Borngiantsfan, thanks for your comments – I am beginning to realize that what you have written is indeed true. It is difficult and exceptionally time consuming to find clear information for PRCH. I am reconsidering whether it is worth the effort anymore, because without information the thesis would be more speculative and thus not something for me or for this board. I am more than likely going to just put in on my watch list for the moment.
Rafe, those are great questions; indeed I had the same questions myself (in particular regarding if customers pay subscription – this is something I have not been able to clarify yet.) I think your question on recurring revenue would also tie in with whether they have a subscription model or not.
I understood 90% recurring revenue to mean that 90% of the revenue will be expected to continue into the future. (this seems to suggest that they do have a subscription model)
Regarding the TAM, they are adding related services – all to do with the home – they want to be the one-stop-shop for home-owners (as the CEO mentions in the video). I would not say that they are adding up “industries” because all of the acquisitions are related to home-owner needs (that’s they way I understood it anyway).
“I’m not trying to be argumentative. These are just the first thoughts and questions that came up for me reading the pitch here. If I can only buy a new company by replacing something I already own, it would have to be pretty darn special, with dependable growth prospects. I would prefer something that has grown by innovation and attracting customers rather than acquiring them. Too much unknown” - I appreciate your comments, and questions. I fully agree – there is too much unknown (also as Borngiantsfan alluded to, and as I have come to realize, information on these details are not easy to come by). I think you make a great point when you say “I would prefer something that has grown by innovation and attracting customers rather than acquiring them” – I think PRCH is not a company that grows through technological innovation (or at least I get the impression that their technological innovation does not seem to be key even if they do provide software solutions to customers) – rather I think the growth story here is based on the fact they are fulfilling a need in the market and the approach they are taking is setting up a fly-wheel effect.
I have no position in PRCH – and based on the information I have so far I too will not sell any of my exiting positions to buy PRCH. But I do think it is work taking a look at again once they start reporting earnings – I think an earning call might reveal many of the answers which we seek. I am happy to put this on the backburner until then.