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Edited Transcript of PPH.NZ earnings conference call or presentation 3-Nov-20 10:00pm GMT

·53 min read

Half Year 2021 Pushpay Holdings Ltd Earnings Call AUCKLAND Nov 10, 2020 (Thomson StreetEvents) -- Edited Transcript of Pushpay Holdings Ltd earnings conference call or presentation Tuesday, November 3, 2020 at 10:00:00pm GMT TEXT version of Transcript ================================================================================ Corporate Participants ================================================================================ * Bruce Patrick Gordon Pushpay Holdings Limited - CEO & Executive Director * Gabrielle Wilson Pushpay Holdings Limited - Head of IR * Shane Sampson Pushpay Holdings Limited - CFO * Steve Parker Basden Pushpay Holdings Limited - Chief Growth Officer ================================================================================ Conference Call Participants ================================================================================ * Ashwini Z. Chandra Goldman Sachs Group, Inc., Research Division - Equity Analyst * Garry Sherriff RBC Capital Markets, Research Division - Executive Director of Equity Research & Head of Australian Technology and Small-Mid Caps * Stephen Ridgewell Craigs Investment Partners Limited, Research Division - Head of Institutional Research ================================================================================ Presentation -------------------------------------------------------------------------------- Operator [1] -------------------------------------------------------------------------------- Thank you for standing by, and welcome to Pushpay Holdings Limited Interim Results Investor Briefing Conference Call. (Operator Instructions) There will be a presentation followed by a question-and-answer session. (Operator Instructions) I would now like to hand the conference over to Gabrielle Wilson, Head of Investor Relations. Please go ahead. -------------------------------------------------------------------------------- Gabrielle Wilson, Pushpay Holdings Limited - Head of IR [2] -------------------------------------------------------------------------------- Thank you, Amanda. Welcome to the Pushpay Holdings Limited Interim Results Investor Briefing for the 6 Months ended 30 September 2020. Our interim report and interim results in this briefing presentation have been released to the NZX and ASX. Please visit our website, pushpay.com/investors/announcements, if you do not have a copy. Before we begin, the information in this investor briefing is for general information purposes only and is not an offer or invitation for subscription, purchase or recommendation of securities in Pushpay. It should be taken into account in conjunction with and is subject to Pushpay's interim and annual reports, market releases and information published on Pushpay's website, pushpay.com. It includes forward-looking statements about Pushpay and the environment in which Pushpay operates, which are subject to uncertainties and contingencies outside Pushpay's control. Pushpay's actual results and performance may differ materially from these statements. It includes statements relating to past performance, which should not be regarded as an indicator of future performance and may contain information from third parties believed to be reliable, however, no representations or warranties are made as to the accuracy or completeness of such information. All information in this investor briefing is current at the date of this investor briefing, unless stated otherwise. All currency amounts are in U.S. dollars unless stated otherwise. Today, you'll be hearing from our CEO, Bruce Gordon; and our CFO, Shane Sampson. Following Bruce's presentation, our CFO, Shane Sampson, and our Chief Growth Officer, Steve Basden, will also be available for questions. (Operator Instructions) Once the presentation has concluded, we will open the call to questions. We ask that questions come from analysts and investors only. Members of the press are able to organize interviews of groups following this briefing. Please get in touch with me by e-mailing investors@pushpay.com, and I will arrange this. Thank you for your attention. I will now hand it over to Pushpay's CEO, Bruce Gordon. -------------------------------------------------------------------------------- Bruce Patrick Gordon, Pushpay Holdings Limited - CEO & Executive Director [3] -------------------------------------------------------------------------------- Thank you, Gabbie. Good morning, and good afternoon, everyone, and thank you for joining us for Pushpay's investor briefing for the 6 months ended 30th September 2020. I'd like to welcome any new shareholders who have joined the call and take this opportunity to thank all our shareholders for your continued support. I'll now turn your attention to the presentation slides that accompany our interim report which was released to the market this morning. We're extremely pleased to deliver a strong result for the 6 months ended 30 September 2020. Pushpay delivered solid revenue growth, expanding operating margins, EBITDAF growth and operating cash flow improvements over the period. Over the last 6 months, we've made significant progress integrating the Pushpay and Church Community Builder solutions, as we continue to execute against our shared vision and strategic goal of becoming the preferred provider of mission-critical software to the U.S.-based sector. Our results are a reflection of our innovative products, the dedication of our teams in the U.S. and New Zealand and our culture of continuous improvement. This COVID-19 has impacted communities and organizations across the globe, Pushpay's teams remain committed to supporting our customers in providing innovative technology solutions that enable communities to remain connected and engaged through digital means, which is now more important than ever. Pushpay continues to focus on future-proofing the business by refining the strategies that will allow the company to realize its considerable potential over the long term, while maintaining prudent financial discipline. As we continue our growth journey, our relentless focus on innovation, strategy and execution would lead to continued growth and success for the business. Turning to our agenda on Slide 3 today, we'll be covering the CEO update from myself; people and culture update, product update, and finance update from our CFO, Shane Sampson, our outlook; and then we'll open up for questions at the end of the call. Now on to Slide 5. Looking at our metrics for the 6 months ended 30th, September 2020, we'll go into more detail on the main ones, but for now I'll just highlight a couple. Pushpay increased operating revenue by USD 29.6 million for the 6 months ended 30th September 2020 when compared to the prior comparable period from USD 56.0 million to USD 85.6 million, an increase of 53%. Total revenue increased by $29.2 million for the 6 months ended 30th September 2020, when compared to the prior comparable period, from USD 57.4 million to USD 86.6 million, an increase of 51%. We increased our gross margin by 3 percentage points over the 6 months ended 30th September 2020, when compared to the prior comparable period from 65% to 68%. Pushpay increased its EBITDAF by USD 17.1 million for the 6 months ended 30th September 2020 when compared to the prior comparable period from USD 9.6 million to USD 26.7 million, an increase of 177%. I'm also excited to report that our operating cash flow improved by $18.1 million over the 6 months ended 30th September 2020 when compared to the prior comparable period from USD 8.9 million to USD 27.0 million, an increase of 203%. Another metric that I'm personally very proud of is our total processing volume, which increased by USD 1.0 billion over the 6 months to 30th of September 2020, and compared to the prior comparable period, from USD 2.2 billion to USD 3.2 billion, an increase of 48%. I'm also pleased to report Pushpay's total lifetime value of the customer base increased by USD 1.4 billion over the 6 months to 30th September 2020 when compared to the prior comparable period from USD 3.1 billion to USD 4.5 billion an increase of 43%. Now on to Slide 6. We increased our customer base by 2,991 over the 12 months ended 30th of September 2020 from 7,905 to 10,896, customers. Over the 12 months ended 30th September 2020, Pushpay's proportion of medium and large customers increased from 56% to 57%. Office-based total customer number remained flat over the 6 months to 30th September 2020, the company continued to see an increase in subscription revenue, primarily reflecting current customers purchasing other products. Gross monthly recurring