Cloud Computing Solving Payment Problems; Two Payment Solution Providers- PPH and EML

  • Nov 11, 2019 AEDT
  • Team Kalkine
Cloud Computing Solving Payment Problems; Two Payment Solution Providers- PPH and EML

Cloud computing helps users in using the application on their system without actually installing it. It enables the user to access the files from any location having internet access. Australia is an attractive destination for cloud computing; however, as per the policy of the Australian Government on cloud computing, agencies may opt to use cloud computing services where they provide value for money and adequate security.

To read more regarding cloud computing, please read here.

Cloud Based Payment Solution

Cloud-Based Payment Solution enables the user to process payment through mobile devices or bank transaction via internet. In this article, we will look at a payment provider Pushpay Holding Limited (ASX: PPH) which provides cloud-based online payment solution. Cloud-based online payment solution provided by PPH forms a part of SaaS (Software as a service), where the Pushpay app enables the user to communicate with an organisation effortlessly and process payments. The user can easily make modifications and set up recurring payments at any moment. We would also look at EML Payment Limited (ASX: EML), which is more than a card company and facilitates payment processing through Apple Pay, Google Pay and Samsung Pay as well.

SaaS allows users to connect to the software/app and use them through the internet. Computer software is made available to the users against a subscription fee. The user pays the service provider for using the application and gets connected to the software via the internet, generally through the web browser. The core infrastructure, middleware, application software, as well as app data, are available at the data centre of the service provider. The service provider handles the hardware and software and ensures the availability and security of the application or the software it provides to the end-user as per the service agreement.

Let’s check the recent update of these payment providers, Pushpay and EML.

Pushpay Holdings Limited (ASX: PPH)

Company Overview:

Pushpay Holdings Limited (ASX: PPH) is engaged in building engagement solutions to assist organisations in developing their communities. The company provides a cloud-based online payment solution that helps non-profit organisations, faith sectors and education providers to centralise the donation data and manage payment operations.

On 6 November 2019, Pushpay Holdings Limited updated the market with its performance during 1H FY2020 (six month-period ended 30 September 2019). The company during the period delivered a strong result, with solid revenue growth, expanding operating margins, EBITDAF growth along with improvement in operating cash flow.

1H FY2020 Highlights

  • PPH’s total revenue grew from USD 44.0 million in 1H FY2019 to USD 57.4 million in 1H FY2020, representing a growth of 30%. The revenue growth was driven by the targeted implementation of its strategy, developing team potential and expertise, and responsible investment into product design as well as development.
  • Operating revenue increased by 31% to USD 56.0 million, as compared to the previous corresponding period (pcp).
  • Gross margin reported an improvement of 8% points year on year.

  • EBITDAF improved by USD 12.7 million as compared to its previous corresponding period. PPH which delivered EBITDAF loss of USD 3.1 million in 1H FY2019 gave a profit of USD 9.6 million in 1H FY2020, representing a growth of 413%.
  • Net profit improved by 247% to USD 6.5 million.
  • Total processing volume posted an increase of 45% year on year to US$2.2 billion.
  • Total LTV customer base went up by 45% to US$3.1 billion.
  • Total customers rose by 7% to 7,905.
  • Average revenue per customer increased by 20% to USD 1,272 per month.
  • Net asset of the company as on 30 September 2019 stood at USD 45.053 million.
  • Net cash inflow from operating activities for the period was USD 8.908 million.
  • Net cash outflow from investing and financing activities was USD 0.212 million and USD 13.567 million, respectively.
  • The position of cash and cash equivalent by 1H FY2020 end was USD 9.885 million.

Leadership at Pushpay:

During the period, the company announced the changes in its leadership. Chris Heaslip, who was the Chief Executive Officer in PPH, resigned from his position, effective 31 May 2019. His position was taken up by Bruce Gordon, who was the previous Chairman of the board, as CEO and Executive Director, effective 1 June 2019. Chris Heaslip would continue as the Non-Executive Director of the Company.

Graham Shaw, who was earlier the Independent Director, assumed the role of Chairman of the board. Christopher Huljich was replaced by Peter Huljich as a Non-Executive Director, and Christopher Huljich was appointed as Alternate Director to Peter Huljich.

Daniel Steinman resigned from the position of Director and Justine Smyth joined the board as an Independent Director. She also joined as a member of the ‘Nominations and Remuneration Committee’ and as a Chair of Pushpay’s ‘Audit and Risk Management Committee.’


The company expects a solid revenue growth as it executes its strategy to gain market share in the medium term and considers this as the best way to maximise shareholder value. For FY2020, the company expects its operating revenue to be in the range of USD 121.0 million to USD 124.0 million. Gross margin is expected to be more than 63%, EBITDAF between USD 23.0 million and USD25.0 million and Total Processing Volume in between USD 4.8 billion and USD 5.0 billion.

In the long term, the company is aiming for more than 50% of the medium and large church segments, which is an opportunity for the company representing more than USD 1 billion in annual revenue.

On 11 November 2019 (AEST 01:10 PM), the PPH stock was trading at a price of $3.280.

EML Payment Limited (ASX: EML)

Company Overview:

EML Payment Limited is a financial services company which aims to create amazing, instant and secure payment solutions for its clients to connect to their customers at any time and place. The company specialises in prepaid stored value products, and its offices are located in Australia, UK, Europe, UAE and the USA.

The company also allows for processing payment using Apple Pay, Google Pay and Samsung Pay.

Investor Presentation:

Recently, EML payments Limited released its investor presentation where it discussed on the below mentioned topics. Let’s look at those.

EML’s Journey:

EML’s Journey started from Incentives B2B & B2C Cards in 2011, and by 2019, it launched the largest European mall program. It expanded into Poland and the UAE. It also expanded its technology use cases, delegated authority and also added an instant mobile gift.

FY2019 Business Update:

  • In FY2019 (year ending 30 June 2019), the company’s Gift & Incentive segment gross debit volume (GDV) grew up by 42% to $1.06 billion. The revenue from this segment which was $46.6 million in FY2018 reached $66.4 million by FY2019 end.
  • The GDV in the General Purpose Reloadable (GPR) declined from $3.35 billion in FY2018 to $2.74 billion in FY2019.
  • Revenue in the GPR segment increased from $21.6 million in FY2018 to $23.9 million in FY2019. The company’s growth drivers GPR segment includes, Transition of salary packaging; expansion of gaming solution in Europe as well as North America and the rollout of designated authority solution to current markets.
  • In the Virtual Account Numbers segment, the GDV increased from $2.67 billion in FY2018 to $5.23 billion in FY2019.
  • In FY2019, 87% of the total revenue was through the recurring revenue, 10% was non-recurring revenue, and the remaining 3% was through interest.
  • NPAT increased by 283% to $8.5 million in FY19 as compared to prior year.
  • Operating cash inflow during FY2019 was $22.0 million apart from one-time benefit of $7.1 million in accelerated breakage cash receipts.

In 2020, the company intends to take initiatives to expand the career paths available to its team member. It would also focus on attracting and developing talent as it speeds up the growth of its business.

The EML stock last traded at a price of $3.830 on 8 November 2019.


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