Consensus community valuation
Average Intrinsic Value
Undervalued by
Active Member Straws
#Sell down
Added 4 weeks ago

PushPay's major shareholder the Huljich family have sold 14.4 million shares -- around 5.4% of the company -- for $NZ8.40 a share (A$7.92). That's around $120m in total.

In total, the family still retain 43.2m shares, or about 16% of PushPay.

Peter Huljich, a non-exec director, said the family had no intention to sell further shares, although committed only until the groups FY21 results (May next year).

The Huljich family became cornerstone investors in PushPay way back in 2013, with an initial $2 million investment and a further $17m-odd up to the company's 2016 listing. I havent gone through all transactions, but it's safe to say they have scored an insane return on that early seed round!

I know a lot of people get upset when directors sell, and I agree it's not what shareholders would prefer to see. There's certainly many examples of such sell downs being a red flag.

But we also tend to forget a lot of 'silent evidence' where the sell down wasnt a portent of something negative. I'm sure someone, somewhere has done research on this, but my bet would be that more often and than not, in isolation, it's a poor signal.

As they saying goes, insiders sell for many reasons, but they buy only for one.

Frankly, if i had close to half a billion in one company, i'd probably look to sell down a little too. In fact, i recently sold a few PPH in my Strawman portfolio due to weighting considerations (but it is still my largest holding).

ASX announcement here

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#COVID-19 Update
Added 5 months ago

Pushpay has updated shareholders on the impact of the coronavirus and actually INCREASED guidance. 

The cessation of church gatherings has created an increase in demand for their offering.

EBITDAF now expected to be roughly 8% higher at between US$25-27m for the year ending March 31.


ASX announcement here

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#Acquisition of CCB
Last edited 6 months ago
  • In December 2019, Pushpay completed a transformational merger with Church Community Builder (CCB) to deliver a ‘best-in-class, fully integrated church management system (ChMS), custom community app and giving solution for customers in the US faith sector.’
  • Pushpay will acquire 100% of CCB for $US 87.5m, funded via cash on hand plus a new $US 62.5m senior debt facility. Based on CEO commentary, CCB has annual revenues in the range of $US 15-20m, implying a revenue acquisition multiple of ~5x. 
  • CCB provides ChMS solutions in the US. It provides a platform that churches use to connect and communicate with their members, record member service history, track online giving and perform a range of administrative functions. CCB has over 4,000 churches (meaning 10,000+ combined)
  • CCB makes 90% of its revenues from subscription fees, with the remaining 10% based on customisation or integration / implementation services provided on an adhoc basis to customers. Its customer retention is excellent, with most customers entering into annual paid in advance arrangements.
  • CCB has historically generated $US 15-20m revenues, however the transaction is not expected to have a material impact on Pushpay’s revenue or EBITDAF in FY20 due to ‘the development work required to further integrate the product offerings.’ To me, Pushpay is really buying the customer relationships, as well as the features and capabilities of the CCB software platform, rather than its current revenue and profits. It will then combine the businesses, provide an integrated solution to customers and look to recover its acquisition cost by increasing ARPC with a larger customer base. Pushpay stated that if the integration proceeds to plan, the acquisition is expected to be pre-tax CFO per share accretive in FY21 onwards.
  • Management / Board changes:
    • Chris Fowler, CCB founder, will continue in the business as Visionary and will join the Pushpay Board as an executive director. The other key CCB management – e.g. the CEO, Don Harms – will also continue, reporting to Bruce Gordon, Pushpay’s CEO.
    • The co-founder of Pushpay, Chris Heaslip, has agreed to sell $US 15m (~2.4%) of Pushpay shares to Chris Fowler. Chris Heaslip will resign from the Pushpay Board on 31 March 2020.
  • Pushpay reiterates its FY20 guidance of operating revenue between $121m and 124m, gross margin over 63%, EBITDAF of $23-25m and total processing volume (TPV) of $4.8-5.0b.
  • This seems an obvious move for Pushpay to make, and was expected by the market. There are strong synergies between church administration and payments processing, and an integrated solution was a preference (read: demanded by) of a lot of Pushpay’s existing customers. “One of the most frequent requests from churches is the need for an improved ChMS experience” – Pushpay.
  • Pushpay has indicated that CCB was their main ChMS target. They were looking for a ChMS provider that had a comprehensive suite of features, a modern platform based in the cloud, strong management, mutual customers with Pushpay and with a focus on medium-large churches. They believe that CCB ticks all these boxes. Further, there is already some two-way integration between their platforms.
  • Ideally, I like to invest in businesses with net cash balances. This does seem like a lot of debt to take on for the acquisition, however I prefer it to diluting existing shareholders by issuing further equity, and would expect Pushpay to begin paying down this debt with operating cash flows as soon as possible.
  • As noted in other sections, I believe Pushpay will be required to invest in the integration of the two platforms (albeit there is some integration between the two already) and to bring CCB’s software up to Pushpay’s standards of modern technology and innovation.
  • Culturally, it seems to be a good fit, with a strong history between the two and both the founder and CEO of CCB staying on. And it is nice to see the CCB founder coming onto the Pushpay Board with $US 15m skin in the game.
  • Overall, I think this is a positive for Pushpay, as it expands its market and revenue potential. The best acquisitions are often the most obvious ones. I wouldn’t be surprised if there are some kinks in the short term, however the acquisition should drive increased long term shareholder value.
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#ASX 200 Index Addition?
Added 3 months ago

