PPH - PushPay (Church/donor software.)

[sb9]

Just catching up with the PPH news..... and forgive me, but could someone explain the customer number concerns??

On page 5 of the update (see here) it says, 'customer numbers 10,896 up from 7905 (an increase of 38%)' ???

(Disc not holding... but considering)

I'm guessing that could relate to acquisition of Church Community Builder customers...

[Louisphan]

Forsythbarr updated today 05.11.2020.

"We update our blended DCF multiple valuation approach rolled forward at the cost of equity, lowering our target price fromNZ$13.85 to NZ$11.44. We decrease our terminal market share from 20% to 15% and our sales forecasts for FY22 are decreasedfrom 15% to 13%. While US peers imply a multiple of 8.0x EV/Sales, Australian Technology peers imply an EV/Sales of 12.4x."

I saw some signal of buying now after few months follow the stock!

[Louisphan]

Cluessless muppets

Hi Mr professional, how is your SKT? Have you stopped posting in SKT Thread?

[sb9]

Hi Mr professional, how is your SKT? Have you stop posting in SKT Thread?

Obviously he's bored with not much action on that front, had to kill time somehow

[Mel]

I'm guessing that could relate to acquisition of Church Community Builder customers...

Irrespective, the ambiguity around the customer numbers needs to be addressed in their reporting as its a key factor in the drop in share price, as it was (probably) broadly expected that the numbers of net customers would increase during this COVID period.

[tango]

Just catching up with the PPH news..... and forgive me, but could someone explain the customer number concerns??

On page 5 of the update (see here) it says, 'customer numbers 10,896 up from 7905 (an increase of 38%)' ???

(Disc not holding... but considering)

I have the same query.
The March 2020 Annual report has 10,896 customers.

None of this makes sense. How can you have exactly the same number of customers 6 months later?
Maybe one of us should write to them and ask.

UPDATE - I am writing to PPH to ask

I thought there was an upcoming webinar which would be a good opportunity to query the numbers


https://irssl.q4europe.com/IR/Files/...esentation.pdf

[Nigelk]

Updated information as per today's release on Slide 41 re Customers...

Product holding update
30 Sep 2020 31 Mar 2020 Movement
Total Customers 10,896 10,896 0

Product Holdings
Donor Management System 8,489 8,180 309
Church Management System 4,236 4,158 78

Smart - post acquisition they've focused on cross-selling existing donor customers to church management and vice versa.
That will further imbed those customers and it's easier and better value to do that than chase external prospects.

[sb9]

There's a post on HC courtesy of user SteveSage re customer numbers for past 4 years which may help shed some light on that front...

*****
If I go back to the presentations over the last 2 years:
- 2018 Annual results (published May 2018) customer number reported is 7,276
- 2019 Interim results (published Nov 2018) customer number reported is 7,420
- 2019 Annual results (published May 2019) customer number reported is 7,649
- 2020 Interim results (published Nov 2019) customer number reported is 7,905
- 2020 Annual report (published May 2019) customer number reported is 8,180 (includes 1,442 mutual customer, excludes 2,716 CCB only customer making up a total of 10,896 customers)
- 2021 Interim results (published Nov 2020) customer number reported is 8,489 (no change to total customers, but mutual customers at 1,829 & CCB only customers at 2,407 if I've done the calcs correct)

Which means customer additions
1H19 (Mar18-Sep18) = 144
2H19 (Sep18-Mar19) = 229
1H20 (Mar19-Sep19) = 256
2H20 (Sep19-Mar20) = 275
1H21 (Mar20-Sep20) = 309

So I stand corrected on the customer numbers (sorry not sure how I got 500....prob looking at 12mths growth).....and yes this half they have grown customer numbers more than they have in the last 5 halves so quite impressive.
*****

[tango]

This is the reply from PPH. Their investor relations are amazing!

“ To clarify, the reference on page five is comparing the total Customer number as at 30 September 2020 and 30 September 2019. Pushpay increased its Customer base over the 12 months ended 30 September 2020, from 7,905 to 10,896 Customers.

The reference on slide 41 reflects that during the six month period of 31 March 2020 – 30 September 2020, the total Customer number remained flat.

We included the detail in this slide to provide more clarity into our flat Customer number by showing the growth in the two product holdings that the Company offers over the last six months. While Pushpay grew its product holdings over the last six months, the net total Customer number remained flat when factoring in other drivers such as churn and cross-selling products to existing Customers.

Please feel free to let us know if you have any other questions.

Thanks!

Kind regards,
Gabrielle”

[tango]

I still find it astonishing the number is exactly the same! I have written with further questions so I will update you when I get a response