Pushpay on track for ACMR target

New Zealand Stock Exchange listed mobile payments company, Pushpay — whose main business is facilitating donations to churches in the US via a mobile app — has reported increased losses for the year to 31 March but says its focus is to continue to invest to grow the business.

The company boosted revenues 240 percent to $US34.3m and its loss ballooned out 94 percent to $US25.3m. However the company prefers to focus on the metric of annualised committed monthly revenue (ACMR).

This formula was devised by US entrepreneur Jason Lemkin (described on his LinkedIn page as “media giant & hyper-founder-centric SaaS-only VC”) to measure the growth of SaaS companies.

Pushpay has set itself a target of achieve an ACMR of $US72m by the end of 2017 and says that, with ACMR hitting $US50.5m at the end of March it is on track to make that target.

Announcing its results, the company said: “While Pushpay believes that it is preferable to focus on and invest in growth as the best means to achieve overall value in its business, we remain in a position to achieve $72 million in ACMR and breakeven on a monthly cash flow basis prior to the end of calendar year 2017.”

The company’s main business is to help churches in the US raise money from their congregations via a mobile app — it claims that, at 31 March 2017, Pushpay was ranked number five for published Apps in the Apple App Store worldwide. However it is looking at other opportunities, saying it is often asked about expansion and whether it plans to move into new sectors.

In answer, it said: “On top of the engagement and payment revenue opportunities in the USA faith sector, Pushpay’s core software could be repurposed for other use case scenarios to service education and not-for-profit (NFP) organisations, which are often closely affiliated or linked with USA faith-based institutions.

“We have no shortage of opportunities, but we see Pushpay delivering on its targets and succeeding long-term by remaining focused on the USA faith sector and investing lightly in other opportunities so as not to distract our team.”

It notes that the USA faith sector “represents a large, under-served market with minimal competition.” Pushpay claims to have only two percent of the available market and says it is “just scratching the surface of the revenue opportunities.”

Pushpay raised $A40 million in October 2016 through a private placement, and listed on the ASX on 12 October. On 15 May it was named PwC NZ Hi-Tech Company of the Year and IBM Innovative Company of the Year at the 2017 NZ Hi-Tech Awards.

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