A couple of concerns, which I think rattled my Market:
1) Resignation of the Huljich brothers from the board. They were early stage investors, and their departure raises some questions. One big one is, will they sell some or all of their holdings, which are not insignificant. The CEO today was unable to clarify their intentions of selling or holding their shares. Not great, as if they intent to hold their shares, I believe they would of said this was he case.
2) Customer acquisition slowed. Its a double edged sword, customers are sticky in general. Makes it equally hard to win and lose them. This raises questions as to whether the growth will continue into FY2022. My thoughts are revenue growth is likely to slow to around 20% in 2022, excluding acquisitions. I am OK with this at the current share price, as long as the operating leverage continues.
I expect the second half will be quite strong, continuing on from this half. It is a very seasonal business, with Xmas giving really juicing pushpay's revenue in H2. I think the digital transformation of payments should continue into H1 2022, So Mr Market may be surprised by Pushpay's results in 12 months.
Cheers,
Sean