PXA getting smashed below IPO price without any recent news....

PXA getting smashed below IPO price without any recent news. Certainly couldn't be as a result of the analysis of their financials. I only care about revenue growth for a software company. EBITDA is meaningless esp. when the CAC is so low for PXA and the LTV:CAC ratio is awesome. Software eats the world. If the market is assuming the "competitors" to start impacting PXA at the end of 2022, then this is certainly misguided. Perhaps an opportunity buy on the dip below IPO price. Australia is a $240m market with a total 400K property transactions, annually.

• Sympli with their 89 employees appears to be the only true contestant. But they're only doing pilot programs now!
• LexTech with its glorious 9 employees - let's be real, thanks for playing.
• Pexa has 400 employees, that's 4X of its closest "potential" competitor, Sympli, and you don't think Pexa would continue to build more competitive moats by the time interoperability kicks in at end of 2022?

Competitive moats

• 90% of the market is already trained to use the Pexa system. The longer this persists, the more entrenched Pexa is. That's like telling all the Windows users to consider using a Mac. This e-conveyancing market is a winner takes most market.
• What will be interesting is to see if Pexa can replicate itself overseas like in the UK, NZ etc. I'm pretty certain with all the 31 recent technical roles they are looking to hire, that's a glimpse into how they're gonna leverage the unrivalled data monopoly they're sitting on.

Remember what Peter Thiel says in his book Zero to One. If you have a monopoly you don't go around saying you have one. You say you are in a much larger pond. I think Pexa has a pretty good long term defensible business if they continue to invest appropriately in technology and are able to globalise its business.