Pushpay brings forward NZ$100m (US$72m) ACMR target

Pushpay brings forward NZ$100m (US$72m) ACMR target

Pushpay Holdings Limited (NZSX:PAY) (‘Pushpay’ or ‘the Company’) now expects to reach its NZ$100 million Annualised Committed Monthly Revenue (ACMR) target prior to the end of December 2017, eight months sooner than initially anticipated. By way of comparison, Xero grew from NZ$10 million to NZ$100 million of ACMR in around 42 months and Pushpay now expects to accomplish this in less than 28 months.

Given Pushpay’s change in presentation currency from New Zealand Dollars (NZD) to United States Dollars (USD) from 1 April 2016, the Company has decided to translate its NZ$100 million ACMR target into USD, being US$72 million.

Pushpay’s Chief Executive, Chris Heaslip said, “Pushpay expects to reach its US$72 million ACMR target prior to the end of December 2017 based on further development of its product, direct sales, referrals strategy and through targeting merchants that have existing relationships with Pushpay’s strategic channel partners and other distribution partners. As Pushpay continues to accelerate growth and deliver on its strategic plan, the Company will focus on maintaining best-in-class SaaS metrics.

“We continue to refine our growth strategy, focusing on attracting larger merchants which have the resources to maximise implementation, which in turn increases engagement and leads to higher retention. To complement this, the Company continues to invest in a more targeted marketing strategy, shifting away from transactional sales techniques and towards relational sales techniques and investing in sales training. Attracting a higher number of larger Merchants will increase our ACMR growth, while also increasing our Annual Revenue Retention Rate over time. If we see opportunities to further refine our growth strategy to attain the US$72 million ACMR target sooner, we will position ourselves to take advantage of them.”

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