After a recent rollout in Australia the Company will begin trading stateside today.
Companies: Purplebricks Group Plc
Purplebricks (LON: PURP) has announced it will begin its US operations later today, with its stateside rollout beginning in Los Angeles.
Shares in Purplebricks have already grown almost 300% this year alone, with the news of the Group beginning its US operations sure to send the stock up today.
The announcement had this to say regarding the choice to begin its stateside dealings in California:
"As the 6th largest economy in the world by GDP and the leading US state in terms of both number of annual real estate transactions and an estimated commission income of $12bn p.a, California is the natural launching point for US expansion. Although California, at 12.6m households has less than half the UK equivalent, the level of commission income in California is more than double that of the UK."
The Group's platform allows buyers and sellers to deal with each other directly with the aim of saving on agent fees. Purplebricks will charge its US sellers a flat fee of $3,200 to list their property.
The statement also announced that buyers will be able to view properties using Virtual Reality (VR).
Commenting on the announcement, Michael Bruce, Group CEO, said:
"Launching Purplebricks today in the US is the single biggest moment in the Company's three-year history...We are excited about the opportunity, in this $70bn market, while mindful of the challenges. Purplebricks is now in three continents in just over three years. We are confident that we are leading irreversible change in the industry and that we are best placed to realise the future global opportunity."
A trading update will be release on September 29 ahead of the Group's AGM.
The market is clearly baking in a lot of future growth for Purplebricks, currently valued at c. £1bn, with revenue CAGR of 270% in its three years of trading. With FY17 revenue of £47m this stellar growth is forecast to continue into FY18 and FY19, as consensus predicts revenues of £97m and £168m respectively and the Group to turn its first profit in FY19.
