PPH - PushPay (Church/donor software.)

Another potential listing, probably on the NZAX:

http://www.nbr.co.nz/article/pushpay...ting-bd-154146

Not sure if there will be an IPO or just a pre-listing round followed by a compliance listing (lie GEO).

I reckon SparkytheClown would quite like this company

Shame he is no longer around to comment on it

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Originally Posted by steve fleming

I reckon SparkytheClown would quite like this company

Shame he is no longer around to comment on it

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Yes, A great shame he is no longer here to comment .As you point out I think too think he would have liked it.He certainly would have spoken to management and given us the good oil.!
Wonder what he is up to? Retired like Phaedrus,cruising the cannels of Southern France,perhaps?

"The company has prepared forecasts which indicate that the $2,778,910 of cash generated as a result of the post year end capital raising, cash flows from operations and raising a further $9,000,000 of additional capital subsequent to year end will enable the company to continue operating for the foreseeable future, which is not less than 12 months from the date these financial statements are approved.
"
Sweet, at least 12 months before the next capital raising. $1.6m loss on $316k revenues makes it look similar to the first years of SNK, VML, except they are worth <$20m and this is worth $50m...

What was the pre-IPO round priced at? $1?
I assume this is just a compliance listing with no new shares offered?

Edit: found it. July round was at $1, the April round was at 58c and the rounds before that were various but none less than 26c

A few buyers, no sellers. I guess a quick 33% return isn't enough.

Must be missing something with this one... won't this company get squashed like a bug if Apple decide to turn iPhones into a fully fledged payment device (as they are heavily rumored to do). How will an app like this survive when the very functionality they provide will embedded into the iPhone?

Anyone read the prospectus. Bruce Gordon's bio is fascinating. I cant say Ive seen a prospectus like this one before.

Also note that its valued near SKO which is silly although I agree its worth more than twice RAK.

:t_up: Two trades totaling $4k adds another $24m in market cap.

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Originally Posted by Shore

:t_up: Two trades totaling $4k adds another $24m in market cap.

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Its almost worth trading with yourself for those sort of returns!

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Originally Posted by belgarion

Yes. And not just be Apple. There are many in the mobile space trying to turn the mobile into a wallet.

Just possible, but extremely unlikely, that the bug won't get squashed but instead taken over.

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I agree; I think an acquisition is the most likely long-term outcome for this company, given the number of providers of this type of service. Some consolidation is inevitable.

Sloooooowly coming back to earth, still way over priced imo.

Is this company so closely held that it is illiquid? Is it so awesome that nobody wants to sell? Or to the contrary with no buyers?

Just had a bit of a laugh trying to do some TA on this stock when it's only had about six trades since listing lol :D:D:D:D:D

I see there is an announcement about quite a well known client, God: https://www.nzx.com/companies/PAY/announcements/256024

More interestingly, and perhaps showing my lack of knowledge of wtf this company even does, is a case study about what PushPay is doing for God: http://www.renewedvision.com/store.php?item=pushpay

$29US per month plus $1US for every God botherer who registers to pay his or her tithe. Perhaps a stick in the sand for someone who understands God botherers and how much money PushPay can make from this.

Strong US$ could be lucrative. I wonder if Westboro Church will sign up? :D:D:D:D:D

Different websites give me different total numbers of US churches/places of religious worship... Seems to be between 350,000 and 450,000.

If a few of them signed up, plus the $1 each attributed to the 146,663,972 God botherers (in 2009, see page 15 of this Yearbook of American and Canadian Churches) in the US, then PushPay might be onto something quite spectacular if it takes off.

The mind boggles.
I know of sharetraders who use their mobile appliances to buy shares during agms,but I would love to see all the good flock hitting their PAY appliance friendly phones during a rousing hellfire and damnation sermon."Come on brothers,hit the buttons now to save your soles,or forever live in purgatory,this includes you brother robbo24"!!! .

Believe in PushPay and you will find peace.

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Originally Posted by robbo24

Believe in PushPay and you will find peace.

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Did you find The Lord on the way??

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Originally Posted by percy

Did you find The Lord on the way??

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Kind of. The Heavens opened up and I heard a voice saying:

Dilute the shares on issue by a factor of 10 and it will be more appealing to the every day "tradie."

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Originally Posted by percy

Did you find The Lord on the way??

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Haha, wonder if Huljich had godly intentions when he got heavily involved in this company. Or do you think that he figured all the godbotherers would buy into this easy way to pave their way with pennies up the stairs to the pearly gates.....

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Originally Posted by Crystal Ball

Haha, wonder if Huljich had godly intentions when he got heavily involved in this company. Or do you think that he figured all the godbotherers would buy into this easy way to pave their way with pennies up the stairs to the pearly gates.....

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I am sure he had Godly intentions!!

I ran into the brother of a friend of mine a couple of years ago.Nice guy,bit of an entrepreneur, selling cardboard coffins.
He felt the way to true wealth was to start a new religion.Seems, the more you sin,the more it costs to repent.With the growing number of sinners, I think he was on the right track.!!

I heard that they are looking to list on the main board soon, or soonish.

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Originally Posted by airedale

I heard that they are looking to list on the main board soon, or soonish.

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Wonder what that will do to the share price. Not much depth- 1 buyer and 2 sellers only...and not much activity over the last couple of weeks....

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Originally Posted by Crystal Ball

Wonder what that will do to the share price. Not much depth- 1 buyer and 2 sellers only...and not much activity over the last couple of weeks....

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They shouldn't be allowed onto the main board without liquidity. The NXT will be better for them as the market maker will provide liquidity (somehow???).

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Originally Posted by Crystal Ball

Wonder what that will do to the share price. Not much depth- 1 buyer and 2 sellers only...and not much activity over the last couple of weeks....

