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PPH - Pushpay Holdings Limited

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Trav.

Trav.

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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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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!
 
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.
 
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.
 
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.
 
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.
 
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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@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.
 
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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push through and holding

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

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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!
 
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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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?
 
investtrader said:
Quite intrigued with your PPH buy.
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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.

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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.
 
@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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