These are unprecedented market conditions with inflation and interest rates challenging investors and companies at every turn, yet one business has proved its capacity to grow its portfolio at very attractive multiples, increase market share, generate revenues, raise capital, manage its costs, and scale.
ApartmentLove Inc. (CSE:APLV) is a provider of online home, apartment, and vacation rental marketing services to property managers, owners, renters, and vacationers from around the world. 2022 proved to be a pivotal year in the company’s growth.
Highlights and milestones from 2022:
- Signed C$10M CAD term sheet to fund growth through acquisition program
- Raised C$753,000 to fund organic growth and expansion
- Reconstituted Board of Directors to diversify and strengthen the company
- Raised C$1,403,500 in non-brokered private placement to fund organic growth and expansion
- Acquired OwnerDirect.com for 2x the earnings before interest, taxes, depreciation, and amortization (EBITDA) in July 2022
- Signed listing contracts to add upwards of 800,000 short-term vacation rentals around the world
- Actioned paid cost-per-lead program with major US listing supply partner
- Commenced trading on the OTCQB under the ticker APMLF
- Raised C$2,896,000 in a brokered private placement led by Canaccord Genuity Corp.
- Acquired GottaRent.com for 4x EBITDA in December 2022
Two major acquisitions were the hallmark of the company’s milestones in 2022: One was OwnerDirect.com. This short-term vacation rental marketplace earns a service fee of approximately 10% on the gross booking value of every vacation rental booking completed.
The other acquisition was GottaRent.com, a long-term rental marketplace that earns revenues by charging property managers and other apartment building owners and
operators monthly recurring listing fees to advertise their rental listings from across Canada and especially those in southern Ontario and the Greater Toronto Area.
Trevor Davidson, President & CEO of ApartmentLove Inc., noted the team’s commitment to consolidating the deeply fragmented internet listing industry and acquiring the assets of OwnerDirect.com and GottaRent.com for 2x EBITDA and 4x EBITDA, respectively, proves deals can be completed in this space and at very attractive multiples.
“We have a pipeline of nearly 20 active takeover transactions around the world.”
This growth has been impressive and demonstrates the company’s unique ability to raise capital successfully, even during these unpredictable market conditions.
CEO Davidson explained how the company was able to make such strides in an otherwise very challenging environment.
“Focusing our efforts on meaningful projects while setting realistic and attainable goals has, in my opinion, powered our core www.apartmentlove.com application’s continued adoption in major markets across the United States and elsewhere abroad. Having now completed development, 2022 was the first full year of uninterrupted investments in marketing strategies which are anchored by our Search Engine Optimization activities. As a result, we attracted the largest audience of renters to ApartmentLove.com in our history,” exclaimed Mr. Davidson. Adding, “Furthering the remarkable growth and expansion we enjoyed in 2022 and very much thanks to the work of our capital partners throughout the year, we have significantly improved both our income statement and balance sheet and are, as a result, very well-capitalized to action or growth program in 2023.”
He added that 2022 proved the business model far more than aspirational as management implemented its plans, and the company is that much stronger because of it.
“We will continue to focus on accretive transactions while organically we invest in SEO to better leverage Google’s powerful search engine and all that same provides for trusted, tested, and scalable platforms like ours.”
It is through organic growth and expansion that this company is growing its revenue stream through growth initiatives and acquisitions. The fact that overhead costs are very low also helps see this vision through and ensure its strategies in key markets around the world are executed.
The rental market continues to inflate at a pace that most struggle to keep up with, but a real estate marketplace platform is out to calm the waves and significantly enhance its own portfolio.
Investors take note: ApartmentLove Inc. has a reach that spreads to more than 30 countries on five continents. The company is helping renters and travellers find apartments, condos, houses, and short-term vacation homes using custom filters for budget, location, and even pet-friendly options to make finding a property quicker and easier online. ApartmentLove earns revenues by charging landlords per advertised listing or monthly recurring listing subscriptions. It also earns a fee equal to about 10% of the gross booking value of every short-term vacation rental reservation made via its websites. Its current valuation is quite attractive, given how steadily its business has grown. This is one stock worthy of deeper due diligence sooner than later.
FULL DISCLOSURE: This is a paid article produced by the Market Herald.