Ann: Quarterly Activities Report and 4C, page-19

Perhaps the muted response is due to the following:

- QoQ growth in % terms is pretty flat, and not dramatic in absolute $ terms either
- They've had a significant amount of cash to throw at customer acquisition, and these are the results
- Despite efforts to reduce cash burn, reality is they're still burning cash, and not seeing an accelerating growth velocity as a result
- Despite inching towards CF neutral, the reality is they need to invest cash in to customer acquisition to achieve exciting growth rates. These rates might be exciting for a bluechip, but spec investors absolutely need to see revenue hitting 100% + annual returns from these low levels. This presents a dilemma: slim down costs  and impact customer acquisition but achieve CF neutral, or spend up, aim for the big prize, but burn extra cash in the process and thus dilute your holders. Rock and a hard place.

I would (for context) add that December is a quiet quarter in the rental market, whereas the March quarter sees significantly more activity, thus I'd be expecting a healthy jump in revenue next Q (I am involved with an unlisted semi-competitor to RNT so we see the same as they do evidently).

The following re-cut of the quarterly revenue numbers may be useful to contextualise the relative lack of acceleration in growth which may be impacting investor appetites. IMO to excite the market, both the orange and grey lines need to point pointing well north, but in reality, they're sitting pretty flat.


p.s. colour scheme is the excel default, just coincidental that it matches with RNT's. Not intentional