# PPH - Pushpay Holdings Limited



## Trav. (14 June 2019)

Pushpay provides a donor management system, including donor tools, finance tools and a custom community app, to the faith sector, non-profit organisations and education providers in the US, Canada, Australia and New Zealand.

CEO: Bruce Gordon
Number of employees: Approximately 350 across the USA and New Zealand
Headquarters: New Zealand
Founded: 2011
Executive director: Bruce Gordon
Subsidiaries: eChurch Inc., Pushpay, Inc., Run The Red Limited, Pushpay Trustees Limited, ZipZap Processing Inc

https://www.asx.com.au/asx/share-price-research/company/PPH


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## Trav. (14 June 2019)

Interesting company which popped up on one of my scans.


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## galumay (14 June 2019)

I have a position in PPH, not the sort of business I usually invest in, but I made an exception here. Happy to profit from ticket clipping happy clappers!


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## galumay (18 August 2019)

WIth the recent softness taking PPH back down below $3 I have increased my position, the company is in a much stronger financial condition than when it was last sub-$3 so its a pretty high conviction buy for me at these prices.


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## galumay (13 December 2019)

Strong announcement today with news of an aquisition of Church Community Builder, a move that increases vertical integration as well as opening up a larger customer base. (although many CCB churches would already be PPH clients.) Market seemed to approve with shares up about 5% on the news.


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## galumay (12 February 2020)

Up another 5% today on no news. Must be pushing towards inclusion in the ASX200.


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## peter2 (25 March 2020)

PPH has been thumped down along with the market in the recent CV selloff. Price is bouncing along a significant support level. I've had a nibble at this one also. 

My reasoning is that this is a pure tech company. It's all about an app that enables and encourages church members to donate. This is going to be more valuable as the virus lock downs are applied throughout the US. The church "collectors" have to make more use of this tech as their congregations can't attend church. I'm sure they want to keep the money rolling in. 

As it's a tech company the staff can work anywhere, even in isolation. I buying some as I think their next report may surprise on the upside as more people "pray and pay" for a miracle recovery.


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## galumay (25 March 2020)

Hey Peter, its a profitable business with no debt and positive cash flow. Even before this it was probably the most overlooked tech business on the ASX considering how good the financials were. Long term I am sure it will be fine, even if there are some short term issues.


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## Dona Ferentes (4 April 2020)

Here's an interesting take of a possible beneficiary of physical (social) distancing

_... tech play *Pushpay (PPH)* is an app-based intermediary for churches to manage donations and to communicate with their congregation. The product is most widely used in the US, where Hillsong-style churches attract thousands of attendees. Depending on its size, the client church pays a monthly subscription fee anywhere between hundreds and thousands of dollars, while Pushpay also clips the ticket on the transactions._

_The US ban on gatherings of more than ten people has put the kybosh on physical worshipping. In reality, the traditional felt-lined collection bowl has long been superseded by electronic payments and if anything the enforced move to virtual gatherings will work in Pushpay’s favour._

_The Kiwi based Pushpay has upped its earnings guidance for the year to March 31, from $US23-25 million ($38-42m), to $US25-27m._

_Faith giving sounds fluffy but it’s big business: the company expects current year revenue of $US121-124m, on volume of $US4.8-5 billion. The revenue is derived roughly one third from the subscriptions and two-thirds from the processing fees._

_Given the US restrictions only came into effect in mid-March, the real story lies in how the company fares post balance date. But management is sanguine about the move to live streaming of services and the concomitant rise in “digital giving”._

_“Pushpay is seeing a clear shift to digital whereby customers are utilising its mobile-first technology to communicate with their congregations,” the company says. “The company is experiencing an overall increase in demand for its services and remains well equipped to support customers to leverage digital technology and drive continued congregation participation through the use of its mobile app.”_

_We’ll know more about the post-corona trends when Pushpay issues its full year results on May 6._

_Pushpay late last year entrenched its position in the US faith sector by acquiring “giving solutions” outfit Church Community Builder. The $US87.5m cash purchase was funded by cash on hand and a $US62.5m debt facility. CCB services more than 4000 churches, taking the combined companies’ tally to around 10,000. Along the way, parties associated with CCB founder Chris Fowler spent $US15m to acquire a 2.4% Pushpay stake._

