RESAAS Services Inc.
Chairman and CEO: Cory Brandolini
President: Thomas Rossiter
WSA: Good day from Wall Street. This is Juan Costello, Senior Analyst with the Wall Street Analyzer. Joining us today are Cory Brandolini the CEO of RESAAS Services Incorporated along with the company’s President Tom Rossiter. The company trades on the Canadian Stock Exchange, and their ticker symbol is RSS. Thanks for joining us today gentlemen.
Cory Brandolini: You’re welcome.
Tom Rossiter: Our pleasure.
WSA: Great now. Starting off for some of our listeners that are new to your story from our interview that we did from last year. Can you give us the history and overview of the company?
Cory Brandolini: Certainly, Juan. Very quickly, RESAAS is a Social and Global Referral Network built entirely for the licensed real estate professional. Our goal and our vision in a direct what we’re doing is to take what real estate agents do physically and bring it to the digital domain in a complimentary manner, vis-a-vis networking referrals, information sharing, knowledge sharing, listing sharing, and whatnot. So, a global marketplace for real estate professionals and brokers and owners to share data, market data and network with one another. And as we’re seeing now a very vibrant growing referral network as well on the platform.
WSA: Certainly. So yeah in terms of some of your recent deals there, can you bring us up the speed, you had a platform that you’re doing with Coldwell Banker, as well as, HomeLife Capital Realty?
Tom Rossiter: Yeah I can answer that one. And it’s really, what we’ve done is create place for real estate professionals and their brand to come and connect. And really engage online in the same way that they do in the real world. But, obviously, with something being online you have a much greater reach. So in terms of how we structure the outreach of RESAAS, you reach out the agents one-by-one because each one of them is looking to become a better agent to do more business and that’s a fantastic way for us to grow and have more agents in the system which increases the value proposition of that networking effect.
There is another channel we have which is the broker channel, where RESAAS we reach out to different brokerages across Canada, the U.S, and increasingly now overseas and speak to management brokers and say look, “Agents are using RESAAS and benefitting in need ways here is what they’re saying, here is the adoption and on top of that as a broker owner here are some benefits you can realize as well.” And that’s been received extremely well. A lot of press releases that you’ll see that we put out are to do with more of the corporate partnership we enter with brokerages ranging from small boutiques of 2000 agents, through to hundreds and up to the thousand.
And then, again, going in up in that kind of Russian Dollar effect, one a few brokerages start to adopt it and give a thumps up. Then their corporate officers or the franchising owners look at it and say, wow, there is a pattern here, what can we do on a larger scale and again we’ve got a network, network prosper the larger they are and when big brand, big franchise is going to say, “Hey, we got a massive body physically, let’s give them a digital system and a digital tool to bring them together to enhance how they work, to give them that reach, the benefits are tremendous. One example of that is, a press release you put out earlier in year, announcing a deal we have with RE/MAX worldwide. Now as you may know RE/MAX is – they went public earlier this year. They have largest real estate franchise globally. They have 95,000 agents in over 100 countries worldwide. That was fantastic physical footprint, but they had no digital systems that was intrusive that was easy to understand with self-serve to let an agent in that network benefit from being part of this huge company.
Now go on top of RESAAS, which again is a network, it allows any agents in the RE/MAX family to discover other agents, anywhere in the world to connect, to send and receive referrals for the purpose of doing business.
WSA: Well, that’s great and yeah so you certainly have a lot of recent deals in place. So instead of going through each and every one of them, which you guys have been pretty active over the last year, perhaps it’s a good time to talk about some of the other trends that you’ve been seeing in the sector and how the company is positioned to capitalize on them?
Cory Brandolini: Well, I mean, one of the things that you know we’ve been very adamant about from the very birth and the beginning of RESAAS was the concept that the real estate sector has been really a slow mover from the perspective of adopting technologies to invest in our business. And we took the approach that if we could win the hearts and minds of all the brokerages and franchise that Tom was saying that we can put them all in one platform, keep brands forward, but they can interact with one another like they’ve done before from a digital standpoint.
So we know very clearly that they work together broker-to-broker, franchise-to-franchise, agent-to-agent with different firms physically and we thought that this would be really an interesting opportunity to put that together in the digital world. So they can still maintain their brand whether it’s RE/MAX or Coldwell Banker, but before it was on the platform all together. And this was really unique from the very onset when we — as we went into develop this company and build it from scratch up.
