RMA Global : Quarterly business update and Appendix 4C

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

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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.

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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)

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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.

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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 [phone]	Mobile [phone]

[e-mail]

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