Donation payment business Pushpay has swung to a $US6.5 million ($A9.42 million) half-year profit as the church-focused firm increases its proportion of larger congregations.
The Seattle- and Auckland-based business - a mobile payment system for churches, schools and education providers in the US, Canada, Australia and NZ - said processing volumes had increased 45 per cent to $US2.2 billion for the six months to September 30, with customer numbers up 7.0 per cent on a year ago to 7,905.
The dual-listed company's unaudited result on Wednesday showed revenue had increased 31 per cent to $US56.0 million for the period as it swung from a $US4.4 million loss a year ago, with average revenue per customer up 20 per cent to $US1,272 per month compared to the same point in 2018.
About 98 per cent of the company's customers are in the US.
Pushpay's ASX-listed shares were 10.92 per cent higher at $3.25 after the first 10 minutes of trade on Wednesday and have now climbed 3.8 per cent for the year.
The company is yet to pay a dividend on its ASX shares since listing in October 2016.
Pushpay says the proportion of medium and large organisations increased from 54 per cent to 56 per cent during the year while it also celebrated the successful launch of its Pushpay University app.
It reiterated the upgraded FY20 guidance offered in August of between $US23 million and $US25 million in earnings.
Sydney-based Royal Bank of Canada analyst Garry Sherriff said the company's strong outlook demonstrated high levels of profitability due to the operational leverage of PPH's market leading software platform.
But he suspected the market could push back "with Pushpay having already secured the early majority of Protestant/Baptist churches in the US".
"(It) now has to bide time and wait for the late majority to choose to switch their donation platforms," Mr Sherriff said.
PUSHPAY POSTS FIRST-HALF PROFIT
* Unaudited revenue up 31pct to $US56m
* Unaudited net profit $US6.5m vs $US4.4m loss pcp
* No interim dividend, unchanged