Four ASX shares that are not letting that hold them back are listed below. Here's why they are charging higher:

Atlantic Lithium Ltd (ASX: A11)

The Atlantic Lithium share price is up 11% to 49 cents. Investors appear to be taking advantage of recent weakness to pick up shares in this lithium explorer. Its shares were crushed after being hit by a scathing short attack alleging corruption. The company has refuted these claims.

Pushpay Holdings Ltd (ASX: PPH)

The Pushpay share price is up 15% to $1.30. This morning, this payments company revealed that it has received an improved takeover proposal from Pegasus BidCo. According to the release, Pegasus has lifted its offer by 6% from NZ$1.34 cash per share to NZ$1.42 per share. This represents an offer of A$1.32 per share and values Pushpay at A$1.52 billion.

St Barbara Ltd (ASX: SBM)

The St Barbara share price is up 3% to 59.2 cents. Investors have been buying gold miners again on Thursday in response to the market volatility. This has led to the S&P/ASX All Ordinaries Gold index rising over 0.5% this afternoon.

Temple & Webster Group Ltd (ASX: TPW)

The Temple & Webster share price is up 2.5% to $3.54. This has been driven by news that the online furniture retailer is undertaking an on-market share buyback. Temple & Webster intends to acquire up to $30 million worth of its shares over a 12-month period starting on 3 April. It commented: "The board considers the acquisition of shares at prevailing prices to be effective capital management while retaining financial flexibility to fund accretive organic and inorganic opportunities as part of its growth strategy."

The post Why Atlantic Lithium, Pushpay, St Barbara, and Temple & Webster shares are rising appeared first on The Motley Fool Australia.

In morning trade, the Pushpay Holdings Ltd (ASX: PPH) share price is up 15% to $1.30.

Why is this tech stock rocketing?

The catalyst for this rise has been news that Pegasus BidCo has returned with an improved takeover offer. This comes after shareholders rejected a previous offer at a scheme meeting earlier this month.

According to the release, Pegasus has lifted its offer by 6% from NZ$1.34 cash per share to NZ$1.42 per share.

Based on current exchange rates, this represents an offer of A$1.32 per share, which is just a touch above where this tech stock is trading today.

This values Pushpay's equity at NZ$1.63 billion or A$1.52 billion.

Will it happen this time?

It is looking more likely that this ASX tech stock will be successfully taken private this time.

That's because a number of large investors that rejected the previous offer are now on board and intend to vote in favour of the scheme.

In addition, some shareholders have agreed to accept a lower amount in order to get the deal over the line. The release notes that a small number of sophisticated, professional offshore event-driven shareholders have agreed to accept the original cash consideration of NZ$1.34 per share.

Combined, shareholders holding a total of 28.9% of Pushpay's issued capital intend to vote in favour of the scheme.

What's next?

Pushpay's non-conflicted directors unanimously recommend that shareholders vote in favour of the scheme and plan to vote all of their own shares in its favour. This is in the absence of a superior proposal.

Management advised that a new scheme meeting will be held as soon as practically possible. And for the scheme to proceed, it is necessary that two voting thresholds are met. These are:

75% or more of the votes of shareholders in each interest class who are entitled to vote and who actually vote must be voted in favour of the Scheme; and more than 50% of the total number of Pushpay shares on issue must be voted in favour of the Scheme.

The scheme remains subject to Pushpay shareholder and New Zealand High Court approvals and is also subject to other customary conditions.

The post Amid the carnage, this ASX tech stock is rocketing 15%. Here's why appeared first on The Motley Fool Australia.

Four ASX shares that are not letting that hold them back today are listed below. Here's why they are rising:

Kingsgate Consolidated Limited (ASX: KCN)

The Kingsgate share price is up 10% to $1.61. Investors have been buying this gold miner's shares for a couple of reasons. One is a rise in the gold price and the other is an update on the Chatree Gold Mine. The latter reveals that inspectors have given its Thailand-based mine the thumbs up for reopening.

Neuren Pharmaceuticals Ltd (ASX: NEU)

The Neuren Pharmaceuticals share price is rising again and is up 11% to $10.08. Investors have been buying this biotech company's shares this week after its treatment for Rett's Syndrome was granted US FDA approval. The company has a deal in place with its partner Acadia Pharmaceuticals (NASDAQ: ACAD) that could underpin significant royalty and milestone payments.

Newcrest Mining Ltd (ASX: NCM)

The Newcrest share price is up over 3% to $24.81. Investors have been buying this gold miner's shares following a strong rise in the gold price. This was driven by demand for safe haven assets and has lifted the whole industry. For example, the S&P/ASX All Ordinaries Gold index is up almost 3% today.

Pushpay Holdings Ltd (ASX: PPH)

The Pushpay share price is up 2.5% to $1.16. This morning, this payments company revealed that it has given Pegasus Bidco another day to make an improved takeover offer. The suitor now has until 7pm New Zealand time on Wednesday to make its new proposal. This comes after shareholders rejected its previous offer at the start of the month.

The post Why Kingsgate, Neuren, Newcrest, and Pushpay shares are rising today appeared first on The Motley Fool Australia.

