Quarterly Activities/Appendix 4C Cash Flow Report
| Stock | Rma Global Ltd (RMY.ASX) |
|---|---|
| Release Time | 30 Jan 2025, 8:26 a.m. |
| Price Sensitive | Yes |
RMA Global reports first cashflow positive quarter
- Significant improvements in profitability, with net operating cash gain of +$252k
- Group revenues grew by 9% to $5m, driven by growth in US and ANZ markets
- Acquisition of Curated Social increases US revenue base by 40%
RMA Global Limited (ASX: RMY) has successfully driven substantial momentum in both profitability and growth in the first six months of FY25. In the second full quarter under the leadership of CEO Jim Crisera, the company made significant strides in strengthening RMA USA market position and partnerships with USA brokerages by completing the acquisition of Curated Social, a prominent U.S.-based provider of social media content tailored for real estate agents. This strategic acquisition increases RMA's USA revenue base by approximately 40% and empowers agents to elevate their digital presence across social platforms, helping them secure more listings. It also significantly increases the strength of RMA's USA based management team. Through a combination of this enhanced product offering and improved go-to-market execution, group revenues grew by 9% to $5m in 2Q FY25 vs 2Q FY24. Subscription revenues increased by 8% vs 2Q FY24, promoter revenues increased by 11% over the same period. Organic growth in revenues was 5% 2Q FY25 vs 2Q FY24. The Company also achieved notable improvements in operational efficiency this quarter. Operating cash flow recorded a gain of $252k, marking the first positive cash flow quarter since RMA's ASX listing in July 2018. This milestone also signifies the third consecutive quarter of cash flow improvement. Over the calendar year, the Company reported an operating cash gain of $120k (excluding one off restructuring costs), a stark contrast to the $3,000k cash burn in the same period last year. This progress underscores management's dedication to optimising operations and driving profitable growth.
The Company's strategic, phased implementation process is driving consistent growth and CY25 is forecast to be a further step up in revenues across all geographies on the back of additional enterprise agreements and the integration of the Curated Social product with the RMY products.
The acquisition of Curated Social will form a major part of the company's strategy in the US. The integration of RMA and Curated Social services will enhance the value proposition for brokerages and agents alike, and is expected to attract new paying agents, convert non-paying users of RMA, and improve retention among existing paying agents.