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It will probably do very little to the share price in my view.

It is intriguing that there is such a small number of trades after a listing on the market.

By comparative standards to, say, Snakk Media (SNK) one might surmise that the lack of directors/chairpeople/substantial holders selling out and/or "donating their shares to a charity" is a sign of confidence.

It just makes me wonder what is the point of listing at this stage if the stock was going to be so illiquid - other than raising capital of course. Although, capital could have been raised (again) without listing.

Twitter that.

Quote:

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Originally Posted by robbo24

It will probably do very little to the share price in my view.

It is intriguing that there is such a small number of trades after a listing on the market.

By comparative standards to, say, Snakk Media (SNK) one might surmise that the lack of directors/chairpeople/substantial holders selling out and/or "donating their shares to a charity" is a sign of confidence.

It just makes me wonder what is the point of listing at this stage if the stock was going to be so illiquid - other than raising capital of course. Although, capital could have been raised (again) without listing.

Twitter that.

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Hmmmm, don t do twitter......

I see PushPay made another announcement the other day about an agreement with NZ Post.

A flurry of trading followed, resulting in increased volumes of 2000 shares changing hands.

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Originally Posted by robbo24

I see PushPay made another announcement the other day about an agreement with NZ Post.

A flurry of trading followed, resulting in increased volumes of 2000 shares changing hands.

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Saw that, not a huge amount traded though and again lack of buyers and very few available to buy..... Weird stock.

December is coming up. Be very interesting to see if PAY has reached the 600 forecasted by end of year it had in the prospectus. Hopefully we should see a sales report sooner rather than later to see how this company is tracking!

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Originally Posted by BFG

December is coming up. Be very interesting to see if PAY has reached the 600 forecasted by end of year it had in the prospectus. Hopefully we should see a sales report sooner rather than later to see how this company is tracking!

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Agreed, so little activity .....so few buyers ....

Have you seen the depth of Meridian Instalment reciepts on the Asx? 2 buyers 2 sellers, yesterday there was one buyer no sellers (and I may or may not have been one of them) ?

Is there any way anyone can justify the current mCap?

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Originally Posted by BFG

Is there any way anyone can justify the current mCap?

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Nope. The world gets stranger I just realised Facebook paid $22b for WhatsApp who turn over $10m so any things possible.

What I find interesting is how global they can make this business. Being successful in small niche markets in the US can provide scale but I think due to the large competitors this will be a successful regional play and not become global. Will be interesting to watch as niche markets in the US can still be very profitable.

Food for thought there Schrodinger.

HY report November 14. I shall be watching :)

HY out tomorrow. I'm expecting them to be closing in on the 600 clients by December number cited in the prospectus. Going to get interesting if they exceed this target.

Am I just speaking to myself on here or is anyone else following MAAAAYYYNNNN? :D :D :D :D

Looks like I am only talking to myself!

Half year is out. Some great growth going on, losses increasing as well as per other SaaS companies. Some good names sigmed up to Run The Red Program.

No debt & $5.5M at bank to keep growing. Suspect a cap raising to the public will be needed next year.

On track to have 600+ clients by December and break even by 1250 clients, but this depends whether the company goes for growth or profitability.

I shall continue watching with interest.

Disc - not holding

Retention Rate - Pushpay’s annual revenue retention rate(excluding upsells into the existing Merchant base) continued to exceed 95%.This is in line with Diligent who are considered class leaders.
Huge growth- 2013 HY revenue to September was $90,000. In2014 it was $1,613,000, a growth rate of 1700%. This is, of course, off a very lowbase, but even a growth rate of half that would be massive. ARPM in June 2014was approximately $235 per Merchant per month, with ARPM expected to increaseto over $300 per month over the medium term.
Choice of path – PAY has the ability to either go down theXero (growth at cost of profits) or the Diligent route (profitability, butslower growth). The current idea is that the company will be cashflow positiveafter 1250 clients are signed up, which will be achieved in Q2-Q3 of 2015.However, the company has signalled it would rather forego earnings in order togrow faster (Xero route). Cash in bank is standing @ $5M+.
Margins – Should be 70 to 80% within two years of listingand with client numbers above 2000.
Niche market – Only 4% of global commerce was done viamobile, presenting a 96% opportunity. The company currently has operations inNZ, Australia and the USA. The USA is the biggest market target by far and is targeting314,000 separate church organisations, 1,600,000 non-profits and 5,600,000 SMEs.The company is also looking to target Canada and the UK in the near future, whichadd other massive growth opportunities.
Good backers – PushPay has major shareholders in Chistoperand Peter Huljich (think PEB), Bruce Gordon with many years of electronicpayment knowledge at BNZ and Doug Kemsley who built CA-Systems from scratch andsold it to MYOB in 1999 for $22,000,000.

Sounds pretty good to me. I might buy some.

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Originally Posted by babymonster

Sounds pretty good to me. I might buy some.

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One caveat - do a market cap to revenue analysis, THEN make a decision ;)

I understand results will be out this week so you will have more info to play with then. I expect them to outperform their estimates (600 clients by December was forecasted)

Based on a number trend model where I used the numbers available on the interim report, I came up that they would have to make about $9.8 million dollars in revenue to breakeven based on current method of expenditure. Purely just for fun on my part, numbers may be different realistically. I don't know how long it would take them to get to that, but compared to the MCAP it kind of scares me away. The minute they fail to deliver amazing growth numbers they won't be worth that much, too much value on that potential. If I compare it to other companies like VML who like them have a similar risk factor, but for VML they have a much smaller MCAP and just as much potential. Those numbers for Pushpay don't stack up in my books.