Four ASX shares that aren't letting that hold them back today are listed below. Here's why they are charging higher:

Mesoblast Ltd (ASX: MSB)

The Mesoblast share price is up 18% to $1.09. This morning, this biotech company revealed that the US FDA has accepted its Biologics License Application resubmission for remestemcel-L in the treatment of children with steroid-refractory acute graft versus host disease (SR-aGVHD). This isn't approval but does guarantee that the FDA will make a decision on the treatment by 2 August.

Polynovo Ltd (ASX: PNV)

The PolyNovo share price is up 3% to $2.29. This is despite there being no news out of the medical device company today. However, it is worth noting that S&P Dow Jones Indices recently announced that PolyNovo will be added to the ASX 200 index on 20 March.

Pushpay Holdings Ltd (ASX: PPH)

The Pushpay share price is up 3% to $1.16. This morning, the payments company revealed that Pegasus Bidco is looking into making a new takeover offer after shareholders rejected a NZ$1.34 per share proposal at a recent scheme meeting.

Weebit Nano Ltd (ASX: WBT)

The Weebit Nano share price is up 6% to $7.88. Investors have been buying this memory technology company's shares this week after it announced the availability of its resistive RAM (ReRAM) IP in SkyWater Technology's 130nm CMOS process. This means that SkyWater customers can now integrate Weebit's non-volatile memory in their system-on-chip designs, if they wanted to.

The post Why Mesoblast, PolyNovo, Pushpay, and Weebit Nano shares are charging higher appeared first on The Motley Fool Australia.

Four ASX shares that are climbing more than most today are listed below. Here's why they are rising:

Beach Energy Ltd (ASX: BPT)

The Beach share price is up 2.5% to $1.58. This may have been driven by a broker note out of Macquarie. Its analysts have upgraded the energy producer's shares to a neutral rating with a $1.50 price target. The broker was pleased with news that Webuild has been appointed to complete the Waitsia gas plant construction.

Medibank Private Ltd (ASX: MPL)

The Medibank share price is up 2% to $3.03. This morning, this private health insurer announced that it will increase its premiums by an average of 2.96% from April. This is the lowest increase in 22 years. Investors may believe this is a nice balance in the current environment. Medibank has also decided to defer this increase until the start of June.

Pushpay Holdings Ltd (ASX: PPH)

The Pushpay share price is up 2% to $1.20. Investors have been buying this donation technology provider's shares after it reconfirmed and narrowed its FY 2023 guidance. Pushpay now expects underlying EBITDAF of US$55 million to US$57 million. This compares to its previous guidance of US$54 million to US$58 million.

Whitehaven Coal Ltd (ASX: WHC)

The Whitehaven Coal share price is up 5.5% to $8.93. This has been driven by a strong rise in coal prices overnight. According to CommSec, Coal Nymex futures rose 5.3% to US$157.00 a tonne. This news has given a number of other ASX coal shares a major boost today.

The post Why Beach Energy, Medibank, Pushpay, and Whitehaven Coal shares are rising appeared first on The Motley Fool Australia.

Four ASX shares that are climbing more than most today are listed below. Here's why they are rising:

Clinuvel Pharmaceuticals Limited (ASX: CUV)

The Clinuvel share price is up 5% to $19.62. This follows the release of the biopharmaceutical company's quarterly update. Clinuvel recorded its highest quarterly results from customer receipts since the commencement of commercial operations in Europe in June 2016 and United States in April 2020. The company's receipts from customers for the quarter were $25.152 million, with net operating expenditures of $8.270 million and net operating cashflow totalling $17.338 million.

Nitro Software Ltd (ASX: NTO)

The Nitro share price is up 18% to $2.05. Investors have been buying this document productivity software company's shares after it received another takeover offer. Canadian graphics software company Alludo has offered $2.00 per share, which is 11% higher than Potentia Capital's offer of $1.80 per share. Given that the Nitro share price is trading above the offer price, investors appear to believe a bidding war could ensue.

Premier Investments Limited (ASX: PMV)

The Premier Investments share price is up 5% to $24.97. This has been driven by the release of a trading update from the retail conglomerate after the market close on Friday. That update reveals that global sales for the first 12 weeks of FY 2023 are up 42.8% on the prior corresponding period. This is also a 21.7% increase on the same 'pre-COVID' period during FY 2020.

Pushpay Holdings Ltd (ASX: PPH)

The Pushpay share price is up 8% to $1.14. This follows news that the donation platform provider has accepted a NZ$1.34 (A$1.21) per share takeover offer from the Sixth Street and BGH Capital Consortium. This represents a 14.7% premium to the Pushpay share price prior to its trading halt and a 30.1% premium to where its shares were trading before its first takeover offer was received.

The post Why Clinuvel, Nitro, Premier Investments, and Pushpay shares are rising appeared first on The Motley Fool Australia.

In morning trade, the donation technology company's shares are up 9% to $1.15.

Why is the Pushpay share price storming higher?

The catalyst for the rise in the Pushpay share price on Monday has been news that the company has accepted a takeover offer from the Sixth Street and BGH Capital Consortium.