Given Pushpay's market capitalisation is well above $1B, it ranks around 130 in terms of market capitalisation.   Assuming liquidity hurdles are achieved, Pushpay should enter the ASX 200 index in the June quarterly rebalance, and become an investible business for a number of passive and active funds.   


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Added 3 weeks ago

Hot off the heels of the Huljich family sell down, Independent Director, Justine Smyth, has resigned from her role with PPH.

We'll have to keep our ear to the ground to learn more about this over time. I recall Chairman Shaw making note of Justine's experience in M&A when she was first appointed in Aug 2019. Perhaps it was always the plan to bring her in specifically for the Church Community Builder acquisition. If so, transparency could be better. If not, there could be something bigger at play.

It's always fraught with danger when trying to guess the underlying reasons behind a resignation or share sell down. Justine, for example, has an athletically gifted daughter who is pushing for a Winter Olympics spot. Alternatively, she is a passionate advocate of women's rights. Without further commentary, we could use this resignation to make intelligent arguments to paint PPH both in a positive or negative light. 

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Added 4 months ago

I didn't think an announcement relating to a new hiring was going to be the next event that got me more excited about PPH, yet here we are.

When everyone else is laying people off, PPH have secured the services of Lovina McMurchy. Lovina has significant experience with tech-orientated business over the last 20 years. Most recently, she worked on the Alexa team to build out voice-based shopping services. Prior to that, she pioneered Amazon's move into the subscription economy by building a technology platform to allow both Amazon teams and external teams to rapidly launch and sell subscription products on Amazon. She has also worked with Microsoft, Starbucks and Movac, a kiwi venture capital firm.

As PPH seek to flesh out their newly acquired ChMS this is a great hire.


In the same announcement, PPH completed the last step in founder Chris Heaslip's departure with him formally standing down from any formal PPH position. I am sure in the future we will discover if Chris left or was pushed. As for now, I am excited to see the fruit of their most recent hire.

Original announcement here.

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Added 6 months ago

Here is a comparison of PPH adj. cashflow against other software businesses

Note: Figures exclude Capture capitalisation (NEA), Stock based compensation (US), and software capitalisation.    

I am not 100% confident in the accuracy of my figures, but I think it is fairly accurate picture.............