revenue, or MRR, added over the 6 months ended 30th September 2020, was higher than the prior comparable period, and we continue to expect gross MRR added over the current financial year to be higher than the previous financial year. The ongoing effects of COVID-19 continue to impact Pushpay's customers, who are admirably adapting to the evolving situation, with the help of our donor management and church management solutions, and working together to ensure the people in their communities are supported through this time. As we execute on our sales strategy, the company's primary focus is on increasing revenue by attracting a larger number of medium and large customers in cross-selling products to existing customers, while expanding ARPC and increasing retention. As of the 30th September 2020, 98% of Pushpay's customers were located in North America, which covers the U.S. and Canada, and the remaining 2% are located in other jurisdictions. We expect gross MRR added over the current financial year to exceed the prior year, excluding the increase in MRR associated with the acquisition of the ownership interest in Church Community Builder. Moving now to Slide 8. Outlook remained largely unchanged for the 12 months to 30th September 2020, from USD 1,272 per month to USD 1,263 per month, a decrease of 1%. This is due to the acquisition of the Church Community Builder business, which has a lower ARPC when compared to the prepaid customer base prior to acquisition. Excluding the acquisition of the ownership interest in Church Community Builder, Pushpay increased ARPC. There are a number of factors which contribute to the increased Donor Management System ARPC, and these include increased subscription fees from new and existing customers, a larger portion of -- proportion of medium and large customers, further development of our product set resulting in higher volume fees and increased adoption of digital giving in the U.S. state sector. We expect plans to continue to grow ARPC by increasing revenue derived from existing customers and by continuing to implement its sales strategy to attract more medium and large new customers. I'll turn now to Slide 9. Looking at our track record of success, this is something we're really proud of. Pushpay has a strong track record of delivering on guidance. Since initially listing in August 2014, Pushpay's pleased to have met or exceeded all guidance provided to the market. Our annual meeting held on the 18th of June 2020, the updated EBITDAF guidance for the year ending 31st of March, 2021, to between USD 50.0 million and USD 54.0 million, which was previously EBITDAF guidance of between USD 48.0 million and USD 52.0 million. Today, we're pleased to announce that Pushpay is increasing its EBITDAF guidance for the year ending 31st of March, 2021, to between USD 54.0 million to USD 58.0 million, although uncertainties and impacts surrounding COVID-19 and the broader U.S. economic environment remain. Now looking more closely at some of our other key metrics. Pushpay increased operating revenue by USD 29.6 million for the 6 months ended 30th of September 2020 when compared to the prior comparable period, from USD 56.0 million to USD 85.6 million, an increase of 53%. Total revenue increased by USD 29.2 million for the 6 months ended 30th September, 2020, when compared to the prior comparable period from USD 57.4 million to USD 86.6 million, an increase of 51%. We expect to see continued revenue growth as the business executes on its strategy, achieves increased efficiencies and gains further market share in the U.S.-based market. On to gross margin improvement, Pushpay's diligent approach to optimizing gross margin continues to drive exceedingly pleasing results. Pushpay increased gross margin by 3 percentage points over the 6 months ended 30th September, 2020, when compared to the prior comparable period, from 65% to 68%. Although gross margin is typically weaker over the second half of the financial year, we now expect gross margin to stabilize around current levels over the remainder of the current financial year. And to EBITDAF, I'm also really pleased to share with you day that Pushpay increased its EBITDAF by USD 17.1 million for the 6 months ended 30th September 2020, and compared to the prior comparable period from USD 9.6 million to USD 26.7 million, an increase of 177%. Now turning to Slide 10. I know Shane will delve into this in further detail, but I'm really proud of these next few metrics, and so I'll just touch on them briefly. For operating leverage, while Pushpay increased operating revenue over the 6 months ended 30th September 2020 by 53% when compared to the prior comparable period, total operating expenses increased by just 16%. As a percentage of operating revenue, total operating expenses improved by 12 percentage points, from 50% to 38%. Operating leverage was largely driven by strong operating revenue growth, further margin improvements and disciplined cost management. Pushpay expects significant operating leverage to accrue, as operating revenue continues to increase, while growth in total operating expenses remains low. Pushpay adopted best-in-class software tools and scalable processes early in its development, combined with strong financial discipline, these investments will allow significant operating leverage to be achieved as revenue grows. Our NPAT improved by USD 6.9 million over the 6 months ended 30th of September 2020, when compared to the prior comparable period from USD 6.5 million to USD 13.4 million, an improvement of 107%. Our operating cash flow improved by USD 18.1 million over the 6 months ended 30th September 2020, when compared to the prior comparable period from USD 8.9 million of USD 27.0 million, an increase of 203%. Pushpay's increasing positive cash flow provides flexibility as we continue to assess further potential strategic acquisitions that broaden Pushpay's current proposition and add significant value to the current business. I'll now turn to Slide 11. We're proud to announce today that the total processing volume increased by USD 1.0 billion over the 6 months ended 30th September 2020, when compared to the prior comparable period from USD 2.2 billion to USD 3.2 billion, an increase of 48%. We expect continued growth in total processing volume, driven by a larger proportion of new medium and large customers, further development of our product set resulting in higher adoption and usage, and increased adoption of digital giving. Moving now to Slide 12 for an update on our people at Pushpay. As we continue to execute on our strategy, attracting and retaining exceptional talent is critical to our success. A customer-centric culture of continuous improvement focuses on achieving higher job satisfaction, increased productivity, improved employee retention as well as increased customer satisfaction. The company completed the reorganization of the Pushpay and Church Community Builder teams, bringing all associates across Auckland, New Zealand; Colorado Springs, Colorado; and Redmond, Washington in the U.S. under 1 leadership structure. The combined group remains well positioned to deliver market-leading complementary solutions to increase participation and enable customers to build stronger relationships with their communities. To our Board of Directors, turning to Slide 13. We're delighted to welcome Lorraine Witten to our Board as an Independent Director effective 22nd of September 2020. Lorraine also joined as Chair of Pushpay's Audit and Risk Management Committee as a member of Pushpay's Nominations and Remuneration Committee. Lorraine has significant governance experience, and is currently a director of listed companies, Rakon and TIL Logistics Group, where she is also Chair of the Audit and Risk Committees. She's also a Director of Horizon Energy Group and Chair of private companies: Simply Security, the company she founded in 2007; and vWork. Lorraine has an extensive commercial experience in technology, Software-as-a-Service and information and communications technology sectors, with expertise in financial management, entrepreneurial, strategy and high change environments. Lorraine is a chartered fellow of the New Zealand Institute of Directors, and has more than 25 years’ experience in senior management and finance roles, including as past General Manager of Telecom Mobile from 1997 to 2001. Lorraine is also a member of the Charter Conference Australia and New Zealand, and lives with her family in Wellington, New Zealand. Today, we also announced to the market that the Board has accepted the resignation of Christopher and Peter Huljich as directors, effective at the end of the calendar year. I'd like to personally take a moment to recognize and thank Christopher and