Rent.com.au Accelerates RentPay Growth with 33% Revenue Surge in Q2 FY25

Steady Revenue Growth Amid Seasonal Market Dynamics

Rent.com.au Limited (ASX: RNT) has reported a solid performance for the second quarter of fiscal 2025, with total revenue reaching $750,000, marking an 11% increase compared to the previous quarter. This growth is underpinned primarily by the expanding footprint of its RentPay platform, which continues to gain traction among renters and property managers alike.

The company’s search portal, a key component of its rental services ecosystem, experienced a modest 3% revenue increase quarter-on-quarter despite the typical seasonal lull during the December quarter. This period traditionally sees reduced renter activity due to holidays and student movements, yet Rent.com.au managed to maintain positive momentum, supported by a rise in advertising sales targeting core renter demographics.

RentPay: The Engine Driving Recurring Revenue

RentPay remains the standout growth driver, with revenue from this segment increasing by 33% year-over-year. Active RentPay customers grew by 23% to over 10,800 users, reflecting strong adoption of the platform’s flexible rent payment options. The company highlighted a 65% growth in RentPay’s recurring revenue base compared to the same quarter last year, underscoring the platform’s increasing contribution to Rent.com.au’s financial stability.

Notably, Rent.com.au is onboarding two large rent rolls, collectively representing around 2,000 renters, which is expected to further accelerate user growth and transactional volume in upcoming quarters. The introduction of the "Invite a Friend" referral program in January 2025 aims to stimulate organic growth by incentivizing existing users to bring new customers to the platform, potentially expanding RentPay’s reach beyond agency-affiliated renters.

Strategic Partnerships and Product Enhancements

During the quarter, Rent.com.au launched a new partnership with Connectnow to offer the RentConnect utility connection service. This initiative broadens renters’ options for utility and service connections, including internet and pay TV, while providing a $100 gift card incentive. The partnership is live and operational, with further enhancements planned.

The company is also reviewing its RentBond product, which helps renters finance upfront moving costs. Despite doubling the number of applicants over two years, loan uptake remains limited, prompting Rent.com.au to explore ways to optimize this offering to better meet renter needs.

Financial Discipline and Leadership Transition

RentPay’s EBITDA loss narrowed slightly to $569,000 this quarter, reflecting ongoing operational efficiencies and a reduction in software development expenses following the PayPal payment method launch. The company’s cash position remains healthy, with over $1.17 million in cash and equivalents at quarter-end, supporting an estimated 20 quarters of funding based on current operating cash flows.

Leadership changes are largely complete, with Jan Ferreira assuming full CEO responsibilities from January 1, 2025, succeeding Greg Bader, who remains in an advisory role until May. Ferreira’s focus is on scaling RentPay and exploring new revenue streams to complement the profitable search portal business.

Outlook: Building on a Robust Platform

Looking ahead, Rent.com.au is poised to leverage its scalable platform to drive further customer acquisition and revenue growth. The company plans to continue enhancing RentPay’s features and expanding its user base through both agency partnerships and direct-to-consumer channels. Meanwhile, efforts to optimize existing products and explore new monetization opportunities for the search portal are underway, signaling a multi-pronged approach to growth.