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Immobiliare.it - NOAH14 London
Immobiliare.it has established itself as the leading online real estate platform in Italy since its founding in 2005, demonstrating significant growth in user engagement and advertising revenue. Despite initial revenue trends resembling competitors until 2012, their marketing, technology, and human resources investments have been managed effectively to support long-term performance. The document outlines the company's strategic focus on cost-effective investments and internal developments to maintain competitive advantage.
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- 1. Make Your MoneyCount 13-14 November 2014 Silvio Pagliani – Immobiliare.it
- 3. Immobiliare.it is anOnline Real Estate Classified Player Supply DemandTransactions (leads) # Listings # Advertisers Revenues EBITDA Site & Mobile Usage Online Classified Marketplaces
- 4. Immobiliare.it is TheLeading Online Real Estate Player in Italy Supply DemandTransactions / Leads # Listings¹ EBITDA Site Usage # Advertisers¹ Revenues² Mobile Apps +34% +50% +56% €5Mio vs €0 Notes: (1) (2) (3) Sources: REA Group investor presentations for Casa.it, internal data for Immobiliare.it, # Advertisers is intended as paying agencies advertising on the site (4) Source: SimilarWeb Pro, Site Usage is intended as total time spent on site in a specific month for Immobiliare.it and Casa.it desktop sites. Monthly total time spent on site is calculated multiplying average monthly visit duration and monthly visits. (5) Sources: AppBrain, AppAnnie, Apple Store, Google Play, internal elaborations, Mobile Apps is intended as number of total app downloads at the end of a defined period. +115% +460% (1) Jun 2014 (2) Jun 2014 (3) H1 2014 (4) Oct 2014 (5) Jun 2014 3 4 5
- 5. Our Journey fromBeing a Startup to Being The Leader 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 Time advantage 9.5 years Growth 2 years Leader 2 years Co-leader 3.5 years founded Oct 05 Nov 07 eureKasa Re-branding May 96 Nov 06 acquires Casa.itfounded ASX:REA – As of today €4.2B Market Cap Start up 1 year
- 6. Revenue Trend SeemsSimilar to Competition Until 2012… Source: REA Group Investor Presentations for Casa.it, internal data for Immobiliare.it – H1 is intended as Jan-Jun, H2 as Jul-Dec - Revenues per Semester 2007 2008 2009 2010 2011 2012 2013 2014 € (,000) 12,000 10,000 8,000 6,000 4,000 2,000 14,000 16,000 18,000
- 7. …But Investments TrendsShow a Different Story… Source: REA Group Investor Presentations for Casa.it, internal data for Immobiliare.it – H1 is intended as Jan-Jun, H2 as Jul-Dec Investments = € 30 Mio - Investments (Costs) per Semester 2007 2008 2009 2010 2011 2012 2013 2014 € (,000) 12,000 10,000 8,000 6,000 4,000 2,000
- 8. …With Our CompetitorInvesting Much More Than Us Source: REA Group Investor Presentations for Casa.it, internal data for Immobiliare.it – H1 is intended as Jan-Jun, H2 as Jul-Dec Casa.it investments Immobiliare.it investments investments ratio = equal Above 3x Between 2x and 3x Between 1.5x and 2x Between 1x and 1.5x 2007 2008 2009 2010 2011 2012 2013 2014 x x x x
- 9. Main Cost DriversFor Real Estate Online Classified Players Marketing 50% Product & Technology 10% People 35%
- 10. Cost-Effective Marketing Investments Cost-EffectiveNot Cost-Effective • Budget managed by internal department • Investments linked to ROI and well defined KPIs • Balance performance deals and brand deals • Budget managed by external agency • No focus on ROI and KPI (or wrong KPIs) • Overspending in performance or brand deals Marketing
- 11. Example: TV Advertising StartedTV advertising when it was no longer effective to increase the online budget
- 12. Cost-Effective Not Cost-Effective •Grant stock options (to key people only) • Build quality work environment (people are motivated for more than financial reasons) • Reward people on short- term and long-term vision People • Grant high salaries & benefits not linked to performances • Bonus based on wrong defined KPIs • «Buy» people, accepting mainly for financial reasons Cost-Effective People Investments
- 13. Cost-Effective Technology Investments Cost-EffectiveNot Cost-Effective • Make / Insource -> develop know-how • Open source / Free Software approach • Continuous optimization Technology / Product • Buy / Outsource -> limited know-how • Closed source / Proprietary software (licences) approach • Add more hardware
- 14. Example: Mobile Apps FirstiOS app, developed internally, launched in November 2009. Built dedicated internal team for iOS and Android
- 15. Example: System Integration Internallydeveloped server and storage clusters, allowing us to scale up from few to 150+ servers infrastructure with virtually no changes since 2007
- 16. Make Your MoneyCount Good Use • Outbid competitors • Poor after-investment evaluation • «Buy» people • Buy technology solutions without fine tuning Bad Use • Invest & evaluate • Adapt to internet evolution • Hire and grow talents • Develop cutting edge features • Invest for the future Marketing People Technology
- 17.