Don't get me wrong its good potential this company has, but its no Xero. In my view businesses always need accounting work to be done so they go out of their way to get Xero as compared to its competition it was something much more effective both in skill and cost, but where as payment methods there is plenty available and I'm not sure people will go out of their way to get the app, some will, but some won't. They have achieved great revenue growth for now, but if I was to place a value on this company 40-50 million is more realistic for me until I see otherwise. Thats my 2 cents and well I am working on limited information too, but we'll see, reminds of a once a upon a time there was Geo OP.

Breakeven is seen as 1250 clients, but I doubt this will happen as they will choose to chase growth rather than become profitable.

As I mention the number I came to was based on current expenditure, so it factors in their growth chasing motives, a company like this will never settle down in cost for the short and medium term anyway, so I prefer not to see it as all they need is 1250 customers to breakeven, but more how much they need to make while still chasing customers to breakeven. Such an investment would test my patiences too much. In the short run price may go up, but unless they deliver in the long run I don't have much to keep these shares in the cupboard and wait. Just to bare in mind I come from a value point of view, not a day traders)

By 'clients', does that mean 'merchants' (churches, charities, businesses) who register to receive payments (are 'acquired') and whose ticket is clipped by Pushpay for each payment transaction to them, or 'payers' who download the mobile app and make payments to the merchants that Pushpay has acquired - or both?

The business model requires growth in both merchants and payers. The more merchants, the more likely there will be payers who choose the app. Their focus should be heavily towards acquiring merchants.

On the other hand, all the churches, charities and businesses who could become merchants have already been 'acquired' by banks. I think is it a big ask to take on the banking and payments sector, particularly as said sectors have also realised the requirement to aggressively move into mobile payments platforms.

It's all very well to develop a payments platform and isolate it from mainstream payments systems and banks, and even to acquire merchants who will get on board to diversify their payment sources, however it is a far more difficult proposition to convince people to download another app that helps them part with their money ... particularly when any online/mobile banking app can and does do the same thing - for any merchant and any payer, not just the merchants that Pushpay are able to acquire.

I don't see this business model being based on humungous growth and world domination of mobile payments, I see it as positioning for just sufficient scale that the business might be attractive to another organisation looking for a closed payments system, i.e. one not controlled by mainstream payments providers and banks. That or be bought by a bank, perhaps.

I also think, fwiw, that there is no way the current SP can be justified at current levels. Happy to hear other views on whether it is though.

Although the implementation of Apple Pay in NZ is going to be slow, it'll eventually be commonplace. Are there any immediate benefits of pushpay, compared to the lure that Apple seems to have on partnering with big banks at the moment?

With regards to ApplePay (and a host of other payment options), those technologies and tools are aimed at point-of-sale. EG, Walmart, Target, supermarkets etc.

Pushpay on the other hand, is aimed at non-point-of-sale. This, in the main, means churches and charities for Pushpay. However, there is other non-point-of-sale uses that could include enterprise (think of paying utility bills, particularly where you are a late payee), or where you might have an ongoing relationship with a merchant, such as a plumber, personal trainer or similar.

You would never use Pushpay to pay for your new kettle at Briscoes.

If ApplePay picks up in NZ, then it will be in places like Briscoes, Farmers, Starbucks, and Countdown. It is a product designed for payments to a merchant integrated with a cashier system that tabulates a sum. It’s not a donation tool, or a means by which companies recover costs from clients. It doesn’t do bank account withdrawals either, just credit cards.

Big differences here, just like when everyone was worried about Mobile Embrace (MBE.AX) being taken out by ApplePay. Not going to happen!

Quote:

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Originally Posted by BFG

With regards to ApplePay (and a host of other payment options), those technologies and tools are aimed at point-of-sale. EG, Walmart, Target, supermarkets etc.

Pushpay on the other hand, is aimed at non-point-of-sale. This, in the main, means churches and charities for Pushpay. However, there is other non-point-of-sale uses that could include enterprise (think of paying utility bills, particularly where you are a late payee), or where you might have an ongoing relationship with a merchant, such as a plumber, personal trainer or similar.

You would never use Pushpay to pay for your new kettle at Briscoes.

If ApplePay picks up in NZ, then it will be in places like Briscoes, Farmers, Starbucks, and Countdown. It is a product designed for payments to a merchant integrated with a cashier system that tabulates a sum. It’s not a donation tool, or a means by which companies recover costs from clients. It doesn’t do bank account withdrawals either, just credit cards.

Big differences here, just like when everyone was worried about Mobile Embrace (MBE.AX) being taken out by ApplePay. Not going to happen!

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That's fair, I still need to investigate the exact differences between PushPay and the existing solutions. I know PoLi is available at a reasonable amount of NZ online retailers, and Apple Pay also isn't limited to POS (they have some APIs for in-app purchasing).

Those who visit the Pushpay website will see that one of the divisions of the company is “eChurchGiving”. This is the division of Pushpay which is the greatest focus of the company for sales at present.



https://pushpay.com/echurch


A video that can be linked to from the eChurchGiving pages is this one - which sums up the Pushpay proposition very well - http://vimeo.com/103174354


This is material aimed at Church Pastors, so for someone with no church connections is might seem a little alien, but it is perfectly aimed at the decision makers in a faith based organisation.


There are a lot of Vimeo testimonials from happy clients at this page too - http://echurchgiving.com/?utm_source=Pushpay-com

Mr Huljich has been bumped up to the Board of PushPay. Hello!

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Originally Posted by BFG

Mr Huljich has been bumped up to the Board of PushPay. Hello!

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I am speechless, how anyone would let this guy on a board is beyond me.

Quote:

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Originally Posted by BFG

Mr Huljich has been bumped up to the Board of PushPay. Hello!