_In hindsight, the CCB purchase could have been better timed, with the company now carrying around $US60m of net debt. Broker UBS forecasts that, engorged by the CCB business, Pushpay will manage $US39m of earnings before interest and tax in the 2020-21 year, 77% higher, on revenue of $US165m (34% higher)._

_Much depends on the worshippers’ ability to keep their jobs._

_https://www.sharecafe.com.au/2020/04/01/the-business-models-holding-up-in-the-rout/_


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## rnr (25 April 2020)

@peter2 
Your decision to by this stock on March 25th was a good choice as it would seem as though wave 4 has formed and now moving into wave 5.


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## Dona Ferentes (12 May 2020)

Doing very nicely over the last week

(Annual results out last week; but was running prior to this)

The CEO and Executive Director said, 







> "We are pleased to present a strong result for the year ended 31 March 2020. Pushpay has delivered solid revenue growth, expanding operating margins, EBITDAF growth and operating cash flow improvements over the period. While Pushpay delivered strong organic growth over the year, we also strengthened our value proposition through the strategic acquisition of the leading church management system (ChMS), Church Community Builder, based in Colorado Springs, Colorado, US."


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## Dona Ferentes (15 May 2020)

push through and holding

PPH only hesitated after the results breakout, and hit a new high today:


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## Dona Ferentes (22 October 2020)

Make of it what you may  (from motley Fool)

_Moreover, it has been reported that KKR was reviewing the possibility of a bid for church payment company *Pushpay Holdings Ltd* (ASX: PPH). It remains in active pursuit of listed and unlisted companies in Australia_


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## galumay (22 October 2020)

That seems to be rehashing old news, KKR missed the boat a few months ago and admitted the PPH price had run away from them.

Close to a triple bagger for me, happy to clip the ticket of the happy clappers!


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## galumay (4 November 2020)

My happy clapper stonk has annouced full year results today, in line with expectations and should really be baked into the current price, but I wont be surprised to see it take off on open regardless. 

They have also announced a 4:1 split, given recent experiences with share splits, that should also be a positive for investors (even though it makes no sense!)


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## galumay (4 November 2020)

mmm...my analysis is obviously rubbish! Down 8% shortly after open. 

Cant be the results, they were known to market already, cant be guidance - its up on previous guidance, must be the share split Mr Market doesnt like?


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## frugal.rock (4 November 2020)

It took off alright... in reverse.


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## galumay (4 November 2020)

Worse now!! Down 12%. Really dont like the share split!


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## peter2 (22 January 2021)

investtrader said:


> Quite intrigued with your PPH buy.




Since the news in Nov 2020 PPH has been strongly sold off. I thought it may get some support at 1.65 (pink dashed line on chart) and bought it twice only to be forced to sell it soon after. Price has broken that support and continues lower. 

I've a good history with PPH having bought it at the Covid low. I was prepared to accept the recent price movement as a huge sideways range and tried twice to buy it at the low of the range. Price remains in a corrective move after the Covid rally. I was interested seeing that price has reached the 50-62% fib pullback "buy zone". I bought it again after seeing the gap up and above average volume on the day. Price gapped up again today but settled at the low. This buy is certainly aggressive and very speculative. The RR is acceptable if price gets back to 1.70 but the market may not be ready for another rally so soon after breaking support. 






Notwithstanding the recent operational update and guidance upgrade, the continued selloff indicates that all is not OK with this company. I should place a sloping R line through the lower highs and avoid it until price gets back above it.


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## galumay (22 January 2021)

@peter2 I am not expecting much to happen until the AR in May, I suspect they will report a strong result for the year. I am not concerned by the recent downtrend, but then my buy price is so low that I can ignore the recent volatility without emotion. Hopefully you can squeeze some profits out of it the short term!


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## galumay (12 May 2021)

Well my previous post was pretty accurate, a very strong full year, this business is demonstrating the flywheel effect, I wish I had bought more over the last 12 months. I think PPH has become one of those businesses where it always looks just a bit expensive - but keeps growing into that multiple. I think if you want to get in now you just have to bite the bullet and pay up. 