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Added 6 months ago
  • Revenue risk / loss of customers: As a SaaS business, none of Pushpay’s customers are locked into long-term contracts. They are able to discontinue using the platform (and potentially move to a competitor or alternative giving platform) with minimal notice. There is a risk of a decline in Pushpay’s customer retention rates.
  • Technology / IT risk: As a provider of technology, there is always a risk of failure of the IT / platform / systems, loss of data or data corruption, which may adversely affect Pushpay’s reputation and turn customers away from the Pushpay platform.
  • Competition: There is the risk of a competitor developing a superior product and commercialising with greater success. Every man and his dog is getting into payments processing these days, and the faith sector seems ripe for further disruption and competition. In particular,, another provider of solutions to churches and ministries to increase giving and engagement, is growing significantly in the US. has over 13,000 churches in 50 countries, including Hillsong, Salvation Army and Planetshakers. Although seems to be focused on smaller churches (i.e. less than 200 attendees), whereas Pushpay is focusing on medium to larger churches (which are likely to be more profitable).
  • Regulatory risks: Pushpay is a merchant / payments processor that accepts credit cards and therefore is subject to certain US financial regulations, as well as data privacy laws. Changes to these regulations may cause disruptions, and non-compliance / breaches may result in penalties or termination of accreditation. Although note that Pushpay does not handle the donation money, but rather deals with the payment instructions from the attendee to their banks. The money is transferred directly from the bank to the church – which enables Pushpay to sidestep relevant anti-money laundering laws.
  • Key man risk: Both Pushpay co-founders have left the business in the last year or two, and therefore the business is now heavily dependent on the CEO (and previous Chairman), Bruce Gordon. If Bruce were to leave or be otherwise rendered unable to perform the job, this could present a significant problem.
  • CCB acquisition / integration risks: As with all large acquisitions, there is risk that the two businesses do not merge and integrate as well as expected. Issues can arise from a commercial or cultural perspective. It is helpful that Pushpay and CCB have a strong history together, including a large portion of customers already using both platforms. Further, this may be mitigated by the fact that the integrated solution (ChMS + Pushpay) has been requested by customers. However, I am expecting that Pushpay will be required to invest significantly in the CCB platform in order to bring it up to standard and ensure complete integration with more modern technology and capabilities.
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#Investment Thesis
Added 6 months ago
  • Pushpay is a fast growing, SaaS provider with leading technology that is becoming further entrenched into a large, growing and loyal customer base.
  • Pushpay has estimated that annual donations in the US faith market are in excess of $123b, 80% of which are made via cash or cheque. Therefore, based on its current annual processing volume of $5b, this suggests it has captured less than 5% of the total market. Further, donations represent ~90% of revenues for US churches, making Pushpay’s platform integral to their operations and resulting in highly ‘sticky’ revenues for Pushpay.
  • As a SaaS provider, Pushpay has significant scalability. Its platform is hosted centrally on the cloud, can be infinitely replicated at low cost, and can be easily accessed by churches via the internet.
  • Pushpay has multiple means for further revenue growth:
    • Growing market / tailwinds, as a greater proportion of giving is done via digital means;
    • Increasing market share in the existing US faith sector, which Pushpay estimates has 340,000 Protestant churches. Based on total customer numbers, <5% of the US market has been penetrated to date.
    • Increasing ARPC as new features and capabilities are provided to existing customers. For example, there are ~2,800 CCB customers that are not using Pushpay, as well as many existing Pushpay customers that are not using CCB. Further, there are many features and modules that can be developed to solve other issues within the church. For example, child check-in registrations for Sunday school, event registration and ticketing capabilities. As more value is provided to churches, Pushpay should be able to raise prices and ARPC.
    • Expansion into new markets (geographical or religious). For example, Pushpay has established a working group to develop a go-to-market strategy for the Catholic Church market, and could unveil this in FY21.
  • Management are expecting significant operating leverage to accrue as operating revenue continues to increase while growth in operating expenses remains low. In fact, Pushpay is forecasting its cost base to remain effectively flat for both FY20 and FY21, despite the CCB acquisition. Therefore, any incremental revenue should flow to profits / cash to be reinvested back into the business.
  • Pushpay is investing in developing its platform, as well as in customer success and experience. In 1H20, Pushpay invested over 44% of operating revenues in product design and development, sales and marketing and customer success / integration.
  • Arguably, Pushpay could have a level of economic downturn resilience. Church leaders have noted that in times of economic trouble, many people focus more on their local communities and less on the broader global world. Meaning that donations to local churches don’t necessarily fall as much in bad times as you might think.
  • In the long term, Pushpay is targeting 50% of the medium and large church segments in the US, which is estimated to be a $US 1 billion annual revenue opportunity (~8x current revenues). Acquisitions may be necessary to reach this goal, however management is confident that it will achieved in time. Alongside this is a goal of $US 10b of donations being processed via its platform (~2x current volumes).
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#PushPay FY2021
Added 2 months ago

