Thoughts on Mad Paws (MPA)

Hi Chris,

For subscribers unfamiliar with the stock its a $30mn business which designs and develops software aimed at the Pet Industry. If you’re searching for a pet sitter to look after the dog, jump on Map Paws and you’ll find one in your area with ratings and all the normal stuff, much like Airbnb or Camplify.  They also sell other things like grooming, food, insurance etc.

The company raised $4mn in February at 13c, $3 million from an institutional placement and a $1 million share purchase plan (SPP). Like many unprofitable technology platform stocks, it’s fallen sharply, down 70% from its highs and still has some way before they reach profitability, in FY23 they lost -$7.5m on revenue of $24.5m with 2025 being the year where they should stop bleeding money.

At the end of the day, a platform business needs to be growing its users from those listing services to those using them – that is their life blood, and they are not growing quickly enough yet. At the moment we see no reason to get too familiar with the business until it nears profitability.

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Mad Paws Holdings Ltd (MPA)

LAST UPDATED 19/10/2023 15:30

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Mad Paws Holdings Ltd (MPA)

LAST UPDATED 19/10/2023 15:30