Australian-listed property technology company, Openn Negotiation Limited (ASX: OPN) has successfully reached an important operational milestone.
Following the recent soft launch, the Canadian Real Estate Association (CREA) and Openn determined the Openn platform and REALTOR.ca integration was ready for general market release.
Consequently, the full commercial rollout of the Openn platform in Canada commenced Monday, March 20, 2023, Canadian time. The transition from start-up to revenue generation is now underway, with subscription revenue in the second half of 2023.
In Canada, there are more than 160,000 buyer and listing agents who are REALTORS, and approximately 600,000 properties sold annually so the revenue impact of subscription fees, partner integrations and data analytics is expected to be material.
However, at this stage, an accurate estimate of the revenue is not yet determinable because it is subject to unknown factors including, but not limited to the percentage of REALTOR members who will subscribe, the demand mix for different product tiers and changes in the future market for property listings.
Openn’s transformational, transparency enabling property technology software delivers transparency to Canadian consumers buying and selling property. The platform is designed to reduce days on market and streamline the offer and acceptance process through efficiency tools beneficial to agents.
CREA’s real estate listing platform REALTOR.ca displays offers processed through the Openn platform to provide transparency and rapid education of the Openn process to the Canadian consumer at mass scale. REALTOR.ca is Canada’s largest and most trusted online real estate marketplace attracting more than 240 million visits per year. CREA will also be actively promoting the Openn platform to its REALTOR members.
Together, REALTOR.ca and the Openn Offers platform can help solve the perceived lack of transparency in the sales process that many consumers, governments, and REALTORS have been vocal about, and we want to do this in a way that will continue to keep our REALTOR members at the heart of the transaction,” Patrick Pichette, Vice President, REALTOR.ca, said.
Openn and CREA conducted an extensive assessment of the market, legal requirements, software integration and product testing since the pilot was first announced to the ASX on April 7, 2022. The company advises that the Openn platform is now operational across all real estate markets in Canada.
The integration with the REALTOR.ca platform creates the potential for broad adoption of the Openn platform in Canada. Between now and July 2023, Canadian REALTORS using the platform will not be required to pay. Openn will focus on adoption and learnings during this period.
From July 2023 onwards, agents will pay for the use of the Openn platform through subscription fees. Prices will vary depending on the product tier selected. At this stage Openn’s pricing model has not been finalised, but it is expected that the list price for the full premium Openn subscription will be C$50 per agent per month.
In addition to agent or broker subscription fees, Openn intends to generate revenue through partner integrations and data analytics. As advised in the December quarterly report, the company is in advanced, but incomplete negotiations related to these opportunities.
“It’s enormously satisfying to announce this commercial rollout in partnership with the Canadian Real Estate Association,” Openn North America President, Duncan Anderson, said.
“This transformational achievement is the culmination of a rigorous testing process and extensive integration which provides us with great confidence that we can roll the Openn products out en-masse to a very large North American market.
“I wish to acknowledge and thank the Openn and CREA teams involved with the pilot over the last many months. Their work cannot be understated and has had positive impact beyond Canada.
“The milestone today is a fantastic commercial outcome and represents a watershed moment for the Openn team and our shareholders.
“Importantly for the company, the heavy lifting is over. The expensive build stage is over. The team transitions to an operational setting with lower costs and clear pathway to revenue.”