PPH - PushPay (Church/donor software.)

[Snow Leopard]

...They've just increased their ACMR by 39% for the quarter...

Have they?

They have increased their Annualised Monthly Payment Transaction Volume by 39% over 4 months according to the announcement.

The target would appear to be double ACMR within the next 14 months, and stop bleeding cash in the same time frame.

But as of the here and the now it has a market cap of NZ$560M+ and a probable ACMR of NZ$50M ?.

Is that a realistic ratio?

Best Wishes
Paper Tiger

[TFA]

Have they?

They have increased their Annualised Monthly Payment Transaction Volume by 39% over 4 months according to the announcement.

The target would appear to be double ACMR within the next 14 months, and stop bleeding cash in the same time frame.

But as of the here and the now it has a market cap of NZ$560M+ and a probable ACMR of NZ$50M ?.

Is that a realistic ratio?

Best Wishes
Paper Tiger

I agree it's not easy to determine value, but don't agree that applying historical multiples is particularly relevant when you are experiencing revenue growth of 300% pa.

[iceman]

I agree it's not easy to determine value, but don't agree that applying historical multiples is particularly relevant when you are experiencing revenue growth of 300% pa.

The problem I have with this stock is that contrary to what you say, an increase in volume does not necessarily translate proportionally to increase in revenue. It is all about how much PAY (PPH) can clip the ticket of these transactions and whether they can turn a profit. I took a big and rewarding punt on DIL but never liked Xero. This one is more like Xero. Having said that, I did put some of my DIL funds into this one BUT as pure speculation, mainly because I have faith in some of the bigger shareholders making good decisions. I will enjoy the ride.

[Jinx]

https://www.nzx.com/files/attachments/245695.pdf

More exceeding of guidance. Today is a rough day to release good figured and to list on the ASX with markets down globally but I still see this as more fantastic news on a long trail of over-achievement.

PT: I know you worry about a large market cap on a stock that isn't profitable yet. But when considering almost exactly one year ago the stock had a SP of $2 and since then we've seen a AMCR growth of 300% as well as over double as many merchants using pushpay it does seem like if the stock is overvalued now it was HUGELY overvalued then. It'll be interesting to see if PPH can maintain its guidance over the next year to come, if it can then $2 is a steal.

Will be listening to the phone conference and posting any relevant info

[iceman]

Finally got around to reading the announcement. Agree Jinx this is a great achievement. Huge 151% annual growth on already reasonable numbers and last 3 months have been outstanding. The biggie in my view is that they are turning this growth into a large growth in revenue with average revenue per merchant (ARPM) up 47% to USD 534 per month. Another potential biggie is they company diversifying outside of the faith sector after their successful trial with Watercare.

Discl: Holding and accumulating

[King1212]

Can someone plz explain...why people are selling below $2.09 aud..as PPH just listed on ASX...a lot of selling...

[sb9]

Can someone plz explain...why people are selling below $2.09 aud..as PPH just listed on ASX...a lot of selling...

I would say short term profit taking coupled with overall market sentiment.

Disc: dipped in my toes on this one, like their story backed by good management and board.

[King1212]

I would say short term profit taking coupled with overall market sentiment.

Disc: dipped in my toes on this one, like their story backed by good management and board.

How profit taking...raising fund at $2.09 aud then sell at around $2? That is loss...

[sb9]

How profit taking...raising fund at $2.09 aud then sell at around $2? That is loss...

Not necessarily by the same fund, those that got in earlier at lower prices...

[Snow Leopard]

I agree it's not easy to determine value, but don't agree that applying historical multiples is particularly relevant when you are experiencing revenue growth of 300% pa.

Whomever you are not agreeing with it is not me!

I did suggest two current figures (one of which was a little optimistic it appeared) and the company itself is 'only' setting an approx 100% PA over the next year.

And then where from there?


Best Wishes
Paper Tiger

Title: Robert Burns, "To A Mouse"