Peter for their immense support and dedication of Pushpay over the past 7 years. Following their initial investment in 2013, the Huljich family participated in many of our capital raising rounds, providing a funding line in our early stage and Pushpay, frankly, would not be where it is today without their leadership and support. On behalf of the Board and management, I'd like to thank Christopher and Peter for their invaluable contribution and for their continued support of shareholders. The Board will be conducting a process in the U.S. and New Zealand to find a suitable replacement independent director. I'll now move to Slide 14 to highlight our recent product updates. Pushpay continues to invest in its leading solutions to simplify engagement, payments and administration, enabling our customers to increase participation and build stronger relationships with their communities. We're really excited about the innovation that we continue to bring to the Pushpay suite of engagement and giving solutions. Turning to Slides 15 and 16. In September 2020, the company announced its largest product launch to date, which included 16 new product features and enhancements to the Pushpay and Church Community Builder platforms. The launch unveiled the new product name of our company's all-in-one engagement solution, ChurchStaq. ChurchStaq combines Pushpay's giving and engagement solution with Church Community Builder's ChMS functionality, delivering a holistic software solution that equips customers of all sizes for the technology they need to seamlessly connect across different ministry touch points, giving -- including giving donor management, church management and access to Pushpay's app. To Slide 16, the September 2020 product launch brought out a number of enhancements to the Church app's provided by Pushpay. The new features now take important connection experiences and uniquely make them available within the church mobile app. For customers who purchased ChurchStaq, being that combined donor management software and ChMS offering, the app experience provides a complete congruent experience, offering community engagement simple and class generosity and church participation driven by tech community builder. The addition of ChMS features in the church apps will result in new levels of engagement and participation within the church. With the comprehensive church app, churches can increase the participation and connect with congruent through a single mobile experience, that combines ChMS given the media features in 1 app. For church congruence, the app delivers seamless access to church media, targeted communication, interaction with groups, calendars and events, mobile giving and early check-in. In addition, the company released a connection pack, which is available for customers who solely purchased the Church Community Builder ChMS software. This package includes the My Church app from Pushpay, with functionality limited to check-in groups events and basic ChMS profiles. When we look at sales, subsequent to the acquisition of Church Community Builder business, Pushpay has seen an increased number of customers utilizing the combined Pushpay and Church Community Builder platforms to meet their giving and engagement needs, providing a strong indication that the market values a fully integrated solution. Over the 6 months ended 30 September 2020, sales of the combined product offering, ChurchStaq, outperformed internal expectations, which reinforces the hypothesis that the majority of customers prefer an integrated end-to-end solution. I'd like to share a little more information about a couple of the other recent product releases: transaction history in the app, auto matching locked out form responses and community member, Link and Sync. I personally had some great feedback about these features from customers who I talked to. They love that Pushpay is so focused on building great-looking, easy-to-use and high-quality, reliable software. To Slide 18. In July 2020, Pushpay released transaction history in the app to help owners stay engaged with their generosity journey. This feature enables app users to instantly view their transaction history in giving details, helping them keep track of their contributions through the app profile. App users are also able to easily review the status of their donation. Transaction history in the app reduces the number of questions and requests sent by community members to church administrators. In addition -- sorry, the addition of transaction history simplifies church member experience by providing a central giving information, the latest content and relevant church announcements all in one app. Following the launch, the company has seen over 46,000 app users accessing their giving information in the app, and USD 2.5 million in processing volume has been generated from the transaction history page, which thanks givers for the generosity and prompt them to give again. To Slide 19, auto matching locked out form responses. Through COVID-19, a number of our customers have utilized form registrations to track attendance of services as certain churches reopen. As a result, there has been an increase in logged out form responses. In September 2020, Pushpay added an enhancement to forms that allows church administrators to match logged out form responses automatically to a user profile. Matching form responses to profiles allows church administrators to have a holistic view of a congregate, and since the release, customers have seen over 300,000 forms auto matched, already saving church administrators a significant amount of time. To Slide 20, also as part of our September 2020 launch, Pushpay released community member, Link and Sync. Following the launch, churches using ChurchStaq, will begin to see 1 unified community across all administration interfaces, each individual in the churches community where they added first through an app or by giving or added directly to the ChMS, a corresponding record will be available for all administrative views. Any changes or additions made to the profile by the user or administrator will be synced across systems in real time. Administrators will now always have access to the latest most up-to-date contact details of their community members. In addition, with the September 2020 product launch, Pushpay announced a new integration with Sage Intacct, the leading provider of accounting and financial management software. From multi-campus churches and global mission trips to schools and seminaries, features of all denominations need strong financial management as they pursue their missions. Customers are now able to save money, automate processes, strengthen management controls and improved transparency with Pushpay's integration with Sage Intacct. The integration automatically reconciles records between Pushpay and Sage Intacct, matching settlements and batches, which teaches that use both systems will save significant hours of manual data entry between the 2 systems. Moving now to Slide 21. Throughout COVID-19, it has become increasingly important for customers and prospective customers to discover new ways to engage with their congregations through modern digital experiences. As an extension of Pushpay's high-touch thought leader series, the company hosted its inaugural digital conference event in May 2020, Church Disrupt, showcasing over 4 hours of robust content led by church and business leaders. Church Disrupt posted 21 world-class speakers, and total registered attendance for the online event was over 21,000. This result further validates Pushpay's position as a thought leader in giving an engagement in the U.S.