Ann: Quarterly Activity Report and Appendix 4C, page-3

Thanks for sharing the full quarterly report for Rent.com.au (ASX:RNT). Here’s a breakdown of the key takeaways and what they mean for your investment:

1. Performance Highlights (Q3 FY25):

• Quarterly revenue hit a record $932k, up 24% vs Q2 FY25 and 5% YoY.
• RentPay active customers rose to 13,043 as of 29 April 2025, a 45% YoY increase.
• RentPay ARR (Annualised Recurring Revenue) is now $1 million, which is solid recurring revenue growth.
• The Rent.com.au moving portal remains EBITDA positive.
• An entitlement issue raised $1.7 million, fully underwritten – showing some investor confidence and financial runway extension.

2. Key Business Trends:

RentPay Platform Growth:

• Active RentPay users are growing well (+35% YoY), with over $480M in payments processed.
• ARPU (Average Revenue Per User) is increasing steadily – now $7.02, up from $5.53 a year ago.
• This trend shows increasing monetisation per user and operational maturity.

Quarterly Cash Flow

(Appendix 4C):

• Operating cash outflow: $497k this quarter (i.e., the business is still burning cash).
• Cash balance fell from $1.176M to $205k by end of March.
• Investing cash outflows mainly for software development: $414k this quarter.
• Raised $1.7M via entitlement issue, which may temporarily support operations.

3. Financial Health / Risk:

• The company still operates at a loss (RentPay EBITDA loss = $523k this quarter).
• Cash runway is short without further capital raising or profitability. Even with the $1.7M raised, they likely have 2–3 quarters max unless breakeven is achieved or more funding is secured.
• However, the growth in ARR and ARPU is a positive signal of scalability and future breakeven potential.

4. Outlook:

• New COO appointment and continued customer growth suggest stronger management direction.
• They are monetising property data and working with external providers to create new revenue streams without needing much further investment.

Investor Hope Summary:

Positive Signs:

• Record revenue and user growth.
• RentPay’s recurring model is scaling.
• Data monetisation and new product streams look promising.
• Recently raised capital to extend cash runway.

Risks:

• Still operating at a loss.
• Short cash runway even with new funds.
• Needs to convert strong user growth into full platform profitability.

Verdict:

You have reasonable hope if:

• They continue to execute well on user growth and revenue per user.
• New revenue streams like data and RentBond gain traction.
• They either reach breakeven or secure another round of funding without massive dilution.

But it’s a speculative play. If they fumble growth or the market tightens, capital raising may become expensive or fail.