If you have some money to invest into ASX shares then there could be some businesses worth considering.
These investments could be interesting:
Pushpay Holdings Ltd (ASX: PPH)
This business is an ASX tech share, which specialises in helping large and medium US churches to receive electronic donations.
The company has been regularly increasing its profit guidance. In an update in the middle of January, it upgraded its earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDA) guidance for FY21 to a range of US$56 million to US$60 million, up from US$54 million to US$58 million.
Pushpay explained that processing volume over the month of December 2020 was slightly higher than the company's internal forecast, when guidance was last updated. While December donation volumes are usually significantly higher than other months, partially driven by tax year-end giving in the US, the level of the increase can vary from year to year. Pushpay's processing volume and continued operating leverage was the reason for the guidance update.
The ASX share is also aiming for growth in the Catholic segment of the US faith sector. It has allocated an initial investment of resources into developing and enhancing the customer proposition for the Catholic segment. Pushpay said that this represents a significant milestone as it continues to execute on its strategy to become the preferred provider of mission critical software to the US faith sector.
Pushpay has other geographies in its sights. In an investor day presentation, it said that not only is the US a focus, but South East Asia and South America can also be places of growth. The company is also looking at smaller churches to provide services.
There are also the large categories of not for profit organisations as well as education and tertiary that could be areas for Pushpay to provide donation services.
The company has been steadily growing its EBITDAF margin over the last two and a half years. At March 2018, the EBITDAF margin was negative 21%. By March 2019 it had improved to 9%. March 2020 saw the EBITDAF margin rise to 22% and the September 2020 result saw an increase of the EBITDAF margin to 31%.
According to Commsec, the Pushpay share price is valued at 22x FY23's estimated earnings.
Bubs Australia Ltd (ASX: BUB)
Bubs is an infant formula business which specialises in goat milk products. As well as infant formula, it also sells adult goat products, vitamins and minerals supplements and a grass-fed cow milk infant formula range.
The company's first quarter update of FY21 showed a significant decline of revenue, but the period for the three months to 31 December 2020 showed a double digit recovery since the first quarter.
Bubs' group quarterly gross revenue came in at $12.8 million, which was an increase of 36% over the first quarter of FY21, though it was down 12% on the prior corresponding period.
China cross border e-commerce (CBEC) sales were up 27% quarter on quarter and up 34% compared to the prior corresponding period.
Adult goat dairy gross revenue was up 45% quarter on quarter and up 25% against the prior corresponding period.
The Bubs infant nutrition portfolio, which represented 57% of the second quarter's revenue, grew 27% compared to the FY21 first quarter.
The company boasted that Bubs Australia is the fastest growing infant formula manufacturer across Woolworths Group Ltd (ASX: WOW), Coles Group Ltd (ASX: COL) and Chemist Warehouse, with combined retail scan sales at the checkout up 41% quarter on quarter and it was up 67% compared to the prior corresponding period.
Bubs said that export sales to markets outside of China continued to strengthen, with sales rising 194% quarter on quarter and up 138% compared to the prior corresponding period.
