Deep Dive: Zippy Capital Discusses Camplify Holdings Stock
This week we had a new guest join the podcast, the anonymous Twitter account known as Zippy Capital. Zippy focuses on the small and micro-cap space, so we talked about a microcap from Australia called Camplify Holdings. It is a recent IPO and fascinating business model trying to disrupt the RV rental industry with an Airbnb-style marketplace.
Here are some questions we asked him on the show:
What is Camplify? Can you explain the business?
Can you run through Camplify’s unit economics? How does it make money?
The company estimates it only has 1% or less of the RV market share in its home country, Australia. What sort of addressable market do you think they are going after?
How big of an opportunity is there for Camplify to move into other European countries and the United States? Has management given any indications that is their plan?
How has the pandemic impacted this business?
Valuation. The stock trades at a sales multiple of 18. With that high multiple, what do you think needs to happen for this to be a good investment over the long term?
Who are Camplify’s competitors? Why do you think they can win market share? Do you think they can compete with Outdoorsy in the US?
What are the key metrics you are following to evaluate Camplify’s progress over the next few years?
What is one big risk to Camplify’s business? Do you think this is a target for Airbnb to purchase?
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Disclosure: The author and podcast guests are not your financial advisors. Ryan Henderson and Brett Schafer are general partners and portfolio managers at Arch Capital. Clients of Arch Capital may hold securities discussed on this show.