Temple & Webster (TPW) benefit from online shift
Temple & Webster (TPW) +18.03%
Another phenomenal result from TPW both in terms of their FY20 numbers, but also in terms of their trading update for the first part of FY21. Firstly for FY20, revenue was in line with expectations at $176m however net profit was a strong beat coming in at $13.9m v $8.35m expected, although there was a big tax benefit of $5.9m in there. The real kicker that drove the SP today was the run rate currently in FY21. Top line sales are up 161% on this time last year which they say will drop to EBITDA for July and August (alone) of ~$6m - to put that number into context, they did EBITDA of $8.5m for FY20 (entirely). There is a lot of optimism built into the SP of this company at current levels, however they continue to deliver and now importantly, have significant scale with more than 500k active customers.
Look out for a large national TV ad campaign starting soon while they’ve made a small investment into a start-up developing AI interior design tools, showing where the future could lie... All in all, it’s hard to fault today's update hence the big pop in share price.
Temple & Webster (TPW) Chart