So the trends as you probably see and everybody — your readers are probably thinking up on is, what’s going on with Zillow and Trulia which are very – you know obviously very large companies, but they’re really in a business of a catalogue business showing listings that are ad supported and are key to catalogue, if you will, where you can go in and look at you know properties that are popping up here and there, but at the end of the day they’re not really in the business of real estate. And the business of real estate is transactions that go on between the agents and between the brokers.
So RESAAS, from the position of the trends, we really start our own trend in that we — the platform was really about the business of real estate as what agents do on a day-to-day basis. So well we’re great – it’s great that you know Zillow and Trulia get a lot of publicity, which is great for driving interest to the real estate sector from an investment standpoint. They’re really two different trends and they’re really you know doing a great job at building up these large, large real estate catalogues for consumers to look at where RESAAS is building up a platform for the business itself where agents can network, refer one another, what’s going to lead and really do it all on a singulars best part.
WSA: Great, great. And so what would you say are some other factors that makes RESAAS unique from some of the other players in the sector?
Tom Rossiter: Well, I think one of the key reasons that we hear from the agents themselves is that – I mean we’ve spend a lot of time on the road attending different trade shows and events telling people about what we’re doing, and the response has been overwhelming. If you analyze why agents and brokers and people in the industry go to these events, it’s really for two things, that it’s called, one is, they want to learn and be educated and become a better agent or a better broker. And that’s why they attend these sessions, pay these fees, listen to coaches and attend these keynotes on the learning side of the industry.
The other side is networking. They go to these events to connect with other people. Yeah they may see some friends from past events, but really they’re connecting, they’re networking with a view to doing business of the backside of that. What RESAAS offers is exactly that experience, those benefits, the learning piece and the networking and business generation, but again online. And when, we explain like that and when we hear from the agents like that as well, the value proposition is fairly clear, because it’s in their DNA. They’re a naturally social group of professionals. And now they have a place that’s online, it’s voidable as they are chattered from consumers, with professional grade only. Only agents, only real estate, only people that work under the umbrella of a franchise or an association and come into RESAAS.
So it means that the quality of content, the conversation, the networking the business has generated is all professional grade and I think that’s why we see such tremendous results and that’s how we get such fabulous feedback from the users that are in RESAAS.
WSA: Certainly. And perhaps you guys can talk a little bit about your background and experience and talk about the management team there behind the scenes?
Cory Brandolini: Yes, absolutely, Juan. My background even though it’s a technology background, we spent 25 years in generating and living through commission. So I’m one who can say who raised children and put a roof over their heads on a commission-based business. So from the standpoint of developing RESAAS, it comes from that DNA that we understood clearly what our customer was looking for from a service. And it was inherit to me and how I generated my living for my entire life. So that along with my partner here Tom who is got a digital background in digital agencies between the two of us we felt we could attack this market very clearly.
WSA: Good. And so, in terms of the upcoming 6 or 12 months perhaps you could talk about some of the things that the company is hoping to accomplish or you know will we look at some more sort of deals that you have had in place this year?
Cory Brandolini: Well, one of things, well — I think that your listeners might be interested to know what it is when it comes to you know looking at the value proposition of the company is you know we’re at inflexion point right now from the growth standpoint. So one of the things that we did is we invested heavily into the platform in the early days, when we launched some data, where the majority of our investment was all into the platform and then from that point Tom and myself got on the road with our sales team and started doing one-on-ones with the brokerage firms and all the agents.
So from the growth standpoint, we moved in a very quiet self-like manner in the very, very beginning and over the past 12 months since we spoke with you, we’ve now reached a significant inflexion point of growth and we’re happy to say we’re approaching 300,000 professionals that have signed up on the platform and with that significant growth, we’ve started to open up our revenue channels.
And so, over the next few quarters, starting with the launch of our own ad engine called AdSAAS, which was our first revenue stream that we opened up at the end of Q2, we’ll be rolling out our other revenue avenues on to the platform quarter-to-quarter to the next two quarters now. So and then we’ll be rolling out premium and then from that point we start some businesses in Q4. So from an investment standpoint, these exciting times now that we really started to maximize our growth and adding our revenue streams into it.
And also, you probably noticed, we closed another round just last month and that’s going to go towards our expansion into Europe which we’re going to get a lot of demand, not just Europe as well as South America as well. So from, you know, from an investment standpoint, we’re at that really that great inflexion point of growth and revenue matching each other at the same time. So we’re really excited about that. Also we’re also — we just completed the filing process intro list on the OTCQX as well. So it will be inter listed both in Canada and the United States.
WSA: All right. Great.