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Hello! Isn't it just replacing one Huljich for another (a position held (in part) due to their significant shareholding?).

Trying to buy the shares and they won't let me. Reckon I can only put an order on for $2.56 at most. $0.01 above the highest bid??
Seems like they're doing the manipulating rather than me.

Interesting price action this morning. A few bids filling up the spread as well as 5 bids up to $2.85 (being filled at $2.75). This is a very tightly held stock and if things get exciting (I'm expecting an announcement soon as per mid-January update in last report) then this thing could get legs fast.

Hey, if GeoFlop can rocket 100% in a week with the terrible metrics it has, who says this thing can't with its huge growth and way bigger revenue numbers???

Quote:

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Originally Posted by klid

Trying to buy the shares and they won't let me. Reckon I can only put an order on for $2.56 at most. $0.01 above the highest bid??
Seems like they're doing the manipulating rather than me.

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You aren't with ASB are you? They are in the stone age with the NZAX...

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Originally Posted by BFG

You aren't with ASB are you? They are in the stone age with the NZAX...

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I beleive they have come out the the stone age (now allow internet trading for NZAX) just as the NZAX is about to be disestablished (for NXT).

Quote:

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Originally Posted by Harvey Specter

I beleive they have come out the the stone age (now allow internet trading for NZAX) just as the NZAX is about to be disestablished (for NXT).

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Haha figures. We're still miles behind the rest of the world in every regard anyways. Got to love monopolies eh?

See if we can push above $2.80 (all time high) today. $3.00 up next (psych resistance). Who knows after that...

Quote:

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Originally Posted by BFG

You aren't with ASB are you? They are in the stone age with the NZAX...

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Yeah I am and yes they allow it now online (NZAX). I tried to buy at $2.75 and they rejected it, called me and said that I cannot just change the price 10% like that. The "operator" isn't happy.

I was all like ummmm what!!? It had been trading at that level previously until a little $2.50 yesterday, and there is an announcement today, no trading, and all I am trying to do is match the lowest ask.

Tried to put it a bid at $2.65 and rejected; phone call; same thing. I'm then told I can only set it at $2.56. I don't bother because that's just dumb.

Now today $2.75 are gone and I didn't do it. Yeah not very happy.

Quote:

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Originally Posted by BFG

See if we can push above $2.80 (all time high) today. $3.00 up next (psych resistance). Who knows after that...

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Any ideas on why the market cap has gone beyond reality and into fantasy land?

The market is pricing in a sure thing. It would be highly risky to buy in at these levels. MC should be around the $10-$25m levels..

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Originally Posted by Schrodinger

Any ideas on why the market cap has gone beyond reality and into fantasy land?

The market is pricing in a sure thing. It would be highly risky to buy in at these levels. MC should be around the $10-$25m levels..

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Exactly.

The scary thing is it may still go way further. Look at Xero or geoop.

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Originally Posted by nextbigthing

Exactly.

The scary thing is it may still go way further. Look at Xero or geoop.

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Too late in the day for that type of carry on, in my opinion.

This stock is so illiquid anyway... Listed by way of compliance listing - i.e. no capital raised.

Someone's going to have to sell down in order for the shares to get out and about, at this point anyway.

Now, why would any current holders possibly want to sell down? :D

We all know what BFG, snapiti and NBT say about sell-downs by important holders and positions within a company... :D

Quote:

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Originally Posted by robbo24

Too late in the day for that type of carry on, in my opinion.

This stock is so illiquid anyway... Listed by way of compliance listing - i.e. no capital raised.

Someone's going to have to sell down in order for the shares to get out and about, at this point anyway.

Now, why would any current holders possibly want to sell down? :D

We all know what BFG, snapiti and NBT say about sell-downs by important holders and positions within a company... :D

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This is a great candidate for shorting when the restrictions come off. Any ideas on brokers that allow shorting in NZ?

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Originally Posted by Schrodinger

This is a great candidate for shorting when the restrictions come off. Any ideas on brokers that allow shorting in NZ?

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Intraday shorting is easy, just sell shares you don't have and buy them back before the end of the day.

Quote:

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Originally Posted by robbo24

Intraday shorting is easy, just sell shares you don't have and buy them back before the end of the day.

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Do you even INTRADAY?!?!

Quote:

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Originally Posted by klid

Yeah I am and yes they allow it now online (NZAX). I tried to buy at $2.75 and they rejected it, called me and said that I cannot just change the price 10% like that. The "operator" isn't happy.

I was all like ummmm what!!? It had been trading at that level previously until a little $2.50 yesterday, and there is an announcement today, no trading, and all I am trying to do is match the lowest ask.

Tried to put it a bid at $2.65 and rejected; phone call; same thing. I'm then told I can only set it at $2.56. I don't bother because that's just dumb.

Now today $2.75 are gone and I didn't do it. Yeah not very happy.

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That's pretty horrendous. How dare you move the market more than .5% at a time klid!!!

Buoyed by the likes of other SaaS companies like DIL & WYN making a come back today, and with sells thin on the ground I wouldnt be surprised if $3.00 was tested very soon :)

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Originally Posted by BFG

Buoyed by the likes of other SaaS companies like DIL & WYN making a come back today, and with sells thin on the ground I wouldnt be surprised if $3.00 was tested very soon :)

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You are a total Jekyll and Hyde.

On the one hand, you spend inordinate amounts of time on the PEB thread haranguing people with your loosely concocted "fundamental analysis."

Yet on the other hand, you try to pump up a loss making company with an mCap of $137m which far exceeds any realistic calculations or growth.

Be realistic - there's 50 million shares issued for this company and I don't care to know how many options. How many have ever traded beyond the initial holders at the time of compliance listing? Barely any.

