Pushpay shares dip despite half-year profit doubling
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Pushpay (ASX:PPH) shares are sinking after the donor management platform said its customer numbers were flat over the last six months to September 30, ending at 10,896 churches and faith-based organisations, mostly in North America.
But the Kiwi company said it was seeing an increase in subscription revenue as customers purchased other products. Pushpay said its half-year profit had more than doubled and lifted its guidance, saying it expected to earn about $US4 million ($5.6 million) more than previously forecast this financial year.
The company predicted earnings before interest, tax, depreciation, amortisation and foreign business tax (EBITDAF) of between $US54 million and $US58 million for the financial year ending 31 March 2021, up from its previous estimate of between $US54 million and $US58 million.
The company said on Wednesday that its net profit for the six months to September 30 rose 107 per cent to $US13.4 million ($18.6 million), compared to the same period in 2019, while its revenue climbed up 51 per cent to $US86.6 million ($120.4 million).
“Pushpay has delivered solid revenue growth, expanding operating margins, EBITDAF growth and operating cash flow improvements over the period,” chief executive and executive director Bruce Gordon said.
PPH shares had fallen 11.4 per cent to a seven-week low of $7.30 at 11.28am – still up around 80 per cent since the start of the year.
The company also announced a four-for-one stock split, to take place November 27, and the resignation of Peter Huljich as director and his father, founder Christopher Huljich, as an alternate director. The Auckland high net worth family were early investors in Pushpay.
Proof of how little I know, down 8% on early trading!
Given that the results were already known to market, and guidance was adjusted up, I can only assume it doesnt like the news of the split?
— Ricky🏄🏼♂️ (@galumay) November 3, 2020
— Aus Equity Flash (@EquityAus) November 3, 2020