AssetOwl reports steady financial year performance in residential real estate market
Written by ABC Audio ALL RIGHTS RESERVED on October 2, 2022
Property management-focused technology company AssetOwl (ASX: AO1) has reported a 2022 financial year dominated by product developments and steady growth in an industry still reeling from the impacts of COVID-19.
During the period, the company spent time and money on developing its flagship Pirsee inspection management platform as it transitioned from a ‘start-up’ business to early scaling mode.
Over the first half of the year, AssetOwl actively sought and onboarded new real estate agents in its home market of Western Australia, with numbers increasing from 10 customers (trial plus paying) in July 2021 to 40 by end June 2022 and an estimated 18,600 properties under management.
AssetOwl achieved a Pirsee trial success rate of approximately 55% for the 2022 financial year, and is targeting 75% over the next corresponding period as it continues to add new product features and incorporate customer feedback.
Product development
During the period, the pace of development for the Pirsee platform accelerated, with a number of new features released in response to customer feedback along with new market offerings.
The company introduced new routine inspection functionality (giving property managers with the flexibility to streamline their inspection reports) as well as improved integration with industry standard tools PropertyMe and Property Tree.
Release of a mobile synchronisation protocol in May was designed to allow property managers to amend (synchronise) changes to data records in real time and allow multiple users to work on inspections at the same time.
According to AssetOwl, the new protocol represents an “enormously significant platform upgrade” which has materially improved user experience and the speed of the app in the field.
Other major product upgrades which delivered a step-change in Pirsee’s offering during the year where a new workflow for final bond (or exit) inspections; the launch of data migration capability to support entry inspection documents; and the release of a Victorian-compliant version of the platform to support AssetOwl’s entry into that state’s residential market.
Financial performance
During the year, AssetOwl achieved $81,000 in revenue generated from Pirsee, representing an increase of 26% on the previous corresponding period.
The company’s net loss after tax increased by 45.26% to $2.28 million which was partly attributed to a year-on-year increase in staff costs, as well as costs incurred through the appointment of a chief executive officer and customer success manager.
In April, AssetOwl completed a $2.26 million capital raising comprising a $325,231 share placement and $1.94 million rights issue.
Proceeds will be used to scale the business, fund marketing campaigns and provide working capital as AssetOwl prepares to enter remaining markets along Australia’s east coast.
