Pushpay flags earnings bump from savings

Church-friendly mobile app payments developer Pushpay has upgraded its earnings guidance for this financial year, with cost savings expected to offset marginally lower revised revenue.

Pushpay anticipates pre-tax earnings for the year to March 31 to jump to between $US23 million and $US25 million ($A33.85 million to $A36.8 million), up from a previously forecast $US18.5 million to $US20.5 million.

The Seattle and Auckland-based business – a mobile payment system for churches, schools and education providers in the US, Canada, Australia, and NZ – said this was because of efficiencies expected in the second half of the year, which it said on Friday would boost earnings by between $US2.5 million to $US6.5 million.

The ASX and NZX-listed firm said this will compensate for softer $US121 million to $US124 million revenue guidance, down from $US122.5 million to $US125.5 million.

“As previously indicated at our 2019 annual meeting, new customer acquisition over the start of the financial year was lower than the previous year,” Pushpay chief executive Bruce Gordon said.

“We have subsequently adjusted our operating revenue guidance range to reflect this.”

Pushpay’s ASX shares hit an all-time high of $4.16 in June 2018, but have since shed almost a quarter of their value.

However, the company’s stock bounced 1.58 per cent to $3.21 at 1045 AEST on Friday after the announcement.

AAP

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