The Real Estate Investar Group Limited, a leading online provider of data-driven investment property analysis, tracking and transaction services to Australian and New Zealand property investors, has released its Appendix 4E Preliminary Financial Report for the 12 months to 30 June 2017 (“FY 2017”).
Key Highlights for FY 2017
• Cash receipts from customers grew to $5.0m, a 31% increase over the Previous Corresponding Period (“PCP”);
• Positive cash flow of $0.1m from operating activities in the fourth quarter, a $0.6m improvement over the PCP;
• Revenues from operating activities of $4.7m, a slight decrease of 3.5% over the PCP as the Company transitioned from a traditional SaaS1 subscription model to a higher value data driven property transaction model;
• Adjusted EBITDA2 loss of $1.1m due to significant investment in the data driven property transaction model including detailed user profiling and property sales capabilities; • Membership growth of 27.5% year on year with 258,096 members as at 30 June 2017, with total Member data points growing significantly to 4.9m; and
• Strong start to FY 2018 with July revenue of $476k, an increase of 31% over the PCP.
Clint Greaves, CEO of Real Estate Investar commented on the company’s report.
“The last year saw significant investment in transitioning the business from a traditional SaaS subscription model to a transaction-based model,” he said. “We are utilising data and our online presence to build a strong relationship with property investors, to capture data about who they are and what they want, to pre-qualify them, and to match them with the right investment grade properties.
“Whilst full year revenues were slightly down year-on-year, the second half revenues were stronger than the first half and we saw a 31% growth in cash receipts to $5.0m for the year.”
In December 2016 REI launched a new Premium Membership focused on assisting members to purchase investment grade properties based on their engagement and profile data. At the time, REV Group said they expected that this new membership would drive strong growth in property sales commissions in the second half of FY 2017.