PaySauce Quarterly Market Update – March 2020

PaySauce Grows Recurring Revenue by 122% and  
Customer Numbers by 80%  
1
 
Wellington, New Zealand - 15 April 2020  
 
SaaS employment solutions provider PaySauce (NZX:PYS) finishes the  
financial year ended March 2020 with continued growth. Year-on-year,  
total recurring revenue
2
grew 122% to $429K for the final quarter of FY20.  
The number of employees in New Zealand being paid through PaySauce  
payroll software increased by 82% to 13,178 people, and the total number of  
employers processing pays through PaySauce increased by 80% to 2,492.   
 
Key Metrics
1  
Quarter  
ending Mar  
2020  
Quarter  
ending Mar  
2019  
% YOY  
Change  
Total recurring revenue  
without Subsidy  
2
NZD $429K  NZD $193K  122%  
# Employees (at end of qtr)  13,178  7,237  82%  
# Payslips (total for qtr)  93,191  46,812  99%  
# Payroll customers (at end  
of qtr)  
2,492  1,384  80%  
Gross value of payroll  
processed   
NZD $151M  NZD $73M  111%  
 
 
As a maturing start-up, one of PaySauce’s chief objectives is to become  
profitable while continuing to grow and develop. This quarter has seen  
$4M of capital successfully raised, while behind the scenes, the business  
has progressively optimised systems and processes to work towards  
becoming cash-flow positive.   
 
1
Customer numbers are prepared on the same basis as previous quarterly updates, are unaudited, and may include  
Non-GAAP financial information which does not have a standardised meaning prescribed by GAAP and therefore may not  
be comparable to similar financial information presented by other entities.
2
Total recurring revenue no longer includes the IRD PAYE intermediary subsidy revenue claims. As previously indicated,  
from 1 April 2020, the government will no longer pay the subsidy to payroll intermediaries. This revenue stream will  
therefore no longer be categorised as recurring revenue for PaySauce, as reflected in the current and comparative  
quarters shown in the table above. If the subsidy was still included as recurring revenue the March 2020 quarter would  
show recurring revenue of $497K, a 107% increase on the March 2019 quarter of $240K.

CEO and co-founder of PaySauce, Asantha Wijeyeratne, says “This last  
quarter has been huge for partnerships, with steady progress on our  
agri-oriented alliance with Xero and Figured, and a new strategic  
partnership with a major global HR software vendor. We are proud that  
our software is making a small contribution to ensure NZ businesses can  
continue operating. This, along with the incredible support from our  
shareholders, allows us to offer our employees and our clients some  
certainty in these unprecedented times.”  
 
 
 

 
The overall number of employees dropped marginally from the record  
level at the end of Dec 2019, with a seasonal decline from some large  
employers in January and February before increasing again by March.  
 
 
 

KEY YEAR-ON-YEAR PERFORMANCE HIGHLIGHTS FOR THE QUARTER  
● Recurring revenue up 122% to $429K  
● Total employees paid through PaySauce up 82% to 13,178  
● Number of payroll customers up 80% to 2,492  
 
For more information about the quarter results to 31 March 2020, please contact   
investor@paysauce.com .  
 
ABOUT PAYSAUCE  
 
PaySauce is software at work for people, providing employment solutions to small  
and medium-sized businesses. PaySauce enables business owners to pay and  
manage employees accurately and efficiently using the web, iOS, and Android  
applications. The PaySauce platform includes mobile timesheets, payroll  
calculations, banking integration, PAYE filing, labour costing, automated general  
ledger entries and digital employment contracts.  
 
www.paysauce.com