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Pushpay confirms ACMR target of $100m

NZ Newswire logoNZ Newswire 10/01/2017 Sophie Boot

Pushpay Holdings, the mobile payments app developer, says its annualised committed monthly revenue (ACMR) grew $US8.4 million ($NZ12.0m) in the December quarter.

This includes $US1.1m ($NZ1.6m) it made from acquiring US church app business Bluebridge in November.

The company's full third quarter update, which follows an earlier limited announcement on Monday, shows the company lifted ACMR to $US42.3m ($NZ60.5m) as of Dec. 31, up 25 per cent from the end of the September quarter and a gain of more than 200 per cent compared to the same quarter of 2015.

Average revenue per customer rose 7.3 per cent from September to $US573 ($NZ820) per month, a 43 per cent gain from a year earlier.

Pushpay is on track to reach its ACMR target of $US72m ($NZ103m) and breakeven on a monthly cashflow basis by the end of calendar 2017, chief executive and co-founder Chris Heaslip said.

The app developer is targeting US churches with technology that makes it easy for congregations to make donations using their mobile phones and is expanding its mobile payment app to help people pay utility bills.

In November, it announced its acquisition of church app business from Bluebridge Digital for $US3.1m ($NZ4.4m), a move which increased its potential annual revenue 47 per cent to $US2.2b ($NZ3.1b), based on the $US119.3b ($NZ170.7b) given to churches in the US in 2015.

The company estimates the US faith sector revenue opportunity in 2020 at $US3.14b ($NZ4.49b), compared to $US2.16b ($NZ3.09b) as of 2015, with about half of that from volume fees and the remainder from subscription fees for app and payments software.

The shares rose 0.5 per cent to $1.89 in early trading, and have gained 19 per cent in the past year.

The shares dropped sharply in December, triggering a price enquiry from stockmarket operator NZX, but recovered in thin holiday trading, up 44 per cent between Dec. 28 and Tuesday.

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