Rental portal Rent.com.au saw an increase in revenues over the last financial year as it aims to expand its RentPay service.
For FY2024, the company reported total revenue of $3.2 million, with its core search portal generating $2.7 million and achieving a positive EBITDA of $0.2 million.
The company attributed its growth to increased advertising sales and key partnerships with entities like Mastercard and various internet service providers, which helped offset declines in the building sector.
Despite this, the overall EBITDA ended with a $2 million net loss, largely due to losses from the RentPay service.
Nevertheless, Rent.com.au found success in other areas of its business. RentBond saw a 49% increase in revenue, while RentCheck experienced a 10% rise in adoption rates.
The potential of RentPay was highlighted, with the company noting its substantial upside potential. The opportunity with RentPay is significant, given that all renters collectively pay over $60 billion annually.
RentPay aims to provide value, flexibility, and control, enabling renters to make their rent money work more effectively.
To enhance profitability and scalability, the company is implementing several growth strategies, such as onboarding large rent rolls, expanding product offerings, and boosting engagement with property managers, with recent success including the onboarding of approximately 800 properties within a week. Increasing Average Revenue Per User (ARPU) on the RentPay platform is also seen as essential for ensuring long-term sustainability and profitability.
In the future, Rent.com.au plans to broaden its payment options for tenants and roll out new features such as ScoreBuilder, which is intended to help renters build their credit. The next fiscal year will be pivotal, with intentions to introduce larger loan offerings and an improved bill payment service that offers cashback rewards.
Although Rent.com.au is still encountering profitability issues, particularly with RentPay, the company remains hopeful about its future. Management is confident that enhancing platform margins and expanding operations will be crucial for attaining sustainable growth and profitability in the years ahead.
As the company evolves, it will be important to strike a balance between innovative product development and financial stability. The effectiveness of its growth strategies and its capacity to leverage its extensive market potential will be critical factors in determining its long-term success.
