1. Simply and Lextech are years behind. No solicitor will switch to an unproven technology for a marginal benefit if any at all. That will mean a competitor will either have to charge less or provide additional features/benefits. Given they are years behind this is a big IF
2. Stamp duty changes in NSW proposed, likely we will see more fiscal policy aimed at increasing housing turnover (downsizer contribution). We have building supply and labour issues across construction, the only way to combat this it to increase turnover of housing stock. This has obvious benefits for Pexa. I'm confident this will happen. Combined this with the current housing boom, which is really only a year old.
3. Margin expansion, they now have a dominant position in Aus, that's unlikley to change, you think high paid solicitors are going to bother moving all their software, retraining and comfortable way of doing business for a measly 15% price rise each year? No chance.
4. Other geographies are a risk and challenge, the same it is for any fintech, Xero, APT all faced the same issues. Yet here we are. It's not guaranteed but if they can achieve that there will be plenty more upside.
5. Verticals aren't obvious now, but the funny thing is when you are the market leader with a stick client base opportunities tend to open up.
(20min delay)