Quarterly Operational Update | April 2016 - NZX.com
Quarterly Operational Update | April 2016
Pushpay Holdings Limited, Level 6, 167 Victoria Street West, Auckland 1010, New Zealand | www.pushpay.com
1
Important notice This presentation is given on behalf of Pushpay Holdings Limited (Pushpay) – Company number: 3481675 | NZSX:PAY. Information in this presentation: • is for general information purposes only, and is not an offer or invitation for subscription, purchase, or recommendation of securities in Pushpay and is not financial or investment advice to any person. Any person who is considering an investment in Pushpay should undertake his or her own independent analysis and seek appropriate professional advice from his or her legal, financial, tax and/or business advisor(s); • should be read in conjunction with, and is subject to, Pushpay’s Annual Report, market releases, and information published on Pushpay’s website www.pushpay.com; • is a summary only, and not a complete description of Pushpay and its business; • includes forward-looking statements about Pushpay and the environment in which Pushpay operates, which are subject to uncertainties and contingencies outside of Pushpay’s control – Pushpay’s actual results or performance may differ materially from these statements; • includes statements relating to past performance, which should not be regarded as a reliable indicator of future performance; and • may contain information from third parties believed to be reliable; however, no representations or warranties are made as to the accuracy or completeness of such information or any other information contained of referred to in this presentation. All information in this presentation is current at the date of this presentation, unless stated otherwise. All currency amounts are in NZ dollars unless stated otherwise. 2
Fee revenue
Volume fees
Subscription fees
Based on payment transaction volume (in the case of the Faith Sector, this is usually calculated as a percentage of total donations).
Based on the size of the Merchant (in the case of the Faith Sector, this is a fixed monthly fee usually based on the total number of church attendees).
3
USA faith sector revenue opportunity
Subscription fees
Volume fees
US$ 752m
US$ 862m
Total of US$1.614 billion
Note: Source:
Assuming 30% of digital giving based on US$114.90 billion total giving to religious organisations Giving USA (2015). Giving USA 2015: Annual report on philanthropy for the year 2014
4
Cash flow growth requires investment Company cash flow based on different growth rates $2,500,000
Growth rate: 2 more customers per month Growth rate: 5 more customers per month
Customer Acquisition Cost (CAC): $6,000 CASH FLOW (NZD)
Growth rate: 10 more customers per month
$2,000,000
$1,500,000
Monthly Recurring Revenue: $500 Note: CAC only includes Sales, Marketing and Implementation Costs
$1,000,000
$500,000
MONTHS 5
10
15
20
$0 25
30
35
-$500,000
-$1,000,000
Note: This represents three hypothetical scenarios and does not represent Pushpay’s cash flow forecast
5
Pushpay’s ACMR growth
$29.08m
ACMR
$20.40m
$13.97m
$9.02m
$5.33m $3.06m $0.71m
$0.82m
30 Jun 14
30 Sep 14
31 Dec 14
31 Mar 15
30 Jun 15
30 Sep 15
31 Dec 15
31 Mar 16
6
Monthly Recurring Revenue (MRR) trend over time $1,750 Pushpay* 31 March 2016
$1,500
MRR (US$,000)
$1,250
Slack
Yammer
$1,000
Workday
$750 Intercom Box
$500
$250
$0 0
6
12
18
24
Months since launch * “Launch date” used is January 2014 when Pushpay’s Co-founders moved to the US and its US office was established in Seattle, WA.
30
36 7
Company summaries and valuations Slack - Slack brings all your communication
Intercom - Intercom is one place for every team
together in one place. It’s real-time messaging, archiving and search for modern teams.
in an internet business to communicate with customers, personally, at scale—on your website, inside web and mobile apps, and by email.
Valuation: US$2.8 billion as at 16 April 2015
Valuation: US$500 million as at 30 August 2015
Yammer - Yammer is a private social network that helps employees collaborate across departments, locations, and business apps. Valuation: Purchased by Microsoft for US$1.2 billion in June 2012
Box (NYSE:BOX) - Box offers secure content management and collaboration for individuals, teams and businesses, enabling secure file sharing and access to your files online. Valuation: US$1.6 billion as at 28 November 2015
Workday (NYSE:WDAY) - Workday offers enterprise-level software solutions for human resource and financial management Valuation: US$15.98 billion as at 28 November 2015
8
Location of Pushpay’s Merchants in North America Merchant
Note: Includes locations in North America of all Merchants which have been added to the Pushpay platform since inception through to 31 March 2016.
