Relocation service Updater pilots new programs, hits $285 million
Moving house is more stressful than divorce, some surveys have shown.
It takes time and effort, costs a whack and strains relationships.
What if there was a way the whole process could be made easier? A US-focused, ASX-listed home relocation platform thinks it has the answer.
New York-headquartered Updater Ltd (ASX: UPD), which listed on the Australian bourse in December 2015 after raising $22 million, has developed an online platform that takes the stress out of moving.
The company is now worth $285 million (at Aug 4).
Updater provides a one-stop shop for customers to organise and complete moving-related tasks efficiently including forwarding mail, updating accounts and records and transferring utilities.
The company is also running pilot programs to match consumers with insurance brokers, telcos and removalist services.
“Our story is pretty simple,” Updater CEO David Greenberg said after founding the company in 2010.
“After my last move, I knew there had to be a better way to manage the process. It was insane – the amount of time I spent contacting the utility companies, updating my contracts and so on.
“I looked for a solution online and when I saw that none existed, I knew there was a huge opportunity to build it from the ground up.”
At this stage, the company is solely focused on United States where it has helped 17 million US households move each year with hundreds of US real estate companies employing its products.
Recently the company reported estimated market penetration in the second quarter 2017 of 535,782 moves processed or over 11 per cent of all household moves in the US. This represented 29 per cent increase over first quarter 2017’s 345,899 moves processed.
Revenue at this stage is modest. Updater reported cash receipts of $259,024 for the quarter ending June 30.
However market penetration, not revenue, is the current focus according to the company’s most recent quarterly report.
Updater’s goal is to achieve 15 per cent market share by the end of this year.
The company held $US28.2 million in cash and equivalents ($35.3 million) at the end of June.
The company’s share register includes former chief executive of property website domain.com.au Antony Catalano, who is also a non-executive director, and billionaire Melbourne investor Alex Waislitz.
Since refocusing on B2B services the company’s share price has been on an upwards trajectory.
After dropping to 57c in May, shares hit an all-time high of $1.10 in early July. Shares closed at $1 on August 4.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.