-based sector, and highlights the need for fluid, relevant content and providing a platform for sharing digital best practices. This content is created by our various digital events through the year and is available through Pushpay University. Moving to Slide 22, I'd like to highlight our employee-led initiative, Pushpay Cares, which in April 2020, we relaunched for the current financial year with quarterly things opportunity guidelines and a new committee with representatives across the company's U.S. and New Zealand offices. The Pushpay Cares program enables staff to give back to the wider community in meaningful ways through a variety of events arranged in partnership with key customers and philanthropic organizations. The Pushpay Cares committee meets regularly to plan creative opportunities, while maintaining the safety of volunteers throughout the COVID-19. Most recently, our team has made a difference in our local communities by partnering with local food banks to support families in need. In September, in alignment with World Cleanup Day and National Public Lands Day, Pushpay Cares challenged all employees to go outdoors and pick up litter or donate items to a shelter or other donation center. Pushpay also supports 2 additional employee-led groups, W-League, or Women's League; and our Race and Culture Group. Before I hand over to Shane, I just wanted to highlight that the Board has approved a 4:1 split of Pushpay shares. This will result in Pushpay shareholders' holding. After the share split, all fully paid ordinary shares for every fully paid ordinary share held by them at 5:00 p.m. New Zealand time, on the record date of Friday, the 27th of November 2020. The Board of Directors believes the share split is likely to enhance liquidity in the market for Pushpay's ordinary shares and attract further shareholders and follows the successful 4:1 share split that was completed by the company in February 2016. With that, I now hand over to Shane Sampson, our CFO, for a finance update. -------------------------------------------------------------------------------- Shane Sampson, Pushpay Holdings Limited - CFO [4] -------------------------------------------------------------------------------- Thank you, Bruce. Good morning, good afternoon, everyone, and thanks for joining our call today. Looking at Slide 24, the income statement. We continue to see strong revenue growth, improving gross margins and disciplined cost management converting into increased operating leverage, as Bruce talked to earlier. Operating revenue was $85.6 million, an increase of $29.5 million or 53%, rose to the prior comparable period of the 6 months to 30 September 2019. Good third-party direct costs were $27.2 million, an increase of 7.6% or 39%, a significantly lower rate of growth in the growth in operating revenue. We'll talk this margin expansion in more detail on Slide 26. Other operating expenses were $32.6 million, an increase of $4.6 million or 16%. Note that we've restated our income statement so that expenses below EBITDAF, such as depreciation and amortization interest expense are removed to operating expenses and are instead showing below the EBITDAF line. This is consistent with how most investors and analysts look at the business and the inclusion of an EBITDAF line in our income statement aligns with our focus on EBITDAF is our primary financial metric and the one we guide the market on. After restating the prior period, the primary driver of the increase in other operating expenses with the inclusion of Church Community Builder in this period. Earnings before interest, tax, depreciation, amortization and foreign exchange, or EBITDAF, was $26.7 million, an increase of $17.1 million or 177% from the prior comparable period. Net profit after tax was $13.4 million, an increase of $6.9 million or 107% on the prior comparable period. The primary reason that net profit increased by less in EBITDAF as foreign exchange losses, which relate to noncash accounting adjustments arising from the New Zealand legal entities that have a New Zealand dollar total currency. Against the New Zealand dollar against the United States dollar in March 2020 resulted in a sizable gain being recognized in the New Zealand financial statements for the year to 31 March 2020, for the subsequent recovery of the New Zealand dollar since March has seen the reverse. At Slide 25, we show EBITDAF as a percentage of operating revenue for each half. We have continued and, in fact, slightly accelerated the rate of improvement, with an EBITDAF margin of 31%, an increase of 14% from the prior comparable period, with 9% rate for the 6 months to 31 March 2020. The combination of significant revenue growth, gross margin improvement and cost discipline continues to drive improvements in EBITDAF for (inaudible). Turning to Slide 26. Subscription revenue grew by 57% to $23.9 million, processing revenue grew 50% to $61.2 million. Growth in subscription revenue was driven by the acquisition of Church Community Builder in December 2019, continued growth in the number of customers purchasing our data management system and continued growing in the average subscription -- (inaudible) subscription revenue in donor management user. Processing revenue growth reflects a continuation of the past trends of growth and the average valuing proceeds for existing customers and additions of new donor management system users, together with significant acceleration resulting from COVID-19 driving increased digital adoption. The overall ARPC decreased slightly to $1,263 per month, a decrease of 1% on the prior comparable period. The decrease reflects the lower ARPC of Church Community Builder church management system usage and a dip in ARPC from March, which was the first reporting period to include Church Community Builder. Although it's the same sentiment as prior years where March was seasonally stronger for processing than September. Overall, operating revenue grew by 53% to $85.6 million. Third-party direct cost cellular increased by only 39% to $27.2 million, as the increased processing volume was partially offset by the improved processing cost base. Processing costs as a percentage of processing revenue reduced to 41% from 43% as a result of our margin improvement program. And like other third-party drink costs which primarily relates to payments under giving guarantee and partner payments, were down from $0.7 million to 0. This reflects the prior comparable period, including partner payments to Church Community Builder, in a drop in deliver of giving guarantee payouts and an associated reduction in the provision. The continued reduction in processing costs as a percentage of processing revenue, combined with the acquisition of Church Community Builder, drove an improvement in the gross margin percentage to 68%, up from the prior comparable period gross margin of 65%. And gross profit increased by 60% to $58.4 million as a result of the increased subscription revenues and higher processing margins. Continuing to Slide 27, the impact of the Church Community Builder's subscription revenue at high margins and the result of the margin improvement program can be seen in the increase in the blended gross margin to 68%. While historically, margins have been slightly weaker in the second half, due to higher processing volumes and some margin compression in December due to a different mix of giving, we anticipate gross margin for the second half will be similar to the first half. Looking at Slide 28. As I noted earlier, we have restated operating expenses for the prior period to separate items below EBITDAF. Operating expenses were $4.6 million or 16% higher at $32.6 million due to the inclusion of operating expenses associated with the Church Community Builder business, partially offset by operating efficiencies achieved. Sales and marketing costs decreased by 9%, despite the inclusion of Church Community Builder, we achieved a number of efficiencies, particularly in external marketing spend. Looking at Slide 29, there was a small increase from the 6 months to 31 March 2020, reflecting a full 6 months of the inclusion of Church Community Builder. Adjusting for that, our ability to continue to score revenues and margins while holding operating expenses largely flat isn't new. Operating expenses as a percentage of revenue continues to fall, improving by 12 percentage points relative to the prior parable period despite the inclusion of Church Community Builder. Looking at Slide 30. Operating cash flows grew by 203% or $18.1 million to $27 million. The quality of our earnings is reflected in the operating cash flow has been fractionally higher than EBITDAF. Cash outflow from financing activities were $2.8 million lower than in the prior comparable period, either the nature of the cash outflows in the PQRS is quite different. In the same period last year, there was $30 million outflow as we purchase short-term investments given as such cash on hand. While in the current period, we repaid $9.3 million of borrowings and incurred $1.6 million in interest expense from the borrowing undertaken as part of the Church Community Builder acquisition. Lease liability payments increased to $0.8 million to $0.6 million, reflecting the additional office space we now have in Colorado Springs as a result of the Church Community Builder acquisition. Overall cash in hand increased by $13.2 million relative to the previous period. Slide 31 picked our operating cash flows of the business by half year. Our continued investment in product development and customer acquisition is being more than offset by the revenue -- growth in the revenue those investments generate, resulting in steadily improving operating cash inflows. The strong operating cash flow positions us well for any future investment and is allowing us to record repay the