Pushpay targets big rise in monthly revenues

Mobile payments app developer Pushpay Holdings [NZAX: PAY] is aiming to lift annualised monthly revenue to $100 million over the next three years - a tenfold increase from its current rate of sales.

Pushpay's shares rose 2% to $5 and have soared 400% from their $1 listing price 12 months ago.

The Redmond, US-based company has grown its annualised committed monthly revenue to $10 million from $1 million in 10 months of operation.

"By way of comparison, Xero reached the same growth in around 23 months," chief executive Chris Heaslip says.

"Our payments solution has been well received in the US, which has led to Pushpay achieving best-in-class growth momentum in a short period of time and a strong foundation from which to realise its potential at scale."

Pushpay is targeting the US faith sector for growth where there are more than 314,000 churches with an average 500 attendees each. The company aims to push merchant numbers above 2000 by its September 30 half-year mark. Those client numbers climbed 42% to 1416 in the three month period ended June 30.

The company raised $13.8 million in April, via a one-for-14 pro-rata non-renounceable entitlement offer to eligible shareholders.

A portion of the funds were used to repay outstanding debt under the Christopher & Banks standby facility offered by a cornerstone shareholder. As at June 30 the company had $13.84 million in cash and available funding, up from $4.32 million three months earlier.

Christopher & Banks is an investment vehicle of the Huljich family.

In June the company migrated to the NZX main board from the small cap NZ Alternative Index.

(BusinessDesk)

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Suze Metherell
Thu, 13 Aug 2015

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Pushpay targets big rise in monthly revenues

Pushpay revenue climbs as US churches sign up for service

Pushpay revenue climbs as US churches sign up for service