The Pushpay Holdings Ltd (ASX: PPH) share price is on form on Tuesday.
In morning trade, the donor management technology company's shares are up 6% to $1.03.
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Why is the Pushpay share price charging higher?
Investors have been bidding the Pushpay share price higher today in response to the release of an update on the company's FY 2022 guidance.
According to the release, with just over two weeks left in its financial year, Pushpay has reconfirmed and narrowed its guidance for the 12 months ended 31 March.
The company now expects underlying operating earnings (EBITDAFI) to be between US$61.5 million and US$63.5 million in FY 2022. This compares to its downgraded guidance range of US$60 million to US$65 million and its initial guidance of US$64 million and US$69 million.
The above guidance includes costs associated with the investment into the Catholic initiative. Excluding this investment, management notes that its operating earnings would be between US$63.5 million and US$65.5 million.
This represents modest year on year growth of 6% to 10%.
Anything else?
Management also revealed that Pushpay saw positive year-on-year increases in its processing volume performance in each trading month of the 2022 financial year, with the total processing volume for the eleven months ended 28 February 2022 being up 10% compared to the same period last year.
In addition, it notes that Pushpay's strong operating cash flow continues to allow it to pay down its debt facility, which was obtained to partially fund the Resi Media acquisition in August 2021. Pushpay's net debt balance has reduced from US$90 million as at August 2021 to US$54 million as at 28 February 2022.
The company intends to release its full year results to the market in May.