At the time of the release, most holders would have been ecstatic with the result and may still be pondering over the mouth-watering guidance provided for FY2021. Simply wow, particularly as this comes in the midst of a historical pandemic, with economic uncertainty prevailing across the macro, at a sector level and of course, for individual companies. I suggested prior to the release of the FY results @31 March, that due to timing, the impact of Covid-19 would likely be minimal. Nice to lock in solid results when others are withdrawing guidance and priming investors for a period of under performance.

More importantly, I think we can now confidently say that PushPay appear not only to be weathering the storm better than most, they are one of the few Companies which have seen increased adoption of their Digital products and services, a gain which is likely to sustain.

Having completed a full review of the results, can share some interesting observations. The investment case for PushPay is IMO now stronger than it was a year ago. This investment was always about operational leverage, where scaling and cost containment would drive enhanced profitability. To assess this, I chose to exclude the financial impact of the CCB acquisition from the results so as to assess the Run Rate entering FY2021 ( on the original PushPay business).

Note : Run Rate calculated using the financial results for the second half of FY2020

Key metrics as follows :

Operating Revenue ......................USD 134 m
less Third Party Direct Costs ....... USD 48 m
equates Gross Profit .....................USD 86 m

Gross Margin ................ 64 %

less Operating Expenses ...............USD 54 m

yielding EBITDAf............................. USD 31.5 m

Interesting the Company provided FY2021 guidance for EBITDAf only at USD 48m to USD 50m. Illogical when you consider TPV and Revenue feed into this result. Can understand that TPV will be subject to the economic stresses felt within congregations, yielding uncertainties in terms of the impact on the extent of giving. 

So where do PPH get the confidence to guide on EBITDAf ?

The Run Rate provided says they are already well on their way to achieving this result, particularly when you consider :

1) The FY2020 shows unearned Revenue of USD 14.3 m ( historically a USD 7 m carry)
2) The metric above excludes USD 16 m of historic CCB Revenue and the impact of CCB’s higher Gross Margin plus any further post acquisition cost savings. Company has really impressed via financial disciplines, so step change in costs anticipated.
3) Excludes any cross selling opportunities and the financial benefits associated with the launch of new fully integrated software including Church Management.

Gut says the FY2021 guidance on EBITDAf is already in ‘Beat’ territory. Look forward to the AGM on the 18th June. Sure they will provide more detail or at least further context at that time.


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Added 5 months ago

PPH have announced this morning that performance for the year ending 31 Mar 2020 is not expected to be adversely impacted by Corona virus. (no comment on any period beyond that)

Gordon mentions that the Pushpay platform is helping churches communicate with their congregations despite many churches closing their doors (i.e. doing its job).

Despite many Americans already self-isolating, donations through the pushpay platform last weekend exceeded pre-COVID expectations. This may be an anomaly or part of my short-term thesis playing out. I expect tithing to decrease in the short term, however part, or all, of that processing volume to be offset by one-off offerings. For those unfamiliar with church givings there are two components; tithes and offerings. Tithes are the 10% that is biblically expected each week. An offering is what occurs above and beyond that and are a way of church attendees to assist in the face of catastrophe. I expect offerings to reduce the short-term processing volume impact of self-isolation.

In the same announcement, PPH reiterated or increased guidance as follows;

  • Operating revenue of between US$121.0 and US$124.0 million
  • Gross margin of over 63%
  • TPV of between US$4.8 and US$5.0 billion
  • EBITDAF of between US$25.0 and US$27.0 million (up from 23-25)

Original announcement here.

