Investors lose faith in Pushpay

Investors punished Pushpay Holdings on Wednesday after it presented its interim financial results for 2022. The provider of donor and church management systems saw its shares sink 13% despite increases in total volumes and revenue.

Total Processing Volume increased from US$3.2 billion to US$3.5 billion, an increase of 9% over the six months when compared to the prior comparable period. Pushpay also expects continued growth in volume driven by continued growth in the number of its donor management system products utilised by customers, as further development of the company’s product set is resulting in higher adoption and usage.

Pushpay increased its operating revenue by US$7.9 million to US$93.5 million for the period, and it again expects to see continued revenue growth as the business achieves increased efficiencies and gains further market share in the US faith sector.

Net profit after tax also increased by US$5.7 million to US$19.1 million over the six-month period, an increase of 43% when compared to the PCP.

Alongside organic growth, Pushpay completed a strategic acquisition of Resi Media, a US-based, high-growth SaaS company serving customers predominantly in the faith sector, for US$150 million in cash and Pushpay shares in August. The acquisition broadened Pushpay’s core product offering.

The company is now expecting to achieve Underlying EBITDAFI for the year ending 31 March 2022 of between US$60.0 million and US$65.0 million, although Pushpay still sees uncertainties and impacts surrounding COVID-19 and the broader US economic environment remain.

Molly Matthews, CEO said, “Pushpay continued to deliver growth over the period. We increased the number of Products purchased and welcomed new customers, while continuing to successfully realise strategic product bundling opportunities within the customer base. We completed the strategic acquisition of Resi Media and made significant enhancements to our existing product suite. Our performance represents the value that our customers attribute to Pushpay’s differentiated solutions and the meaningful progress achieved as we continue to execute against our strategic goal of being the preferred provider of mission-critical software to the US faith sector.”