Are tradies convinced by the subscription model ?

1/ Hipages has an interesting model.
They provide a rather non discretionary service : mainly repair and renovation for households.
It looks really useful for both parties :
- creates leads for tradies,
- help household to find the right tradie.

2/ Also interesting to note that a big part of their business is recurring. 90 % of revenue comes from monthly subscription from tradies (126 $ / month on average in FY 20).

3/ One of the problem is the regular decrease for their total number of customers from 44,000 in FY18 to 36,000 in FY20 (expected to stabilize in FY 21).
Looking into more details, we can see that the number of monthly new subscribers is more or less flat since FY 18.
So, the decrease is mainly due to the number of leaving customers, which keeps increasing.
The monthly churn keeps increasing from 2.9 % in FY18 to 3.8 %e in FY20.
The decrease of the number of customers is fully explained by the number of non-subscription customers which keeps decreasing from 21 K in FY 18 to 8 K in FY 20 (the company moved to a subscription only model in Nov 19, allowing only pre Nov 19 customers to continue legacy products).
The company focuses on the positive side saying that they have been able to regularly increase the number of customers under subscription, which also have a higher ARPU.