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#Business Overview
Last edited 6 months ago
  • Pushpay (ASX/NZX:PPH) is a NZ-based technology company that has developed software (in particular, a mobile app) to facilitate payment transfers (i.e. donations) and community engagement within the faith and non-profit sectors in the US, Canada, Australia and NZ.
  • Pushpay provides its software as a service (SaaS) and generates revenues via:
    • Monthly subscription fees (~30% of total revenues) – Pushpay charges a monthly access fee to its 7,900+ customers (i.e. churches) using the software, with ~98% located in the US or Canada. Customers grew +7% in 1H20. Monthly subscription fees are loosely based on the number of attendees at each church.
    • Processing transaction fees (~70% of total revenues) – Pushpay charges a variable fee on all donations processed via its platform. Approx. US$4.5-5.0b worth of donations are processed via the Pushpay platform annually (which grew over 40% in 1H20).
  • In addition, Pushpay’s mobile app gives churches the ability to engage with its attendees via articles, information on upcoming events, recorded sermons etc. Pushpay has the opportunity to become the church’s predominant provider of social media content to attendees.
  • In return, churches love the app because it encourages further giving (especially from younger generations who do everything on their mobiles), and drives the trend towards digital giving which means less administration time and costs for the church. Pushpay has estimated that, on average, 40% of donations at Pushpay churches are via digital means, compared to 15% for non-Pushpay churches. Further, because attendees can set up regular recurring donations, the church receives much more consistent and predictable donation revenue.
  • Pushpay has low customer churn rates (~5% for medium/large churches, ~10% for smaller churches). Church administrators have complimented the functionality and accessibility of Pushpay’s platform and how it simplifies their back-office administration and allows them to focus on increasing participation and building stronger relationships with their communities. For example, one particular church has seen over 72% of its attendees donate via digital means since using Pushpay and has subsequently experienced a 90% decrease in the costs associated with annual giving statements.
  • Pushpay’s strategy is to focus on signing medium to large US churches, and has had recent success doing so, for example last year signing a large US church with over 40,000 weekly attendees.
  • Pushpay has recently completed the acquisition of Church Community Builders (CCB), a provider of church management systems (ChMS), i.e. software that manages a church’s administrative operations and client management. This will enable Pushpay to provide an integrated solution – both church management software as well as donation processing capabilities – which has been increasingly requested by its customers.
  • Pushpay’s cloud-based platform is hosted on Amazon Web Services (AWS) and is built using Salesforce technology.
  • Pushpay is dual listed on both the NZX and ASX.
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#FY21 Guidance Increase
Last edited 2 months ago

PushPay upped its guidance for FY21 for EBITDAF (operating earnings) between US$50-54m (up 4% from US$48-52m).

That's double what they did in FY20 (year end March 31).

AGM presentation here

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#COVID-19 Update
Added 2 months ago

Attended the webinar conducted by Exponential this morning (2.30 pm US ET) aimed at providing an update on the impact of Covid-19. Their Survey Report (soon to be issued) captures findings from a sample size of 767 respondents (Churches) with the survey conducted between the 1st and 12th June. The analysis provides first hand feedback on challenges, impacts and evolving progress for the months of April & May.

So a reasonable sample size spanning small, medium and large churches in the USA and importantly, a ‘current’ snapshot. With PushPay’s AGM due to be held tomorrow, thought some may find it useful to get an overview which can either confirm or add context to whatever we hear tomorrow.

Herewith my interpretation of that shared in the Webinar.

* The gradual re-opening of churches in the USA is presenting a wide array of approaches, strategy, experimentation, rate of progress and resultant outcomes. The points of difference are to an extent governed by different things that can or cannot happen in different places. This situation is amplified with split opinion from congregants as to whether Churches should or should not open

The Survey has revealed that 80 % of the congregation at large churches are not attending. Attendance at smaller churches is much higher. Most churches who have the potential to gather at a determined level of capacity are yet to reinstate gatherings.

* The respondents surveyed fall into one of two categories, these being ‘early adopters’ and ‘late adopters’. 

