RMA Global (ASX: RMY) turned cashflow positive in June 2022

Nick Sundich Nick Sundich, July 21, 2022

The trend of tech companies promoting cash flow positivity has continued this morning with RMA Global (ASX: RMY). The company released its quarterly results this morning in which it revealed its first cashflow positive month along with solid growth in the USA.  

 

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RMA Global is in the black! 

RMA Global owns the ‘Rate My Agent’ platform, which provides sale results data and performance reviews of real estate agents – hence its name. 

RMA Global has had success in Australia and has rapidly been increasing its presence in the US. Its share price has suffered through the share and property market downturns. But this morning, the company announced that June 2022 was the first month of positive operating cash flows. 

 

Australia is a blueprint for the US market

It also announced significant growth in the US with Annual Recurring Revenue (ARR) and reviews both growing more than 200% year-on-year. It also reported more than 70% growth in agents on the platform in the US! 

Australia showed solid results too, but this is a more mature market and a blue print for RMY’s US expansion. Although its quarterly net operating cash flows were still negative, it improved 76% compared to the prior corresponding period. And RMY achieved its first ever positive net operating cash flow in the month of June! 

 

RMA Global (ASX:RMY) (Graph: TradingView)

 
Is this the start of a bull run for RMA Global? 

This morning’s announcement is undoubtedly good news for RMA Global. But unlike Megaport, RMA Global has only been cash flow positive for one month as opposed to being EBITDA positive for the entire quarter. Nevertheless, investors should be optimistic about the company’s prospects. 

Furthermore, investors should be wary that it only has $5.8m in cash on hand and could require a capital raising at some point. At current burn rates this cash position is enough for 3 years, but investors shouldn’t discount the possibility of requiring increased capital investment to grow its market presence. On the other hand, if RMY remains operating cash positive going forward, it may not need to raise capital at all anymore. 

 

Disclosure: At Stocks Down Under we like RMY so much, we own shares in this stock. 

 

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