borrowings related to the Church Community Builder acquisition. Turning to Slide 32. In accordance with IFRS, we report the balance sheet against the 31 March 2020 balances rather than the 30 September 2019 balances, and before the impact of the Church Community Builder acquisition is already included in the comparatives. The balance sheet shows growth and cash on hand, reflecting strong cash flows discussed on the previous slides. Noncurrent liabilities totaled by $15.1 million, while current liabilities increased by $4.1 million, with most of that change related to borrowings which I will discuss on the next slide. However, assets decreased by $7.1 million, primarily reflecting depreciation and amortization of $3.6 million and a reduction in the deferred tax asset of $3.4 million as we consumed historic tax losses. Equity increased by $19.3 million, reflecting the net profit after tax of $13.4 million, and the impact on the foreign currency translation reserve of the strengthening New Zealand dollar. Particularly, we end up with the offset signs on the fine cut translation reserve and the borrowing currency gain to losses. Moving to Slide 33. We thought it would be helpful to pull out all of the borrowing numbers on the 1 slide to provide a clearer picture, as the separation to current and noncurrent liabilities can be confusing. When we acquired Church Community Builder, we borrowed $62.5 million. However, we knew that with our strong cash flows, we would be able to repay the borrowings over a relatively short period of time. We, therefore, put an amortizing facility in place. The repayment schedule was lower in the first period to allow us to rebuild the cash on hand and then increased from September. The current portion of the borrowings reflects the next 12 months of repayments and therefore, having 12 months at the higher repayment amount increased the current portion of the borrowings by $5 million relative to March. From the current debt of $28.6 million, you can recalculate our repayments approximately $2.4 million per month. As often, the noncurrent portion of the borrowings reflects repayments to date and the movement part of the noncurrent borrowings to current for the reasons I just described. Overall, borrowings reduced by $9.3 million, reflecting repayments over the period. And looking at debt capacity and as you look at net debt, paying these borrowings, we have cash on hand. Net debt reduced by $25.2 million or 51% over the period. I'd also note that at the end of October, we made a voluntary repayment of $12 million on top of the scheduled repayments. That reflected our continued strong cash flows, and will reduce our interest costs slightly. The early repayment amount reduces the noncurrent borrowings. Moving to Slide 34. The graph on the left shows the net debt falling by half over the period, as I just described. Common ratio, the looking at borrowing capacity is net debt-to-EBITDAF. The EBITDAF that we used in this slide is the 12 months following EBITDAF. The combination of increased EBITDAF and significantly reduced net debt means that our ratio has fallen to 0.58x from 1.98x at March. Should we wish to borrow in the future to fund new acquisitions, our net debt-to-EBITDAF ratio shows that we clearly had significant borrowing capacity. With that, I will now hand you back to Bruce, who will discuss the outlook. -------------------------------------------------------------------------------- Bruce Patrick Gordon, Pushpay Holdings Limited - CEO & Executive Director [5] -------------------------------------------------------------------------------- Thanks, Shane. Turning now to Slide 36, for an update on impacts of COVID-19 on Pushpay's business. While a number of organizations have temporarily closed their physical premises in response to COVID-19, Pushpay have seen a clear shift to digital, whereby customers are utilizing its mobile-first technology solutions to communicate with their congregations. Due to the restrictions around in-person gatherings, customers have continued to emphasize live streaming, digital giving and driving connection through their apps for continued engagement with their communities. In terms of digital giving trends, Pushpay's processing volume over the 6 months ended 30th September 2020, was higher than the company expected prior to COVID-19. Pushpay expects the increase in digital giving as a proportion of total giving resulting from COVID-19 to outweigh any potential fall in total giving to the U.S. sector. Pushpay and its subsidiaries have not taken any government relief subsidies available to companies as a result of COVID-19. Pushpay's further strong revenue growth as we continue to execute on our strategy to gain further market share in the medium term and believes this is the best way to maximize shareholder value. From a strong financial position, we will continue to balance expanding operating margin with opportunities to increase revenue growth. We are particularly focused on ensuring efficiency remains high while maintaining cost discipline throughout the business. Pushpay also continues to evaluate additional potential strategic acquisitions that broaden the current proposition and add significant value to the current business. Looking to Slide 37. As I mentioned earlier in the call, Pushpay is increasing its EBITDAF guidance for the year ending 31st of March 2021, to between USD 54.0 million to USD 58.0 million, although uncertainties and impacts surrounding COVID-19 and the broader U.S. economic environment remain. In the long term, Pushpay is targeting over 50% of the medium and large church segments, an opportunity representing over $1 billion in annual revenue. Looking ahead, an exciting future awaits as we continue to innovate and improve our software solutions to provide customers with the effective source of strengthen connection within their communities. Our success would not be possible without the expert direction from my fellow directors, successful execution from management and the hard work of our dedicated colleagues. Thank you for your attention. And with that, I'll now hand back to the operator to open the call to any questions. ================================================================================ Questions and Answers -------------------------------------------------------------------------------- Operator [1] -------------------------------------------------------------------------------- (Operator Instructions) Your first comes from Stephen Ridgewell from Craigs Investment Partners. -------------------------------------------------------------------------------- Stephen Ridgewell, Craigs Investment Partners Limited, Research Division - Head of Institutional Research [2] -------------------------------------------------------------------------------- First of all, congratulations on a very strong result in scalability of the business was really coming through in the first half. First question for Shane, on the back book. Could you give us an indication of what you think back book penetration kind of averaged over the half? And could you perhaps compare that was recovered? -------------------------------------------------------------------------------- Shane Sampson, Pushpay Holdings Limited - CFO [3] -------------------------------------------------------------------------------- Yes. So one of the great things about Church Community Builder that gives us a whole lot of additional data when you had access to before about our customer base. So one of the things it allowed us to do is get a relatively concrete number on share of wallet and -- for customers that are joint customers, we see all of the nondigital giving through the Church Community Builder side. And what we're seeing here is we're sort of sitting in the low-60s, sort of just above 60%, in terms of share of wallet. It's actually still a surprising amount to go despite impact of COVID. And that compares to we were at low-40s pre-COVID. That helps to show what has continued to grow over time even without COVID, but it's definitely brought forth the adoption here materially. -------------------------------------------------------------------------------- Stephen Ridgewell, Craigs Investment Partners Limited, Research Division - Head of Institutional Research [4] -------------------------------------------------------------------------------- Yes, it's very helpful. And I guess, as we've seen perhaps some church has reopened, although maybe it's going another way to now, have you observed the increase in the penetration rate kind of stick? Or has that come off a little bit as individual as kind of reopened? -------------------------------------------------------------------------------- Shane