Early adopters are being challenged by continuous testing of traffic patterns (vs restriction guidelines’, staffing availability and the need to run with a dual system covering ‘in building’ and ‘on-line’ services. After several weeks, the nett result is that more than 50% of pre Covid-19 congregants are not returning. Some early adopters are advising others not to start in-building services until the standard is equal to or better than the on-line standards. Examples include in- building attendance of 11%, congregation and Church choirs singing in masks, the divided political opinion on wearing masks (a level of boycotting), the necessary cleaning cycles, fogging and the list of challenges goes on.

The late adopters are very much in experimentation mode. 50 % of the churches surveyed plan to re-open in June, many with the understanding that, given the continued spread of Covid-19, they may need to re-close.

* So uncertainty abounds at a time when congregation care is a priority. Said that 20% of New Yorkers know someone who has died of Covid-19. You can add to this the woes of the unemployed, the fall-out for families, the pressure on food banks and the new impact of the ‘black lives matter’ protests. So the need has never been greater. 

All said, the responses indicated optimism currently outweighs uncertainty.

* What of funding ? Whilst the survey material does not dimension any drop in the extent of giving, some comparisons of Mar/ Apr 2020 versus Mar / Apr 2019 show that the funding inflow probability matrix reveals little change. They break the funding inflow into CERTAIN, UNCERTAIN and UNKNOWN. 

* Churches have found a new rhythm on remote staffing (on-line). With the Faith sector being considered as ESSENTIAL SERVICES, giving the change in exposure risk, Churches have lost some of the older volunteers and now replacing with younger volunteers. Some are leveraging this for extending the on-line engagement with congregants, expanding over the historic in building congregation size. 

Most Churches plan to remain on-line, creating multiple Zoom rooms all aimed at accelerating the drive into communities. 


We know that PushPay has seen higher adoption through this period. The above points to the move to Digital Services / Engagement Tools sustaining. Maybe this new found ability to leverage the power of on-line will see the mission of the Church rebound from the declines witnessed over the last 10 to 15 years.

Hopefully this will provide some context when we hear from PPH in the morning.


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Last edited 6 months ago
  • All amounts in USD (unless otherwise stated)
  • After its recent share price gain, Pushpay has a market cap of around $NZ 1,200m (January 2020).
  • In the 6 months to 30 September 2019 (1H20), Pushpay generated operating revenues of $56m (+31%), $10m EBITDAF (+413%) and $7m NPAT (+247%). As can be seen in the growth rates, Pushpay has recently hit a significant financial inflection point and is starting to see operating leverage come through to the bottom line.
    • Looking forward to the full year FY20, Pushpay is forecasting operating revenue of $121-124m and EBITDAF of $23-25m, which would represent growth on FY19 of 25% and 1,400% respectively. Pushpay is expecting a gross margin above 63%, with total processing volume between $4.8-5.0b.
  • Pushpay’s growth comes from:
    • Increased number of customers, which were +7% in 1H20 to 7,900; and
    • Increased revenue per customer (ARPC), which was +20% to $1,272.
  • Pushpay’s processing revenues are growing faster than its subscription revenues at +35% vs. +22%.
  • Pushpay is expected to benefit from significant operating leverage moving forward.
    • For example, despite its revenue growing at +31%, third party direct costs (equivalent to cost of sales) increased by only 7%. These costs include donation processing costs (e.g. to Visa and Mastercard) and platform hosting costs (i.e. payments to Amazon for using AWS). As more customers are signed to the platform, subscription and processing revenues are likely to increase at a far greater rate than its operating costs which means that more of the revenues will fall to the bottom line. Pushpay’s gross margin increased from 57% (1H19) to 65% (1H20). 
    • In addition, Pushpay’s other operating expenses DECREASED by 2% to $30m, which shows impressive cost discipline from management.
    • As part of this opex, product design and development costs decreased 7%. My guess is that these costs will reverse and increase post-CCB acquisition as Pushpay spends to develop the CCB platform and integrate with the Pushpay platform. Also worth noting is that all of these product design and development costs were expensed through the P&L, and not capitalised.
  • Pushpay has historically maintained a net cash position, however will raise $63m of debt as part of the CCB acquisition. I would expect that Management will look to pay down this debt as soon as possible.
  • The total lifetime value (LTV) of Pushpay’s existing customer base is $3.1b (+45%), driven by increases in ARPC and gross margins as well as Pushpay’s supremely high revenue retention rates above 100%.
  • Pushpay spends a significant amount on acquiring and integrating customers to its platform. These costs, being sales, marketing and customer integration costs, represent 30% of operating revenues, however this is down from 39%. The time taken to recover the cost of acquiring each customer increased from 15 months to 22 months.
  • Pushpay has accumulated over $44m of losses, which should be able to be utilised to reduce its tax payable in future income years.
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#FY20 Results
Last edited 3 months ago


