Latest / What the Flux / Realestate.com.au's rental revenue | Baby Bunting big blues | Airbnb's returning to its roots

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Realestate.com.au's rental revenue | Baby Bunting big blues | Airbnb's returning to its roots · What the Flux

• 0:05
  Speaker 1: This is what the Flux.
• 0:06
  Speaker 2: I'm Brad, I'm justin and it's Monday, the fourteenth of May.
• 0:10
  Speaker 1: Wait, we know that big tech companies like Meta, Amazon,
• 0:13
  Speaker 1: Alphabet have been on a big rally recently. But now
• 0:16
  Speaker 1: we seek some of the founders and company presidents of
• 0:19
  Speaker 1: these companies selling big chunks of their shares. Jeff Bezos
• 0:23
  Speaker 1: recently sold eight point five billion dollars worth of Amazon stock.
• 0:27
  Speaker 1: The Zak sold one billion dollars worth of Meta stock.
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  Speaker 1: Is this a sign that we've officially hit the top
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  Speaker 1: of the tech market?
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  Speaker 2: Good question, but you've got a follow the leads of
• 0:35
  Speaker 2: the leaders. Man, are you familiar with the difference between
• 0:38
  Speaker 2: good debts and bad debts?
• 0:39
  Speaker 1: I am Good debts help you grow your wealth.
• 0:41
  Speaker 2: Bad debts bring you down, and we cover it all
• 0:44
  Speaker 2: in the Flux Academy this month. It is a corker
• 0:46
  Speaker 2: of a course and there are prizes for the winners
• 0:49
  Speaker 2: of this month, So make sure to download the Flux
• 0:51
  Speaker 2: app and check out the Academy.
• 0:52
  Speaker 1: Three corkworthy stories today, Justinroy, let's do it for our first.
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  Speaker 1: Aria Group, the owner of real estate dot com dot au,
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  Speaker 1: has seen a twenty four percent jump in revenue for
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  Speaker 1: the first quarter after a large rise in residential listings
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  Speaker 1: in Sydney and in Melbourne.
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  Speaker 2: Sydney in Melbourne carrying the rest of Australia once again,
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  Speaker 2: tell me more well.
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  Speaker 1: Jazzyboy Aria Group is the Australian property listings company and
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  Speaker 1: website behind real estate dot com dot Au.
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  Speaker 2: You know, the website you used to find houses that
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  Speaker 2: are both in your price range and well well well
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  Speaker 2: beyond it too.
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  Speaker 1: Uh huh. But Jazzyboy Aria Group also owns a whole
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  Speaker 1: lot of other brands like Flatmates, dot com dot Au,
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  Speaker 1: mortgage Broker, Mortgage Choice and also real Commercial.
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  Speaker 2: And now be Man. Aria Group has reported a twenty
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  Speaker 2: four percent jump in its revenue for the March quarter
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  Speaker 2: tour whopping three hundred and thirty four million bakaronis.
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  Speaker 1: That's because there was a big jump in residential listings
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  Speaker 1: on its platform, particularly in Sydney and in Melbourne. Even
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  Speaker 1: though they saw a decline in rental listings, they still
• 1:50
  Speaker 1: saw rent revenue jump.
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  Speaker 2: That's because they implemented a pretty hefty price rise which
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  Speaker 2: didn't really impact their demand.
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  Speaker 1: Interesting, juzzy boy, So what is the key learning here?
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  Speaker 2: Rice Elasticity of demand measures how the demand for a
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  Speaker 2: goods or a service changes as its price changes.
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  Speaker 1: For example, if the price of your favorite allusion free
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  Speaker 1: cereal goes up by ten percent, you and all the
• 2:11
  Speaker 1: other gluten free fiends Judy Boy may look for another
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  Speaker 1: brand instead.
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  Speaker 2: And that would mean the price is quite elastic.
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  Speaker 1: But in the context of Aria Group, it seems like
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  Speaker 1: their pricing is quite inelastic.
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  Speaker 2: That means that users are willing to pay higher prices
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  Speaker 2: for listings, probably because there aren't many good alternatives yep.
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  Speaker 1: Aria Group gets an average of twelve million visitors each
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  Speaker 1: month across web and mobile, and.
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  Speaker 2: That's seventy eight percent more monthly visitors than their nearest
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  Speaker 2: competitor domain and this allows Aria to increase their prices
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  Speaker 2: without significantly losing demand or volume.
• 2:43
  Speaker 1: For our second story, baby Bunting, Australia's largest baby retail chain,
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  Speaker 1: Passena chares drop more than twenty two percent after a
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  Speaker 1: few concerns around cost of living pressures for their valuable customers.
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  Speaker 2: You mean new parents are holding off on buying their
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  Speaker 2: two thousand dollars prams b Man all right.
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  Speaker 1: Baby Bunting started way back nineteen seventy nine and it
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  Speaker 1: listed on the ASX in twenty fifteen.
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  Speaker 2: It's pretty much the playground for all soon to be
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  Speaker 2: anxious parents and new anxious parents as well, or as.
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  Speaker 1: Some call it, the Disney world for baby products from
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  Speaker 1: prams to cots, to car seats, nurseries.
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  Speaker 2: And let me tell you, be man, these little colorful
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  Speaker 2: products and nifty devices. They cost a pretty penny, but
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  Speaker 2: do wait.
