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Why the PUSHPAY FPO NZX share price is falling today

The PUSHPAY FPO NZX (ASX: PPH) share price is falling on a bad day for tech stocks across global markets after the software-as-a-service business released its results for the full year ending March 31 2017 this afternoon.

Below is a summary of the results, with comparisons to the prior corresponding year. All figures in U.S. dollars.

  • Annualised committed monthly revenue (ACMR) over the year of $50.5 million, up 158%
  • Average revenue per customer of $625, up 44.1%
  • Total customers 6,737, up 79%
  • Total “lifetime value of customer base” $568 million, up 169%
  • Average transaction value over the year $197, up 7.7%
  • Cash on hand of $13.4 million

This is another impressive year of growth for a company that was named by Deloitte as the 10th fastest-growing tech business across the Asia Pacific region in 2016.

The company is a mobile payments app developer that helps the app’s user donate part of their everyday payments to retailers or billers of periodic services to charities. As such it is particularly popular with faith-based digitally savvy communities in the U.S., with 36 of the top 100 churches in the U.S. signed up as Pushpay believers.

The company has also recently entered into a relationship with U.S. accounting software giant Intuit (the operator of Quickbooks) to help solidify its competitive position and build an eco-system inspired network effect.

Although the company has been growing like gangbusters the stock is down 24% over the past year as it is yet to hit the Holy Grail of turning a profit, with forecasts for it to reach cash flow breakeven in time for Christmas at the end of calendar year 2017.

It also expects to achieve $72 million in ACMR by then and is certainly an exciting fintech business worthy of a place on investors’ watch lists, alongside the likes of Class Ltd (ASX: CL1) or language services rocket Appen Ltd (ASX: APX).

The Motley Fool has evangelical-like faith in these Top 3 ASX Blue Chips To Buy In 2017

For many, blue chip stocks means stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool's in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool's Top 3 Blue Chip Stocks for 2017."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

If you're expecting to see the likes of Commonwealth Bank, Telstra and Wesfarmers shares on this list, you'll be sorely disappointed. Not only are their dividends growing at a snail's pace, their profits are under pressure too due to the increasing competitive environment.

The contrast to these "new breed" blue chips couldn't be greater... especially the very real prospect of significant share price gains, something that's looking less likely from the usual blue chip suspects.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand - and how quickly the share prices of these companies moves - we may be forced to remove this report.

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Motley Fool contributor Tom Richardson has no position in any stocks mentioned.

You can find Tom on Twitter @tommyr345

The Motley Fool Australia owns shares of Appen Ltd and Class Limited. 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 Bruce Jackson.

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