Sampson, Pushpay Holdings Limited - CFO [5] -------------------------------------------------------------------------------- There can be a little bit of volatility from period to period. But at the moment, it looks like that's more driven by sort of large checks coming through on the check side. So it looks like we kind of set fairly consistent, even if we try and drill down into areas that put have opened up more than others. So that seems to be sticking intimately, when we look at the mobile customers who are on competing products, they do appear to be falling off a bit in terms of that share when churches were open. So that's really showing the stickability of our product in terms of users who have used that not have any reason to go back. -------------------------------------------------------------------------------- Stephen Ridgewell, Craigs Investment Partners Limited, Research Division - Head of Institutional Research [6] -------------------------------------------------------------------------------- That's helpful. And then just switching to the front book. I mean you had to make any comments on how that's gone during the first half and perhaps to compare that to you last year? -------------------------------------------------------------------------------- Bruce Patrick Gordon, Pushpay Holdings Limited - CEO & Executive Director [7] -------------------------------------------------------------------------------- Yes. I think, obviously, it's in a fairly disruptive market, but we've seen meaningfully stronger sales this half. The metrics externally kind of infused but by the inclusion of Church Community Builder, and so I think that the one that my stands out is the customer number being flat When -- if you drill down to, let's say, going to manage to when you kind of bundled customer or a stand-alone vote management customer, we sold more data management in this half than we did in the same period last year. But a significant proportion of those were coming through buying the bundle, we call ChurchStaq, the average revenue per customer being added on the subscription side is higher. So significantly outperforming our expectations on bundled product despite the fact that it's a challenging market and indications we're getting from competitors that the stand-alone church management market has got a lot harder to sell into, which it makes sense if you're -- if you're a coach, you don't want to be trading out one of your key systems in the middle of a crisis, but interestingly, we're still seeing strong sales of our bundle, including the judge management. -------------------------------------------------------------------------------- Stephen Ridgewell, Craigs Investment Partners Limited, Research Division - Head of Institutional Research [8] -------------------------------------------------------------------------------- That's helpful. And just acknowledging the - it sounds like good upsell during the half, I mean, based on the numbers that you can provide on the medium and large church customers, on our numbers, it's come off about 196 over the last 6 months. Just interested, and if you could provide any color as to why perhaps retention rate was a bit lower in the half? Or I think you've touched on lower gross customer acquisition, but just wondering if retention rates was steady during the period for existing customers? -------------------------------------------------------------------------------- Shane Sampson, Pushpay Holdings Limited - CFO [9] -------------------------------------------------------------------------------- And again, slightly complicated by the 2 recent acquisitions. If we look purely at both specifically users of data management, we've increased the number of data management users over the period, including increased the number of large and medium donor management customers. So I think what we are seeing is we have seen low acquisition in the church management system side. And I think that's coming around both us and our computers are the same, the debt market slowing quite significantly. The issue there is that you continue to see the churn. There's quite a lag between -- most Church Community Builder customers are on a 1-year contract, so it could only show up at the churn at the end of the year. And in the practice of them moving away, they will have moved away and got themselves set up and running on the new system between 3 and 9 months periods. So that's a significant proportion of the churn we've seen there will predate COVID, and eventually a meaningful portion of it will predate our acquisition of Church Community Builder. That's been particularly pronounced in the large and medium space. And then on the -- the next call out would be the -- as we brought 2 businesses together and we're bringing the Church Community Builder sales force about since we picked up a few more customers with duplicates or didn't quite make out decommissioning the customers. So there's a little bit of headwind there, just from sort of there being data cleanup as well that's brought that customer number down. -------------------------------------------------------------------------------- Stephen Ridgewell, Craigs Investment Partners Limited, Research Division - Head of Institutional Research [10] -------------------------------------------------------------------------------- That's helpful. And just 2 more for me. Gross margin up to 68%, and you did sort of call out earlier. But given the previous guide, which the company has given for flat gross margins going forward, even as the company goes up, that was a surprise. Just interested, and whether there was a notable change in payment mix during the period, which might have skewed that gross margin? -------------------------------------------------------------------------------- Shane Sampson, Pushpay Holdings Limited - CFO [11] -------------------------------------------------------------------------------- Yes, there's a little bit of a change in payment mix. We have seen some more -- a little bit more debit card than -- within the card mix, and debit card is our highest-margin product. So that has helped. But we have managed to complete, done a little bit on our take rates achieved over this period than we were probably expecting. And we've also managed to pour a little bit more out of some of our suppliers. So all 3 of those things contributing to improved results. And some of those changes are the reason why we're signaling we think we should be similar levels to the second half and really the driver around that is to drive as well as be more subscription revenue in the first half was impacted by the revenue adjustment we took on acquisition of Church Community Builder. So then unwinds in the second half. And the second driver is that some of the historic mix issues that we saw in the December period when this has peaked. We've moved to card brands that we made list marginal, and we've managed to improve our margins on those brands like the semi mix ships has at least as impact than it had previously. So a stronger gross margin for the first half, and we can hold that in the second half despite more processing and say that historically with seasonal mix is. -------------------------------------------------------------------------------- Stephen Ridgewell, Craigs Investment Partners Limited, Research Division - Head of Institutional Research [12] -------------------------------------------------------------------------------- That's great. And just maybe one last one. Just on that guide of $54 million to $58 million, just wondering if you can give a broad indication of whether the company expects to be able to take additional indirect cost out? Or is that half-on-half growth from 27% in the first half you've delivered to 2021, is that principally revenue growth in second half? -------------------------------------------------------------------------------- Shane Sampson, Pushpay Holdings Limited - CFO [13] -------------------------------------------------------------------------------- So principally, product growth in revenue flowing to gross margin. I think we've previously signaled, we are still seeing a little bit of sort of organic cost out, but also we did reduce marketing costs in the first half partly around the market, having slowed there was a lot of a point and a few efficiencies that the market identified, but we may at the marketing spend up a little bit in the second half as we see the market opening up. -------------------------------------------------------------------------------- Operator [14] -------------------------------------------------------------------------------- Your next question comes from Ash Chandra from PwC (sic) [Goldman