Cory Brandolini: Yeah. And we’ll probably maintain that for the next 12 months as we start to march towards our goal to move up to NASDAQ through 2015. So you know some really exciting things there and obviously Tom has got big funnel of business development that he’s got targeted in a Q to role out over the next 12 months as well.
WSA: Excellent! And so, when it comes to investors and the financial communities, you mentioned you know looking at up list and dual list, do you believe that the company is storing your message an outsider completely understood and appreciated by them. And if not would you wish investors better understood about the company?
Cory Brandolini: Well, yeah, that’s a really good question Juan. And I think that you know we get bundled into the Zillow story, because it’s such a big, you know, it’s captured a lot of news and it’s, you know, it’s been very present as far as you know the tech riders and the financial analysts looking at the growth of that company and it has been significant growth. But, if you were to look at a comparative between the two, you know, Zillow, and this is their own words not mine, they’re very clearly on their way to becoming the largest real estate media company, the Yahoo! of media, if you will. And which is obviously a great goal and a great target. I mean, people may look at Yahoo! today and think, ah, you know but, back in the day when yahoo was the media portal you know with the very large companies we all know.
And so, Zillow, is very clear in the statement that they want to be the media company for real estate. From RESAAS’s prospective, we want to be, and I hate to overuse this term, but it helps people to understand the difference between the two, is we want to be the Facebook for real estate, the largest network for real estate professionals, the largest referral network for real estate agents, the largest social media manager for real estate professional. And we believe, Juan, from the evaluation standpoint, a large body of professional knowledge on a singular platform will be extremely exciting and extremely valuable to a consumer.
So, over the next year, as we continually grow as a B-to-B platform, a closed wall Facebook for real estate agents if you will, there will be an exciting opportunities to expose all that live information to the consumer marketplace as well. So you see as we started more from a B-to-B-to-C service. But if you were to look a comparative, from the evaluation standpoint and again we, obviously, Zillow, we talk about it, because it gets a lot of publicity. They’re an aggregator of data about real estate and they do it in a very elegant way and you know the Yahoo! if you will. And we see ourselves as the Facebook for the licensed real estate professionals.
So from the growth standpoint, if you look at a company that you know is targeting to have every licensed real estate professional on their platform hosting content, listing information, industry information that shared on a B-to-B level and then expose that to the C side of things, it becomes a very compelling story from a valuation growth standpoint. So, you know, I think that, that helps may be define a little bit of difference between the two sides. They both can swim in the eco system without bumping into each other if you will.
WSA: Well, great, and so once again joining us today are Cory Brandolini CEO for RESAAS Services Inc. along with the company’s President Tom Rossiter. The company trades on the Canadian Stock Exchange, Ticker symbol, RSS. Currently trading at 325 a share, market cap of over $100 million. And before we conclude here to recap some of your key points, why do you believe an investors should consider the company as a good investment opportunity today?
Cory Brandolini: Well you know Juan, I would like to say, if you were look at the marketplace and if you were to become the 800-pound gorilla in any marketplaces, that’s a very sexy proposition from an investment standpoint. So if you were to say you know if you look at a Facebook value which wants everybody on the planet wants to have a Facebook page the value is really unlimited from the growth standpoint.
And so if you look at a targeted body of users and you want to have – your goal is to have every one of those users having a RESAAS profile where they’re sharing data, posting data that becomes a very valuable proposition as well. And so, we, in our own mind, we see a very significant growth in evaluation based on, A) The value of that user as an enterprise user, and the value of the content for which they’re posting and that RESAAS is collecting and will be able to serve up in multiple different areas. So if you were do comparatives you will look at other values of social networks, you can just search and crunch the numbers when you look at the value of a Facebook, the value of LinkedIn, the value of the Twitter, the value of Pinterest and so on and so on. They’re all working the billions as we all know.
And couple of reason why as there is no limit to growth and there is no limit to the amount of data that they can collect. Data that is user generated data and there is no cost to it other than the development and maintaining of your platform. So our growth is unlimited from that standpoint from the amount of content and data that we can gather and we have a targeted market base licensed professionals globally that grows you know a significant rate year-over-year. So from outside from our – our current third market value today, there’s a lot of growth there.
WSA: Well, we certainly look forward to continue and attract the company’s growth and report your upcoming progress and I’d like to thank you guys for taking the time to join us today and update our investor audience on RESAAS–always good to have you guys on.
Cory Brandolini: Thanks Juan.
Tom Rossiter: Thank you, Juan.