PTG issued a pretty positive update on Friday with the SP appreciating ~20% in response.

They are now FCF +ve and receipts are growing ~20% per quarter.

One of the reasons I haven't bought until now has been the limitations for further growth. They currently are the largest player in the ANZ market having increased their market share from 29 -41%. As such, they are unlikely to be able to grow by acquisition due to their size - they would get knocked back by the ACCC. Turnover in this kind of software is apparently low, so nice and sticky, but the chances of converting any new Real Estate agencies of any size is also low.

Pleasingly, they have managed to increase the ARPA (average revenue per agency) significantly - by 23% over the LTM. This is likely to have produced the positive re-rate: they have increased the number of modules and take up of new features is being demonstrated.

Other good stuff: $14.5m in the bank, headed up by ex-head of REA group with 10% shareholding, market leading provider of a niche SaaS service, good margins, rapidly increasing receipts.

And cheap at 3.2x ARR.

If they can continue to execute on their strategy then there should be a reasonable runway still to go. Not massive but a successful player in a small niche

not held