RESAAS Services Inc. (TSX-V:RSS.V) (OCT:RSASF) is yet to turn in a profit even on reporting a 50% increase in revenue in FY2017. The blockchain backed technology platform for the real estate industry has seen its overall net loss widen to -CA$9.09, in recent years, further raising concerns as to when it will become profitable.
Over the past five years, RESAAS Services Inc. top line has been growing by 68.03% on average underlining a solid growth trajectory. However, the company has also continued to rack up expenses at an alarming rate something that has led to annual losses.
RESAAS Services Inc. is not the only company that has seen its earnings come under pressure as the broader Canadian internet industry has faced a string of challenges depicted a by a -22.71% average earnings drop.
Despite the underperformance on the earnings front, RESAAS Services Inc. Is looking good on the business execution front, given the double-digit revenue growth. The company achieved revenue of approximately, $500,000 for fiscal 2017, representing a 50% increase. Most of the increase came in the fourth quarter with the chief executive officer remaining confident of the trend continuing in 2018.
Another significant milestone that has affirmed the company’s long-term prospects has to do with the rate at which it is reducing cash burn rate month over month.
Fiscal 2018 Outlook
For the current year, RESAAS Services Inch is looking at increasing sales particularly to mid-size real estate brokerages where it hopes to drive further revenue growth. The company is also looking at adding at the five agreements already in place that allow realtors in major cities to share local real estate market data using the RESAAS platform. The eventual goal is expanding operations into 12 of the most populous cities in the U.S.
Following the acquisition of Real Block Inc., early in the year, the company has announced plans to integrate its Ethereum-based blockchain into current workflows in a bid to boost agent referral applications.
RESAAS Services Inc. Expects Real Blockchain’s application to help enhance its referral feature by offering blockchain-enabled Smart Contract functionality. Agents will soon be able to transfer referral fees automatically thereby solving a significant problem in the industry.
“This is an exciting and strategic acquisition for RESAAS,” said Tom Resister, CEO of RESAAS. “Real Estate is considered to be a natural fit for the adoption of blockchain technology. With over 400,000 real estate agents on our platform, we expect to expand the use of real blocks blockchain technology in other applications over time.”
The integration of blockchain technology into day to day operations should go a long way in enhancing RESAAS Services Inc. operations. That said, the company revenue should continue growing which should help offset overall expenditure as the company continues to trim its cash burn rate. That said, it might be a matter of time before RESAAS Services bounces back from the negative earnings territory.
RESAAS Signs Joint Venture With San Francisco Title Technology Company to Tokenize every Property in the United States, backed by Investment Bank US Capital Global to Raise Up To $7 million USD
BREAKING NEWS UPDATE: July 31, 2018 – RESAAS Services Inc. (TSX.V: RSS, OTCQX: RSASF) RESAAS Signs Joint Venture With San Francisco Title...