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Pushpay's annual loss grows

NZN 17/05/2016 Tina Morrison

Mobile payment developer Pushpay Holdings has posted a wider annual loss as it chases sales growth ahead of profit as it forecasts to break even in 2017.

The loss widened to $19.4 million in the year to the end of March from a loss of $7.5m a year earlier, it said.

Revenue from continuing operations rose to $15m from $1.8m.

Excluding the company's Run the Red mobile messaging business which it sold in March, the loss from continuing operations was $20.2m, from a loss of $7.6m a year earlier.

Pushpay shares surged to a record high last month after the company said it would reach a target of $100m of annualised committed monthly revenue by February 2018, six months earlier than previously forecast.

The firm, which has been foregoing short-term profits to invest in future growth in the US, said it's in talks with a number of US-based venture capital firms.

It said they have the potential to add significant value to Pushpay, and is exploring other capital raising opportunities with investment banks in Australia and the US, with more than $30m likely to be raised within the next four months.

"While Pushpay believes that it is preferable to focus on and invest in growth as the best means to achieve overall value in its business, we are also conscious of the importance of reaching cash flow breakeven," said chair Bruce Gordon.

Pushpay provides mobile commerce tools that help make payments between consumers and merchants easier and is geared to mobile charitable giving.

The app has gained traction in the US faith sector, and now counts four of the largest 10 churches in the US as customers.

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