Sixth Street is a global investment firm and BGH Capital is an Australia and New Zealand-focused private equity firm. Together, the two parties currently hold, in aggregate, 20.34% of the shares in Pushpay.

According to the release, Pushpay has entered into a scheme implementation agreement under which the consortium will acquire all of Pushpay's shares at a price of NZ$1.34 (A$1.21) per share in cash via a scheme of arrangement. This represents a 14.7% premium to the Pushpay share price prior to its trading halt.

Why did Pushpay accept this offer?

The release notes that following a comprehensive process and a thorough consideration of strategic options, the Pushpay board believes the offer provides "compelling value for shareholders."

It highlights that while it is only a 14.7% premium to the last close price, it is a 30.1% premium to undisturbed share price on 22 April before takeover offers were first received. In addition, since then, the ASX All Technology index has declined 12.1%.

It implies an equity value of US$898 million and an acquisition multiple of 16x the midpoint of its revised EBITDAF guidance of US$56 million for FY 2023.

Pushpay's Chair, Graham Shaw, commented:

In considering the options, including the possibility of continuing to implement the Company's growth strategy as a publicly listed company, the Board adopted a long-term view of the risks and rewards of various alternatives.

After a thorough assessment, the Board believes that the Sixth Street / BGH Consortium Scheme proposal currently represents the most compelling value for shareholders. Although the Board remains confident in the future of Pushpay, the transaction will accelerate a capital return to shareholders and mitigates the risks that would otherwise be involved in delivering the opportunities from executing Pushpay's strategic plan over time. Accordingly, the Board is pleased to unanimously recommend the transaction to shareholders.

The post Pushpay share price rips 9% ahead on takeover agreement appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) is down another 1.38% today at the time of writing.

I should point out that just because something has fallen in price doesn't automatically mean that it's better value. For example, an ASX share's prospects could have worsened, leading investors to rightly reduce their expectations of the company in the future.

In my opinion, the below three businesses look very interesting at the current levels.

Johns Lyng Ltd (ASX: JLG)

This business describes itself as "Australia's leading integrated building services provider, delivering building, restoration, strata and energy services nationally and internationally. The group's core business is built on its ability to rebuild and restore a variety of properties and contents after damage by insurable events including: impact, weather and fire events."

It has clients that include major insurance companies, insurance brokers, loss adjusters, commercial enterprises, local and state governments, body corporates/owners' corporations, and retail customers.

At the time of writing, the Johns Lyng share price has fallen almost 13% today and it's down 37% in the year to date.

The business gave an update today and explained its CEO has sold four million shares to fund his relocation to the US as well as the purchase of a home there, along with tax liabilities. CEO Scott Didier still owns 19% of the business.

The business has reaffirmed its FY23 guidance that it's expecting 'business as usual' (BaU) revenue to rise 27.4% to $930.4 million and that BaU EBITDA could rise by 43.3% to $93 million.

I think this business has plenty of growth potential because of its increasing exposure to weather events such as storms and floods, and because it's growing its presence with its existing and new clients.

Pushpay Holdings Ltd (ASX: PPH)

Pushpay is an ASX tech share that I believe has a compelling future. It offers digital donation tools and church management software for church organisations in the US. The business started off by targeting large and medium churches but it's now trying to win over small churches as well.

The ASX share recently announced it has won the US Army Chaplin Corps as a customer. The army will use a tailored Pushpay software and apps solution for its 51 ministries around the world.

I think this business can benefit from the ongoing adoption of digital payments while growing profit margins thanks to operating leverage.

Another thing to keep in mind is that private equity group BGH Capital may still be interested in buying the business, according to reporting by the Australian Financial Review.

Since the beginning of 2022, the Pushpay share price is down almost 40% over the past year, so I think it could be an opportunity at this lower price.

Audinate Group Ltd (ASX: AD8)

The Audinate business offers the Dante IP networking solution, which claims to be a worldwide leader of AV signals. It works by replacing analogue cables and is used extensively in the professional live sound, commercial installation, broadcast, public address, and recording industries.

I think that the Audinate share price looks much cheaper after falling around 7% today and it's down 30% since 5 August 2022.

Investing in worldwide leaders can make a lot of sense, particularly if they're growing quickly. The ASX share's FY22 revenue rose 33.4%. It said it's entering FY23 with a backlog and software revenue run-rate to support revenue growth in US dollar terms in the "historical range".

I'm also excited by the progress it's making with the video side of things. Video revenue is expected to be at least US$3 million in FY23.

The post Share market sell-off: 3 top ASX shares to buy now appeared first on The Motley Fool Australia.

Sometimes the sector that has been hurt the most could be the place to go hunting because sentiment is so low.

While not every tech business is guaranteed to be a good choice, I think there are a number of interesting choices worth considering due to their growth potential and impressive margins.

Betashares Nasdaq 100 ETF (ASX: NDQ)

This isn't a single business. It's an exchange-traded fund (ETF) that is invested in a range of different tech stocks.

Many of the largest holdings will probably be familiar to readers. We're talking about names like Apple, Microsoft, Amazon.com, Tesla, Alphabet, Meta Platforms, and Nvidia.

