Camplify share price sinks 6% on growing FY22 losses

The Camplify Holdings Ltd (ASX: CHL) share price is down 5.56% in afternoon trade, having earlier posted intraday losses of more than 13%.

Camplify shares closed yesterday at $2.52 and are currently trading for $2.38 each.

The company, which provides a peer-to-peer digital marketplace platform that connects recreational vehicle owners with hirers, released its full-year results for the 12 months ending 30 June (FY22) this morning.

Here are the highlights.

Camplify share price drops on growing losses

• Revenue of $16.4 million, up 94% year on year
• Net loss after tax of $8.2 million, compared to a $2.1 million loss in FY21
• Net cash outflows of $6.1 million, compared to net cash inflows of $16.4 million in FY21
• Total equity at 30 June of $9.4 million, down from $14.1 million the prior year

What else happened during the year?

The company noted its business was impacted by pandemic-related travel restrictions for much of the 2022 financial year.

It attributed its strong revenue growth to a 61% increase in hirer revenue and a 280% increase in van sales from FY21.

Cost of sales was up, however, increasing from $2.6 million in the prior year to $6.3 million in FY22.

Gross profit margins fell to 46%, down from 62% in the prior year. Margins were impacted by increased insurance premiums and a revenue recognition change. Camplify said its increased insurance costs will be passed on in full in FY23.

The retention rate of hirers, a key focus area for Camplify, increased to 25% during the year, up from 20% the previous year. The company also grew its customer database by some 88,000 customers.

What did management say?

Commenting on the results, Camplify CEO Justin Hales said:

Camplify is a business with significant growth potential, and substantial scalability opportunities. Camplify has delivered on its strategic outcomes in FY22 by clearly building on customer demand to record four quarters of continued growth.

As growth continues in FY23 based on customer demand, Camplify will position the business to ensure scalability, and automation will deliver improved bottom line results, on our road towards profitability.

What’s next?

While not providing specific guidance, Camplify noted a big uptick in future booking values, boding well for the travel demand outlook in FY23.

As at 30 June, Camplify had $14.7 million in future bookings, compared to $7.0 million in FY21. The company stated, “This over doubling of future bookings clearly demonstrates from customers their intention to travel in FY23.”

Camplify share price snapshot

It’s been a difficult year for the Camplify share price, down 42% since the opening bell on 4 January. By comparison, the All Ordinaries Index (ASX: XAO) is down 8% year-to-date.

The post Camplify share price sinks 6% on growing FY22 losses appeared first on The Motley Fool Australia.

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More reading

• ‘Strong growth’: Expert says buy this ASX company that just doubled revenue
• Camplify share price leaps 6% as revenue more than doubles

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Camplify Holdings Limited. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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