Rightmove (RMV) H2 2024 earnings summary

Executive summary

• Platform and network effects remain robust, supporting strategic, operational, and financial delivery, with strong data leadership and accelerated innovation, including AI-enabled product teams and UK-focused launches.

• The business operates a capital-light, high-return, subscription-based B2B model, resilient across market cycles.

• Brand saliency is high, with over 80% share of consumer time spent on property portals and >90% brand awareness among UK public and homemovers.

• 2024 saw 7% revenue growth, 70% underlying operating margin, 4% underlying EPS growth, and 5% DPS growth, with all surplus cash returned to shareholders.

• Agency retention reached 90%, the second highest in a decade, with membership stable at 19,047 (+1%).

Financial highlights

• Revenue rose 7% year-over-year to £389.9m, with agency revenue at £280m and new homes at £69.2m.

• Strategic growth areas (SGAs) revenue up 27% to £23.4m; commercial up 11%, mortgage revenue up over 100%, and rental services up 31%.

• ARPA increased 6% overall to £1,524; agency ARPA up 6% to £1,440, new homes ARPA up 9% to £1,987.

• Underlying operating profit increased 4% to £273.9m, with a 70% margin; cash conversion ratio was 108% of operating profit.

• £182m returned to shareholders via £107m buybacks and £74m dividends.

Outlook and guidance

• Revenue growth guidance for 2025 increased to 8–10%, with customer numbers expected to grow around 1%.

• ARPA growth expected at £95–£105, with similar dilution from lower ARPA joiners as in 2024.

• SGA absolute growth targeted slightly above £5.1m, with a continued 70% underlying margin.

• Continued investment in technology and marketing, with headcount growth focused on tech roles.

• Board expresses confidence in continued performance and profit growth into 2025 and beyond.