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Pushpay says first quarter revenue within guidance, reshuffles management

Wednesday 1st August 2018

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Pushpay Holdings, the mobile payments app developer, delivered first-quarter revenue within guidance and has reshuffled its senior management after another abrupt executive exit.

The Auckland-domiciled, US-headquartered company's revenue for the three months ended June 30 was US$21.4 million, within its guidance and up 52.6 percent on the year earlier.

The company is focusing on medium and large churches in North America, which it sees as an opportunity to generate US$1 billion of annual revenue. When announcing its results in May, chief executive Chris Heaslip said the company expects the number of deals it's closing and deal size to accelerate over the coming year.

Today, Heaslip said the company expects average revenue per customer (ARPC) and annualised committed monthly revenue (ACMR) to "steadily grow" over the current quarter which ends Sept. 30, and to be significantly higher after that "given the quarter ending Dec. 31 is our seasonal high period."

Guidance for the current quarter is revenue between US$21.8 million and US$23.3 million, and the company is still targeting breakeven on a monthly cashflow basis by the end of 2018.

"In the medium term, our goal is to reach the milestone of US$10 billion in annualised processing volume, representing less than 10 percent of annual giving to religious organisations in the US," Heaslip said. "In the long term, Pushpay is targeting over 50 percent of the medium and large church segments, an opportunity representing over US$1 billion in annual revenue."

Last month, executive director and co-founder Eliot Crowther sold all his shares and left the company completely to spend more time with his family. Today, Pushpay also announced that James Maiocco, its chief business development officer who took on the role in September 2016, has resigned effective today and will not be replaced.

However, the company has promoted Josh Robb, VP of product and engineering and Kevin Kuck, VP of operations, to the senior management team. Robb is based in Auckland while Kuck moved to Washington in February 2017 to lead Pushpay's operations team.

When Crowther resigned, Pushpay said it was still looking for an additional US-based director, though it backed away from previous plans for a US listing as it "largely achieved" the main goals of doing so with Crowther's exit improving liquidity without the cost of a market listing. It did not mention whether it is still looking for a US-based director in its update to the NZX today.

The shares recently traded at $4.12, down 0.7 percent today and are 0.5 percent lower this year.


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