Ann: HALFYR: PAY: Pushpay announces Interim Financial Results

• Release Date: 17/11/15 09:00
• Summary: HALFYR: PAY: Pushpay announces Interim Financial Results
• Price Sensitive: No
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					PAY
17/11/2015 09:00
HALFYR
PRICE SENSITIVE
REL: 0900 HRS Pushpay Holdings Limited

HALFYR: PAY: Pushpay announces Interim Financial Results

Pushpay announces Interim Financial Results for the period ended 30 September
2015

Auckland, New Zealand | Redmond, Washington, USA - 17 November 2015

Pushpay Holdings Limited (NZSX:PAY) is pleased to report that for the six
months ended 30 September 2015, Pushpay has continued to deliver exemplary
SaaS metrics as it executes on its growth plan in the USA Faith Sector, which
consists of over 314,000 churches with an average size of over 500 attendees.

Pushpay Holdings Limited CEO, Chris Heaslip said, "Pushpay has had six months
of phenomenal growth, we have exceeded our targets by 11% having increased
our Merchant numbers by 111% in the six months to 30 September 2015, ending
the half year with 2,102 Merchants. The Company is now targeting an increase
in Merchant ACMR of over 100% to more than $28 million in the six months to
31 March 2016.

"Our clear growth strategy, investment in product, processes and people
combined with the large under-serviced target market of the USA Faith Sector
has driven our Hyper-Growth. With further development of our direct sales,
referrals strategy and through existing relationships with our strategic
channel partners and other distribution partners, we are confident of meeting
our targets."

Highlights

Annualised Committed Monthly Revenue (ACMR)

Over the six months to 30 September 2015, Pushpay announced that it had
increased its Merchant ACMR from $1 million to $10 million in less than ten
months. This rapid growth is classed as "Hyper-Growth" by SaaS expert, Jason
Lemkin. Hyper-Growth is defined as growing from $1 million to $10 million of
annual recurring revenue in five quarters or less, Pushpay achieved this
Hyper-Growth in just over three quarters.

The Company has seen an increase in Merchant ACMR of 162.10% to $13.97
million as at 30 September 2015 from $5.33 million as at 31 March 2015 and
Client ACMR (Run The Red) has remained steady at $4.07 million as at 30
September 2015 from $3.82 million as at 31 March 2015. Total ACMR has
increased 97.16% to $18.04 million as at 30 September 2015 from $9.15 million
as at 31 March 2015.

The Company is now targeting an increase in Merchant ACMR of over 100% to
more than $28 million in the six months to 31 March 2016. Over the medium
term, Pushpay is targeting an increase in Merchant ACMR to $100 million
within the 36 months to August 2018.

Pushpay remains confident that it will reach its targets based on further
development of its product, direct sales, referrals strategy and through
targeting Merchants that have existing relationships with Pushpay's strategic
channel partners and other distribution partners.

Pushpay's Merchant numbers

Pushpay is proud to reach and service Merchants from all 50 USA states and
across Canada from its Seattle, WA, USA office. As at 30 September 2015, 93%
of Merchants were located in North America, which covers the USA and Canada
with the remaining 7% located in Australasia which covers New Zealand and
Australia. The map in our Interim Report illustrates Pushpay's ability to
attract Merchants from all over the USA and Canada, demonstrating the
business model is not location specific.

Pushpay's customer base increased 111.04% to 2,102 Merchants as at 30
September 2015 from 996 Merchants as at 31 March 2015. This increase exceeded
the Company's target by 11.04%. The Company continues to primarily focus on
the USA Faith Sector, which consists of over 314,000 churches with an average
size of over 500 attendees.

Average Revenue Per Merchant (ARPM)

ARPM increased to $570 per month as at 30 September 2015 from $491 per month
as at 31 March 2015. When comparing the ARPM in United States dollars, ARPM
decreased slightly to US$361 per month as at 30 September 2015 from US$367
per month as at 31 March 2015. Processing volumes are typically lower over
the summer months in the USA. We expect ARPM when compared in United States
dollars, to gain momentum during our Merchants' seasonal peak, at the end of
the calendar year. Pushpay's ARPM is presented as an average over the current
calendar year, which will change to a rolling 12 month view from next quarter
onwards.

People, Product and Processes

Pushpay's successful execution on its USA growth plan is in part driven by
its investment in people, product and processes. We continue to attract high
quality, driven staff throughout the business and over the six months to 30
September 2015 we increased our Staff Headcount by 110.29% to 143. The
majority of the new hires were in sales related roles.

Pushpay also attracted Shane Sampson to the position of Chief Financial
Officer following an international search that generated extensive interest
in the position. Shane has 23 years' experience, most notably with NZX Main
Board -listed Vector for around five years of which two and a half he served
as Acting CFO, at Spark (previously Telecom) in various positions including
General Manager Finance and Commercial for Gen-i and most recently as CFO of
NZAX-listed Pulse Energy. Shane has a Bachelor of Laws (with Honours) and a
Bachelor of Commerce and Administration from Victoria University of
Wellington, is a Chartered Accountant and is a member of the Institute of
Directors. Shane's strong commercial acumen and broad strategic outlook make
him a valuable and crucial addition to our senior management team.

