Pushpay Holdings Limited (ASX: PPH) on 8th May 2019, announced the Resignation of Chris Heaslip from his position as CEO (Chief Executive Officer), with effect from 31st May 2019; however, will remain as a Director of the company.
The company today released to the exchange its 2019 Annual Report and the major highlights are as follows:
Strong Revenue Growth: PPH has been enjoying a strong track record of delivering on guidance. The company has met/exceeded all the guidance it has provided since its listing in August 2014. Most recently, PPH delivered on its total revenue guidance for FY19, with total revenue increasing by US$28.2 million from US$70.2 million to US$98.4 million, a rise of 40%. These strong results in FY19 were largely attributed to the well-implemented strategy as targeted, improved efficiency and expertise of the team along with the responsible investment into the product design and development. PPH provides annual operating revenue guidance for FY20 in the range of US$122.5 million to US$125.5 million. The management expects that the revenue growth will be continued on the back of business execution on its strategy along with higher efficiencies and a further improvement in market share in the US faith sector.
Margin Improved: Gross margin for FY19 came in at 60% from 55%. The diligent approach adopted by the company has led it to optimise gross margins along with the pleasing results. The management suggests that the benefit from the margin improvement program will be continued over the coming years. The management raised the gross margin FY20 guidance to over 63%.
Operating Leverage: Despite the operating revenue increasing by 42% over FY19, the company’s total operating expenses remained stable. Total operating expenses as a percent of operating revenue for the company in FY19 were 65% from 93%, showing a rise of 28 percentage point. With the lower total operating expenses, the management expects substantial operating leverage to accumulate as operating revenues will continue to grow. PPH adopted best in its category software tools and scalable processes early in its development. These investments will lead to a substantial operating leverage achievement with the growth in revenues.
EBITDAF witnessed a rise of US$20.2 million in FY19 from a loss of US$18.6 million to a profit of US$1.6 million, a whopping increase of 108%. The management has provided EBITDAF guidance for FY20 to be between US$17.5 to US$19.5 million.
Net Profit After Tax grew by US$42.1 million in FY19 from a net loss of US$23.3 million to a net profit after tax amount of US$18.8 million, a jump of 181%. Having met the requirements of NZ IAS 12 Income Taxes, the company has identified a deferred tax asset amount of US$20.9 million for FY19.
Annualised Processing Volume has risen by US$1.2 billion in FY19 from US$3.0 billion to US$4.2 billion, up 40%. The management expects that the Annualised Processing Volume will continue to witness the growth driven by a higher chunk of new medium and large customers, more advancement of product set with higher adoption and usage, improved adoption of digital giving in the US faith sector and increased giving to religion in the US will also boost the growth in the company. The management has provided Total Processing Volume guidance for FY20 in the range of US$4.6 billion to US$4.8 billion.
At the time of writing, i.e. AEST 03:57 PM, 8 May 2019, the stock of PPH was trading at $3.470 down by 3.611% as compared to its previous close, with a market cap of $990.94 million.
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