When the time comes for some holders to offload this stock is going to drop in price just like your favourite examples: DIL, WYN, XRO and even your old mate PEB.

LOL - this announcement reminds me of Snakk, another of BFG's faves.

Wow that ARPM is so awesome. They have met their monthly transaction targets too :D:D:D:D:D

Has Pushpay met its projected losses too? :D:D:D:D:D

Hopefully BFG gets on and provides his FA prowess on this...

Edit: Here, I'll have a go: ARPM x 603 x 12 = about $3m... $3m for an mCap of $137m, running losses, omg, BFG would never buy this going by his PEB analysis.

Pushpay achieves 31 December 2014 targets

9:38am, 15 Jan 2015 | GENERAL

Pushpay achieves 31 December 2014 targets

AUCKLAND, NEW ZEALAND | REDMOND, WASHINGTON, UNITED STATES – 15 JANUARY 2015

Pushpay Holdings Limited (NZAX:PAY) (‘Pushpay’ or ‘the Company’) announced today that it has achieved its 31 December 2014 targets of growing both its customer base to over 600 merchants and monthly payment transaction volume to over $8.3 million.

“We are pleased to announce that Pushpay has achieved its 31 December 2014 targets. As at 31 December 2014, merchant numbers increased to 602 globally and Pushpay’s monthly payment transaction volume increased to $12.4 million,” said Chris Heaslip, Pushpay’s Chief Executive Officer. “Pushpay continues to deliver on its plan and is well positioned for growth with a strong product offering.”

Highlights as at 31 December 2014
- Pushpay’s customer base increased to 602 merchants and Pushpay expects its customer base to grow by 50% to 903 merchants in the three months to 31 March 2015.
- Monthly payment transaction volume increased to $12.4 million (annualised monthly payment transaction volume increased to $148.8 million).
- Average Revenue Per Merchant (ARPM) increased to $446 per month and Pushpay expects ARPM to increase to over $550 per merchant per month over the medium term.*
- Customer Acquisition Cost (CAC) remained less than 12 months and is expected to remain at this level as the business scales.
- Pushpay’s annual revenue retention rate (excluding upsells into the existing merchant base) continued to exceed 95%, which the Company believes places it among the best-in-class for SaaS companies. Pushpay expects retention to remain high as the business scales.

* Please see the section titled ‘ARPM’ overleaf for further information relating to how ARPM is calculated.
Pushpay’s merchant numbers

Pushpay’s customer base increased to 602 merchants achieving its targeted customer base of 600 merchants as at 31 December 2014. The Company expects its customer base to grow by 50% to 903 merchants in the three months to 31 March 2015.

Pushpay expects to reach this target based on continued growth and further development of both its direct sales and through targeting merchants that have existing relationships with Pushpay’s strategic channel partners and other distribution partners.

The Company will continue to primarily focus on the faith sector in the United States (US), which consists of over 314,000 churches with an average size of over 500 attendees.

Payment transaction volume

Pushpay’s monthly payment transaction volume increased from $3.0 million as at 30 June 2014 to $12.4 million as at December 2014, exceeding its targeted monthly payment transaction volume of $8.3 million. Annualised monthly payment transaction volume increased to $148.8 million.

Pushpay expects monthly payment transaction volume to continue to increase appreciatively as its merchant base grows and the Company secures a larger percentage of merchant payment transaction volume.

Given the seasonality of transaction volume, moving forward Pushpay will inform the market when significant milestones are reached.

ARPM

Pushpay calculates ARPM using a combination of subscription fees and volume fees. Subscription fees are based on the size of the merchant and volume fees are based on payment transaction volume.

Volume fees include interchange fees, which are collected by the Company on behalf of third parties, such as Visa or MasterCard. Pushpay did not collect interchange fees previously, as the Company did not offer internal merchant facilities. Given the Company now offers merchant facilities through ZipZap Processing, which is a 100% wholly owned US-based subsidiary, the Company now collects interchange fees including those collected on behalf of third parties. Pushpay will continue to report ARPM as one consolidated number, including interchange fees.

On this basis, ARPM increased to $446 per month and Pushpay expects ARPM to increase to over $550 per merchant per month over the medium term. For comparison purposes, ARPM excluding interchange fees, increased to $258 per month in December from $235 per month in June.

ZipZap Processing is maturing rapidly with more than 30% of Pushpay’s total payment transaction volume being processed through it. We expect payment transaction volume to increase significantly as the Company continues to transfer existing merchants to ZipZap Processing. In addition, ARPM will continue to increase as the Company secures a larger percentage of merchant payment transaction volumes in addition to donations, such as bookshop and cafe purchases in the case of the Faith Sector.

Outlook

Pushpay believes that it is preferable to focus on and invest in growth as the best means to achieve overall value in its business.

“Following the focused investment in people, product and business processes we are well-positioned to execute on our growth plans and deliver long-term shareholder value,” said Chris Heaslip.
The Company plans to provide a further operational update in mid-April, which will include forecast merchant numbers to 30 September 2015.

Contact
Sarah Elder | Investor Relations | Pushpay Holdings Limited
P: +64 21 637 449 | E: sarah.elder@pushpay.com
www.pushpay.com

About Pushpay

Pushpay provides mobile commerce tools that facilitate fast, secure and easy non point of sale payments between consumers and merchants. Pushpay targets merchants who are looking to offer convenient, personalised and intuitive payment solutions to their consumers. Pushpay services three target markets: the Faith Sector; Non-Profit Organisations and Enterprises (both small medium enterprises and corporate organisations).
To download the Pushpay App, visit the iTunes App Store or Google Play and search for “Pushpay”.
Visit www.pushpay.com to learn more and see an online demonstration of how Pushpay enables merchants and consumers to “never miss the moment”.
ENDS

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Originally Posted by robbo24

LOL - this announcement reminds me of Snakk, another of BFG's faves.

