Mad Paws Holdings Ltd (ASX:MPA) has provided a December quarter/half-year trading update with the release of its 4C quarterly cashflow report. The key take out from our perspective is that despite continued COVID-related disruptions over the half, new customers continued to grow (+21% on June 2021 to 133k), as did marketplace GMV and revenue at +39%. Waggly was a first-time contributor for a full half, helping to boost total revenue growth to ~240%. The cash position remains strong at $8.9m and marketing costs well managed despite a significant push for Waggly and Dinner Bowl subscription customers. While disruption remains a possibility into CY22, the group will cycle disruption for most of the year with an ever-growing customer base. We make modest downgrades to revenue (-5%-8%) on lower subscription assumptions but reduce marketing costs but a similar amount, resulting in little change to EBITDA/EPS. Despite a significant sell-off in loss-making “tech” stocks since our initiation (November 2021), the MPA share price is unchanged against an average domestic peer decline of 25% and US peer Rover (-43%). Early market penetration, valuation and growth despite disruption are all reasons for this strong performance
20 Jan 2022
Continued growth depsite disruptions
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Continued growth depsite disruptions
Mad Paws Holdings Ltd. (MPA:ASX) | 0 0 0.0%
- Published:
20 Jan 2022 -
Author:
Finola Burke | John Burgess -
Pages:
7
Mad Paws Holdings Ltd (ASX:MPA) has provided a December quarter/half-year trading update with the release of its 4C quarterly cashflow report. The key take out from our perspective is that despite continued COVID-related disruptions over the half, new customers continued to grow (+21% on June 2021 to 133k), as did marketplace GMV and revenue at +39%. Waggly was a first-time contributor for a full half, helping to boost total revenue growth to ~240%. The cash position remains strong at $8.9m and marketing costs well managed despite a significant push for Waggly and Dinner Bowl subscription customers. While disruption remains a possibility into CY22, the group will cycle disruption for most of the year with an ever-growing customer base. We make modest downgrades to revenue (-5%-8%) on lower subscription assumptions but reduce marketing costs but a similar amount, resulting in little change to EBITDA/EPS. Despite a significant sell-off in loss-making “tech” stocks since our initiation (November 2021), the MPA share price is unchanged against an average domestic peer decline of 25% and US peer Rover (-43%). Early market penetration, valuation and growth despite disruption are all reasons for this strong performance