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Pushpay share price on watch after 1H 2020 growth

Kenneth Hall
watch, watch list, observe, keep an eye on

The Pushpay Holdings Ltd (ASX: PPH) share price is one to watch this morning after the company’s first-half results announcement.

What were Pushpay’s 1H 2020 highlights?

Pushpay’s total revenue climbed up 30% on the prior corresponding period (pcp) to US$57.4 million (A$83.3 million) in 1H 2020.

Average revenue per customer (ARPC) climbed 20% higher on pcp to US$1,272 (A$1,845) per month with gross profit margins up 8 percentage points to 65%.

Operating revenue soared 31% higher on pcp to US$56.0 million (A$81.2 million) for the Aussie donor management group.

Operating cash flow rocketed 274% to US$8.9 million (A$12.9 million) while operating expenses as a percentage of operating revenue plunged lower from 72% in 1H 2019 to 54% in the latest result.

The Pushpay share price will be one to watch following strong net profit after tax (NPAT) numbers up 247% on pcp to US$6.5 million (A$9.4 million).

Pushpay achieved its total revenue, gross margin and foreign currency-adjusted EBITDA (EBITDAF) guidance for the year ended 31 March 2019.

Pushpay’s operating volume surged 45% higher on pcp to US$2.2 billion (A$3.2 billion) in the year with several operational highlights for the group.

The company had successful spring product and summer product launches in May and August while kickstarting Pushpay University.

Could the FY20 outlook move the Pushpay share price?

Pushpay’s operating revenue guidance of between US$121 million (A$175.5 million) to US$124.0 million (A$179.8 million) could move the Pushpay share price this morning.

Gross margin is forecast to moderate slightly to “over 63%” for the year with EBITDAF of between US$23 million (A$33.4 million) to US$25.0 million (A$36.3 million).

Pushpay’s forecast total processing volume is US$4.8 billion (A$7 billion) to US$5 billion (A$7.25 billion) for the year.

How have Pushpay shares performed this year?

It’s been a volatile year for the Pushpay share price, as it has edged 3.30% lower in 2019.

Pushpay’s shares have been sliding lower since early July after a partial sell down of shares by co-founder Chris Heaslip.

This morning’s result shows strong earnings growth and we’ll see if it’s enough to turn the Pushpay share price.

The post Pushpay share price on watch after 1H 2020 growth appeared first on Motley Fool Australia.

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Kenneth Hall has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of PUSHPAY FPO NZX. The Motley Fool Australia has recommended PUSHPAY FPO NZX. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019