Ann: September 2017 Quarterly Update and App 4C, page-10

Thanks for the email, happy to answer your questions

Have you considered releasing more information about the business more frequently? We are currently getting Rent Resume updates but this information is available on the website, can you also include monthly updates about local advertising & $10 Ad product or anything else about how sales are performing?

I do think about this and I am not sure there is a “right” answer that suits all. For everyone that asks for more frequent information we have another that asks for less, I guess we are hoping that between our quarterlies, product releases (RR is an example, we generally include other items of interest there as well) we can satisfy most. But I do take your point and it is an area we need to do better in

Given that the business has invested $1.2m in software development over the past 2 years, are you developing a mobile app? If yes, can you update the market on when you expect to release it? If no, why not?

A fair question (gets asked a lot), a little background first

1. Over 60% of our customer consume the site on a mobile device (our site is fully mobile responsive, so it works etc)
2. We need to “earn” the right to exist as an app on a device (app fatigue). What I mean here is, our audience is FIFO (they come in, do their business and leave for 12 mths), we are actively looking to build a consistent relationship with our a new product range that means I can maintain a conversation with my customer each week/month
3. Ad revenue is a real consideration, it is a significant part of our $ at the moment and we need to carefully manage this as we transition
4. Our business is moving fast (appreciate that much happens under the hood), I need to make sure that an app does not become a hinderance to new product/services in terms of time to market

All that said, yes we are working with a partner on developing an app, will be updating SH’s in our AGM (last qtr of this FY is my current ETA)

• I have rent resume, I very rarely receive anything from the business (email or social media). How are you driving product & listing sales from this database?

I did a quick check, appears your login was created as a landlord so you are placed on that email list (I can see your are getting some of our comms, but you won’t get the renter specific product ones)

• It appears that the business does not have any significant relationships with any of the major national agencies, which would be great channel partners. What are your plans in the space? Why are you not been able to establish these relationships to date?

Not sure if you mean REA’s or Press (both have interesting stories), I assume you mean REAs, we do work with a couple of larger ones (C21, LRE) closely and have a working relationship with most (remember, we have over 90% of all listings in the country).
We have said recently that we do not see that revenue from agencies is our future – Red/Green dominate that space and I do think the entire property management industry will come under increased revenue pressure in the future, our focus is to bring great products to our customers (insurance, finance etc)

• The most recent quarterly release was very disappointing and it appears to show that turnaround is losing momentum.

Ok, I have a different view – in the space of 12months we have more than halved our burn and added nearly 50% to revenue (or to look at it simply QoQ, a underlying 29% improvement on EBITDA in the quarter). Would I love to accelerate faster for sure, but I still think the improvement is Revenue, Cost and Customer growth is impressive for the quarter

I hope that covers most of your points, happy to go into more detail

Cheers


Greg Bader – CEO