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Pushpay Holdings upgrades earnings guidance for FY20 as cost growth slows

Pushpay provides mobile apps and other software that allows users to donate to various entities such as churches and not-for-profits.

Pushpay Holdings Ltd - Pushpay Holdings upgrades earnings guidance for FY20 as cost growth slows
Pushpay aims to process US$4.8-5.0 billion of donations in FY20

Pushpay Holdings Ltd (ASX:PPH) (NZX:PPH) has upgraded earnings guidance for FY20 by around 20%.

The company expects to generate US$23-25 million in earnings before interest,tax, depreciation, amortisation, and FX movements (EBITDAF) compared to previous guidance of US$18.5-19.5 million.

Pushpay noted the EBITDAF upgrade is due to costs growing lower than expected after achieving efficiencies and also due to accounting impacts of IFRS 16, which refers to leases.

As per the company’s AGM commentary, revenue guidance has softened slightly to US$121-124 million from US$122.5-125.5 million.

Other guidance metrics for gross margin and total processing volume have been maintained.

Pushpay’s CEO Bruce Gordon said: “As previously indicated at our 2019 Annual Meeting, new customer acquisition over the start of the financial year was lower than the previous year.

“We have subsequently adjusted our operating revenue guidance range to reflect this.”

Making donation easier

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.

Its software aims to simplify engagement, payments and administration, enabling customers to increase participation and build stronger relationships with their communities.

Quick facts: Pushpay Holdings Ltd

Price: 7.18 AUD

ASX:PPH
Market: ASX
Market Cap: $1.98 billion
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