Still at an early stage

Hi,

Camplify is one interesting recent IPO (listed on 28 June 2021).
Since its listing, the stock has already increased by 56 % and has now reached a market cap of 91 m.

Created 7 years ago, Camplify is often defined as the "Air BnB for caravans".
Basically, it is a platform between Recreation Vehicle owners and hirers, which take a commission from both of them and together getting around 25 % of the booking price (now average booking is around 1,000 $).
Its main market is, by far, Australia (90 %+ of their sales), but they have also recently expanded into new markets (NZ, UK and Spain).

One of the interesting side of the story : they have been doing very well in all their markets so far despite covid/lockdowns.
In fact, this situation creates for them a unique opportunity as a large part of their customers can't travel overseas and have to focus on domestic travel.
Of course, some time in the future, their customers will again be able to travel overseas.
But, before that, a lot of people will have tried their concept and could be converted to regular users.
Already 20 % of their customers are returning customers which shows the level of appreciation so far of their concept (only 7 years old).

Other interesting element about their financials : despite a negative EBITDA, they have reached a high level of cash flow/free cash flow in FY 21, due to one principal reason : customers pay 25 % of the booking price at the time of the booking which gives the company a high level of negative working capital.
It has now a free cash flow yield of 2.9 %, which looks really high given the growth profile of the company (gross transaction volumes increased by 170 % in FY 21).

Obviously, the company is still at an early stage with only 30,600 bookings in FY 21 and only 6,161 RV on their platform (representing less than 1 % of the existing RV registered in Australia).
That's probably the main risk, as it still has a lot of things to develop, while it also wants to do M&A.

To get more details about the company, I recommend you to read the analysis @andrew1988 (details at andycrebar.com).
As usual, also interesting to read the posts on the different CHL threads, with a lot of good contributions.
Thanks also to the person who recommended me to have a look at this company.