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Ann: Updated Pushpay 2021 Interim Results Presentation, page-13

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gdakis

19 Posts.

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05/11/20

21:38

Post #: 48673820
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Originally posted by harryAJX: ↑

Not sure where you got 500, in 1H19 they added 144 customers over 6 months and 299 over 12 months. In 1H21 they added 309 customers over 6 months and 584 customers over 12 months. Looking at the traditional donor management system, customer growth half on half as a percentage has grown every half since 1H19 when I would suggest they were still transitioning to focussing on larger customers.

The numbers released in this presentation suggest 1,829 customers are now using both products, up from 1,442 end of 2H20 (27% growth) and 2,407 church management customers are not using the donor management system who can still be cross-sold to.

I do not understand pesimism in relation to these results. I am curious (and was prior to these results also) if they are unable to or have ruled out face-to-face sales at new churches due to the prevalence of covid in USA, but I expected high growth from existing customers this half due to covid and was extremely happy with the results. They achieved their highest revenue growth on pcp since 2H18 and highest 1stH revenue growth HoH since 1H18. Their donor management system also achieved its highest customer growth HoH since 1H18.

49% revenue growth on pcp is huge especially when they are simultaneously and substantially improving margin (by 3%). Who cares if they stuck to just cross-selling, they are taking advantage of their acquisition to the fullest extent by doing so and have achieved killer numbers.

My biggest concern is in relation to management, with the co-founder out of the picture as of March, new CEO stepping down when they find a replacement and the Huljich family stepping out at end of December. With insider selling across the board (pun intended) I am really hoping Chris Fowler (church community builder founder and now pushpay "visionary" and executive director) steps up to take leadership and continues to hold his 6.5m shares (half of which came out of escrow in June and he has not yet sold). It seems like the formula for Pushpay's success is pretty well written by now though and it won't be too difficult to acheive excellent results from here on out, they just need to continue cross selling for now and then start winning over new large churches once America recovers somewhat from covid, but in the meantime cross selling is providing ample customer growth and penetration within existing customers is providing ample revenue growth, assisted by covid.

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Thankyou for excellent analysis.
George.

PPH Price at posting: $7.64 Sentiment: Buy Disclosure: Held
1 Upvote

0 Great analysis

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