I think people are getting a bit carried away with RNT and the 130,000 renter resumes (even if it is growing at 500 per day).
People need to do some proper research on market size and understand competitors, and consider what exactly is RNT's competitive advantage that will mean it will get to scale.
I had a very detailed look at RNT in late 2015 and early 2016. I check in and see how it is going from time to time. I have a reasonable understanding of the property classifieds market and marketplace sectors generally.
You can go back and search my posts for lots of the research. Yes management has changed since then, however the market fundamentals and dynamics haven't.
The Renter Resume product is interesting, and on the face of it makes sense. But please bear in mind that the leading business in the space is 1Form, which is owned by REA. In 2014, when REA bought 1Form, it had 2.4m renter resumes/applications. It absolutely dwarfs RNT's product. Even if Rent Resume grew by 1,000 per day, every single day of the year, it would take over 6 years for Rent Resume to get to where 1Form was over 3.5 years ago (and would take over 12 years at 500 per day). And do you think 1Form is smaller or larger now then it was then?
You need to remember that RNT is competing with 2 players who are huge compared to RNT. REA could absolutely squash RNT anytime it actually wants to. REA makes almost $1m EBITDA every single day. And the people using RNT are also using REA. And the leads to properties are being generated by REA, not RNT. Go and talk to agents to find this out. This tells you where the money is currently. Until RNT start providing a good volume of leads to agents they will struggle to make decent revenues.
Will RNT get there and get to breakeven? Perhaps, but you are going to have plenty of time to get on board, because it won't really kick up until there is sustained positive cashflow.
Regards
Marv
DISCLOSURE: I don't hold, but watch from the sidelines, and am not holding my breath.
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