PPH - PushPay (Church/donor software.)

[TFA]

"At the current prices its good value" - how do you measure that?

P/E: negative 30
P/S: 27,5 (10 would sound ok for a software startup);
NTA: 9 cents

Is a $370m market cap really good value for a loss making SW company with $15m annual revenue (in FY2016)?

Sure, there is always hope ... and I agree, they are in the hope industry, but still?

Revenue as last reported is annualising around $50m meaning P/S is around 8 and at the current growth rate likely to be around 5 when they report for the current quarter.

[Entrep]

You are better of buying the ASX shares if interested in this. They are getting absolutely smashed.

[Meister]

Getting smashed all around really. The company hasn't announced anything other than good news recently, but obviously sentiment has completely changed.

Is this starting to look quite cheap given their growth and success at hitting targets? (Not that one should jump to buy into a downtrend)

[Thor]

It doesn't help that the COO has been selling down at these prices. If anyone knows what is going on in the company it is him. Are they going to miss quarter guidance, or did he simply need some cash to buy that sports car for his Christmas gift? Either way, it is a red flag and there is no way to know until the quarter result is out on Jan 11. Be careful out there.

[blobbles]

Indeed, any sell down by management is a huge, huge red flag. Hence further SP degradation.

[Ace]

It doesn't help that the COO has been selling down at these prices. If anyone knows what is going on in the company it is him. Are they going to miss quarter guidance, or did he simply need some cash to buy that sports car for his Christmas gift? Either way, it is a red flag and there is no way to know until the quarter result is out on Jan 11. Be careful out there.

Do you mean like this ~170k 2016 Audi RS6 with an oddly recognisable plate I spotted a few days ago? a fairly excessive company car or xmas just came early for someone. There is one on trademe for about 200k if anyone is looking to treat themselves hahaha.

Attachment 8526

[iceman]

Indeed, any sell down by management is a huge, huge red flag. Hence further SP degradation.

Yes it is but as has often been said on various threads here they are human beings that have needs for themselves and their families and sometime like to sell some of their shares for various and understandable reasons that have nothing to do with the company's performance. I think it is different and more serious when senior people sell from unprofitable startups like this one where we the small investors are very much relying on them knowing much better than we possibly can and them doing the right think in managing the Co. So obviously any sell down y senior management or Directors in Pushpay is a great concern and not helpful to SP. This ride is starting to remind me of early DIL ride :-)

[winner69]

Do you mean like this ~170k 2016 Audi RS6 with an oddly recognisable plate I spotted a few days ago? a fairly excessive company car or xmas just came early for someone. There is one on trademe for about 200k if anyone is looking to treat themselves hahaha.

Attachment 8526

Nice car eh

Probably leased ....at some exorbitant rate .....but in line with required remuneration of senior management

[Ace]

Nice car eh

Probably leased ....at some exorbitant rate .....but in line with required remuneration of senior management

Good point, a nice car indeed, I wonder what pushpay need a car with a Lamborghini engine for haha. Not a fan of Audi, I would have enjoyed it more if they got a Ferrari or Lamborghini instead. I guess the Audi appears less flamboyant haha.

[Leftfield]

PPH responds to NZX query re price drop

Pushpay Holdings Limited (‘Pushpay’ or ‘the Company’) continues to comply with its continuousdisclosure obligations under the NZX Listing Rules, including Listing Rule 10.1.1. We are not aware ofany material matters relating to company performance that would explain Pushpay’s recent share pricemovements, and do not consider that the current share price is reflective of Pushpay’s performance andoutlook.
Pushpay wishes to take this opportunity to note the following:

• - Pushpay continues to exceed guidance. The Company exceeded its target for the quarterended 30 September 2016 by achieving net Customer (previously Merchant) growth of 795Customers for the quarter ended 30 September 2016. This exceeded the net Customer growth of725 Customers in the previous quarter ended 30 June 2016.
  
• - Pushpay is continuing to make progress in the USA faith sector. As at 30 September 2016,Pushpay was servicing 30 of the top 100 largest churches in the USA, six more than as at theend of the previous quarter. To give context as to the sizes of these organisations, the largestchurch that Pushpay services has over 39,000 average weekly attendees.
  
• - Pushpay is delivering on its growth strategy. Pushpay increased its total Customer numbersto 5,286 as at 30 September 2016, while also increasing Average Revenue Per Customer(ARPC, previously ARPM), which indicates that deal size is increasing in accordance with thestrategy to attract larger customers.
  
• - Pushpay remains on track to meet its targets. Since the latest operational update on 23November 2016, the Company has made good progress and remains on track to meet thetargets to:
  
  
  • - Exceed, in the current quarter ending 31 December 2016, the ACMR increase over theprevious quarter ended 30 September 2016;
    
  • - Reach US$72 million ACMR prior to the end of calendar year 2017; and
    
  • - Reach breakeven on a monthly cash flow basis prior to the end of calendar year 2017.
    
  
  
• - Pushpay’s growth is gaining recognition. Pushpay has been placed number one on theDeloitte Fast 50 New Zealand list and number 10 on the Deloitte Technology Fast 500 Asia
  Pacific list, with 4,574% revenue growth over three years. This achievement is testament to thecommitment and expertise of our team, the growth strategy that we continue to execute on andthe industry-leading solution that we offer.
  Pushpay will release its next Quarterly Operational Update on Wednesday, 11 January 2017.