Wow that ARPM is so awesome. They have met their monthly transaction targets too :D:D:D:D:D

Has Pushpay met its projected losses too? :D:D:D:D:D

Hopefully BFG gets on and provides his FA prowess on this...

Edit: Here, I'll have a go: ARPM x 603 x 12 = about $3m... $3m for an mCap of $137m, running losses, omg, BFG would never buy this going by his PEB analysis.

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Another billion dollar company in the making I sense

Reminds me so much of SNK.

Disc: not Hjolding.

Quote:

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Originally Posted by BFG

AUCKLAND, New Zealand, 25 August 2014 - Snakk Media Limited (NZAX: SNK) is

today announcing first quarter unaudited revenues of $2,007,052 from April to

June 2014, representing a 67% increase from the previous year's corresponding

quarter. The year-on-year increase for the first quarter is 95% when the

impact of exchange rate fluctuation is taken into account.

Snakk Group CEO Mark Ryan says trading continues to be strong in the New

Zealand and Australian markets: "Our Q1 revenue growth has stayed on par with

our recent annual results. We exceeded our internal targets and have expanded

the sales team across four of our offices to cope with strong market demand.

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Quote:

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Originally Posted by robbo24

Reminds me so much of SNK.

Disc: not Hjolding.

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Hey Rob, compare Snakk margins with PushPay ones.

Whoops...

Quote:

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Originally Posted by BFG

Hey Rob, compare Snakk margins with PushPay ones.

Whoops...

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For every dollar in the door they both lose money... Whoops!

Edit:

PAY: In November, Pushpay said it widened its loss to $2.7m in the six months ended September 30, from $568,000 in the same period a year earlier. Sales climbed to $1.6m from $90,000, while operating expenses rose to $4.5m, from $661,000.

SNK: Diluted loss per share of .83 cents x 265m shares (at page 8)

You tell me which is better :D:D:D:D

Quote:

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Originally Posted by robbo24

For every dollar in the door they both lose money... Whoops!

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1250 merchants (break even) is a mere 4-6 months away at current growth rate. That is, if they choose to become profitable. Looks like they are going for the Xero-style growth curve though.

I don't see Snakk projecting 70-80% margins. Maybe that's because they aren't SaaS.

Growth of Xero and a retention rate of Diligent. Very nice!

Quote:

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Originally Posted by BFG

1250 merchants (break even) is a mere 4-6 months away at current growth rate. That is, if they choose to become profitable. Looks like they are going for the Xero-style growth curve though.

I don't see Snakk projecting 70-80% margins. Maybe that's because they aren't SaaS.

Growth of Xero and a retention rate of Diligent. Very nice!

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Growth of Xero!!

Retention of Diligent!!

Product of...... Marginal utility and originality!!

Edit: WONDERTWIN POWER, ACTIVATE!! :D

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Originally Posted by robbo24

Growth of Xero!!

Retention of Diligent!!

Product of...... Marginal utility and originality!!

Edit: WONDERTWIN POWER, ACTIVATE!! :D

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Need more info. Moosie do you have the USA figures for revenue? for both FY13-FY14. Gaining churches is good but I want to see the actual revenue numbers not transaction volume.

Also interested in how much is based on RTR. I expect 50% or more is from the acquisition.

Quote:

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Originally Posted by BFG

1250 merchants (break even) is a mere 4-6 months away at current growth rate. That is, if they choose to become profitable. Looks like they are going for the Xero-style growth curve though.

I don't see Snakk projecting 70-80% margins. Maybe that's because they aren't SaaS.

Growth of Xero and a retention rate of Diligent. Very nice!

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Key here is to get each church using this as their default donation source. More usage means higher margins. Not interested in the B2B solution as there are 50+ providers with the same tech in USA.

Quote:

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Originally Posted by Schrodinger

Need more info. Moosie do you have the USA figures for revenue? for both FY13-FY14. Gaining churches is good but I want to see the actual revenue numbers not transaction volume.

Also interested in how much is based on RTR. I expect 50% or more is from the acquisition.

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This is from the Disclosure Document when the company listed showing revenue base for RTR:
As an enterprise gateway partner, RTR earns revenue from providing ongoing regular SMS Gateway services (representing approximately 69% of revenue) and providing SMS Gateway services focused on a particular Client campaign (representing approximately 31% of revenue).

This is for RTR from last interim report. I would suspect FB makes up a good chunk of this:

Acquisition of ‘Run The Red’

In May 2014, Pushpay purchased the business and assets of “Run The Red” (RTR). RTR integrates text messaging with core business applications using an SMS Gateway, and facilitates personalised communication that can lead to payments and other mobile commerce experiences. Based on volumes through the quarter ended September 2014, RTR delivers over 150 million targeted text messages per year on an annualised basis.

Clients include Westpac, Sky TV, Vodafone, Z Energy, The Department of Internal Affairs, Facebook and as announced in early October, New Zealand Post Group which consists of a number of businesses including Kiwibank, New Zealand Post and Express Couriers.

Pushpay believes RTR adds significant value to the Pushpay opportunity in terms of complementary products and additional access to enterprises that are not currently Merchants. The purchase of RTR has allowed Pushpay to position itself beyond simply effecting mobile commerce payments through the incorporation of an enterprise channel that allows merchants to communicate with Consumers via Smart Mobile Devices, supplementing and enhancing the overall mobile commerce experience.

