in 2Q FY22 increased c.15% from 1Q FY22 to $177k and by 139% from 2Q FY21.

ANZ Subscription ARRR

(Thousands)

10,000

9,000

8,000

7,000

AUD

6,000

5,000

4,000

3,000

2,000

1,000

0

4Q FY19 1Q FY20 2Q FY20 3Q FY20 4Q FY20 1Q FY21 2Q FY21 3Q FY21 4Q FY21 1Q FY22 2Q FY22

Australia

NZ

Promoter

Promoter is a digital advertising product which enables agents and agencies to showcase their reviews and profile across social media platforms and Google.

Promoter benefits from a seasonal boost following the RMA Awards in February, resulting in the 3Q FY21 revenue spike (see graph below). Promoter revenues increased in 2Q FY22 in the build up to Awards 2022.

With agent engagement in the US increasing, Promoter in the US is starting to gain traction and quarterly revenues grew c.104% to $74k in 2Q FY22, off a low base.

Globally, Promoter revenues in 2Q FY22 of c.$1.0 million are up 7% compared with 1Q FY22 and up 61% compared with 2Q FY21.

4

For personal use only

Promoter revenue

AUD (Thousands)

1,200

1,000

800

600

400

200

0

2Q FY20

3Q FY20

4Q FY20

1Q FY21

2Q FY21

3Q FY21

4Q FY21

1Q FY22

2Q FY22

Australia

NZ

US

Chief Executive Officer, Mr. Michael Davey said, "We are very pleased with the review growth and agent engagement in the US with one third of our total reviews coming in the last quarter. All of our major metrics have increased and we continue to focus on accelerating this momentum."

Cash flow and net cash position

  • Cash receipts from customers in 2Q FY22 of $3.8m, up 25% from 2Q FY21 and consistent with 1Q FY22 due to seasonality of cash incomes.
  • Operating cash outflow for the quarter was $1.4m, an improvement of $712k (33%) from 1Q FY22 driven by reduced marketing, staff and administrative costs. YoY operating cash flows for 2Q FY22 improved $120k over 2Q FY21, with the increase in cash income partly offset by increased investment in staff and infrastructure to expand the product offering and grow pipeline metrics and subscriptions in the US.
  • Cash on hand as of 31 December 2022 was $7.1m.

Authorised for release by the Company Secretary, Scott Farndell

Further information:

Michael Davey

David Williams

Chief Executive Officer

Chairman

Mobile +61 400 888 120

Mobile +61 414 383 593

michael.davey@ratemyagent.com dwilliams@kidder.com.au

5

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

RMA Global Ltd. published this content on 27 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 January 2022 23:05:05 UTC.


© Publicnow 2022
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Financials
Sales 2021 11,3 M 8,11 M 8,11 M
Net income 2021 -8,85 M -6,33 M -6,33 M
Net cash 2021 9,15 M 6,54 M 6,54 M
P/E ratio 2021 -14,8x
Yield 2021 -
Capitalization 76,7 M 54,9 M 54,9 M
EV / Sales 2020 14,8x
EV / Sales 2021 11,0x
Nbr of Employees -
Free-Float 25,3%
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Managers and Directors
Michael Davey Chief Executive & Operating Officer
Scott Farndell Chief Financial Officer & Secretary
David John Williams Non-Executive Chairman
Edward van Roosendaal Executive Director & Chief Technology Officer
Sigal Pilli Independent Non-Executive Director
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