Announcement
FLLYR: PPH: Pushpay 2019 Annual Results Announcement
09:30am
PPH
08/05/2019 09:30
FLLYR
PRICE SENSITIVE
REL: 0930 HRS Pushpay Holdings Limited
FLLYR: PPH: Pushpay 2019 Annual Results Announcement
Pushpay 2019 Annual Results Announcement
Auckland, New Zealand | Redmond, Washington, USA - 8 May 2019 (NZT)
Pushpay Holdings Limited (NZSX:PPH, ASX:PPH) ('Pushpay' or 'the Company') is
pleased to present its financial results for the year ended 31 March 2019 and
its 2019 Annual Report. This announcement should be read in conjunction with
and is subject to, Pushpay's Annual Report.
Chris Heaslip, CEO and Co-founder said, "We are pleased with the performance
of the business over the year ended 31 March 2019. Pushpay continued to
experience strong revenue growth, expanding operating margins, delivered its
first positive EBITDAF result and achieved breakeven on a monthly cash flow
basis prior to the end of the calendar year.
"We continue to focus on future-proofing the business, by refining the
strategies that will allow the Company to realise its considerable potential
over the long term, while maintaining prudent financial discipline. As we
embark on the next chapter, our relentless focus on innovation, strategy and
execution will lead to continued strong growth for the business."
Strong revenue growth
Pushpay has a strong track record of delivering on guidance. Since initially
listing in August 2014, Pushpay is pleased to have met or exceeded all
guidance provided to the market.
Most recently, Pushpay delivered on its total revenue guidance for the year
ended 31 March 2019, increasing total revenue by US$28.2 million from US$70.2
million to US$98.4 million, an increase of 40%.
These results were attained through the targeted implementation of our
strategy, growing team capabilities and expertise, and responsible investment
into product design and development.
The Company is providing annual operating revenue guidance for the year
ending 31 March 2020 of between US$122.5 million and US$125.5 million.
Pushpay expects to see consistent revenue growth as the business executes on
its strategy, achieves increased efficiencies and gains further market share
in the US faith sector.
Margin improvements
Pushpay delivered on its gross margin guidance for the year ended 31 March
2019, increasing gross margin from 55% to 60%.
Pushpay's diligent approach to optimising gross margin has driven pleasing
results. We expect to continue to benefit from the margin improvement program
over the coming year.
The Company is providing gross margin guidance for the year ending 31 March
2020 of over 63%.
Operating leverage
While Pushpay increased operating revenue by 42% over the year to 31 March
2019, total operating expenses remained stable. As a percentage of operating
revenue, total operating expenses improved by 28 percentage points, from 93%
to 65%. Pushpay expects significant operating leverage to accrue as operating
revenue continues to increase, while growth in total operating expenses
remains low.
Pushpay adopted best in class software tools and scalable processes early in
its development. Combined with strong financial discipline, those investments
will allow significant operating leverage to be achieved as revenue grows.
EBITDAF
Pushpay delivered on its EBITDAF guidance for the year ended 31 March 2019,
increasing EBITDAF by US$20.2 million from a loss of US$18.6 million to a
gain of US$1.6 million, an increase of 108%.
Pushpay is providing EBITDAF guidance for the year ending 31 March 2020 of
between US$17.5 million and US$19.5 million.
NPAT
NPAT improved by US$42.1 million over the year ended 31 March 2019, from a
net loss of US$23.3 million to a net profit of US$18.8 million, an
improvement of 181%.
For the year ended 31 March 2019, the Company has recognised a deferred tax
asset of US$20.9 million having met the requirements of NZ IAS 12 Income
Taxes.
Customer revenue cohort information
We have provided Customer revenue cohort information in our Annual Report,
which displays the annual revenue for Customer cohorts that joined the
Pushpay platform at different times in our history. The strength of our
business model lies in the consistent revenue coming from each cohort,
particularly the increase in revenue from remaining Customers growing within
a cohort offsets the decline in revenue from Customers leaving the platform.
Processing volume
Annualised Processing Volume increased by US$1.2 billion over the year ended
31 March 2019 from US$3.0 billion to US$4.2 billion, an increase of 40%.
We expect continued growth in Annualised Processing Volume driven by a larger
proportion of new medium and large Customers, further development of our
product set resulting in higher adoption and usage, increased adoption of
digital giving in the US faith sector and increased giving to religion in the
US.
