Ann: Investor Presentation, page-5

Not sure how to take this. It's a rehash of what they released 2 weeks ago. Not very happy with cash at bank balance $4.5m, it is lower than I had forecast [$4.9m]. This is either because revenue growth was lower than expected or they increased investment and/or expenses. Not expecting (-OCF) to have improved much QoQ which is a real the disappointment.

What I am really looking for is evidence they are in a virtuous network cycle. Based on the data I shared last week (Rental Listing Market Share) I am thinking very deeply about what this means in this case. In particular why are they having so much trouble getting traction with 'no win no fee' transaction model .

On the face value is seems like a no brainier for agents to sign up. However, when overlay'd with that data it would seems that rental advertising does not involve much choice (on average). The agent just sends out the ad to all the available sites and waits for the replies, which may mean that rental advertising marginal cost is already almost zero (ie its incorporated within existing subscription & volume discount arrangements) so they don't really care about any given site based on cost per transaction.

Further, while the RR appears efficient and sticky, it doesn't get around the fact that people will usually inspect the house before applying which may undo everything the RR is trying achieve (unless the agents instruct applicants to use this process).

I am big fan of platform businesses. On the whole they provide the best returns based on sustainable competitive advantages. I want RNT to start demonstrating that they are going to be one of these business as opposed to telling me what the opportunity looks like if they become one of these business.