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  Speaker 1: Late last week, Baby Bunting released a pretty concerning trading
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  Speaker 1: update yep.
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  Speaker 2: They warned that their net profit is expected to be
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  Speaker 2: between two and four million dollars for this financial year, which.
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  Speaker 1: Is about sixty nine percent less than last financial year.
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  Speaker 2: And last financial year was already a fifty one percent
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  Speaker 2: drop on FI twenty twenty two's net profit.
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  Speaker 1: As a result, its share price dropped more than twenty
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  Speaker 1: two percent.
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  Speaker 2: And the reason you ask, well, Baby Bunting reckon that
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  Speaker 2: the cost of living crisis has been weighing down its performance.
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  Speaker 1: And they reckon their customers. Generally, young parents are more
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  Speaker 1: sensitive to cost of living pressures than other demographics.
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  Speaker 2: So what is the key learning here?
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  Speaker 1: Not all economic downturns affect all people the same war.
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  Speaker 2: While a slower economy and increasing interest rates has an
• 4:03
  Speaker 2: impact on everyone, it hurts certain demographics more than others.
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  Speaker 1: Yet this little stat Juzzy Boy, Australians age in their
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  Speaker 1: thirties and forties are the most indebted borrowers in the nation.
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  Speaker 2: Which means that when the RBA pulls out a cash
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  Speaker 2: rate rise, they are the generation that are hurting the most.
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  Speaker 1: In fact, Australians in their thirties and early forties were
• 4:21
  Speaker 1: over leveraged, with debt levels up to triple the size
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  Speaker 1: of their incomes.
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  Speaker 2: That's about six times as large as people aged over
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  Speaker 2: sixty five.
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  Speaker 1: And might I remind you that this over leveraged demographic
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  Speaker 1: is a baby Bunting's core customer.
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  Speaker 2: So with increased cost of living and increased mortgage or payments,
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  Speaker 2: it's no surprise the baby bunting is feeling the pain.
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  Speaker 1: For our third and final story, Airbnb shares dropped eight
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  Speaker 1: percent last week after it warned investors about its second
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  Speaker 1: quarter performance and its new focus on experiences.
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  Speaker 2: This one may have been disappointing for investors, but can't
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  Speaker 2: be as disappointing as finding out your Airbnb host cut
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  Speaker 2: fished you into the property.
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  Speaker 1: So what is the story here, Well, Juzzyboy, Airbnb started
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  Speaker 1: in two thousand and seven with an air mattress in
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  Speaker 1: a living room to create a bed and a breakfast, and.
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  Speaker 2: It's since grown with over five million hosts and over
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  Speaker 2: one and a half billion guests around the world.
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  Speaker 1: Now, Airbnb has just announced its first quarter revenue, which
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  Speaker 1: increased eighteen percent to hello two point one four billion
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  Speaker 1: US dollars.
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  Speaker 2: That's good, but at the same time, it's forecasted revenue
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  Speaker 2: for the second quarter is expected to go well below
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  Speaker 2: investor expectations.
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  Speaker 1: Now that's partly because of currency exchange rates and partly
• 5:28
  Speaker 1: because of the timing of Easter holidays, which fell into
• 5:31
  Speaker 1: quarter one.
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  Speaker 2: This year, and this news set Airbnb share price tumbling
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  Speaker 2: eight percent.
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  Speaker 1: But this news hasn't got Airbnb two phase because because
• 5:38
  Speaker 1: Airbnb is focusing on getting customers hyped up about experiential stays.
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  Speaker 2: So what is the key learning here?
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  Speaker 1: Sometimes as companies grow and evolve and try new revenue streams,
• 5:49
  Speaker 1: they eventually come back full circle to their initial offering.
• 5:52
  Speaker 2: You seeb Man, airbb started off as an accommodation business
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  Speaker 2: that offered a unique local experience.
• 5:57
  Speaker 1: Doesn't get more unique than CouchSurfing at a's place with
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  Speaker 1: their colorful bed sheets and unfamiliar cooking smells.
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  Speaker 2: But over time, as Airbnb's become a go to for
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  Speaker 2: finding a place to stay, it's also become more of
• 6:09
  Speaker 2: a utility like a hotel replacement.
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  Speaker 1: Huh. And now it seems like Airbnb is going back
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  Speaker 1: to its roots in order to stand out by going
• 6:16
  Speaker 1: hard on unique experiences.
• 6:18
  Speaker 2: Again, that's because that's what their customers want when they're traveling.
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  Speaker 1: So time will tell whether leaning back into their core
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  Speaker 1: will also drive an increase in revenue and in profits
• 6:26
  Speaker 1: for Airbnb.
• 6:27
  Speaker 2: Fox Fam, We're very sad to see break over the
• 6:29
  Speaker 2: next four weeks, but very excited to bring Hush Deep
• 6:31
  Speaker 2: into the podcast once again.
• 6:33
  Speaker 1: That's right, Flux Fam. I'll be on a little break
• 6:35
  Speaker 1: for the next few weeks or so, but you'll be
• 6:36
  Speaker 1: in very capable hands with.
• 6:38
  Speaker 2: HD to have a great break, rest up, and come
• 6:41
  Speaker 2: back fit and firing. What the Flux in due. Thanks
• 6:44
  Speaker 2: Jessie Boyd, thanks for listening, and HG and I will
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  Speaker 2: see you on Wednesday.