The Pushpay Holdings Ltd (ASX: PPH) share price is in focus after holding its annual general meeting (AGM).
Pushpay is a donation and church management business. Large and medium US churches are its main client base.
Pushpay AGM
Firstly, the company went through the highlights of the last year which included strong revenue growth, cashflow growth, expanding operating margins and EBITDAF growth (EBITDA margin – the F stands for foreign currency).
Pushpay has been successfully been cross-selling opportunities within its customer base and achieved operational efficiencies across the combined business.
The business has also allocated an initial investment of resources into developing and enhancing the customer proposition for the Catholic segment of the US faith sector.
Outlook
The overall giving market is expected to grow inline with US GDP growth, which is forecast to grow strongly (5% to 7%) with growth concentrated in the second half of 2021 as vaccinations allow US to reopen.
In terms of the giving share of customers, it expects to continue to grow the number of customers using its donor management system. Giving to church customers is expected to grow by slightly more than the church market as a whole.
Regarding the share of wallet of Pushpay’s customers, the company is expecting digital adoption within the customer base to continue to grow, albeit at a slower rate than before the COVID-19 drove acceleration.
Over the long-term, Pushpay is targeting a 25% market share of the Catholic segment by the number of parishes. There are 16,703 parishes across the US, with 68 million parish-connected Catholics. Benefits from the Catholic segment expected to be realised incrementally over the course of the following financial years.
Profit guidance
In terms of guidance for the 2022 financial year ending 31 March 2022, EBITDAFI is forecast to be in a range of between US$64 million to US$69 million.
Based on the CommSec earnings forecast for FY22, the Pushpay share price is valued at 31 times the estimated earnings for the current financial year.
