Pushpay’s revenue up 35.2%, gross margin percentage...

Pushpay's revenue up 35.2%, gross margin percentage improvement, EBITDAF and cash flow positive Auckland, New Zealand | Redmond, Washington, USA - 7 February 2019 (NZT) Pushpay Holdings Limited (NZSX:PPH, ASX:PPH, 'Pushpay' or 'the Company'), the leading payments and engagement provider to the US faith sector, is pleased to announce that its total revenue increased to US$27.7 million for the quarter ended 31 December 2018, an increase of 35.2% over the previous corresponding period. The Company now expects that its gross margin percentage will increase to over 60% for the full year ending 31 March 2019. Pushpay had previously indicated that its gross margin percentage was expected to increase to over 60% for the six months ending 31 March 2019. The Company achieved its target of breakeven on a monthly cash flow basis prior to the end of calendar year 2018. The Company was both earnings before interest, tax, depreciation, amortisation and foreign currency gains/losses (EBITDAF) and cash flow positive for the quarter ended 31 December 2018. Moving forward, Pushpay is confident that it will have positive cash flows on an ongoing basis. Chris Heaslip, Pushpay's CEO and Co-founder said, "We are pleased to deliver a strong third quarter, increasing total revenue to US$27.7 million for the quarter ended 31 December 2018, an increase of 35.2% over the previous corresponding period. In addition, our margin improvement process is progressing much better than expected and we now expect our gross margin percentage to increase to over 60% for the full year ending 31 March 2019. "We also achieved our target of reaching breakeven on a monthly cash flow basis prior to the end of calendar year 2018, providing both an EBITDAF and cash flow positive result for the quarter ended 31 December 2018. "From a strong financial position, we will continue to drive revenue growth and efficiencies throughout the business leading to significant operating leverage, which in turn will help support future M&A activity." Highlights for the quarter ended 31 December 2018 - Total revenue for the quarter ended 31 December 2018 increased to US$27.7 million, an increase of 35.2% over the previous corresponding period. - The Company now expects that its gross margin percentage will increase to over 60% for the full year ending 31 March 2019. Pushpay had previously indicated that its gross margin percentage was expected to increase to over 60% for the six months ending 31 March 2019. - Pushpay achieved its target of breakeven on a monthly cash flow basis prior to the end of calendar year 2018. - The Company was both EBITDAF and cash flow positive for the quarter ended 31 December 2018. - ARPC increased to US$1,548 per month, an increase of 25.6% over the year to 31 December 2018. See more under 'Average Revenue Per Customer (ARPC)' in the PDF announcement. - Pushpay increased its Customer base to 7,585, an increase of 5.5% over the year to 31 December 2018. Pushpay's proportion of medium and large Customers increased from 49.4% to 54.8% over the year to 31 December 2018. Pushpay welcomed the largest church in the US according to the Outreach 100 Largest Churches 2018 list as a new Customer, with an average of 51,900 weekly attendees. Working with the largest church in the US provides additional proof as to the quality and effectiveness of our product. See more under 'Pushpay's Customer numbers' in the PDF announcement. - Annualised Processing Volume increased to US$5.1 billion, an increase of 28.6% over the year to 31 December 2018. See more under 'Annualised Processing Volume' in the PDF announcement. - Months to Recover CAC remained at less than 18 months. - 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. - Staff headcount increased to 358, an increase of 3.8% over the year to 31 December 2018. Pushpay now has 93 staff based in New Zealand and 265 staff based in the US. - Pushpay's team is constantly improving our solution, allowing for a simpler, faster and more intuitive user experience. See more under 'Product updates' in the PDF announcement. - As announced in November 2018, Pushpay will phase out quarterly reporting, with this being the last quarterly operational update to be provided. See upcoming reporting and other important dates under 'Investor Calendar' in the PDF announcement. Outlook Pushpay expects to achieve: its revenue guidance of between US$97.5 million to US$100.5 million for the year ending 31 March 2019; a gross margin percentage exceeding 60% for the full year ending 31 March 2019; and positive EBITDAF for the year to 31 March 2019. As Pushpay further refines its sales and marketing strategy, focusing more heavily on medium and large Customers, it expects to deliver an increase in Subscription Fees added from new Customers in FY19, relative to FY18 despite a lower average sales headcount. As at 31 March 2018 the notes to the financial statements showed an unrecognised deferred tax asset of US$18.5 million. Given Pushpay expects to be profitable on an ongoing basis, accounting standards require us to recognise some or all of that deferred tax asset resulting in a negative tax expense. We expect that this will result in Pushpay reporting a substantial net profit after tax for the year to 31 March 2019. In the medium term, our goal is to reach the milestone of US$10 billion in Annualised Processing Volume, representing less than 10% of annual giving to religious organisations in the US. 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. Chris Heaslip, Pushpay's CEO and Co-founder, said, "Pushpay enters the last quarter of the financial year in a strong position, with positive EBITDAF and cash flow for the quarter ended 31 December 2018. We are well positioned to capitalise on opportunities to accelerate growth, including potential acquisitions that add significant value to the current business." Investor Briefing Pushpay will hold an Investor Briefing today at 11:00 am (NZT) to discuss its operational results for the quarter ended 31 December 2018. Dial-in details New Zealand: 0800 122 360 All countries: +64 9 950 5335 Conference ID (required for dial-in): 542973 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: 1127# Contact Sarah Elder | Investor Relations | Pushpay Holdings Limited P: +64 21 637 449 | 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, team and product. For more information visit www.pushpay.com/investors/awards. Please refer to the PDF announcement for further information. End CA:00330261 For:PPH Type:MKTUPDTE Time:2019-02-07 09:30:49