• Hipage spends $11.8m in cash and equity to acquire similar NZ tradie marketplace (builderscrack)
• It has 4000 active tradies
• more than 95000 jobs per year
• FY21 Revenue = 2.6m (NZ$)
• FY22 expected Revenue for 7 months post acquisition = $2.3 ( if we annualize that equates to $3.9m, i.e 50% growth)
• CEO and CFO said that there will be an investment for the initial couple of years - importantly it gives them exposure to NZ market where they can go and sell other hipage's products like tradicore
• HPG is also currently in process of developing payment solution
• 

• The acquisition increases TAM for total business

1. Hipages acquired 25% interest in Bricks + Agents in November 2021
2. It seems very good partnership - Hipages will gain exposure to B+A's user and tradie base and residential and commercial property management market while B+A will get capital to grow -- and as B+A grows -- it also feeds into Hipages
3. Hipages were awarded second place in WRK+ Best place to work award 2021
4. Release new product TradieCore: https://tradiecore.com.au

Business seems to have progressed well from all my digging around. It seems like a good company with a founder at the helm of things with long-term plans. It has good employee engagement and culture ( at least from the outside).

I like that company isn't that promotional as other marketplaces. It looks to be doing a lot of things right. I will continue to monitor.

Shares on issues : 130m

Insider ownership : 8.8m (6.76%)

Market cap  = 455m  ( $3.50 each Share)

EV = 425m

Revenue = 55.8m (52.7m ARR)

Underlying EBITDA= 11.7m

NPAT = 1.2m

Cash = 30m

hipages is online tradie marketplace and Software-as-a-Service (SaaS) provider connecting tradies with residential and commercial consumers across the country.

The platform helps tradies grow their business by providing job leads from homeowners and organisations looking for qualified professionals, while enabling them to optimise their business through our SaaS product.

The platform helps home and business owners simple and quick way to get job done and find trusted tradies.

Hipages gets jobs using key partneships as well, It broadens customer base beyond homeowner category, They have contracted partnerships across retail, real estate and government sectors ( example below)

• IKEA ( Established in 2013)
• Ray White concierge ( Established in 2016)
• Bunnings Warehouse ( Established in 2018)
• NSW Education ( Established in 2019)

Tradies

• Migration to Subscription for tradies
  • Hipages traditionally had tradies on platform via transactional model i.e Small annual listing fee and tradie would pay each time they claimed a job lead.
  • Post November 2019, Hipages moved to a subscription-only product offering for new tradies
    • Currently they have 31.2K subscription tradies

Users

• 64% of jobs from repeat consumers
• 77% of jobs from unpaid channels
  • From 2019, Hipages shifting marketing investment from Google to TV Advertisement and sponsorship
    • Platinum sponsor of "The Block"
    • Sponsorship of "Better Homes & Gardens" in March 2021

Other SaaS Offering

• July 2021, Hipages has launched TRADIECORE
  • Quoting, invoicing and customer management tools for Tradie
• Look at the product vision straw ( which outlines their vision for future integration i.e Booking system, payment etc)

HiPage released its FY21 result today. they also released - HiPage Product Vision ( I found it useful and I intend to monitor how it evolves in FY22 and beyond)