The Rent.com.au Ltd (ASX: RNT) share price is shooting higher again today, it’s up 42% – what’s going on? It’s gone from a price of $0.04 to $0.18 in just a few days.
Rent.com.au describes itself as a business made for renters. It has tools like ‘rent check’ which allows them to verify their ID and check for any reported breaches on their tenancy history. It has a ‘move now, pay later’ facility to enable bond financing. Rent.com.au has ‘rent connect’ which is a utility connection service with AGL Energy Limited (ASX: AGL). It also offers a rent resume service and a rental payment service.
What’s happening with Rent.com.au shares?
The company recently announced its quarterly update to investors. It said that it made record quarterly EBITDA (EBITDA explained), up 55% year on year despite the RentPay investment. This was the second consecutive quarter of positive EBITDA for the core rent.com.au segment.
The company said that the RentPay redevelopment was progressing well and readying for launch.
Revenue increased by 27% year on year to $734,000 with a strong advertising sales pipeline contributed to the result. That was despite the ongoing COVID-19 restrictions making interstate and international movements difficult.
In terms of the outlook, the company is focused on getting RentPay launched to the wider market whilst maximising the opportunity from what is a typically busy quarter for renting. Many leases are expiring in early 2021, as well as moratoriums on evictions ending in Tasmania and ACT, according to the company, so it’s expecting heightened rental demand in the coming months.
Strategic investment
Rent.com.au then announced yesterday that tech investor Bevan Slattery would be investing $2.75 million into the business at a price of $0.05 per share. The money will be used to accelerate Rent.com.au’s transformation of the renting experience.
Mr Slattery has invested in other ASX shares like Nextdc Ltd (ASX: NXT), Superloop Limited (ASX: SLC) and Megaport Limited (ASX: MP1).
Investors may be hoping that Rent.com.au can also make good returns over time.
Considering the business is only making a few million dollars of annualised revenue for now, it’s hard to comment on how big the company can become. But the share price growth for Rent.com.au is clearly exciting.
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