There are plenty of others in the portfolio such as Broadcom, Cisco Systems, Texas Instruments, Adobe, Qualcomm, Advanced Micro Devices, and Intel.

It has been a solid performer in the last few years, despite the plunge seen this year. At 31 August 2022, the Betashares Nasdaq 100 ETF had returned an average of 16.4% per annum over the prior three years. But, that doesn't mean that the next three years will be as strong.

Since the start of 2022, the ASX tech share has dropped by 25%. I like the diversification and tech exposure offered by this investment option.

Pushpay Holdings Ltd (ASX: PPH)

The Pushpay share price recently suffered a 10% plunge on news that a takeover was no longer likely to go ahead for the donation and church management software company.

However, I think this now represents a compelling opportunity for investors to look at the business.

This is despite investor worries that the normalisation of COVID-19 conditions would lead to the business suffering.

Revenue rose 13% in FY22 and it's expecting between 10% to 15% revenue growth in FY23. Operating profit may be a bit lower in FY23 as the business invests for future growth.

It's expecting "strong growth" in FY24 onwards with "significant revenue growth and increasing profitability".

In FY22, total processing volume increased by 10% to US$7.6 billion. By FY25, it's expecting its total processing volume to grow to more than US$10 billion, which suggests a rise of more than 30% between now and then.

I think the entry into the Catholic segment is a smart move by the ASX tech share because it diversifies and expands the potential Pushpay customer base.

If it can keep growing revenue in the coming years, while growing profit faster than revenue, I believe that the Pushpay share price represents compelling value at this lower level.

The post Here's why I think these ASX tech shares are buys in September appeared first on The Motley Fool Australia.

Shares in the ASX tech company closed the day 9.77% lower at 97 cents a share.

For months, there has been a question over whether Pushpay was going to be acquired.

Takeover not likely to happen

According to reporting by The Australian, private equity group BGH Capital and "at least one other party" have been interested in buying the business.

Goldman Sachs has been advising Pushpay through this process, though it was certainly not guaranteed that a takeover was going to happen.

There has been hefty volatility on share markets in recent months as investors get used to higher interest rates while central banks try to control the strong inflation being experienced around the world.

Lower earnings and multiples

Not only are businesses now having challenges in relation to their costs – such as wages and rent – but investors are now seemingly offering a lower multiple for the earnings. This is also called the price/earnings (P/E) ratio.

The Australian reported: "BGH Capital, advised by Craigs, and global fund Sixth Street have an interest in 20.3% of Pushpay shares. The likely scenario is that BGH Capital and Sixth Street have returned to the negotiating table with a lower price, which is not to the liking of Pushpay's board."

With the likely end of a potential takeover, the Pushpay share price has dropped 23% this year and it's down 27% from the end of May 2022.

Why do interest rates and inflation matter?

As Warren Buffett once said about interest rates:

The value of every business, the value of a farm, the value of an apartment house, the value of any economic asset, is 100% sensitive to interest rates because all you are doing in investing is transferring some money to somebody now in exchange for what you expect the stream of money to be, to come in over a period of time, and the higher interest rates are the less that present value is going to be. So every business by its nature…its intrinsic valuation is 100% sensitive to interest rates.

Latest Pushpay result

For the year ended 31 March 2022, Pushpay reported that its operating revenue rose by 13% to US$202.8 million. Excluding Resi Media, Pushpay increased operating revenue by 6% to US$190.6 million. Net profit after tax (NPAT) went up 7% to US$33.4 million.

In FY23, the company is expecting operating revenue growth of between 10% to 15%. It's also expecting a "strong growth outlook from FY24 onward".

The post Pushpay share price dives 10% as takeover validity questioned appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are dropping:

Lake Resources N.L. (ASX: LKE)

The Lake Resources share price is down a further 10% to 95 cents. This follows news that the lithium developer is disputing the terms of a contract that would see its partner Lilac Solutions earn 25% of the Kachi Lithium Project. Given that Lake is heavily reliant on Lilac's potential DLE technology to make its project economical, investors appear concerned what this could mean for their partnership and the project.

Pushpay Holdings Ltd (ASX: PPH)

The Pushpay share price is down over 8% to 98.5 cents. Investors have been selling this donation platform provider's shares amid concerns that its takeover could be on the brink of collapsing. Pushpay has responded to the speculation but neither denied nor confirmed that the takeover is on the rocks.

South32 Ltd (ASX: S32)

The South32 share price is down 7% to $4.01. This has been driven by the mining giant's shares trading ex-dividend this morning for its latest dividend. Eligible shareholders can look forward to receiving its fully franked final dividend of 14 US cents per share and a fully franked special dividend of 3 US cents per share next month on 13 October.

Tyro Payments Ltd (ASX: TYR)

The Tyro share price is down 4% to $1.28. Investors have been selling this payments company's shares despite it naming a new CEO. Jon Davey will take the top job from the outgoing Robbie Cooke on 3 October. He is currently the CEO of Tyro's Health business, having joined Tyro in May 2021 following Tyro's acquisition of health fintech Medipass.

