Thought i'd take a closer look aftrer @Aljac introduced this to Strawman.
Some initial thoughts:
Think of Camplify as AirBNB but for caravans and RVs -- it connects owners to renters.
It charges a commission for hirers (15%) and owners (7-11%) on bookings, and it also offers a premium membership -- a monthly subscription service that offers additional marketing services, lower commissions, insurance and accident excess reduction. ($76-198/month depending on RV value)
Founded in 2014, but only listed on the ASX on 28th June 2021. It has experienced strong revenue growth --> $1.6m in FY19 to an expected ~$7.5m in FY21.
Operates in Australia, NZ (since 2020), UK (since 2019) and Spain (launched this year).
There are around 5,400 RVs on the platform (total in Australia is 740,000)
Covid seems to have been a positive for Camplify, with Australians unable to travel abroad.
Revenue grew 77% in FY20 and is expected to grow over 135% this year (recently upgraded from prospectus guidance). Company now expecting $7.4-$7.6m in revenue for FY21.
Company is still loss making and is on track to lose ~$3m in FY21. It does have $15m in cash after the IPO.
Gross margins have been consistently at 70%
38.8m shares on offer, giving the company a market cap of $52.4m (as of 1/7/21), and a forward Price to Sales of approximately 7x
Directors and senior management own 6% of the business, while the founder and CEO Justin Hales owns 14%.
Apollo Motorhomes, one of the major RV rental companies, owns 17% of the business.
The platform appears to have very favourable reviews
The company is very capital light, and looks to have good capacity to scale.
The prospectus lists traditional RV hire companies as the main competitors, but I wonder if the bigger threat comes from AirBNB, which could easily expand into this segment and compete with lower prices.
Overall, i think the business looks really interesting. I'm usually reluctant to invest in newly listed companies, but will be keeping an eye on this.
Things to watch:
- Pace of revenue growth (needs to sustain a high rate to justify sales multiple)
- Costs management (ongoing platform development and geographic expansion could push back the breakeven point and keep the company reliant on future capital raises)
- Competitive landscape -- will other bigh tech players enter the space?
