Halfway through FY19, Pushpay decided to remove Annualised Committed Monthly Revenue (ACMR) as a key metric. The reason cited at the time was that given the seasonal nature of the business, the use of ACMR was skewering the interpretation of performance. Through memory, this followed feedback from the analysts which cover PushPay. Makes sense.
On the subject of the Company being undervalued, we are coming up for two years of let’s call it insider selling. First Eric, then Chris and more recently two of the Founder investors. All justified in my book, but unfortunately presents ‘uncertainty’ amongst mums & dads investors, for lengthy spells. I have learnt to simply remind myself of the latest guidance and accompanying narrative. The re-rate will come with each set of financials and therefore the periods of churn (past & present) are inconsequential. The trajectories you have provided are very much in tact and that is all that matters if you are a LTH.
As a matter of interest, Chris is free to sell his remaining shares at the end of December. So suspect we will see another period of decline, churn and SP recovery before the FY result in May 2021.
Not a stock to be watching the SP every day.
Rokewa
PPH Price at posting:
$7.41 Sentiment: Buy Disclosure: Held
