PPH - PushPay (Church/donor software.)

[robbo24]

Hey Rob, compare Snakk margins with PushPay ones.

Whoops...

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

[BFG]

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

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!

[robbo24]

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!

Growth of Xero!!

Retention of Diligent!!

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

Edit: WONDERTWIN POWER, ACTIVATE!!

[Schrodinger]

Growth of Xero!!

Retention of Diligent!!

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

Edit: WONDERTWIN POWER, ACTIVATE!!

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.

[Schrodinger]

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!

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.

[BFG]

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.

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

[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.

[Schrodinger]

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.

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.

[BFG]

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.

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)

[BFG]

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