Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Pushpay expects breakeven by year-end

Pushpay expects breakeven by year-end, maiden operating profit in FY19

By Pattrick Smellie

Nov. 7 (BusinessDesk) - Digital church collection plate operator Pushpay says it expects to break even for the first time in December this year and to post its first positive earnings before interest, tax, depreciation, amortisation and currency adjustments in the year to March 31, 2019.

The NZX-listed, US-headquartered software-as-a-service company is growing from a strategy targeting medium to large-sized US churches. It said in today's investor presentation it has 55 of the largest 100 US churches on its books, including the largest, which boasts 51,900 weekly church attendees. Executives said one of its main competitors, Blackboard, was focusing more on "the Catholic sector" whereas Pushpay was making inroads with Protestant churches.

The company lost US$4.4 million in the six months to Sept 30, compared with a US$12.5 million loss in the same period last year, with revenue of US$44 million showing an increase of 48 percent on the same period a year earlier, consistent with common SaaS strategy to invest in sales growth ahead of profitability.

It expects full year revenue of between US$97.5 million and US$100.5 million.

Chief executive Chris Heaslip said any future positive operating earnings would come in part from a strategy to improve margins, as well as from increasing market share in "the US faith sector".

Gross margin is expected to increase to more than 60 percent in the second half of the current financial year, from 54 percent in the same period last year.

Once it breaks even, Pushpay will do away with quarterly reporting of key metrics, following investor and analyst feedback, said chief executive Chris Heaslip. The company has also concluded that one of its benchmarks, annualised committed monthly revenue, is no longer useful because of the seasonal nature of giving patterns, and will not be reported in future, he said.

The company, which listed in 2014, declined comment on reports that founder-shareholder Eliot Crowther's ex-wife, Dorette Banghart, is suing Crowther over the purchase of her share of the couple's stake in Pushpay.

The National Business Review reported last week that around mid-2017, while the couple were discussing divorce proceedings, Banghart alleges Crowther warned her that, based on inside knowledge, Pushpay shares were about to "go drastically down" and that she should accept $5 million for her stake.

Crowther sold his 9.03 percent stake in Pushpay for $100 million on June 19.

A company spokeswoman told BusinessDesk the issue was private and declined to comment on questions relating to whether Pushpay might be joined to Banghart's proceedings or anticipated taking steps to protect its brand, given its exposure to religious organisations.

Pushpay shares were trading at $3.64, down 1.9 percent on last night's closing price, in early afternoon trading on the NZX today.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Air New Zealand: Capital Raise Deferred

Air New Zealand has decided to defer its planned capital raise to later in 2021 allowing more time to assess the impacts of recent developments on the airline’s path to recovery. 'We’ve seen some clearing of COVID-19 clouds recently, with ... More>>

Commerce Commission: Cartel Conduct Now Punishable By Up To 7 Years’ Jail Time

Cartel conduct can now be punished with a term of imprisonment of up to 7 years, after the Commerce (Criminalisation of Cartels) Amendment Act 2019 came into effect today. Cartel conduct includes price fixing, market allocation and bid rigging (see ... More>>

Stats NZ: Auckland Population May Hit 2 Million In Early 2030s

Auckland’s population may rise from about 1.7 million currently to 2 million by early next decade, Stats NZ said today. “Auckland will likely have the highest average annual growth of New Zealand’s 16 regions over the next 30 years, from ... More>>

Air New Zealand: Business Travellers Return To The Skies In Record Numbers

After a year of talking to a computer, Kiwis are leaving the office to re-connect with their clients, suppliers, and staff. New figures released by Air New Zealand show domestic business and corporate travel has defied global trends by returning ... More>>

PwC: Outcome Of Review Into Air New Zealand Gas Turbines Business

Air New Zealand has received the report into its Gas Turbines business from independent external advisers PwC. Air New Zealand Chairman Dame Therese Walsh says the report identified a range of effective controls in the Gas Turbines revenue contracting ... More>>

LPG Association: Renewable LPG Achieves Emissions Budgets With No Need To Ban New LPG Connections

Renewable LPG can supply New Zealand’s LPG needs and achieve the emissions reductions proposed by the Climate Commission without the need to ban new connections, a new study shows. The investigation, by leading consultancy Worley, was prepared for the ... More>>

Commerce: House Values Continue To Climb As New Government Measures Announced

The Government’s new initiatives to quell the rocketing housing market were announced last week, just as house prices hit a new high for the end of March. The average value increased 7.8% nationally over the past three-month period, up from the 6.8% ... More>>