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Here’s why the PUSHPAY FPO NZX share price is going nuts

The PUSHPAY FPO NZX (ASX: PPH) share price has surged today following a market update this morning.

Pushpay Holdings Share Price

PPH share price

Source: Google Finance

What happened?

In an announcement to the ASX this morning, Pushpay, a leader in church donation payment processing software, reported an updated financial outlook. The company services 50 of the 100 largest churches in the US, based on a study by Outreach Magazine.

Today, Pushpay brought forward its annualised committed monthly revenue (ACMR) target of US$100 million to 31 December 2017.

“Pushpay continues to secure its market leading position in a growing sector and has subsequently brought forward its US$100 million ACMR target from 31 March 2018 to 31 December 2017,” Pushpay CEO Chris Heaslip said. “US$100 million ACMR is a significant milestone in our Company’s journey and our new target date means Pushpay will be achieving this milestone within 27 months after reaching US$10 million ACMR.”

Pushpay ACMR

Source: Pushpay ASX Announcement 11 October 2017

“Our goal is to reach the milestone of US$10 billion in Annualised Monthly Payment Transaction Volume, representing less than 10% of annual giving to religious organisations in the US.”

Pleasingly, the company said it was on track to meet its revenue guidance of US$70 million and monthly breakeven cash flow by the end 2018.

Foolish Takeaway

Religion and technology. Two sectors which have proven to be extremely lucrative for nonprofits and for-profits alike.

Although Pushpay shares have rallied strongly in 2017 — and despite the company’s shares trading at eight times its sales — I think Pushpay deserves to be on your investing watchlist in 2017.

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Motley Fool contributor Owen Raszkiewicz has no position in any of the stocks mentioned. You can follow Owen on Twitter @OwenRask.

The Motley Fool Australia owns shares of 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 Bruce Jackson.

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