9
31 March 2016 performance highlights
$29.08m ACMR
215 Staff Headcount
$643 per month Average Revenue Per Merchant (ARPM)
108.16% increase over six months
50.35% increase over six months
12.81% increase over six months
3,766 Total Merchants
$16.16m Cash and available funding lines
79.16% increase over six months
90.57% increase over six months
95%
Months to Recover Customer Acquisition Cost (CAC)
Annual Revenue Retention Rate (Retention)
10
Customer Lifetime Value (LTV)/CAC Ratio LTV/CAC Ratio Months to Recover CAC = 10
Months to Recover Customer Acquisition Cost (CAC)
Retention = >95% Annual Revenue Retention Rate (Retention)
Note: Source:
>3
SaaS aspiration
Pushpay
LTV/CAC Ratio will remain above 10 as the business scales. Saasmetrics (2016). Customer Acquisition Cost http://saasmetrics.co/customer-acquisition-cost/
11
Run The Red sale
Sold to Modica Group for $4.5 million
12
Event registration
13
Change in presentation currency
NZD to USD For reporting periods commencing after 1 April 2016 Pushpay will be changing the presentation currency for its consolidated financial statements to United States Dollars (USD) from New Zealand Dollars (NZD) and will also report key metrics in USD.
14
Market opportunity in the USA
314,000 Faith Sector (Churches)
Note: Sources:
1.4 million Non-Profit Organisations (NPOs)
5.6 million Enterprises (5.6 million SMEs and 17,671 Corporate Organisations)
Numbers rounded US Census Bureau (2012). Statistical Abstract of the United States: 2012 Urban Institute (2014). The Nonprofit Sector in Brief 2014: Public Charities, Giving, and Volunteering
15
Coming soon from the Pushpay labs Can we bring the simplicity and convenience of church donations to the world of bill payments?
10
seconds
1. Receive Notification
2. Bill details pre-populated
3. Use fingerprint and bill paid in
Pushpay Holdings Limited, Level 6, 167 Victoria Street West, Auckland 1010, New Zealand | www.pushpay.com
1
Important notice This presentation is given on behalf of Pushpay Holdings Limited (Pushpay) – Company number: 3481675 | NZSX:PAY. Information in this presentation: • is for general information purposes only, and is not an offer or invitation for subscription, purchase, or recommendation of securities in Pushpay and is not financial or investment advice to any person. Any person who is considering an investment in Pushpay should undertake his or her own independent analysis and seek appropriate professional advice from his or her legal, financial, tax and/or business advisor(s); • should be read in conjunction with, and is subject to, Pushpay’s Annual Report, market releases, and information published on Pushpay’s website www.pushpay.com; • is a summary only, and not a complete description of Pushpay and its business; • includes forward-looking statements about Pushpay and the environment in which Pushpay operates, which are subject to uncertainties and contingencies outside of Pushpay’s control – Pushpay’s actual results or performance may differ materially from these statements; • includes statements relating to past performance, which should not be regarded as a reliable indicator of future performance; and • may contain information from third parties believed to be reliable; however, no representations or warranties are made as to the accuracy or completeness of such information or any other information contained of referred to in this presentation. All information in this presentation is current at the date of this presentation, unless stated otherwise. All currency amounts are in NZ dollars unless stated otherwise. 2
Fee revenue
Volume fees
Subscription fees
Based on payment transaction volume (in the case of the Faith Sector, this is usually calculated as a percentage of total donations).
Based on the size of the Merchant (in the case of the Faith Sector, this is a fixed monthly fee usually based on the total number of church attendees).