The post Why Lake, Pushpay, South32, and Tyro shares are dropping appeared first on The Motley Fool Australia.

However, for businesses that we are interested in, a cheaper price gives us the opportunity to buy a small slice of the business at a lower entry point.

Investing is ultimately all about making returns. The lower the price we can buy a (good) asset, the better chance we give ourselves of making good returns.

There are plenty of good ASX growth shares to consider in my opinion. While plenty of businesses have seen a strong rise in the share price over the last couple of months, I believe that a number of them still represent very attractive value at the current levels.

Both of these businesses look like compelling opportunities to me:

RPMGlobal Holdings Ltd (ASX: RUL)

The company describes itself as a global leader in the provision and development of mining software solutions, advisory services and professional development to the mining industry. Its aim is to help mining clients extract more value at every stage of the mining lifecycle, enabling them to achieve safer, cleaner and more efficient operations in over 125 countries.

In terms of being better value, the RPMGlobal share price has dropped 26% in 2022. It's currently been transitioning clients from perpetual license sales to subscription license sales over the last 12 months.

Its total contracted value (TCV) derived from software license sales for FY22, to the end of June 2022, totalled $55.9 million – this was an increase of $5.6 million from its last announcement to the market on 27 June 2022, just four days earlier, of $50.3 million.

The ASX growth share's annually recurring revenue (ARR) from software subscriptions (excluding annually recurring maintenance and support revenue from past perpetual software licenses) finished the year at $32.8 million, up $10.9 million from the start of FY22.

RPMGlobal said that mining companies are accelerating their endeavours to move their technology solutions into the cloud and that it has a first-mover advantage, so it's well-positioned to benefit most from this structural change. Its software sales pipeline continues to grow as its product range and customer base expands.

It has a number of major clients including Glencore, Anglo American, Rio Tinto Limited (ASX: RIO), BHP Group Ltd (ASX: BHP), Vale, Fortescue Metals Group Limited (ASX: FMG) and South32 Ltd (ASX: S32).

Pushpay Holdings Ltd (ASX: PPH)

This ASX growth share provides a donor management system, which includes donor tools, finance tools and a custom community app, a church management system and video streaming solutions to the faith sector, non-profit organisations and education providers. It is benefiting from the long-term shift of donations from cash to digital giving.

One of the first things to keep in mind with Pushpay is that it has received unsolicited, non-binding and conditional expressions of interest or approaches from third parties that want to buy the company. It's in the process of assessing these approaches and has provided selected information to better inform those parties and to assist them to submit proposals.

A takeover offer could provide a useful boost to the Pushpay share price.

In FY23 to March 2023, it's expecting to report annual operating revenue growth of between 10% to 15%, while investing in the business to support growth and enable future scale.

By FY25, it's expecting to reach more than US$10 billion of total processing volume and more than 20,000 customers. It's expecting the benefits from investing in its business from FY24, with underlying profit expected to grow faster than revenue. For example, in the long-term, the ASX growth share wants to reach a 25% market share of Catholic parishes – in FY24 it's expecting a strong uplift in sales.

The company recently announced the Archdiocese of Seattle as a customer, which will use ParishStaq, the company's integrated technology platform to help parishes and dioceses increase engagement and grow their communities. This represents an opportunity to reach 174 parishes and a Catholic population of over 600,000 people.

The post I think these 2 ASX shares are buys due to exciting growth potential appeared first on The Motley Fool Australia.

Pushpay shares initially emerged as a COVID winner as churchgoers embraced digital giving and engagement.

The Pushpay share price doubled from pre-pandemic levels only to falter as investors were left wanting more.

Since then, the Pushpay share price has been seesawing, spurred by mixed results and takeover interest.

Pushpay shares have gained around 25% in the last six months, but are down by roughly the same amount over the last year.

As Pushpay shares continue to divide the market, let's take a look at the bull case and bear case for this ASX tech share.

Bulls say

Terrific economics

At face value, Pushpay is a terrific business. The company's software-first model is not only very sticky, but it's also beautifully scalable. 

It doesn't matter if Pushpay serves another 100 or 10,000 churches. The software has already been developed and it works wonderfully. As a result, revenue can grow at a much faster pace than expenses because there are minimal costs involved in servicing an extra customer.

This leads to something called operating leverage, which boosts Pushpay's bottom line and turns the company into a free cash flow machine. 

For the year ended 31 March 2022, Pushpay generated around US$61 million of free cash flow, excluding its acquisition of Resi Media. 

That same year, the company reported underlying earnings before interest, tax, depreciation, amortisation and foreign exchange (EBITDAF) of US$62 million. 

This means nearly all of the company's earnings translated into free cash flow. A tremendous feat that makes Pushpay one of the best cash flow converting companies on the ASX.

Cross-selling opportunities

Pushpay's roots are in digital giving and payment processing. But the company has made two meaningful acquisitions in recent years.

At the end of 2019, Pushpay announced the US$87.5 million acquisition of Church Community Builder, a leading provider of church management software.

And in August last year, it made a US$150 million play for Resi Media, a video streaming solutions provider that specialises in the faith sector.

