The Camplify share price is up 22% to $4.24 as I write after Camplify (ASX:CHL) announced its results for the quarter to September 2021. Overall, the Gross Transaction volume was $10.5 million, up 68% on the same quarter last year. During the quarter, Camplify had $7.7 million in quarterly receipts from customers, up on $7.4 million last quarter, despite onerous lockdowns in key geographies including NSW, Victoria and New Zealand. Revenue for the quarter was $3 million, up about 100%.
This resilient result was thanks to strong growth in the UK market, where the company grew gross transaction volume for its campervan marketplace by over 150% on the prior corresponding period, to approximately $2.2 million. However, cash burn was up strongly to more than $2.7 million for the quarter. That’s not too much of a concern, since Camplify still has over $17m in cash from its recent IPO.
On the conference call, the CEO clarified that they would be focussing on gaining market dominance in New Zealand, UK and Spain before expanding into other geographies. The camplify marketplace is already dominant in Australia. That should position the company well. I won’t re-hash my entire thesis for Camplify here, and this single quarter is fairly unremarkable, but for the fact that the share price has reacted strongly. In part, that may be due to the fact that Camplify has low liquidity meme stock potential. You can see all our coverage of Camplify here.
I spoke about Camplify on Ausbiz not long ago, albeit when the share price was a bit under $2.70. You can see that excerpt from about 6 minutes in the video below, for more details of why I hold the stock. I am not a buyer at current prices, having accumulated between $2.19 and $2.87.
Suffice it to say, with Australia and New Zealand entering the peak holiday season, Camplify shareholders will be expecting a strong December quarter. It may well be that the share price is getting ahead of itself, but I think the website will continue to gain popularity in the next few months, as Australians gain the freedom to travel interstate and take holidays.
Subsequent note, 26 October: Today Camplify has it is acquiring a NZ competitor with equity, which should give it dominance in that market, too.
From 4pm: Join us for a wrap of the week that was + @claudedwalker from @ARichLifeAu shares what he’s watching in the smaller end of town
— ausbiz (@ausbiztv) September 10, 2021
Catch all of today’s interviews at https://t.co/gllBj1Fmt2 https://t.co/VOG81bEn52
Please remember that these are personal reflections about a stock by author. I own shares in Camplify. This article should not form the basis of an investment decision. It is an investment diary valuable only for the cognitive process it demonstrates. We do not provide financial advice, and any commentary is general in nature. Please read our disclaimer.
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