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PPH - Pushpay Holdings Limited

galumay

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Well my previous post was pretty accurate, a very strong full year, this business is demonstrating the flywheel effect, I wish I had bought more over the last 12 months. I think PPH has become one of those businesses where it always looks just a bit expensive - but keeps growing into that multiple. I think if you want to get in now you just have to bite the bullet and pay up.

If we could just get them to drop the nonsense of prattling on about EBITDAFI (bull**** earnings), then I would have even more conviction in the business.
 
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Now that the May update has been released with no adverse surprises, I'll keep PPH on the reversal watchlist for a buy setup. I'm a bit wary of buying now when the sentiment for tech stock is low. I prefer to see that the market has tested the recent low.

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galumay

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Good luck, Pete!

Will be interesting to see where it goes from here. That was a pretty strong AR, I think you are probably right about the current general sentiment effecting the SP.
 
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Pushpay to acquire Resi Media LLC, adding its market-leading streaming solutions to Pushpay’s product suite.

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The price of PPH has been in a year long corrective structure (= drifting lower). I, like many others have been waiting for price to resume it's upward trajectory. Perhaps this news will help.
 

galumay

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I am on the verge of selling PPH, the Resi Media deal is very concerning, PPH refuse to provide any financial details for Resi, seems to be verging on failing to meet their continuous disclosure duties. We have no idea what the value of Resi is as we have no idea what their earnings (if any) were, what FCF it generates (if any), debt, assets, etc.

The only information we have been given is that PPH paid $150m for Resi, that might be very cheap, or it might be horribly expensive. That sort of Capital allocation from a CEO with no track record and with an outgoing CFO borders on irresponsible.

I emailed IR to request some more detail on the acquisition and specifically some financial metrics that might allow shareholders to consider whether it is a value adding or value destroying deal. They did reply - linking me to the investor briefing and the presentation that both have none of the requested information in them!

I replied pointing out neither had any relevant information in them and again asking for details of the financials for Resi for the last reporting period. My decision on selling will be based on their reply, (if they even bother!)
 

Dona Ferentes

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Pushpay Holdings has confirmed that it has recently received unsolicited, non-binding and conditional expressions of interest or approaches from third parties looking to acquire the company.
 

galumay

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Bugger, looks like PE interests are trying to buy out my little happy-clapper ticket clipper.
Up 15% today on the news.
 

Dona Ferentes

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Bugger, looks like PE interests are trying to buy out my little happy-clapper ticket clipper..
And others obviously find the space interesting: from PE1
EQUITY CO-INVESTMENTS
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We recently co-invested in Ministry Brands alongside Reverence Capital Partners. Founded in 2012 and headquartered in Lenoir City, Tennessee, Ministry Brands is the largest provider of core back-office software and payment solutions to faith-based organisations in North America. The company serves 96k+ FBOs, which represents ~24% of total FBOs in North America, and is the #1 provider in terms of both revenue and number of clients.

This investment was particularly attractive as it was an opportunity to acquire the market leader in the FBO software and solutions market where the continued shift from physical to digital payments, as well as the increasing adoption of FBO management software, is expected to cause the market to grow at a ~15% CAGR. Additionally, the company operates in a recession-resistant market and has strong recurring and predictable revenues (~80% of the company’s revenues are from contractually recurring software subscriptions or payment processing for recurring giving, and ~17% from re-occurring usage-based fees for background checks). Finally, there are significant operational improvement opportunities as there was limited hands-on involvement with the company by the prior owner and we believe that Reverence, who has significant payment and carve-out experience, is the right sponsor to succeed in making those improvements..
 

galumay

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Rumours of a take over have been round for months, so thats quite likely. Just not sure that it would be such a short TH for that. (expected to lift later today.)
 

galumay

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As suspected, management selling out. Very frustrating, second business this year the board have given up and sold out in my portfolio. Oh well, I guess an 80%+ return over 4 years is some consolation.

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