Pushpay, the mobile payments app developer, is in a trading halt ahead of a $25 million bookbuild, which it says will accelerate its growth, and has raised its annualised committed monthly revenue (ACMR) target to US$100m.
The company, which is dual-listed on the ASX, also plans to list in the US within the next 36 months, it said today in its first quarter update. It gave guidance of US$70m in revenue for the 2018 financial year, more than double 2017's US$34m.
Pushpay also increased its ACMR target, which was for US$72m by the end of calendar 2017, to US$100m by March 31, 2018, though this will use a new average revenue per customer (ARPC) measure which removes the former correction for seasonal effects. The company said the old definition "represented an overly conservative historical view of our volume fee growth" and the new definition will allow it to better recognise the impact of larger customers. ACMR for the year to June 2017 was US$57.9m under the old ARPC definition, but would have been US$62.6m using the new measure.
The company's app has gained traction in the US faith sector, where its services are used by 2 per cent of the estimated 314,000 churches. Over the past year, the company has lifted its customer numbers and is getting more revenue from each customer. It had 7,128 customers as of June 30, up 59 per cent from a year earlier, with ARPC up to US$732 per month from US$511 per month in 2016.
"We believe a US listing will expand Pushpay's shareholder base, increase liquidity and enable the company to allow better access to capital, thereby increasing funding alternatives to support the company's growth strategy," Chris Heaslip, Pushpay's chief executive and co-founder said.
