Pushpay
(ASX: PPH) has announced its half year result for the six months to 30 September 2019.
Pushpay is a New Zealand based donation systems and software business for religious, not-for-profits and education providers in the US, Canada, Australia and New Zealand. Pushpay is used by over 7000 churches worldwide. The average gift is $192. Pushpay makes money by charging a subscription fee for its app but also from clipping the ticket on processing donations.
Pushpay’s HY20 Report
The donation business announced that its revenue increased by 30% to US$57.4 million. New customer numbers were lower than the first half of last year, so the company is doing a number of things to combat this.
Total processing volume jumped by 45% to US$2.2 billion. It’s still guiding this metric to be between US$4.8 billion to US$5 billion.
Even more pleasing is the increase of its gross profit margin from 57% to 65%. The gross margin is typically weaker in the second half, but it’s still guiding a gross margin of more than 63% for FY20.
Total operating expenses actually decreased by 2%. This meant that operating expenses as a percentage of revenue improved from 72% to 54%, which the company said demonstrated operating leverage.
EBITDAF (click here to learn what EBITDA means, the F stands for foreign currency) increased by 413% from a loss of US$3.1 million last half year to a profit of US$12.7 million in this half year.
Net profit increased 247% to US$6.5 million, up from a net loss of US$4.4 million a year ago. Operating cashflow grew by 274% to US$8.9 million, up from a negative US$5.1 million last year.
Management Comments
Pushpay CEO Bruce Gordon said: “Pushpay continues to focus on future-proofing the business, by refining the strategies that will allow the company to realise its considerable potential over the long term, while maintaining prudent financial discipline. As we continue our growth journey, our relentless focus on innovation, strategy and execution will lead to continued growth and success for the business.”
Outlook
The company expects “further solid revenue growth” and continuing expansion of operating margins.
It’s still aiming for operating revenue between US$121 million to US$124 million, a gross margin of over 63%, EBITDAF of between US$23 million to US$25 million and total processing volume of between US$4.8 billion to US$5 billion.
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