For me, while this quarterly report didn't shoot out all the...

For me, while this quarterly report didn't shoot out all the lights, it passed muster.

While cash receipts in MQ22 were up 70% on pcp, they actually fell 8% compared to DQ21.

However, DH21 receipts included an effective one-off cash receipts of $0.6m for a large project PTG did for one of its clients, so if you strip that out, then MQ22 cash receipts were 4% higher than DQ21.

And while that doesn't sound like a lot, on an annualised basis it is 17% pa, which is healthy, especially for a company whose EV/ARR is only a little over 3 times.

Of course, ordinarily comparing cash receipts over a short time frame of mere quarters in order to assess company performance is not a precise science due to potential timing differences:  the underlying growth in cash receipts in MQ22 could just as easily have been zero or 8%.

But for PTG the level of disclosure is sufficiently granular that we get to see the the operational drivers of organic growth, which fared as follows in the quarter:

1.  Products Per Account:  +3.2%  on DQ21
2.  Number of Accounts (# Accs.):  +1.7%
3.  Average Revenue Per Account (ARPA): +5.3%

Combined, items 2 and 3 are the determinants of the underlying organic growth trend suggesting the underlying growth in the quarter is # Accs. growth multiplied by ARPA growth = 1.017 x 1.053 = 1.07,  so 7.1% underlying growth.

It warrants acknowledging that the biggest risk to PTG's long term organic growth is if the TAM shrinks due to a big slowdown in the property market which sees a permanent outflux of real estate agents.

But even then, it will be a case of perception rather than reality, because software spend in the real estate agency industry has traditionally been relatively stable irrespective of market conditions.




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