The share price of Pushpay Holdings Ltd (ASX: PPH) is climbing as it provided some guidance for FY20.
Pushpay is a New Zealand based donation systems and software business for religious, not-for-profits and education providers in the US, Canada, Australia and New Zealand. Pushpay is used by over 7000 churches worldwide. The average gift is $192.
Pushpay FY20 Guidance
The donation technology business is holding its annual general meeting (AGM) today where shareholders and management come together.
First the company re-iterated the highlights from the past year which included solid revenue growth, growing operating margins, a first positive EBITDAF result (click here to learn what EBITDA means) and breakeven on a monthly cash flow basis before the end of the 2018 calendar year.
For FY20 the company is expecting its annual operating revenue to come between US$122.5 million and US$125.5 million with a gross margin of over 63%. In FY19 Pushpay generated operating revenue of US$95.9 million whilst total operating expenses remained stable, and Pushpay increased its gross margin from 55% to 60%.
Pushpay also increased its FY20 EBITDAF guidance from a range of US$17.5 million to US$19.5 million, to between US$18.5 million and US$20.5 million.
The company is also increasing its total processing volume guidance from a range of US$4.6 billion to US$4.8 billion, to between US$4.8 billion to US$5 billion.
Pushpay is certainly one to watch, but its strong share price performance since the start of April 2019 shows that other investors also see the potential and its valuation may now reflect the improved outlook.
The company could be at an inflection point where a lot of the new revenue falls to the bottom line, which would rapidly grow its operating profit and a bottom line net profit might not be too far away.
The proven ASX shares in the free report below could be just as good, if not better, choices for a portfolio.
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