Hi All,
I recently invested into PPL and have noticed it’s lack of discussion, I thought I would start a new thread of why I invested to help others. I believe that PPL has multi-bagger potential for numerous reasons stated below, and reasoning like this has led to me to huge wins in the past on stocks like this. Feel free to share your own views on this company. Cheers!
Revenue: 30m
Profit: 2.8m
Market Cap: 67m
Top 20 Shareholders own 56.47% of shares on issue
Overview
Pureprofile (ASX: PPL) is a rapidly growing, profitable, ASX listed Tech company that has largely remained under the radar of investors (evident in a lack of discussion/ramping on HC and Facebook). In the last 6 months the stock is up 90%. In the last year, it’s up 190%, but in the last 5 years the stock is down 78%. So what is going on?
Pureprofile has been operating for 21 years, however, previous management have looked this business the wrong way, they were too focused on expansion, made some acquisitions that didn’t fit the core business model, and were unfocused on revenue and profits. This led to them needing to raise capital to continue operating.
In recent times, a venture capital company has come in, taken a huge chunk of the shares, removed old management, restructured the business, inserted a new, fantastic CEO (Martin Filz – August 2020). – since then we’ve seen 30m revenue delivered and 2.8m profit. This is a classic turn-around story. Hence the reason for the short-term price rise.
I note that I am a new investor to PPL and have only recently bought in in the last 2 months.
I recommend the following links to find out more:
https://www.youtube.com/watch?v=gegx4dpkljM
https://business.pureprofile.com/investor-centre/
https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02412480-2A1318609?access_token=83ff96335c2d45a094df02a206a39ff4
What do they do?
Pureprofile is a market research company – companies approach them looking to conduct research – Pureprofile then creates surveys, and pushes these out to their targeted panel of respondents -you can download the Pureprofile app or sign up to their website as a user to see for yourself how it works. From a respondents perspective, you can get paid to do surveys. The companies that use the service benefit by reaching a huge target market through using PPL’s database that they would otherwise unable to achieve. Pureprofile makes revenue on the initial contract, as well as on data analysis and reporting services that they can do for the client.
In the past, Pureprofile has been focused on working as a pure market research company, but since the changing of the guards, they are now focused on moving towards a pure play tech company.
I also note a huge win was the signing of flybuys as a partner. In the past with the old business model, clients pay PPL to conduct research, and PPL had to offer extra cash as an incentive to the respondents to complete the survey. Now, through the flybuys partnership, they can reach the whole flybuys database of members, offer them surveys, and offer them flybuys points as incentive, PPL can pocket the extra cash, huge game-changer.
Some notable organisations who have used Pureprofile in Q1 FY22 include:
- Afterpay
- Microsoft
- Nespresso
- Lexus
- Johnsons & Johnson
- Unilever
- British Gas
The New CEO
Martin Filz is one of the most well-respected and influential individuals in the market research industry and has held senior executive roles as Managing Director of EMEA and APAC at Research Now (now a part of Dynata) and CEO of EMEA / APAC at Kantar-owned, Lightspeed GMI. He joined Pureprofile from Eureka AI, a business intelligence platform, where he was Managing Director and Chief Revenue Officer. He is active in digital and research bodies including the Association of Market and Social Research Organisations (AMRSO), ESOMAR, the Australian Market and Social Research Society (AMSRS), and the Interactive Advertising Bureau (IAB).
This is the man for the job, he has worked his whole career in the industry growing businesses in this realm.
Upcoming Catalyst
The same way that Pureprofile has partnered with flybuys in Australia – they are looking to expand globally to the US and UK – and we know how massive the opportunities are over there compared to tiny Australia…
According to the CEO, they are looking to find another business to partner with to target the UK market, and this is around 6m away.
As of a this month, recent announcement (price sensitive) partnering with 'theAsianparent' which gives Pureprofile access to database of 35m users, for context Flybuys has 8m users, so this is 4X the size. In PPL's words: "The aim of the partnership is to create the worlds largest parent opinion panel for brands, governments, and institutions to gather insights. No other Data and Insights company has access to such a large and specific audience."
https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02475225-2A1351100?access_token=83ff96335c2d45a094df02a206a39ff4
Competitors
Since WPP was acquired and taken off the ASX some years ago, there are no direct competitors listed on the ASX.
In terms of private companies, there is Quantium, again not a direct competitor but have some similar overlaps (Quantium has 100m revenue and were recently valued at 1b market cap) [PPL 30m revenue, 67m market cap…) In the UK on the London Stock Exchange there is YouGov (136m revenue, 1.67b market cap). YouGov is already utilising PPL in Australia to access their Aussie database.
Looking at similar companies, it doesn’t take a genius to work out that even without growing, at current valuations PPL is significantly undervalued.
Substantial Shareholders
The composition of ownership in this company is what makes this stock a particularly compelling investment. The Top 20 Shareholders of PPL hold 56.47% of shares on issue. While this evidences the high level of confidence insiders and larger investors having in this company, this obviously means reduced liquidity, making it less attractive to the day trader. However, this fact is what gives way to some of the biggest rallies seen in the ASX stock domain while simultaneously reducing day to day volatility (as experienced in most penny stocks). Consider some of the stocks that have rallied 1000% and more. Any other day they’d have few, if any, transactions. However, as soon as the volume comes in liquidity is not even a concern. This is yet another reason I believe this stock has not seen its rise to fame yet, because it is so tightly held, the average investors are not aware of it yet!
I recommend reading the most recent reports to see for yourselves! As they say, DYOR.
As always is said on this site - this is not financial advice, just my opinion, DYOR, I have done mine!
