Rent.com.au (ASX: $RNT) Q3 FY24 activities report

Rent.com.au Limited (ASX: $RNT) presents its quarterly activities report for the quarter ended 31st March 2024, showcasing a record quarterly group revenue of $890k, marking a 41% improvement on the same quarter last year. The search portal revenue also experienced significant growth of 25% compared to the same quarter last year, while the base RentPay revenue saw a 21% quarterly growth and a 144% growth compared to the same time last year. Rent.com.au CEO Greg Bader highlighted the impact of low rental property vacancy rates on the demand for Renter Products, leading to a higher percentage take up of these products compared to last year.

Executive Commentary on Q3 FY24 Performance

The March quarter has been a busy one for Rent.com.au, delivering a record group revenue with strong year over year growth across all revenue lines. Rental property vacancy rates remain at record lows, impacting demand for Renter Products, but their appeal to renters was underlined by a higher percentage take up of these products compared to last year. The deferral of onboarding contributed to lower growth in active RentPay customers, but we expect to make this up across the final quarter of FY24. The search portal had a good quarter, delivering an EBITDA profit of $56k for the quarter off revenue of $741k, an increase of 25% over the same quarter last year. Both Renter Products revenue and Advertising Sales drove this result. We are further updating our product offerings with a view to unlocking further value by taking greater ownership in the back-end delivery of our products. Another significant contributor to the Search Portal's improved performance was Advertising Sales, which grew 44% compared to the same quarter last year.

Summary of Q3 FY24 Report and Outlook

Rent.com.au reported a record quarterly group revenue with strong year over year growth across all revenue lines. The impact of low rental property vacancy rates on the demand for Renter Products was evident, with a higher percentage take up of these products compared to last year. The deferral of onboarding contributed to lower growth in active RentPay customers, but the company expects to make this up across the final quarter of FY24. The search portal delivered a good quarter, with both Renter Products revenue and Advertising Sales driving the result. Rent.com.au is focused on updating its product offerings to unlock further value and is optimistic about the outlook, aiming to be the home of renting in Australia.