During the period, we launched some exciting additions to the Pushpay
solution including eChurch Apps, Pushpay Fastpay(TM) and Virtual
Terminal/Envelope Giving.

eChurch Apps is a custom app building solution that allows churches to create
and customise their own branded apps for iOS and Android. eChurch Apps is a
valuable feature in Pushpay's complete giving solution that further enhances
the Pushpay giving experience. By releasing a custom app platform to the
market with an integrated Pushpay payment experience, we further meet the
requirements of our main target market - the USA Faith Sector.

Pushpay Fastpay(TM) allows app vendors to integrate a five second giving
experience into their mobile apps with very little configuration. This
revolutionary giving experience is designed to integrate into mobile app
giving experiences and is being made available automatically to all eChurch
App customers. Pushpay believes that faster, simpler and more intuitive
payments will lead to a higher uptake from our Merchants' users. We will
continue to expand Pushpay Fastpay(TM) to facilitate additional types of
digital payments.

Virtual Terminal/Envelope Giving expands Pushpay's digital giving feature set
for our main target market - the USA Faith Sector. This feature allows church
administrators to process envelope-based credit card, debit card and ACH
payments through Pushpay. ACH payments in the USA are similar to direct
debits in New Zealand. Not only does this result in additional processing
volume through a valuable yet previously underserviced segment, but Pushpay's
technology also drives envelope givers towards our mobile experience, which
leads to an increase in usability and a higher frequency of giving.

Capital

Pushpay was well supported over the period by existing and new shareholders
including staff, Directors Bruce Gordon, Graham Shaw, Christopher Huljich,
Peter Huljich (Alternate Director for Christopher Huljich) and Pie Funds
Management - a top performing boutique fund manager. The Company successfully
raised $13.8 million in June through a fully underwritten Entitlement Offer
and just months following raised a further $18.8 million in October through a
Private Placement.

The Company also secured a Research and Development (R&D) Project Grant from
Callaghan Innovation. R&D Project Grants support firms with smaller R&D
programmes and those that are new to R&D. They typically provide support of
30-50% of eligible R&D costs. The grant allows for the co-funding by
Callaghan Innovation of 40% of approved R&D spending by Pushpay, with a total
possible allocation of $960,000 (representing 40% of $2.4 million) over a 17
month period.

Funds raised over the period will provide Pushpay with the funding to further
develop our product offering and as working capital to accelerate growth in
international markets, focusing on our key target territory - the USA. The
support Pushpay received in the $13.8 million Entitlement Offer in June and
the $18.8 million Private Placement in October shows that the market
opportunity and our growth strategy are well understood by the market.

Migration

Pushpay migrated to the NZX Main Board on 9 June 2015 having ceased quotation
of its shares on the NZX Alternative Market on 8 June 2015. Pushpay's
migration to the NZX Main Board marked a significant milestone for the
Company. Pushpay believes the move was in the best interest of shareholders
and is likely to lead to increased investor exposure and improved liquidity.

Outlook

Pushpay Holdings Limited Chairman, Bruce Gordon said, "Following an exciting
and successful start to the year, Pushpay enters the last six months of the
financial year in a strong position. We are geared for growth and remain
committed to delivering best-in-class SaaS metrics while we execute on our
growth plan.

"The board is pleased with the interim financial result and Pushpay believes
that it is preferable to continue to focus on and invest in growth as the
best means to achieve overall value in its business."

Chris Heaslip said, "The Company continues to work towards our short-term
target to increase our Merchant ACMR by over 100% to more than $28 million as
at 31 March 2016 and our medium-term target of reaching $100 million of
Merchant ACMR within the 36 months to August 2018. We expect to reach our
targets through further development of our product, direct sales, referrals
strategy and through targeting Merchants that have existing relationships
with Pushpay's strategic channel partners and other distribution partners."

Acknowledgments

Bruce Gordon said, "Pushpay continues to deliver on its growth plan in the
USA Faith Sector with the direction of the board and management's successful
execution. On behalf of the board and management, we would like to thank our
dedicated staff for their expertise and hard work, our Merchants and Clients
for choosing to partner with us, and you, our shareholders for your continued
confidence and support."

Contact

Sarah Elder | Investor Relations | Pushpay Holdings Limited
P: +64 21 637 449 | E: [email protected]
www.pushpay.com

About Pushpay

Pushpay provides mobile commerce tools that facilitate fast, secure and easy
non point of sale payments between consumers and merchants. Pushpay targets
merchants who are looking to offer convenient, personalised and intuitive
payment solutions to their consumers. Pushpay services three target markets:
the faith sector; non-profit organisations and enterprises (both small medium
enterprises and corporate organisations).

Pushpay is ranked 1st on the TIN100 ASB Ten Hot Emerging Companies List and
Pushpay's co-founders Chris Heaslip and Eliot Crowther are the EY
Entrepreneur Of The Year 2015 New Zealand Young category winners.

To download the Pushpay App, visit the iTunes App Store or Google Play and
search for "Pushpay".

Visit www.pushpay.com to learn more and see an online demonstration of how
Pushpay enables merchants and consumers to "never miss the moment".

ENDS
End CA:00273541 For:PAY    Type:HALFYR     Time:2015-11-17 09:00:55