These complementary products provide Pushpay with an opportunity to cross-sell its suite of solutions to its existing customer base.

As it stands, only 24% of Pushpay's customers use two products and just 4% use all three. This cross-selling potential not only presents low-hanging fruit for revenue growth but should also help with customer retention.

Catholic expansion

Pushpay has traditionally focused on the Protestant faith. But recognising an opportunity to tap into a large addressable market, it's been busy working on a tailored product for the Catholic segment.

At the end of 31 March 2022, Pushpay had onboarded 173 Catholic customers.

With 17,000 Catholic parishes in the US, Pushpay thinks the estimated total addressable market is between US$600 million and US$700 million in annual revenue.

The company is eyeing a 25% market share of Catholic parishes in the long term, which would significantly propel Pushpay's revenue base. 

Bears say

Now that we've covered the blue-sky opportunity for Pushpay, let's turn our attention to what's been weighing shares down.

Slowing growth

Pushpay's acquisitions have somewhat masked a recent trend of slowing revenue and customer growth.

In FY21, Pushpay recorded 40% revenue growth while the most recent financial year saw the company generating 13% growth.

While impressive at first glance, FY21's results include an extra eight months' contribution from Church Community Builder. And excluding the Resi acquisition, Pushpay delivered just 6% revenue growth in FY22.

The company is guiding for revenue growth between 10% and 15% in FY23, which is much softer than what investors have become accustomed to over the years. 

After gobbling up the large church segment of the market, the business could be reaching maturity. 

It added 203 net new customers in FY21 and around 550 net new customers in FY22 excluding Resi, taking its total customer count to 14,508. The company itself admitted FY22 was a soft period, with net new customers and go-to-market performance lower than expectations.

That said, with Pushpay's improved positioning in the market and beefed-up product suite, it's worth looking beyond the headline customer numbers to monitor product utilisations as well.

Revolving door of senior figures

Over the years, a number of important figures have exited the Pushpay business. The first was co-founder Eliot Crowther who left in 2018 and cashed out his entire NZ$100 million stake.

Fellow co-founder and CEO Chris Heaslip followed him out the door a year later.

Last year, the company's largest shareholder, the Huljich family, also parted ways with the business and sold down their entire stake. The Huljich family were cornerstone investors in Pushpay and long-serving board members.

Not long after, long-standing director and former interim CEO Bruce Gordon retired from the board. 

Currently leading the company is CEO Molly Matthews who was internally promoted from her role as chief customer officer. 

At the moment, she's leading the business without a permanent CFO after Shane Sampson jumped ship to fellow Kiwi business Serko Ltd (ASX: SKO) in October last year. He'd been with the business for six years.

So what's the verdict?

Pushpay's business model and market positioning make for a compelling investment case. It's how the company has become the formidable force it is today.

But the ASX tech share is now in its next phase of growth, venturing outside of its core offering while also trying to crack into the lucrative Catholic segment.

Investors must have faith that management will be able to execute.

The post Does the bull beat the bear for this ASX tech share? appeared first on The Motley Fool Australia.

Four ASX shares that are not letting that hold them back are listed below. Here's why they are rising:

Allkem Ltd (ASX: AKE)

The Allkem share price is up 4% to $13.53. Investors have been buying lithium shares today amid optimism that demand will continue to outstrip supply for some time to come. This could lead to lithium prices remaining higher from longer.

National Australia Bank Ltd (ASX: NAB)

The NAB share price is up 2% to $31.36. This appears to have been driven by a broker note out of Goldman Sachs this morning. According to the note, the broker has retained its conviction buy rating and $34.17 price target on the bank's shares. Goldman believes that NAB's balance sheet mix provides investors with the best exposure to the domestic system growth the broker is forecasting over the next 12-18 months.

Pushpay Holdings Ltd (ASX: PPH)

The Pushpay share price has jumped 14% to $1.28. This follows news that the donations technology company has received a takeover proposal from BGH Capital and Sixth Street. While no details have been provided, the suitors appear to mean business. They have already accrued a combined 20% interest in Pushpay recently.

Virgin Money UK (ASX: VUK)

The Virgin Money UK share price is up 3% to $2.65. This follows an even stronger gain by the UK-based bank's London-listed shares during overnight trade. This was despite there being no news out of Virgin Money. Though, it is worth noting that banks performed positively on Wall Street and elsewhere last night following a strong update from JP Morgan.

The post Why Allkem, NAB, Pushpay, and Virgin Money UK shares are rising appeared first on The Motley Fool Australia.

In afternoon trade, the donation technology company's shares have jumped 17% to $1.31.

Why is the Pushpay share price jumping?

The Pushpay share price was placed in a trading halt this morning pending the release of an announcement relating to a takeover approach.

Although the company requested the halt until Thursday, it hasn't needed anywhere near as long to respond to the proposal.

According to the release, Pushpay has confirmed the receipt of an offer from two existing shareholders, BGH Capital and Sixth Street. Combined, these shareholders have a holding of just over 20% in the company.

The release notes that BGH Capital and Sixth Street have advised that they have entered into a co-operation agreement with respect to a potential transaction involving Pushpay.

