Camplify reported H1 results for H1 2024:

• Revenue: $24.3 Million, up 95.4% on PCP (but 37% when backing out Paul Camper)
• Gross margin increased to 61.4% (up from 58.1%)
• Operating Loss of $10.0 M, down 10%
• Owner vans up 19.7% to 29388.
• Future bookings: $26 million (excluding Paul Camper & TAP), up 10% on PCP.
• Justin Hales reported bookings are outstripping van availability in Australia. Looking back at the growth in vans listed on the Camplify platform, Australian vans for hire on their site have grown at 20% per annum over the past two years.
• Camplify brought a rent a tent business, that serves the events sector. The strategy is to expand the market for camper vans on it platform, and get a higher utilisation of its network.
• In 2024, Camplify is focussing on implementing its Myway insurance offering (which will increase take rate), and integrating Paul Camper.
• Re-iterated, Paul Camper will not grow in the near term, whilst they focus ion integration.

Justin refused to provide guidance or indications of how the business is travelling in the seasonally busy season. It appears camper / owners on the network are the constraint for growth....the market didn't like the lack of guidance.

DISC: HELD

Important for any investors interested in Camplify as an investment to know that 75% of all shares are held in escrow, and cannot be traded until September 2022 (2 weeks after FY2022 reporting date).

It may pay to be patient, as there may be some selling pressure when shares come out of escrow if management wish to upgrade their RVs.

Key takeaways from todays results and earnings call:

• GTV of $10.5 M, up 69% on PCP.  
• Revenue of $3.07 M, up 106% on PCP. 
• From earnings call - UK GTV of $2.2 M.  UK GTV was $1.1 M for all of FY2021! 
• Take rate of 26.9%.  
• Premium membership was soft due to seasonality and lockdowns.  RV owners tend to upgrade membership once 30 days rental passed, which lockdowns has hampered. 
• From earnings call: Spain GTV was $185 k, so very early stage. 
• Increase in costs due to seasonality, and Q4 payments to RV owners follwonig strong Q4.  
• Customer success team ramping up, particuallary in UK & Spain.  
• NZ RV rental market TAM is at least $125 M GTV.   Huge growth opportunity before it, just in this one market. 
• Camplify assesses future markets according to RV ownership growth, RV owner age demographic (the younger, the better), and market synergies (UK market frequently holiday in Spain).  This is the reason why Spain was identified as preferred market.  Camplify is focusing on bedding down UK and Spain before further expansion. 
• Outlook: Increasing activity in recent weeks, but some hesitancy remains, particulalry in relation to interstate travel.  

DISC - I HOLD.  

Acorn Capital have sold 15-20% of their position.   They may be doing this because:

1) $CHL became too large a position size in their portfolio, and they have trimmed for risk management purposes. 

2) They think $CHL is overvalued.   

DISC - I HOLD......

Gladys has announced rather agressive re-opening plans, INCLUDING CAMPING GROUNDS.  

• Some regional areas can open now, including North Coast of NSW.  
• Other regional areas on NSW to open on the weekend, including the South Coast. 
• Remaining regional areas, where ther have been no cases, can open on the weekend.   

These areas are the regions with the most Camplify RVs.  Will be interesting to see if a spike in bookings is evident in Q1 4C update.   

DISC - HELD.

Camplify Holdings reported their maiden annual results today.  Key takeaways:

·         Revenue of $7.7 Million (excl. RV sales), up 166% on PCP. 

·         Operating cashflow positive, at $2.4 million.

·         New product offering launched in Australia, with tow vehicles no being available to rent.  This will enable fleet owners to increase revenue / utilization, and increase Camplify’s revenue per customer. 

·         COVID-19 shutdowns.  Business has been relatively immune to lockdowns, as most RVs located in regional Australia, and that renters are just shifting their holiday dates rather than cancelling them.  Management are optimistic demand will surge into the peak holiday seasons around Christmas and New year, given the pace of the vaccine rollout.  

·         Camplify hiring to keep ahead of anticipated demand. 

·         Management report their focus Is growing their NZ and European fleets, and European customer base.   Something to watch closely in FY2022. 

Camplify have a network effect business model, reliant on having a large range and variety of RV’s attracting customers, and a large pool of customers to attract RV owners.  The Australian business delivers 95% of the business revenue, and grew the RV fleet by 44% and GTV by 166% in FY2021.  The business now can deliver sufficient revenue for RV owners for the platform to be attractive, with RV owners now building up fleets to rent on the platform.  The Australian business appears to have achieve a virtuous flywheel effect of more customers attracting more RV owners, and vice versa.  They appear to have the largest fleet and customer base, which will be difficult to challenge – please let me know if there are larger competitors !!

However, the NZ and European businesses are very early on in their development, and have not achieved a network effect to date, with fleet growth of 11-12% over FY2021, and GTV growth of 221 – 494% off a low base.  However, Europe was significantly impacted by COVID-19 shut downs until this Summer.  NZ  RV owners are starting to make attractive returns on their rentals (GTV/owners), and this is the most promising of the new businesses. 

ATM the European businesses are unproven, and it unclear they will succeed.   It will be something to watch carefully over FY2022. 

DISC – I HOLD

Vandelay posted up some quite valid concerns regarding van owner and customer feedback.   It is interesting to note Camplify are investing heavily in their Sales and customer success.  sevemn new positions in totla ar eadvertised, including: 

Customer success roles - 4 roles, including a manager, with roles of onboarding new RV owners...

Insurance resolution officer - To assist owners manage insurance claims.  

So it looks like Camplify are growing strongly, and working hard to address the issues Vandelay has raised........

DISC - I HOLD

key takeaways:

1) Q4 FY21 Gross Trasnaction Volume (GTV) of $9.6M for Q4, up 163% on PCP. 

2) GTV for year: $31.5-$31.8 million ($27.8 million Prospectus guidance). 

3) Unaudited net revenue of $7.1-$8.2 M ($6.7 M forecast in Prospectus). 

4) EU Market GTV up 199%  for the year. 

5) ANZ Market GTV up 158% for the year. 

6) Q4 GTV growth rates of 629% on lockdown affected Q4 2020.  Augurs well for strong momentum into Q1 2021. 

7) Operational costs below Prsopectus forecast. 

8) NZ market grew GTV by 485% on pcp, with Q4 growth of 2627% on PCP (obviously off a low base).  Note: this result was domestically driven, with strong tailwinds as NZ opens up on 2022 / 2023. 

9) Both RV fleet and customer additions grew by 14% as at June 30, since Propsectus publication (May).  

1) $21 Million in the bank - planty of funding for a business already operating close to breakeven point. 

DISC - I HOLD.