Monday 15th August 2016
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Pushpay Holdings, the mobile payments app developer, brought forward its target for reaching $100 million of annualised committed monthly revenue as it narrows its focus to larger customers. Its shares rose to a four-month high.
The Auckland-domiciled, Redmond, US-headquartered company expects to reach its target of $100 million ACMR, the measure of total billings through merchants that it collects fees from, by December 2017, it said in a statement. That's ahead of its forecast in April of reaching the target by the end of February 2018, which was itself an upgrade from a previous target of August 2018. Pushpay is transitioning to reporting in US dollars, and said the target was equivalent to US$72 million.
Pushpay provides mobile commerce tools that help make payments easier between consumers and merchants and is geared to mobile charitable giving. It’s gained traction in the US faith sector, where its services are used by more than 1 percent of the estimated 314,000 churches with an average 500 attendees each. It has turned its focus to larger merchants, who have the resources to implement its service more widely, and now has four of the 10 largest churches in the US using its service.
"We continue to refine our growth strategy, focusing on attracting larger merchants which have the resources to maximise implementation, which in turn increases engagement and leads to higher retention," chief executive Chris Heaslip said. "Attracting a higher number of larger merchants will increase our ACMR growth, while also increasing our annual revenue retention rate over time."
Heaslip said Pushpay brought forward the target "based on further development of its products, direct sales, referrals strategy and through targeting merchants that have existing relationships with Pushpay's strategic channel partners and other distribution partners."
Pushpay shares jumped 11 percent to $2.66, making them the best performer on the S&P/NZX All Capital Index today. The stock has gained 37 percent this year, ahead of the index's 14 percent advance.
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