3
USA faith sector revenue opportunity
Subscription fees
Volume fees
US$ 752m
US$ 862m
Total of US$1.614 billion
Note: Source:
Assuming 30% of digital giving based on US$114.90 billion total giving to religious organisations Giving USA (2015). Giving USA 2015: Annual report on philanthropy for the year 2014
4
Cash flow growth requires investment Company cash flow based on different growth rates $2,500,000
Growth rate: 2 more customers per month Growth rate: 5 more customers per month
Customer Acquisition Cost (CAC): $6,000 CASH FLOW (NZD)
Growth rate: 10 more customers per month
$2,000,000
$1,500,000
Monthly Recurring Revenue: $500 Note: CAC only includes Sales, Marketing and Implementation Costs
$1,000,000
$500,000
MONTHS 5
10
15
20
$0 25
30
35
-$500,000
-$1,000,000
Note: This represents three hypothetical scenarios and does not represent Pushpay’s cash flow forecast
5
Pushpay’s ACMR growth
$29.08m
ACMR
$20.40m
$13.97m
$9.02m
$5.33m $3.06m $0.71m
$0.82m
30 Jun 14
30 Sep 14
31 Dec 14
31 Mar 15
30 Jun 15
30 Sep 15
31 Dec 15
31 Mar 16
6
Monthly Recurring Revenue (MRR) trend over time $1,750 Pushpay* 31 March 2016
$1,500
MRR (US$,000)
$1,250
Slack
Yammer
$1,000
Workday
$750 Intercom Box
$500
$250
$0 0
6
12
18
24
Months since launch * “Launch date” used is January 2014 when Pushpay’s Co-founders moved to the US and its US office was established in Seattle, WA.
30
36 7
Company summaries and valuations Slack - Slack brings all your communication
Intercom - Intercom is one place for every team
together in one place. It’s real-time messaging, archiving and search for modern teams.
in an internet business to communicate with customers, personally, at scale—on your website, inside web and mobile apps, and by email.
Valuation: US$2.8 billion as at 16 April 2015
Valuation: US$500 million as at 30 August 2015
Yammer - Yammer is a private social network that helps employees collaborate across departments, locations, and business apps. Valuation: Purchased by Microsoft for US$1.2 billion in June 2012
Box (NYSE:BOX) - Box offers secure content management and collaboration for individuals, teams and businesses, enabling secure file sharing and access to your files online. Valuation: US$1.6 billion as at 28 November 2015
Workday (NYSE:WDAY) - Workday offers enterprise-level software solutions for human resource and financial management Valuation: US$15.98 billion as at 28 November 2015
8
Location of Pushpay’s Merchants in North America Merchant
Note: Includes locations in North America of all Merchants which have been added to the Pushpay platform since inception through to 31 March 2016.
9
31 March 2016 performance highlights
$29.08m ACMR
215 Staff Headcount
$643 per month Average Revenue Per Merchant (ARPM)
108.16% increase over six months
50.35% increase over six months
12.81% increase over six months
3,766 Total Merchants
$16.16m Cash and available funding lines
79.16% increase over six months
90.57% increase over six months
95%
Months to Recover Customer Acquisition Cost (CAC)
Annual Revenue Retention Rate (Retention)
10
Customer Lifetime Value (LTV)/CAC Ratio LTV/CAC Ratio Months to Recover CAC = 10
Months to Recover Customer Acquisition Cost (CAC)
Retention = >95% Annual Revenue Retention Rate (Retention)
Note: Source:
>3
SaaS aspiration
Pushpay
LTV/CAC Ratio will remain above 10 as the business scales. Saasmetrics (2016). Customer Acquisition Cost http://saasmetrics.co/customer-acquisition-cost/
11
Run The Red sale
Sold to Modica Group for $4.5 million
12
Event registration
13
Change in presentation currency
NZD to USD For reporting periods commencing after 1 April 2016 Pushpay will be changing the presentation currency for its consolidated financial statements to United States Dollars (USD) from New Zealand Dollars (NZD) and will also report key metrics in USD.
14
Market opportunity in the USA
314,000 Faith Sector (Churches)
Note: Sources:
1.4 million Non-Profit Organisations (NPOs)
5.6 million Enterprises (5.6 million SMEs and 17,671 Corporate Organisations)
Numbers rounded US Census Bureau (2012). Statistical Abstract of the United States: 2012 Urban Institute (2014). The Nonprofit Sector in Brief 2014: Public Charities, Giving, and Volunteering
15
Coming soon from the Pushpay labs Can we bring the simplicity and convenience of church donations to the world of bill payments?
10
seconds
1. Receive Notification
2. Bill details pre-populated
3. Use fingerprint and bill paid in
