Domain has reported a “strong” set of financial results for the 2024 financial year, with revenue increasing 13.1 per cent to $391.1 million, while net profit increased 27.9 per cent to $49.4 million.
Domain Chief Executive Officer and Managing Director, Jason Pellegrino, said there were a series of things behind the solid figures, with 18 per cent higher average revenue per listing and 10 per cent growth in Domains residential unique audience between the final quarter of the 2023 financial year and the 2024 financial year.
“Most pleasingly, what’s driving these revenue results is we’re launching, and our customers, agents and vendors are taking up new products at record rates,” he said.
“So we are building products that work.
“That’s setting us up really well for the next financial year and it’s underpinned that 18 per cent growth in average revenue per listing.
“That wouldn’t happen if we didn’t have record numbers of agents buying into, and taking on, our most premium products like Platinum Edge.”
Domain’s report to shareholders on the ASX also revealed expenses were up 7 per cent to $254.1 million and EBITDA (earnings before interest, taxes, depreciation, and amortisation) of $137.1 million, which was an increase of 26.2 per cent.
“During FY24 we created a number of differentiated user experiences that will support Core Listings and speed up marketplace growth,” Mr Pellegrino said.
“As part of our FY25 price change, we launched Audience Boost, a social media amplification product that automatically and efficiently extends all depth sale listings across a variety of digital channels.”
Mr Pellegrino said he was excited by the early results from Audience Boost, with results consistent with the tests carried out in FY24.
“We are delivering an average uplift of around 30 per cent in views per listing across all depth products in July,” he said.
“Even more pleasing is the particular success we’re seeing in our less mature, expanding and emerging markets, where the uplift is even greater.”
Mr Pellegrino said residential revenue increased 19 per cent, underpinned by strong growth in depth revenue, and national ‘for sale’ listings increased 3 per cent for the year, with a “significant improvement over the four quarters.
“Sydney and Melbourne led the market, as is typically the case,” he said.
“Other markets remained challenged from a volume perspective, although revenue per listing saw strong outperformance due to higher price increases.”
Mr Pellegrino said commercial real estate delivered solid revenue growth of 18 per cent year-on-year, benefiting from listings growth across sale and lease, and new depth contract adoption.
Median revenue also increased 52 per cent year-on-year, while in agent solutions, revenue fell 6 per cent year on year.
Mr Pellegrion said solid subscriptions were offset by lower revenue from Realbase’s AIM product.
He said new ‘for sale’ listings were up 4 per cent year-on-year in July, but overall the property market was more even than in recent years.
“In terms of listings volumes, I think what we’re seeing, quite pleasingly, is a return to much less volatile and much more typical seasonal patterns and market cycles,” Mr Pellegrino said.
“Sydney and Melbourne have led the market nationally, which they always do, but we’re starting to see Sydney and Melbourne pricing hit a peak in terms of growth.
“But we’re now starting to see Queensland accelerate really quite quickly, both in terms of listing volumes and pricing, from very low and poor levels in the prior year.”
Mr Pellegrino said a single digit increase in total listing volumes were expected over the next 12 months.
Over the next 12 months, Mr Pellegrino said Domain would focus on delivering an increased rate of product innovation.
“We’ll continue to drive innovation into the consumer experience, whether it’s through transparent valuations, suburb profiles, content, but the biggest thing we’ll do in the next year is actually bring all of that to the right customer at the right time, through high levels of personalisation and supported by technology investments that allow us to do that efficiently at scale,” he said.
