If they maintain 20% QoQ growth they'll breakeven by June 2020 which is lot longer than what management has committed to. Income growth for Q4 is a critical data point. There was a small amount of revenue from Agent Plans in Q3...this will need to increase by multiples to ensure management's commitments look credible.
I like the statement in today's announcement about thousands of rental transactions taking place (in addition the rental products). This means that business process is working....great....now I want to see the agents paying for it. If it is really as a great as they claim it is then they (agents) should value it and have no problem paying the $75 transaction fee.
In raw number terms: If the ~ 7000 rental product sales are also turned in $75 agent plan transactions then they will add $525k to their income line. This would more than 1/2 the (-OCF). ( I am sure you all already worked this out)
We also know that product revenue is positively related to total RR growth and that RR continues to grow at the steady rate of 500 per day. Therefore we can assume that overall revenue will continue to grow so really what we're trying pin point is by how much.
That is going be function of how well management can distribute this 'product' agents. If they're very good then the growth will be exponential and if they are no good then we're waiting around until 2020.
RNT Price at posting:
7.9¢ Sentiment: Hold Disclosure: Held