Sachs]. -------------------------------------------------------------------------------- Ashwini Z. Chandra, Goldman Sachs Group, Inc., Research Division - Equity Analyst [15] -------------------------------------------------------------------------------- I'm assuming that's me. Just a couple of bits and pieces. When you have talked about the $1 billion in operating revenue, as you've now been repeating this for a little while as your kind of aspirational goals. Can you sort of refine any further sort of time frames over which you think this is achievable in the context of now the launch of ChurchStaq and a very clear differentiated one-stop solution in the market? -------------------------------------------------------------------------------- Bruce Patrick Gordon, Pushpay Holdings Limited - CEO & Executive Director [16] -------------------------------------------------------------------------------- Bruce here. So we said it as an aspirational goal, which I think we've articulated a few times now. We don't find it. It's obviously medium- to long-term vision, and it's a combination, in my view, of organic growth, the momentum that we have and the innovation that we bring in, in addition to additional acquisitions that allow us greater share of wallet within the U.S. take market. So no, we don't fight for a specific pin table. We just see a pathway to it through continuing to scale our business. -------------------------------------------------------------------------------- Ashwini Z. Chandra, Goldman Sachs Group, Inc., Research Division - Equity Analyst [17] -------------------------------------------------------------------------------- And just on the acquisition front, one of the things, Shane, you were highlighting is obviously the debt position. And then based on your full year guidance, I can't see how you'll actually have any debt at the end of the year. So your preferred capital allocation strategy remains consideration of M&A? -------------------------------------------------------------------------------- Shane Sampson, Pushpay Holdings Limited - CFO [18] -------------------------------------------------------------------------------- Yes. That's our focus. And I think don't be really clear at this point, we see ourselves at the yield so we see ourselves as acquired stock We continue to look for opportunities to add any congested by mergers or acquisitions, or yes, there may be some [subcos we can be on]. -------------------------------------------------------------------------------- Ashwini Z. Chandra, Goldman Sachs Group, Inc., Research Division - Equity Analyst [19] -------------------------------------------------------------------------------- Got it. And with respect to ChurchStaq, I mean, you said that sales since it's launched have been much stronger than you might have anticipated. Can you give any sense of how many of your churches have adopted this? And yes, what you might see is the penetration capacity of this particular product? -------------------------------------------------------------------------------- Shane Sampson, Pushpay Holdings Limited - CFO [20] -------------------------------------------------------------------------------- Yes. I haven't -- I quite give the exact number of sort of customers that have been cross-sold that continuing, particularly, maybe we'll even get Steve just talk a little bit to the market reception for the sector release that we just made in September. We only been in market for a couple of months, only 1 within the only part month within this period. However, see when we're looking at the moment, we still see quite a significant multiple years of runway to continue at the rate going. In addition to cross-sell, we are also seeing effectively just to new donor management sales off the back of the bundle is up on the prior year. So I think in terms of broader market, and particularly one of the questions is the -- if market returns to normal, where might that go? But Steve, I just -- I'll pass on to you just to talk to your sort of views around how customers are receiving the bundled sections that we're delivering? -------------------------------------------------------------------------------- Steve Parker Basden, Pushpay Holdings Limited - Chief Growth Officer [21] -------------------------------------------------------------------------------- Yes. Thank you, Shane. Good morning, everyone. I would echo Shane's comments, we're seeing a lot of interest in current customers of either platform, expressing interest in the opposite platform, and so we see strong growth through the first 6 months in that regard. But in addition to that, we're seeing a really strong interest in terms of customers that would be net new to both platforms, which fall into the ChurchStaq category. And we expect and anticipate that we'll continue to see strong interest in that regard as well. I think that really speaks to the process that we've been through since the acquisition of Church Community Builder, to build a combined platform that's deeply integrated that adds tremendous value to churches, and we're seeing that come through, and the desire to purchase and implement the product. -------------------------------------------------------------------------------- Ashwini Z. Chandra, Goldman Sachs Group, Inc., Research Division - Equity Analyst [22] -------------------------------------------------------------------------------- And would your capacity to sell this to net new customers, as you just mentioned, Steve? Is this being impacted by COVID lockdowns? Like could this -- could you be ready to sell but not actually able to sell yet just given what might still be social distancing restrictions? -------------------------------------------------------------------------------- Steve Parker Basden, Pushpay Holdings Limited - Chief Growth Officer [23] -------------------------------------------------------------------------------- No, I don't think so. I think we're well positioned from a capacity perspective to be able to handle kind of any demand that would come down. So no real concerns. -------------------------------------------------------------------------------- Operator [24] -------------------------------------------------------------------------------- Your next question comes from Garry Sherriff, a Private Investor. -------------------------------------------------------------------------------- Garry Sherriff, RBC Capital Markets, Research Division - Executive Director of Equity Research & Head of Australian Technology and Small-Mid Caps [25] -------------------------------------------------------------------------------- Bruce and Shane, RBC, not a private investor. Just a couple of further questions just on the customer numbers. So I understand they're flat clearly over the last 6 months since March. You have in the past disclosed what the split was between core Pushpay customers and the CCB customers. I'm just wondering if you can elaborate on that or provide us those numbers again. And also whether there's any possibility of also putting a contribution for CCB and subscription revenue, just so we can get a sense as to how the acquisition is performing? -------------------------------------------------------------------------------- Shane Sampson, Pushpay Holdings Limited - CFO [26] -------------------------------------------------------------------------------- Yes. So I'll take the second part of that, that's overall Church Committee Builder has contributed about $7 million of this result, including part that's coming through the other operating revenue, which is particularly professional services fees. And about a little bit that's coming through processing sort of rounding off, and then a $6.5 million sitting in the subscription line. I think the one callout here would be -- that $6.5 million of the subscription line is $0.8 million of deferred revenue accounting adjustment that we had to take on acquisitions. So the underlying is about $7.2 million that you'll see rolling to the second half of subscription revenue, so on the revenue side, that's the explanation. And in terms of the mix of, I guess, proportion of customers, haven't brought it top of mind. But as I noted, the actual -- if you look at purely donor management, customer numbers, those were one of the challenges we're just getting -- and then it's one of the reasons we just, while we are trying to minimize the extent to which we are getting separated numbers is, the success of that bundles meaning that giving separated numbers starts not making sense. So for example, on the subscription number, you have to make some assessment around what portion of the bundle to put the Church Community Builder versus Pushpay. So from an internal point of