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iCar Asia Ltd continues massive growth: Is it time to buy this small-cap?

The Carsales.com Limited (ASX: CRZ) of Asia, iCar Asia Ltd (ASX:ICQ), reported another bumper quarter of operational growth that saw its shares soar 6% on Tuesday morning.

iCar, which operates the number one car classifieds websites in Malaysia, Indonesia and Thailand, reported a 163% increase in cash receipts for the quarter and listing growth in all of its operating regions.

Cashflow Deficit

Like its property-focused cousin iProperty Group Ltd (ASX: IPP), iCar Asia continues to generate a negative net cashflow while it focuses heavily on growing its dominant market share. Net operating cash outflow for the quarter was $3.0m, up from $1.95m in Q4 2013, however the growth in receipts, from $416,000 to $1.1 million was more important for investors.

Impressive Growth

The company’s key metrics of Listings, Audience and Leads grew in all three regions, with Leads growing by nearly 50% in Malaysia and Indonesia. This metric is important as more leads generates greater satisfaction from listing partners, which in turn leads to further listings and partners.

Time to Buy?

Despite the poor formatting and grammatical errors in the company’s announcement to the ASX, iCar Asia Ltd remains a great company for long-term investors to consider investing in. It operates in three of Asia’s largest and most innovative countries, and continues to impress with the execution of its strategy to monetise the service it provides.

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Motley Fool contributor Andrew Mudie owns shares in iCar. You can find Andrew on Twitter @andrewmudie

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