Pushpay raises $25 mln in bookbuild, plans US listing to support growth
By Sophie Boot
July 12 (BusinessDesk) - Pushpay, the mobile payments app developer, is in a trading halt ahead of a $25 million
bookbuild, which it says will accelerate its growth, and has raised its annualised committed monthly revenue (ACMR)
target to US$100 million.
The company, which is dual-listed on the ASX, also plans to list in the US within the next 36 months, it said today in
its first quarter update. It gave guidance of US$70 million in revenue for the 2018 financial year, more than double
2017's US$34 million.
Pushpay also increased its ACMR target, which was for US$72 million by the end of calendar 2017, to US$100 million by
March 31, 2018, though this will use a new average revenue per customer (ARPC) measure which removes the former
correction for seasonal effects. The company said the old definition "represented an overly conservative historical view
of our volume fee growth" and the new definition will allow it to better recognise the impact of larger customers. ACMR
for the year to June 2017 was US$57.9 million under the old ARPC definition, but would have been US$62.6 million using
the new measure.
The company's app has gained traction in the US faith sector, where its services are used by 2 percent of the estimated
314,000 churches. Over the past year, the company has lifted its customer numbers and is getting more revenue from each
customer. It had 7,128 customers as of June 30, up 59 percent from a year earlier, with ARPC up to US$732 per month from
US$511 per month in 2016.
"We believe a US listing will expand Pushpay’s shareholder base, increase liquidity and enable the company to allow
better access to capital, thereby increasing funding alternatives to support the company’s growth strategy," Chris
Heaslip, Pushpay’s chief executive and co-founder said. "The new funding round announced today will enable Pushpay to
invest more aggressively in its targeted account based and field sales strategy over the next 18 months, and the company
now expects to reach breakeven on a monthly cash flow basis by the end of calendar year 2018. The board believes that
pursuing accelerated growth in the US is the best means of increasing shareholder value."
Deutsche Craigs and Ord Minnett have been engaged as joint lead managers for the placement, which will take place today,
with shares expected to resume trading tomorrow. The shares closed yesterday at $1.65 and have gained 18 percent this
year.
No details were provided on the number of shares being sold or at what price.
(BusinessDesk)