Pushpay (NZX:PPH): Has it continued delivering revenue growth?

Highlights

• Pushpay delivered growth in its revenue, EBITDA and profit numbers for the 6 months ended 30 September 2021.
• PPH also acquired Resi Media in August 2021, broadening its product offerings.
• The Group continues to innovate and improve its software solution to serve customers better in the future. 

Pushpay Holdings Limited (NZX:PPH; ASX:PPH) is a donor management system for NPOs, the faith sector and education providers based out of the US, Canada, Australia and New Zealand.

The Group released its financial results for the 6 months ended 30 September 2021 and an interim report for 2022. Pushpay continued to deliver revenue growth, net profit and EBITDAFI growth over the 6-month period as its products’ sales and customers increased.

Image source: © 2021 Kalkine Media, Data source- EODHD/Others

PPH has witnessed a 43% rise in total products purchased by customers, from 12,725 to 18,229 products for the 12 months ended 30 September 2021. It also registered a 29% increase in total customers count, from 10,896 to 14,095 for the period.

Some of the highlights of the Group’s financials for the first six months of FY22 included the following:

• Total processing volumes rose 9% to US$3.5 billion on pcp as the processing volume growth picked up in Q2 FY22.
• An Average Annual Revenue Retention Rate of over 110% was maintained
• Operating revenue saw a rise of 9% to US$93.5 million while the NPAT grew 43% to US$19.1 million
• The gross margin increased from 68% to 69% for the period.

PPH also acquired a leading US-based streaming platform serving primarily in the faith sector, Resi Media LLC to serve customer requirements for US$150 million in August 2021.

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The churches that PPH serves to had been searching for technology-enabled platforms to deliver content and engagement amid COVID-19-induced lockdowns. The acquisition allowed customers to engage with their communities and deal with live-streamed and on-demand apps, media content, digital giving and more.

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The acquisition will attract new customers and give PPH the ability to realise material synergy prospects through product bundling and integration with the Group’s sales and marketing engine.

Outlook ahead

Pushpay expects continued growth in its revenue as it continues to execute its strategy to gain further market share and growth through product innovation, integration of Resi Media and expanding into the Catholic market.

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PPH expects to achieve an underlying EBITDA of between US$60 million and US$65 million for the year ending 31 March 2022.

On 11 November, PPH ended the trading session at $1.57, down 2.48% from its previous close.

(NOTE: Currency is reported in NZ Dollar unless stated otherwise)