Pushpay is providing Total Processing Volume guidance for the year ending 31
March 2020 of between US$4.6 billion and US$4.8 billion.
People and culture
As we continue to execute on our strategy, attracting and retaining
exceptional talent is critical to our success. Our Customer-centric culture
of continuous improvement focuses on achieving higher job satisfaction,
increased productivity, improved employee retention, as well as increased
Customer satisfaction.
Pushpay welcomed Michael Erisman as Chief People Officer in March 2019.
Michael is a highly experienced business leader with a proven track record of
building successful human resources teams and developing global people
strategies worldwide. His extensive experience, in guiding people-centred
business initiatives and proven ability to attract, retain and engage top
talent, will be instrumental for our growth plans.
Board of Directors
Eliot Crowther resigned as an Executive Director on 21 June 2018. The Board
and management of Pushpay thank Eliot for his invaluable contribution to
Pushpay.
Pushpay's Board of Directors was pleased to welcome Peter Huljich as an
Alternate Director for Christopher Huljich, effective 7 November 2018. Peter
has held a number of executive positions in the Company, along with
previously being an Alternate Director for Christopher Huljich. Peter brings
extensive experience and knowledge to the business, having been involved with
a number of high-growth technology businesses.
The Board is also actively searching for additional Directors and is
considering suitably qualified candidates of diverse backgrounds and
experience.
Outlook
Pushpay expects continued strong revenue growth, as we continue to execute on
our strategy to gain further market share in the medium-term and believes
this is the best way to maximise shareholder value.
From a strong financial position, we will continue to balance expanding
operating margin with opportunities to increase revenue growth. We are
particularly focused on ensuring efficiency remains high, while maintaining
cost discipline throughout the business.
Pushpay is also evaluating potential strategic acquisitions that broaden the
current proposition and add significant value to the current business.
Pushpay is providing the following guidance for the year ending 31 March
2020:
- operating revenue of between US$122.5 million and US$125.5 million;
- gross margin of above 63%;
- EBITDAF of between US$17.5 million and US$19.5 million; and
- total processing volume of between US$4.6 billion and US$4.8 billion.
In the long term, Pushpay is targeting over 50% of the medium and large
church segments, an opportunity representing over US$1 billion in annual
revenue.
Acknowledgements
Pushpay's success would not be possible without the expert direction from the
Board of Directors, successful execution from management and the hard work of
our dedicated colleagues.
We would like to thank you, our shareholders, for your continued support and
confidence, our teams in the US and New Zealand for their hard work and all
of our Customers around the world for their continued loyalty and excitement,
as these results are ultimately thanks to their support.
Pushpay is uniquely positioned to capitalise on future growth opportunities
within the US faith sector. The investments we made over the year provide an
excellent platform to execute on our strategy and deliver innovative
solutions to our Customers. We look forward to reporting further progress
during this exciting period.
Investor Briefing
Pushpay will hold an Investor Briefing today at 11:00 am (NZT) to discuss its
financial results for the year ended 31 March 2019.
Dial-in details
New Zealand: 0800 122 360
All countries: +64 9 950 5335
Conference ID (required for dial-in): 124503
Playback details
Replay of the Annual Results Investor Briefing will be available for 30 days
following the completion of the call.
New Zealand: 0800 122 135
All countries: +64 9 950 7088
Replay Pin: 9831#
Contact
Gabrielle Wilson | Investor Relations | Pushpay Holdings Limited
P: +64 21 724 244 | E: investors@pushpay.com
www.pushpay.com
About Pushpay
Pushpay provides a donor management system, including donor tools, finance
tools and a custom community app, to the faith sector, non-profit
organisations and education providers in the US, Canada, Australia and New
Zealand. Our leading solutions simplify engagement, payments and
administration, enabling our Customers to increase participation and build
stronger relationships with their communities.
Pushpay receives funding from Callaghan Innovation to help cover the
commercialisation of innovation.
Pushpay is an award-winning company. For more information visit
www.pushpay.com/investors/awards.
ENDS
End CA:00334235 For:PPH Type:FLLYR Time:2019-05-08 09:30:16
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