The PUSHPAY FPO NZX (ASX: PPH) share price has been surging, gaining almost 20 per cent this month and nearly tripling over the past year.
PushPay, an online payments company which has developed an app it claims makes managing finances more convenient, has grown its market value beyond $1 billion.
The New Zealand-based company, founded in 2011, stated that its revenue for the six months ended 30 September 2017 had grown by 145 per cent to US $29.7 million.
The growth in revenue coincided with an increase in customers over the period mentioned above, rising to 7,121 from 5,286 according to PushPay.
PushPay stated that its annualised committed monthly revenue had increased by almost 100 per cent, growing to US$67.5 million for the six months ended 30 September from US$34.3 million for the prior corresponding period.
Despite the dramatic increases in those metrics, PushPay also increased its loss for the same period, up more than 10 per cent to US$12.5 million.
PushPay attributed the loss to a strategy which focuses on growing the business and stated that it intends to hit breakeven on a monthly cash flow basis by the end of 2018.
Investors responded positively to PushPay's interim results released last month and since the announcement the tech company's share price has gone from $3.03 to $3.75.
And it appears PushPay's share price has kept up that momentum recently, gaining more than 7 per cent on Friday.
PushPay is not the only company engaged in mobile commerce or electronic accounting that has done well over the past year.
The Afterpay Touch Group Ltd (ASX: APT) share price has gained almost 100 per cent in the past year and XERO FPO NZX (ASX: XRO) has seen its share price rise by more than 50 per cent.
PushPay appears to set itself apart from others in the space by seemingly targeting a somewhat niche market comprising of those involved with charities, schools and churches.
PushPay's early days involved identifying complexities in donating to churches and developing a payment method that removed some of those complexities and encouraged more donations.
While PushPay offers a lot of promise, investing in the company at this stage will largely be an act of faith.
However, it would be wise to keep an eye on PushPay and see if all that annualised committed monthly revenue translates into actual revenue.
