Rent.com.au (ASX: RNT) – a website exclusively for renters
COMPANY SCOREBOARD
| Pro Plus | Pro | Con Plus | Con |
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ABOUT COMPANY
Rent.com.au (RNT) focuses exclusively on the rental market for the growing number of renters in Australia (8 million).
CAPITAL STRUCTURE
| ASX Code | Share Price | Shares | Option (In) | Market Cap | Cash/Asset ($m) |
| RNT | 0.02 | 629676562 | 12593531.24 | 2.8/0 |
| Holders No | Top 20 (Cur) | Top 20 (Pre) | Director Hold | Performance Right | Note |
| 4362 | 45.56% | 40.47% | 8.38% | 43547536 | last raise $1.95m@1.7c+4cOpt; pre raise $2.9m@4c |
Bevan Slatter bought 40m shares@5c in February 2021, another 25m@4c in November 2022.
BUSINESS
Below is the company’s past five years performance:
| RNT | 2023 | 2022 | 2021 | 2020 | 2019 |
| Operation Revenue | 2769 | 3370 | 3094 | 2452 | |
| Cost of Sale | |||||
| Gross Revenue | 2769 | 3370 | 3094 | 2452 | 0 |
| Gross Margin | 1 | 1 | 1 | 1 | 0 |
| Overheads | -5507 | -5173 | -4062 | -3580 | |
| Fixed Overheads | |||||
| Variable Overheads | |||||
| Total Operation Expense | -5507 | -5173 | -4062 | -3580 | 0 |
| Operation Profit | -2738 | -1803 | -968 | -1128 | 0 |
| Other Revenue | 85 | 19 | 567 | 355 | |
| Interest Expense | -24 | -15 | -9 | -9 | |
| D&A | -1172 | -1016 | -871 | -883 | |
| Income Tax | -13 | ||||
| Net Profit | -3849 | -2815 | -1294 | -1665 | 0 |
| NOTES | RentPay $229k | RentPay $136k |
Almost all the revenue comes from the Renter Products such as RentCheck, RentBond, RentPay, and the Advertising Sales. There isn’t much revenue from the Agent Listing Fee, which suggests the website acts as a “data farm”.
The website itself is clean and highly rated. A well recognized site perhaps worth some $15m.
The company’s next leg of growth will come from RentPay, which facilitates rent and bill payments between renters and agents/landlords. As of June 2023, the RentPay has 6,066 paying customers. Given the company has collected over 1.34m rent resumes to date, it proves again how hard it is to gain clients in the real estate industry.
SUMMARY
The company might not have the growth rate the market is looking for. Pity they didn’t capitalized on the 10 baggers run in 2021.