If we could just get them to drop the nonsense of prattling on about EBITDAFI (bull**** earnings), then I would have even more conviction in the business.


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## peter2 (12 May 2021)

Now that the May update has been released with no adverse surprises, I'll keep *PPH* on the reversal watchlist for a buy setup. I'm a bit wary of buying now when the sentiment for tech stock is low. I prefer to see that the market has tested the recent low.


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## galumay (12 May 2021)

Good luck, Pete! 

Will be interesting to see where it goes from here. That was a pretty strong AR, I think you are probably right about the current general sentiment effecting the SP.


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## peter2 (23 August 2021)

*Pushpay to acquire Resi Media LLC, adding its market-leading streaming solutions to Pushpay’s product suite.





*
The price of *PPH* has been in a year long corrective structure (= drifting lower). I, like many others have been waiting for price to resume it's upward trajectory. Perhaps this news will help.


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## galumay (28 August 2021)

I am on the verge of selling PPH, the Resi Media deal is very concerning, PPH refuse to provide any financial details for Resi, seems to be verging on failing to meet their continuous disclosure duties. We have no idea what the value of Resi is as we have no idea what their earnings (if any) were, what FCF it generates (if any), debt, assets, etc. 

The only information we have been given is that PPH paid $150m for Resi, that might be very cheap, or it might be horribly expensive. That sort of Capital allocation from a CEO with no track record and with an outgoing CFO borders on irresponsible. 

I emailed IR to request some more detail on the acquisition and specifically some financial metrics that might allow shareholders to consider whether it is a value adding or value destroying deal. They did reply - linking me to the investor briefing and the presentation that both have none of the requested information in them!

I replied pointing out neither had any relevant information in them and again asking for details of the financials for Resi for the last reporting period. My decision on selling will be based on their reply, (if they even bother!)


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## Dona Ferentes (26 April 2022)

Pushpay Holdings has confirmed that it has recently received unsolicited, non-binding and conditional expressions of interest or approaches from third parties looking to acquire the company.


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## galumay (24 May 2022)

Bugger, looks like PE interests are trying to buy out my little happy-clapper ticket clipper. 
Up 15% today on the news.


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## Dona Ferentes (10 August 2022)

galumay said:


> Bugger, looks like PE interests are trying to buy out my little happy-clapper ticket clipper..



And others obviously find the space interesting: from PE1

*EQUITY CO-INVESTMENTS*





We recently co-invested in *Ministry Brands* alongside Reverence Capital Partners. Founded in 2012 and headquartered in Lenoir City, Tennessee, Ministry Brands is the largest provider of core back-office software and payment solutions to faith-based organisations in North America. The company serves 96k+ FBOs, which represents ~24% of total FBOs in North America, and is the #1 provider in terms of both revenue and number of clients.

This investment was particularly attractive as it was an opportunity to acquire the market leader in the FBO software and solutions market where the continued shift from physical to digital payments, as well as the increasing adoption of FBO management software, is expected to cause the market to grow at a ~15% CAGR. Additionally, the company operates in a recession-resistant market and has strong recurring and predictable revenues (~80% of the company’s revenues are from contractually recurring software subscriptions or payment processing for recurring giving, and ~17% from re-occurring usage-based fees for background checks). Finally, there are significant operational improvement opportunities as there was limited hands-on involvement with the company by the prior owner and we believe that Reverence, who has significant payment and carve-out experience, is the right sponsor to succeed in making those improvements..


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## galumay (28 October 2022)

Trading halt this morning for my little happy clapper, ticket clipper. Is this the end?


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## peter2 (28 October 2022)

Quite possibly, "Tell em the price, son". [The Little Doer Carpets tag.]


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## aus_trader (28 October 2022)

Normally they say what it is e.g. Capital Raising etc. This one is elusive, but could be _materially _significant... ?


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## galumay (28 October 2022)

Rumours of a take over have been round for months, so thats quite likely. Just not sure that it would be such a short TH for that. (expected to lift later today.)


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## galumay (28 October 2022)

As suspected, management selling out. Very frustrating, second business this year the board have given up and sold out in my portfolio. Oh well, I guess an 80%+ return over 4 years is some consolation.


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