Here is the break down of client percentages for NZ, OZ and USA:

Attachment 6660

Hope this all helps :)

Someone is slowly chewing away at $2.85. No one selling, and I don't blame them either! $3.00+ would be a nice end to a great week :)

I've sent Sarah Elder an email with a few questions that others may ask about PushPay. Will post Questions and replies once received from her. :)

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Originally Posted by BFG

Someone is slowly chewing away at $2.85. No one selling, and I don't blame them either! $3.00+ would be a nice end to a great week :)

I've sent Sarah Elder an email with a few questions that others may ask about PushPay. Will post Questions and replies once received from her. :)

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If I was seriously looking at these guys I would have lots of questions. Given that I am more of a value investor these would be geared up towards 2-5 yr timelines around the market etc. For the day traders the volatility might be useful but imo you are gambling on the current valuation justifying earnings potential.

Quote:

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Originally Posted by Schrodinger

If I was seriously looking at these guys I would have lots of questions. Given that I am more of a value investor these would be geared up towards 2-5 yr timelines around the market etc. For the day traders the volatility might be useful but imo you are gambling on the current valuation justifying earnings potential.

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I can understand peoples sentiments on high valuations, but you can start to justify it using forward valuations and growth rates. I've yet to update my spreadsheet yet, but when I do I'll try and remember to post here.

This thing doesn't have intraday trading ability. It literally trades at the same price intraday, is very tightly held and has low volume. Either you buy the story or you don't!

"Growth stocks always look expensive when you first buy them". I thought that when I bought Xero @ $5.00 (and sold @ $5.50) :p

http://www.stuff.co.nz/business/indu...smartphone-app

Auckland firm Pushpay is persuading more United States churches to ditch collection bowls and converting them to its smartphone app, which lets parishioners make donations from their mobiles.

The firm said today it had met the December sales targets it set out when it listed on the junior NZAX exchange in August, notching up 602 customers and increasing the monthly value of transactions made through its cloud-based mobile payment platform to $12.4 million.

Its software is designed to let people make payments from their mobiles in less than 10 seconds. More than three-quarters of its customers are churches and other not-for-profit organisations in the US.

Seattle-based chief executive Chris Heaslip said Pushpay still saw its system being used much more widely, for example by utilities to let customers pay bills. But the church niche, which it had stumbled on "a bit by accident", was a large one and would remain its primary focus for now.

"The longer-term is more about the enterprise space and bill payment; 'get your Vodafone bill delivered to your phone and pay it with a four-digit pin number or your thumb print'," Heaslip said.

Pushpay said there were more than 314,000 churches in the US with an average of more than 500 attendees.

In November, Pushpay reported a net loss of $2.6m for the six months to September 30 on revenues of $1.6m. In today's forecast its merchant numbers would increase by 50 per cent to 903 by the end of March.

Pushpay's shares have almost doubled to $2.85 since they debuted on the NZAX in August, valuing the company at $142.5m.

Although much of its management is now based in the US it employs 20 developers and testers in New Zealand, Heaslip said.

* - Emphasis is mine

Hi everyone. Received a response to my question from the company. If you have any further questions, feel free to get intouch with the company.

Dear XXXXXX,

Thank you for your email.

Please find answers to your questions below.

1) When does PushPay recognise a new client as being on the books? Is that at time of signing or at time of first receipt from them?

Pushpay recognises a new Merchant once the Merchant has signed a client agreement, discounted for any merchants we believe will not proceed with using the service.


2) How does PushPay recognise revenue? I have noticed over the past few years that some SaaS companies have been in trouble for not properly reporting their revenue numbers, and there is debate as whether this should be taken upfront or spread out across years.

Pushpay currently recognises revenue as services are delivered to Merchants/Clients (for example Pushpay currently charges Merchants on a monthly basis and as such revenue is recognised on a monthly basis) as per NZ IFRS.

3) I notice the company is going for a growth/loss-making model of revenue generation rather than a profitable/stable model. As the company made higher losses last year and the capital gained from last year’s capital raising will not last forever, will the company be thinking about another capital (or Share Purchase Plan) raising on the NZX this year?

The board continues to monitor capital requirements and if they see fit will undertake a further capital raise which will be announced to the market at that time.


If you have any further questions please email me.

Kind regards,
XXXX

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Originally Posted by BFG

Dear XXXXXX,

...

Kind regards,
XXXX

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Gee you're on good terms with PAY if you are addressing them with kisses and they are responding to you with kisses...


xxxx
Robbo24

Quote:

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Originally Posted by robbo24

Gee you're on good terms with PAY if you are addressing them with kisses and they are responding to you with kisses...


xxxx
Robbo24

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Good to know we're on the same terms :D

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Originally Posted by BFG

Good to know we're on the same terms :D

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Mine was a blanked out swear word :D:D:D:D

Anyway, will 76 hold true?

It's a pity that the manager of online and telephone trading for ASB securities and their team made an arbitrary decision to not execute my order. It does make me wonder about their competence.

If you guys are interested in Pushpay... you can download their app (Pushpay) for free. I think it's all about the potential (cos I can't seem to find many businesses etc in there). There seems to be some big other app based in the US, you might see it as a "related app" in Google Play or something, all seems rather interesting.

But yes one thing I found interesting is one of the businesses in there is a cafe in Auckland, and it seems you can put an order through and pay, very easily using the app. I imagine you just walk past the coffee shop and you get your coffee handed to you, bam. Now that is cool! Potential indeed.

Something for long term holders;

http://img.scoop.co.nz/media/pdfs/15...aying_easy.pdf

Another example of terrible advice to investors. There is no way that PAY is worth $180M + and rising to $250m in 2016. Love the comment about: could be worth $500m by simply moving to other countries. Where do they get these people?

There is absolutley nothing about the competitive forces in this industry. Mobile payments is a massively competitive industry with all the large companies offering what PAY have with more complexity and integration. Investors need to understand that PAY will have to stick to the church sector in USA and this will limit their scalability.

