Yes, all about scalability and operational leverage. We are already witnessing the latter and the recent acquisition provides greater optionality in terms of scaling. The core Year-on-Year Revenue growth needs to be watched but the Revenue growth associated with the TPV is equally imported. This incremental portion of growth comes at essentially zero cost and is a direct measure of the PPH value add (vs industry standard). Add to this the prospect via the CCB customer base, currently not serviced by PushPay, which should be easier to on-board given the relationship and the new shared vision for the future.
Like your approach on capital allocation. Served me well over many years, building your holding over time with a corresponding build in conviction. Seems to keep you on the front foot.
In terms of Portfolio concentration for 2020/2021, as I progress towards that end, I find myself repeatedly asking myself why am I going down this route. I guess, all considered, my dominant concern revolves around the scenario of ‘life after Trump’. PushPay now shares the top slot with one other across the three portfolios. Waiting for one quarterly and then some half year results before extending my holdings on the other 4. Brave or stupid ? Only time will tell.
Good luck with your PPH investment.
Rokewa
PPH Price at posting:
$4.17 Sentiment: Buy Disclosure: Held
