The Pushpay Holdings Ltd (ASX: PPH) share price has rocketed over the past few months, hitting highs of over $9 in June. This represents a whopping 19% increase for the month, and a 211% leap from its lows of $2.64 in March.
Since the end of June, Pushpay’s share price has continued its strong growth, sitting at $8.70 at the time of writing. The Pushpay share price is up 122% for the year, which is a huge gain particularly when compared to the 9.2% drop in the S&P/All Ordinaries Index (ASX: XAO) over the same period.
What does Pushpay do?
Pushpay is a New Zealand-based company that provides a digital donor management system to the faith sector, non-profit organisations and education providers. It operates in the US, Australia, New Zealand and has had a meteoric rise since listing in late 2016.
What drove the Pushpay share price higher in June?
Pushpay’s share price rise has seen its market cap soar to $2.37 billion as the company has continued to post impressive growth. In June, strong tailwinds and reports from the company’s AGM saw its share price rise.
On 18 June, Pushpay released details of its annual meeting for 2020, which included a recap of its FY20 results and saw the Pushpay share price increase by 9.9% that day alone. Highlights from the AGM presentation included:
- Solid total revenue growth of 32% for the year ended 31 March 2020 (FY20)
- Expanding operating margins with gross profit margin for FY20 increasing by 5% to 65%
- Impressive growth in the company’s FY20 operating cash flow, which went from negative US$2.8 million to US$23.5 million, an increase of 953%
- A strengthened value proposition through the strategic acquisition of leading US-based church management system, Church Community Builder
- Confirmation Pushpay achieved or exceeded all guidance provided to the market over the year, including operating revenue, gross margin, EBITDAF and total processing volume.
What now for the Pushpay share price
Pushpay has set guidance for the year ending 31 March 2021 to between US$50 million and US$54 million – an increase of roughly 100% from last year.
At the time of writing, the Pushpay share price is up 1.05% to $8.70.
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Daniel Ewing 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.
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