Try starting at $25m and work your way from there.

If you buy on this valuation there is no hope for you.

I’m not a shareholder, I don’t really have an interest in IT tech stocks, they don’t generally fit within my investment strategy, so I’ve no interest in buying PAY for that sole reason, and thus I have no opinion on the value of PAY as I don’t research the stock.

Rather than just slandering professional analysts, you may actually like to consider offering up some constructive input to this forum by posting your own detailed alternative analysis workup.

Members may then decide for themselves, whom may be more appropriately correct, Schrodinger or Clare Capital, if they have not already done so by default.

Quote:

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Originally Posted by MAC

I’m not a shareholder, I don’t really have an interest in IT tech stocks, they don’t generally fit within my investment strategy, so I’ve no interest in buying PAY for that sole reason, and thus I have no opinion on the value of PAY as I don’t research the stock.

Rather than just slandering professional analysts, you may actually like to consider offering up some constructive input to this forum by posting your own detailed alternative analysis workup.

Members may then decide for themselves, whom may be more appropriately correct, Schrodinger or Clare Capital, if they have not already done so by default.

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Nice work MAC. I don't put out 'commissioned research' giving advice to investors to lose money therefore your observation is irrelevant.

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Originally Posted by Schrodinger

Nice work MAC. I don't put out 'commissioned research' giving advice to investors to lose money therefore your observation is irrelevant.

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My observation would then be thus, one can't really say that an analyst recommendation is flawed unless one has done their own work to substantiate and demonstrate otherwise.

Opinions carry weight if they are backed by research and alternate reasoning, but by all means slander away, you may or may not influence folk with that.

I only skimmed it. They said the high rev/EV value (about 80!!) was justified due to high growth but there didn't appear to be any discount for the fact that high growth would be hard to maintain.

I was also a bit confused as ARPM was $1.9m yet revenue for FY15 was forecast at $4.5m. As I said I only skim read it but with a March balance date, they must have another source of income???

Does anyone here follow PAY. I know Moosie/BFG does but I think he is banned.

Quote:

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Originally Posted by Harvey Specter

I only skimmed it. They said the high rev/EV value (about 80!!) was justified due to high growth but there didn't appear to be any discount for the fact that high growth would be hard to maintain.

I was also a bit confused as ARPM was $1.9m yet revenue for FY15 was forecast at $4.5m. As I said I only skim read it but with a March balance date, they must have another source of income???

Does anyone here follow PAY. I know Moosie/BFG does but I think he is banned.

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I own some. The USA road show did it for me .

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Originally Posted by blocker3

I own some. The USA road show did it for me .

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I think the numbers being sold are quite pathetic. Wonder if the holders selling to each other to ramp up the price. Tiny, tiny quantities going through about once a week.....not convinced.

What's up with this stock? Amazing last 6 months, something doesn't quite feel right though.

Quote:

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Originally Posted by Crystal Ball

I think the numbers being sold are quite pathetic. Wonder if the holders selling to each other to ramp up the price. Tiny, tiny quantities going through about once a week.....not convinced.

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Quote:

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Originally Posted by Mista_Trix

What's up with this stock? Amazing last 6 months, something doesn't quite feel right though.

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From the recent rights announcement issue.
"Certain interests associated with the Huljich family and with the Bhatnagar family, which in aggregate hold 34.81% of the shares in Pushpay, have committed to take up their pro-rata entitlements under the entitlement offer. A number of investors, including interests associated with Pushpay Director Graham Shaw, have agreed to fully underwrite the balance of the entitlement offer at $3.85 per share."

For me, this is a really strong signal for the stock. These guys are on massive unrealised profits, but still want to add more.

I don't own PAY as it doesn't really fit my investing approach. However, the insiders obviously think that this stock is going to go a lot higher.

The PAY money go round insider share allocations interest free loans and entitlements machine fires into action. Some great deals being shared amongst insiders, considering the lofty share price presently $4.50 https://www.nzx.com/markets/NZAX/sec.../announcements

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Originally Posted by Baa_Baa

The PAY money go round insider share allocations interest free loans and entitlements machine fires into action. Some great deals being shared amongst insiders, considering the lofty share price presently $4.50 https://www.nzx.com/markets/NZAX/sec.../announcements

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It's VML all over again :D

Quote:

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Originally Posted by Baa_Baa

The PAY money go round insider share allocations interest free loans and entitlements machine fires into action. Some great deals being shared amongst insiders, considering the lofty share price presently $4.50 https://www.nzx.com/markets/NZAX/sec.../announcements

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Yeah but tiny tiny little batches selling. All done to push the price up each time so people go onto the charts and go wow! from$1 to $4.50 in s year, I need w slice of the Waitomo ! Piddly amounts gong through once or twice a week, I am not sucked in......DYOR on this one.

Quote:

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Originally Posted by Crystal Ball

Yeah but tiny tiny little batches selling. All done to push the price up each time so people go onto the charts and go wow! from$1 to $4.50 in s year, I need w slice of the Waitomo ! Piddly amounts gong through once or twice a week, I am not sucked in......DYOR on this one.

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Oops predictive I pad, making up words on me. wasn t "I need a slice of the Waitomo" was meant to be I need a slice of the action .....

I'll see you for my slice of the Waitomo in 2018 for the company's maiden profit (page 2): https://nzx.com/files/attachments/211979.pdf

$220m company with 4.5m revenue :D I can hear all those VML bulls now - why is the market so silly how come my silly stock doesn't have such a metric?

My guess is the veritable smorgasbord of crispness that is PushPay and the veritable smorgasbord of interesting and cool shareholders.