PushPay FY20 Results.

Wow. An amazing result in some very challenging times.

Headlines were all excellent, with EBITDAF hitting right at the top of their revised guidance in March, coming in at US$25.1m. Operating revenue was up to US$127.5m (total US$129.8m), gross margins improved to 65% (up from 60%), PBT was up to US$21.7m (from US-$1.4m), and operating cash flows were up to US$23.5m (from US-$2.8m).

The business is scaling beautifully, and is thriving on the back of a rapidly increased adoption curve from the impact of COVID-19.

Expenses increased a little more than I had forecast for the full year on the back of 4 months of additional expenditure from the CCB integration, although sales and marketing expenses declined by about US$1.5m.

NPAT was slightly down on last year, due wholly to tax losses being brought forward last year, so the more revealing figure is PBT, which saw a impressive % increase from last year. PushPay has well and truly tipped into profitability now, and will look to aggressively use excess cash flows to fuel further growth via M&A, incremental product improvements and increased engagement with their existing customers.

Looking ahead, one of the key highlights of the investor call was that the last 6 weeks have seen an outperformance in terms of revenue gain, fulled no doubt by the expedited new need to give digitally. Though management don't expect this to carry on, they were cautiously optimistic about FY21, and provided stunning guidance of between US$48-52m in EBITDAF (a near 100% increase!). However, if revenue outperformance were to continue unabated – even for an extra month or so – that guidance will be smashed. The half year report will be very interesting indeed.

CCB contributed about ~$4m in revenue from Dec 1, so a rough annualised guess is that we'll see an additional $16m contribution from the acquisition this year. Commentary so far was that they are happy with how the integration is progressing, and that FY22 is where they expect to see the full benefits of the partnership play out financially.

All in all, one of the more exceptional results on the ASX so far this year . Even with the spike in price today, there still looks to be value buying at the current levels if that guidance is met. Well done to all holders!

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#FY2020 results
Added 3 months ago

Outstanding results. Key takeaways:

1) COVID-19 is driving churches towards digital giving. 

2) Revenue (ex. CCB) grew 28% on constant currency basis.

3) Gross margins (ex. CCB) grew from 60% to 64%.

4) Expenses (ex. CCB acquisition) decreased 8%.

5) Outlook -

a) EBITDA to double next FY.

b) "strong" revenue growth to continue.

c) Looking for further strategic acquisitions to broaden platform.

d) Long term - targeting 50% of medium / large church segment, which represents $1 billion in potential revenue.


6) ARPC ex. CCB, at $1614 per month, up from $1315. Thats 22% growth. Nice.

7) no. of customers grew 43%. partly due to CCB acquisition.

"Due to the restrictions around in-person gatherings, Customers have been giving...through their apps for continued engagement with their communities.....Pushpay’s processing volume over the month of March was higher than...expected.." Although, it is antiicpated demand for digital payments may moderate as restrictions are eased.   

Many improvements to the platform, improving engagemnt and value to customers.  


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#covid-19 IMPACT
Added 4 months ago

Interesting trend in Pushpay app downloads over the past few months.  It seems to tie in with management reporting churches are encouraging church goers to use electronic payments for tything......