view, we're just focusing on selling the bundle. Similarly, I think on the ARPC side, we definitely have in the greater the businesses now. So I can pull numbers for that subsidiary to like that is already a theory indication because we've got people sitting in there who run, for example, our Chief Technology Officer, Aaron Senneff, runs across the business that some of those cost centers. So the business is genuinely coming combined. I think the customer number is probably the one where it's a little bit [we] at the moment that says we do some of that data cleanup in Church Community Builder. -------------------------------------------------------------------------------- Garry Sherriff, RBC Capital Markets, Research Division - Executive Director of Equity Research & Head of Australian Technology and Small-Mid Caps [27] -------------------------------------------------------------------------------- Okay. Understood. I mean have you got any sense, I mean, what's a good outcome for you guys in terms of customer number growth in the second half? I guess it just seems a little unusual, but you delivered such a strong result over the past, call it, 12 months. Most of it being done on cost control, but just the flat customer number, again, just trying to get a sense from you guys in the second half, what was a good outcome from that perspective at a pure customer number line? -------------------------------------------------------------------------------- Shane Sampson, Pushpay Holdings Limited - CFO [28] -------------------------------------------------------------------------------- Yes, I mean, definitely, our funds is on customer value. So we would heavily take a smaller customer increase if that's larger customers with more subscription revenue and more processing revenue down the track. So the expectation is we will see growth in the second half. And it might be a couple of hundred or so, outside entities more on what's the mix of the customer growth and the value of it. And obviously, the other piece that we'll just be interested to see is we think turn slightly improved in this half rose to the comparable period and sort of meaningfully improved relative to the March half on the donor management only side. As said, we think the church management side, there's a bit of a lag there, so we think that may well improve in the second half. That's all those sort of pieces in the mix. But I guess we're seeing modest customer growth as opposed to dramatic customer growth, but we think the ARPC will continue to grow. -------------------------------------------------------------------------------- Bruce Patrick Gordon, Pushpay Holdings Limited - CEO & Executive Director [29] -------------------------------------------------------------------------------- Garry, we're seeing good momentum over this last couple of months. As you see, Church is starting to find the new normal, if you will, given with resurgence of COVID-19, people are figuring out the U.S. landscape. So we're seeing some good momentum and hence, to Shane's point about, we expect more net adds for second half. There's a little bit of a washout of ChMS, as Shane was saying earlier. I think that's the other contextual thing is as some ChMS historic decisions made 12 months prior to acquisition, washing through around that to April and May window, outside our control, if you will, but part of that merging the company through that window sort of tidies up, kind of washes through. And as Shane just said, churn is actually reducing across the key segments, which gives us a good position for the outlook. -------------------------------------------------------------------------------- Garry Sherriff, RBC Capital Markets, Research Division - Executive Director of Equity Research & Head of Australian Technology and Small-Mid Caps [30] -------------------------------------------------------------------------------- Okay. Got you. So you were aware that those guys were going to have high levels of churn, I guess, when you were acquired. Was that -- i.e., was it a negative surprise? Or it was in line with expectations, that level of churn, I guess, from CCB? -------------------------------------------------------------------------------- Shane Sampson, Pushpay Holdings Limited - CFO [31] -------------------------------------------------------------------------------- Yes. I think it's probably listed at the high levels and more issues that they haven't got new adds coming into replacement because of effectively the slowing of the market. So not only you've got net lags, the sectors of people who have swapped to another product which could include swapping into us. So if you look at other providers, the sales that we would have made in the last 6 months probably aren't showing up in their churn yet. So that is more of an issue with the impact of COVID that we're seeing less kind of gross new purchases of that product. And therefore, the effect of the lag churn is showing up. So equally, when the market reopens, you might expect the offset effect, where effectively, you've got a -- it's that lag of -- that happens in the total number that you see as sort of stronger surge forward. And the other thing I would say is that the power of getting the data from our 2 businesses is definitely giving us some opportunities. So for example, we'll get a lot more of a view of when that customer might be looking now than probably Church Community Builder ahead previously. So we definitely expect to make some real impact on that churn as well. But churn levels in Church Community Builder are still not high. Just at the moment, they're running higher than the stand-alone sales. -------------------------------------------------------------------------------- Garry Sherriff, RBC Capital Markets, Research Division - Executive Director of Equity Research & Head of Australian Technology and Small-Mid Caps [32] -------------------------------------------------------------------------------- Okay. Got you. And last question. The Huljich family, with both directors stepping down at the end of December, can you maybe just remind us of the family's total shareholding? And just confirming that they can now sell down that the interim results have been released? Has there been any intention or discussion, I guess, what their plans are where they're holding? -------------------------------------------------------------------------------- Bruce Patrick Gordon, Pushpay Holdings Limited - CEO & Executive Director [33] -------------------------------------------------------------------------------- Sure. So just looking to the number from memory, it's about 15.68% of the holding, and essentially, the Huljichs have not indicated to the company any intention to sell down, and because they're free to do so outside any blackout period. At this point in time, we're not aware of any intention to sell. -------------------------------------------------------------------------------- Operator [34] -------------------------------------------------------------------------------- Thank you. That does conclude our question time for the moment. I will now hand back to Bruce Gordon for closing remarks. -------------------------------------------------------------------------------- Bruce Patrick Gordon, Pushpay Holdings Limited - CEO & Executive Director [35] -------------------------------------------------------------------------------- Great. Thank you again for your time and questions. I'd particularly like to thank our shareholders for your continued support and confidence, our teams in the U.S. and New Zealand for all their hard work, and all of our customers around the world to be our loyalty and excitement as these results are ultimately thanks to your support. So I'll now hand back to Gabbie. -------------------------------------------------------------------------------- Gabrielle Wilson, Pushpay Holdings Limited - Head of IR [36] -------------------------------------------------------------------------------- Thank you, Bruce. If there are any additional questions or for press, please contact me by e-mail at investors@pushpay.com. A playback of today's investor briefing will be available within the next 24 hours for 30 days. The playback can be accessed by dialing (800) 886-078 in New Zealand, and for all other international locations, please dial (664) 995-7088, and the playback PIN number is 10009197. I'd like to thank you again for your time, and have a great day. -------------------------------------------------------------------------------- Operator [37] -------------------------------------------------------------------------------- Thank you. That does conclude our conference for today. Thank you for participating. You may now disconnect.