Pushpay doubles revenue to US$70m – now processing over...

Pushpay doubles revenue to US$70m - now processing over US$3b in payments annually Auckland, New Zealand | Redmond, Washington, USA - 11 April 2018 Pushpay Holdings Limited (NZSX:PPH, ASX:PPH, 'Pushpay' or 'the Company') is pleased to announce that the Company doubled total revenue to US$70 million (unaudited) over the fiscal year to 31 March 2018. In addition, the Company surpassed US$3 billion in Annualised Processing Volume (previously Annualised Monthly Payment Transaction Volume), an increase of 69.1% over the year to 31 March 2018. Chris Heaslip, Pushpay's CEO and Co-founder said, "Pushpay delivered on its FY18 revenue guidance of US$70 million, doubling total revenue to US$70 million (unaudited) over the fiscal year to 31 March 2018. "Surpassing US$3 billion in Annualised Processing Volume is a significant milestone for the business. Over US$3 billion per year is given to causes through Pushpay's platform, supporting local communities in New Zealand, Australia, Canada and the US, and that is something we are very proud to be a part of. "We are pleased to announce that our margin improvement program is progressing better than expected and we now expect gross margin to grow from 54% for the six months ended 31 March 2018 to over 60% for the six months ended 31 March 2019. "We continue to experience quarter over quarter growth in our field sales initiative and deal sizes continue to increase, validating the assumption that face-to-face interaction allows us to support a higher price point. When considering sales in terms of total Subscription Fees added from new Customers, March was our most successful month and last quarter was our most successful quarter over FY18. We continue to focus on scaling the business in the US faith sector in order to maximise shareholder value over the long term." Highlights for the quarter ended 31 March 2018 - Pushpay delivered on its FY18 revenue guidance of US$70 million, doubling total revenue to US$70 million (unaudited). Pushpay is providing total revenue guidance of between US$20.5 million and US$22.0 million for the quarter ending 30 June 2018. This represents an increase of at least 52% over the previous corresponding period. - ACMR increased to US$86.4 million, an increase of 46.8% over the year to 31 March 2018. See more under 'Annualised Committed Monthly Revenue (ACMR)'. - ARPC increased to US$989 per month, an increase of 36.0% over the year to 31 March 2018. See more under 'Average Revenue Per Customer (ARPC)'. - Pushpay increased its Customer base to 7,276, an increase of 8.0% over the year to 31 March 2018. As at 31 March 2018, 13 of the top 20 and 54 of the top 100 largest churches in the US have chosen to use Pushpay.ii See more under 'Pushpay's Customer numbers'. - Months to Recover CAC remained at less than 18 months. Pushpay expects its Months to Recover CAC to remain below 18 months as the business scales. - Annual Revenue Retention Rate (excluding upsells into the existing Customer base) continued to exceed 100%, which the Company believes places it among the best-in-class for SaaS companies. - Annualised Processing Volume (previously Annualised Monthly Payment Transaction Volume) increased to US$3.0 billion, an increase of 69.1% over the year to 31 March 2018. - Staff headcount decreased to 350, a decrease of 6.9% over the year to 31 March 2018. Pushpay now has 92 staff based in New Zealand and 258 staff based in the US. - Pushpay now expects gross margin to grow from 54% for the six months ended 31 March 2018 to over 60% for the six months ended 31 March 2019. - Pushpay released Payment Assurance in December 2017. When there is an issue with a downstream provider within the Pushpay network, Payment Assurance captures a user's intent to make a payment and the payment is processed once the issue has been resolved. See more under 'Payment Assurance'. - Pushpay released Offline Conversion in February 2018. Offline Conversion is a user journey that encourages changing giving behaviour from offline cash and cheque giving to digital giving. See more under 'Offline Conversion'. - Guy Weismantel joined Pushpay's executive team as Chief Marketing Officer in February 2018. The Company will consolidate its brands under the Pushpay brand by the end of September 2018. Pushpay hosted over 1,100 church leaders from 40 US states and eight countries at our second annual Summit conference in Anaheim, CA, US. See more under 'Marketing'. Outlook "Pushpay is confident in its strategy to gain further market share in the medium-term and believe this is the best way to maximise shareholder value. As Pushpay further refines its sales and marketing strategy, focusing more heavily on medium and large Customers, it expects to see a continued increase over FY19 in Subscription Fees added from new Customers, with a lower sales headcount than in FY18. "Given seasonality, we expect ACMR and ARPC to steadily grow over the calendar year to 31 December 2018. We also expect Customer unit churn to decrease and Customer numbers to steadily grow over the calendar year. "Pushpay is providing total revenue guidance of between US$20.5 million and US$22.0 million for the quarter ending 30 June 2018. Pushpay remains in a position to reach its target of breakeven on a monthly cash flow basis prior to the end of calendar 2018. "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," said Chris Heaslip. Investor Briefing Pushpay will hold an Investor Briefing today at 11:00 am (NZT) to discuss its operational results for the quarter ended 31 March 2018. Dial-in details New Zealand: 0800 122 360 All countries: +64 9 950 5335 Conference ID (required for dial-in): 984610 Playback details Replay of the Quarterly 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: 3212# Please refer to the PDF announcement for further information. End CA:00316611 For:PPH Type:MKTUPDTE Time:2018-04-11 09:31:15