Wednesday 11 January 2017 10:19 AM
Pushpay's 3rd quarter update confirms 2017 ACMR and breakeven target
By Sophie Boot
Jan. 11 (BusinessDesk) - Pushpay Holdings, the mobile payments app developer, says its annualised committed monthly
revenue (ACMR) grew US$8.4 million in the December quarter, including US$1.1 million it made from acquiring US church
app business Bluebridge in November.
The company's full third quarter update, which follows an earlier limited announcement on Monday, shows the company
lifted ACMR - a favoured revenue measure for software-as-a-service companies - to US$42.3 million as of Dec. 31, up 25
percent from the end of the September quarter and a gain of more than 200 percent compared to the same quarter of 2015.
Average revenue per customer rose 7.3 percent from September to US$573 per month, a 43 percent gain from a year earlier.
Pushpay is on track to reach its ACMR target of US$72 million (NZ$100 million) and breakeven on a monthly cashflow basis
by the end of calendar 2017, chief executive and co-founder Chris Heaslip said.
The app developer is targeting US churches with technology that makes it easy for congregations to make donations using
their mobile phones and is expanding its mobile payment app to help people pay utility bills.
In November, it announced its acquisition of church app business from Bluebridge Digital for US$3.1 million, a move
which increased its potential annual revenue 47 percent to US$2.2 billion, based on the US$119.3 billion given to
churches in the US in 2015.
The company estimates the US faith sector revenue opportunity in 2020 at US$3.14 billion, compared to $2.16 billion as
of 2015, with about half of that from volume fees and the remainder from subscription fees for app and payments
software.
"Pushpay expects to reach its target based on further development of its product, direct sales, referrals strategy and
through targeting customers that have existing relationships with Pushpay's strategic channel partners and other
distribution partners," the company said.
The shares rose 0.5 percent to $1.89 in early trading, and have gained 19 percent in the past year. The shares dropped
sharply in December, triggering a price enquiry from stockmarket operator NZX, but recovered in thin holiday trading, up
44 percent between Dec. 28 and yesterday.
(BusinessDesk)