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Added 6 months ago

Attached is a comparison of PPH vs local and Us software businesses.   PPH remains relatively inexpensive to other "stonks" 

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#Sell down
Added 4 weeks ago

I see the selldown as a great buying opportunity, having seen Pushpay grow their Free Cashflow exponentially. They can start to expand across USA without hurting bottom-line. I missed out on getting in this during the March sell-off. Now, I am bolstering my portfolio by adding it. 

Plenty of research done by Andrew, Matt and others on this company. It was in my watchlist, along with Appen, Zip and Xero. The other 3 are priced for long-term future growth. Awaiting a pull back on them to add it to my portfolio. 

Much easier doing a DCF on Pushpay with a proven track record. Watch this space :)  

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#Profit Upgrade
Added 2 months ago

In the AGM today, PPH have upgraded FY2021 forecast profit by 4%, and is experiencing increasing demand of their mobile platform.

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#PushPay FY2021
Added 3 months ago

FY2020 has seen PPH execute on their plan, delivering impressive operational leverage and prospects for accelerated growth with a first acquisition. When they report their FY2020 results on the 6th of May, expect EBITDA to be north of AUD 35 million. The Church Builder acquisition appears to have gone well and their efforts towards integration and expanding their platform to the 'one stop shop' concept should present significant growth opportunities during CY 2021. The Company did indicate that the Church Builder acquisition will be earnings accretive in FY2021.

The fall-out from Covid-19 should yield approx. a 20% decline in Total Processing Volumes, offset by the addition of many new Church Groups. Watching BlackBaud as their most significant competitor. This USA listed Company is a well established business who has undergone a major transformation over the past 24 months. Dominant in the Catholic Church space, which provides for some market divide. As the combined revenue of PPH and Blackbaud, generated from the faith sector yields a market share of less than 10%, plenty of scope for these two Companies to extend their footprint during the Covid-19 disruption. That said, suspect many of the smaller players will be capitalising on the opportunities during this period.

PushPay's achievements to date have been measured. Interesting to see how they have coped with a need-driven surge in demand over the past 8 weeks.

Revise my valuation to AUD 5.88 for FY2021


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#Fund Managers' Views
Added 4 months ago

14-Apr-2020:  FSI Shareholders' Quarterly Report - March 2020

"INVESTMENT ACTIVITY:  During the quarter, we removed Pushpay Holdings (ASX: PPH) due to concerns regarding their competitive environment and an uncertain future regarding profitable growth."

--- click on link above for more ---

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#FY19 Results
Last edited 9 months ago

8th May, 2019

PushPay Results Presentation is here

  • Revenue up 40% to US$70.2m
  • A maiden FY net profit of US$18.8m, compared to a loss of US$23.3m
    • PBT was -US$1.5m. Positive NPAT due to US$20m tax benefit 
    • Now that they are likely to be profitable going forward, they needed to recognise these tax assets. They wont be paying any tax for a few years it seems.
  • Average Revenue Per Customer (ARPC) up 33%
    • Month to recover acquisition cost is is still "<18", which suggests that CAC is increasing
  • Customer count up by 5%, with 373 customers added over the year
  • Cash down to US$13.9m, from US$17.9m
  • But positive operating cash flows for the second half -- in fact, they seem very close to accounting profitability ion a statutory basis
  • Revenue retention is still >100%
  • Staff count up by 11%
    • mainly development and "customer success" (onboarding)
    • Sales costs flat, but headcount up 7%
    • G&A costs down 10%, headcount down 3%
  • Gross operating margin improved to 60%
  • CEO Chris Heaslip is leaving and being replaced by Bruce Gordon
    • Chris is remaining on the board
    • Comes almost a year after his co-founder Eliot Crowther stepped down
    • Bruce is long known to Chris and PushPay, having served as Chairman and acting as Mentor to Chris and Eliot in the early days of the company
  • Acquisitions seem likely, and expect the company to use a bit of debt here

At current price ($3.60), shares on a P/S of 10x, and a PE of 37x (including tax benefit)

Overall, these results were solid, and in line with expectations.

With the top line growing at ~40%, a large addressable market, high retention, rising ARPC and operating costs well contained, we should expect some very solid profit growth in the coming years. 

Happy with my existing valuation for now, but lean towards increasing this..

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