However, Pushpay has warned shareholders that the proposal is not a definitive transaction agreement and can be terminated immediately by either party on notice to the other.

Furthermore, the company has not entered an agreement with any party, including either or both of BGH Capital and Sixth Street, to implement a transaction.

Instead, it is continuing with a process that is already underway, and is in an early stage with multiple parties, to explore the potential for a transaction which is in the best interests of shareholders as a whole.

Though, once again, it has warned that there is no certainty that this process will result in any transaction.

Unfortunately, Pushpay has neglected to provide retail shareholders with any further details, such as the takeover price that is being proposed. So, they may have to sit tight until BGH Capital and Sixth Street or one of the other "multiple parties" tables a firm offer.

The post Pushpay share price jumps 17% amid BGH Capital and Sixth Street takeover approach appeared first on The Motley Fool Australia.

Prior to the market open, this donation technology company requested that its shares be placed in a trading halt.

Why is the Pushpay share price in a trading halt?

The Pushpay share price has been paused while the company prepares a response to the receipt of a takeover approach.

The company commented:

Pushpay advises it has recently received unsolicited, non-binding and conditional expressions of interest or approaches from third parties looking to acquire the Company. The Board has appointed Goldman Sachs to assist as financial advisor. There is no certainty that these expressions of interest or approaches will result in any transaction.

Who is interested?

The suitors are BGH Capital and Sixth Street, which this morning revealed that they have acquired an aggregate 20% stake in Pushpay.

The release confirms:

This morning, before market open, associated interests of BGH Capital and Sixth Street released substantial product holder notices to NZX under which those parties disclosed an aggregate relevant interest in PPH shares of 20.343% as a result of an agreement between them under which they have agreed to co-operate in respect of a potential acquisition of PPH. The request for the trading halt is to provide PPH with sufficient time to review the co-operation agreement and prepare an appropriate update to the market.

One thing that has not been revealed, however, is the price that BGH Capital and Sixth Street is willing to pay to acquire the company.

With the Pushpay share price down 42% from its 52-week high, shareholders will no doubt be hoping the offer isn't opportunistic and instead lands at least somewhere close to previous highs.

We should find out by Thursday when the Pushpay share price is scheduled to resume trading again.

The post Pushpay share price halted following takeover approach appeared first on The Motley Fool Australia.

At the time of writing, the donation technology company's shares are down 5% to $1.12.

Pushpay share price lower on FY 2022 results

• Total Processing Volume increased by 10% to US$7.6 billion
• Operating revenue increasing by 13% to US$202.8 million including Resi Media acquisition
• Annual Revenue Retention Rate remained above 100% over the last five comparable periods ended 31 March.
• Gross margin remained consistent with the previous year at 68%.
• Operating expenses up 28% to US$83.4 million
• Underlying EBITDAF increased 8% to US$62.4 million
• Net profit after tax up 7% to US$33.4 million

What happened during FY 2022?

For the 12 months ended 31 March, Pushpay reported a 10% increase in total processing volume to US$7.6 billion. This was underpinned by a 31% increase in customer numbers to 14,508 and the acquisition of video streaming provider Resi Media.

Operating revenue increased 13% to US$202.8 million including Resi Media and 6% to US$190.6 million excluding the acquisition.

And while its gross margin remained consistent at 68%, operating expenses grew quicker than revenue at 28% to US$83.4 million over the period due to the inclusion of Resi Media and increasing investment in people.

This meant that Pushpay's earnings before interest, tax, depreciation, amortisation, and forex (EBITDAF) and net profit grew at a more modest 8% to US$62.4 million and 7% to US$33.4 million, respectively.

Management commentary

Pushpay's CEO, Molly Matthews, was pleased with the company's performance in FY 2022 and the progress it is making with its long-term strategy. She commented:

Pushpay's long-term growth strategy is focused on four areas – growing Customer numbers, increasing the number of Products utilised, expanding and enhancing Pushpay's suite of products, and increasing share of wallet. Significant progress has been made executing against strategic priorities in each of these areas, setting the foundation for escalating growth in future years.

A number of initiatives were implemented during the year to respond to market headwinds, including to refresh and strengthen Pushpay's go-to-market strategy and investment in talent and capability. A key highlight during the 2022 financial year was the acquisition of a leading video streaming provider, Resi Media in August 2021, which provides significant value and growth opportunities.

"Pleasingly, we are now seeing benefits from these actions, with the full benefits to be seen from FY24 onwards following a further year of investment, particularly in people and capability, in FY23.

Outlook

The weakness in the Pushpay share price today is likely to be down to its guidance for FY 2023.

Although management is expecting more of the same for its operating revenue, guiding to growth of 10% to 15%, it is forecasting a decline in its EBITDAF.

Pushpay is expecting underlying EBITDAF to be between US$56 million and US$61 million in FY 2023, which will be a decline of 2.2% to 10% year on year. This reflects the company's investment in growth opportunities.

Looking further ahead, the company is targeting over US$10 billion of Total Processing Volume and more than 20,000 customers by the end of FY 2024.

