Patient investors could reap nice long-term rewards out of an ASX share that just doubled its quarterly revenue on a year-on-year basis.
That's according to Morgans associate analyst Steven Sassine, who admired the latest numbers coming out of campervan peer-to-peer sharing platform Camplify Holdings Ltd (ASX: CHL).
The revenue for the final quarter of the 2022 financial year was 104% up on a year earlier, which triggered the share price to leap more than 9% on Monday morning.
Gross transaction volumes (GTV) were up 83% from the prior comparable period.
"In our view, [the update] showed strong growth in key metrics and highlighted the underlying momentum in the business post lockdowns easing continued throughout the fourth quarter," said Sassine on the Morgans blog.
"We remain comfortable with the growth trajectory of the business and the potential to further gain share in offshore geographies."
Excellent growth all over the world
With more people getting out and about on trips in the post-lockdown era, all regions are showing promise for Camplify.
"The New Zealand market showed strong recovery post lockdowns easing, with a 146% GTV increase on pcp and has also seen future bookings increase significantly (1,146% on pcp)," said Sassine.
"Spain saw GTV growth of ~580% on pcp (off a low base). The UK appears to be tracking well and is now within its seasonal peak period, with management commentary indicating GTV growth for the quarter of 103% and revenue growth of 155% on pcp."
Future bookings are "robust", standing at about $14.8 million.
Camplify burned through about $2.2 million for the quarter, which left roughly $15 million in the kitty.
'Prodigious opportunity' and 'structural tailwinds'
Even though the Morgans team downgraded its topline revenue forecasts by 3% to 4%, that still leaves an impressive 67% three-year compound annual growth rate.
Sassine and his colleagues rate the growth stock as a buy.
"Camplify's management team has shown an ability to build out a successful scalable platform, in our view," he said.
"Whilst still in its infancy and not without risk, we believe structural tailwinds supporting Camplify and the prodigious opportunity offshore should provide longer-term growth potential for patient investors."
The big risks to the ASX share, according to Sassine, would be natural disasters and new competition.
Wilson Asset Management senior investment analyst Shaun Weick last year compared Camplify to a now-ubiquitous global platform.
"Camplify is essentially the Airbnb Inc (NASDAQ: ABNB) of RVs and campervans," he said.
"We see a really strong growth trajectory, particularly as… thankfully we all get out there and take some holidays for the first time in probably two years."