Pushpay chair, Graham Shaw, commented:

After many years of building our business and with the recent expansion of Pushpay through two significant acquisitions, we are now focused on developing our business for the future and are investing in targeted strategic growth initiatives, in particular entry into the Catholic segment, Resi Media and other growth initiatives. This investment will continue through FY23, with escalating returns expected from FY24.

The unique opportunity ahead for Pushpay remains significant and we see substantial room for growth. We are focused on growing Underlying EBITDAF faster than revenue, and we will continue to invest to build our share of existing and new market opportunities and take advantage of the significant pipeline ahead of us. We are confident we have a clear strategy and strong leadership in place to continue delivering value for our Customers and our shareholders.

The post Pushpay share price down 5% on full-year results and weak guidance appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why they are sinking:

AUB Group Ltd (ASX: AUB)

The AUB share price is down 11.5% to $19.53. This morning the insurance broker announced the successful completion of the institutional component of its $350m capital raising. These funds were raised at $19.50 per new share, which represented an 11.6% discount to its last close price. The proceeds will be used to fund the acquisition of Tysers for $880 million.

Block Inc (ASX: SQ2)

The Block share price is down 8.5% to $122.71. This follows an even greater decline by the payments giant's NYSE listed shares during overnight trade on Wall Street. Investors were selling Block's shares amid weakness in the tech sector, a significant drop in the bitcoin price, and the release of several less-than-bullish broker notes.

BrainChip Holdings Ltd (ASX: BRN)

The BrainChip share price is down 13% to $1.05. Investors have been selling this artificial intelligence technology company's shares despite there being no news out of it. However, its shares did surge higher yesterday amid excitement over an unannounced partnership with Arm. This may have led to some traders taking profit today.

Pushpay Holdings Ltd (ASX: PPH)

The Pushpay share price is down 4.5% to $1.20. This decline may have been driven by investor nerves ahead of the payments company's full-year results release tomorrow. Pushpay's results have been a touch underwhelming over the last 18 months, putting significant pressure on its shares. Some investors may be fearing tomorrow's will be the same.

The post Why AUB, Block, BrainChip, and Pushpay shares are sinking appeared first on The Motley Fool Australia.

Four ASX shares that have managed to avoid the selloff today are listed below. Here's why they are pushed higher:

Jumbo Interactive Ltd (ASX: JIN)

The Jumbo share price climbed 3% to $18.27. This morning the lottery ticket seller presented at the Goldman Sachs Emerging Leaders Conference. At the conference, management spoke about its ~$70 billion market opportunity across lottery retailing, software as a service, and managed services.

Nufarm Ltd (ASX: NUF)

The Nufarm share price rose 2% to $6.89. Investors were buying this agricultural chemicals company's shares after it provided guidance for the first half. Due to strong demand for its crop protection and seed products, Nufarm expects to report half year underling EBITDA of $320 million to $340 million. This is up from $233.6 million during the prior corresponding period, which itself was up 118% from the prior year.

Pushpay Holdings Ltd (ASX: PPH)

The Pushpay share price surged 23% higher to $1.18. This morning the donation technology company released an announcement revealing that it has received takeover interest from unnamed third parties. Pushpay neglected to go into any further details, so it remains unclear how serious the offers are and how much has been tabled.

Vulcan Steel Ltd (ASX: VSL)

The Vulcan Steel share price charged 4% higher to $9.50. This morning the steel company revealed that its revenue for the nine months ended 31 March was up 34% year on year to NZ$700 million. In light of this strong form, Vulcan Steel has increased its EBITDA guidance to NZ$212 million to NZ$218 million. It was previously guiding to EBITDA of NZ$150 million and NZ$160 million.

The post Why Jumbo, Nufarm, Pushpay, and Vulcan Steel charged higher appeared first on The Motley Fool Australia.

At the time of writing, shares in the donor management and church services company are up 23.44% to $1.185. However, Pushpay shares on the ASX are still down almost 30% over the last year amid a sustained selloff in tech stocks.

What's going on with the Pushpay share price?

As a new week kicks off on the ASX, it looks like Pushpay shares are starting out on a positive note. The latest announcement has enticed the market to take another look at the embattled tech company.

According to the update, Pushpay has been on the receiving end of unsolicited, non-binding, and conditional expressions of interest. Additionally, the filing states these approaches are from third parties seeking to acquire the church software provider.

In response, Pushpay has appointed investment bank Goldman Sachs to assist with the facilitation. However, the company made it clear that the interest has no certainty of producing a final transaction.

What else?

Another dose of news potentially exciting the Pushpay share price this morning is the reaffirmation of the company's full-year guidance. This concerns the full year ending on 31 March 2022.

As stated in the update, Pushpay is still expecting the previously guided range for underlying EBITDAFI of US$61.5 million to US$63.5 million. Furthermore, when the costs involved with its Catholic initiative are removed, underlying EBITDAFI is expected to be US$63.5 million to US$65.5 million.

The Pushpay share price is still around 2% below where it was coming into 2022.

The post Pushpay share price soars 23% following takeover approach appeared first on The Motley Fool Australia.