PaySauce FY2021 Half Year Result and Interim Report

PaySauce reports 58% ARR growth  
Lower Hutt, New Zealand - 27 November 2020  
PaySauce (NZX:PYS) shares their FY2021 Interim Report. PaySauce CEO Asantha  
Wijeyeratne calls this report “our first reporting milestone since the dust has begun to  
settle on the nation’s COVID-19 situation.”  
 
HIGHLIGHTS  
 
●LTV:CAC of 8.8:1  
●58% ARR growth  
●37% customer growth  
●Finalist in Cyber Gold Category - Wellington Gold Awards 2020  
●Net Promoter Score (NPS) of 76  
 
GAAP reported total comprehensive loss for the period increased $84k from $862k to  
$946k. Last year’s result included $264k of income that did not recur in FY2021:  
 
●$102k of IRD subsidy revenue which ceased as at 31 March 2020; and   
●$162k in relation to the reversal of fair value adjustments  
 
Wijeyeratne reflects on the period’s progress:  
 
“We’ve continued to grow against all the odds, and this comes down to the phenomenal  
support of our partners, customers and shareholders. We’ve all witnessed what can be  
accomplished when people band together and act with common purpose, and this is the  
most important lesson we can take from COVID-19 and apply to our other challenges. ”  
FINANCIAL HIGHLIGHTS  
 
 
  
1  
Financial Performance  Sept 2020  Sept 2019  Change  Change %  
Recurring revenue ($000’s)
 
970  636  334  52%  
Gross Margin ($000’s)  616  320  296  92%  
Gross Margin (%)  63  50  13  26%  

 
The 92% improvement in the gross margin is a product of the improvement in the gross  
margin percentage from 50% to 63% as PaySauce evolves from startup to scale-up. It is  
also a product of the 37% increase in customer numbers as the company continues to  
deliver a great product to its customers, as evidenced by the high Net Promoter Score  
(NPS) of 76.  
 
 
 
 
Changes made to the pricing model late last year have introduced greater stability and  
control over Average Revenue per user (ARPU) by boosting the amount of controllable  
revenue (processing fees), compared with interest income which is subject to variable  
interest rates. The increase in processing fees is substantial at $12.30 (30% YOY) per user in  
contrast to the $4.70 (49% YOY) decline per user in interest income. The increase in ARPU  
and customer numbers underpin the growth in Annualised Recurring Revenue (ARR) this  
year.  
2  
Recurring Revenue Metrics  Sept 2020  Sept 2019  Change  Change %  
Customer numbers  3,085  2,248  837  37%  
ARR ($000’s)  2,169  1,374  795  58%  
ARPU (monthly) ($)  59  51  8  15%  

 
 
 
 
OUTLOOK  
Wijeyeratne on the outlook for PaySauce in the next six months:   
 
“ Until there’s greater certainty of travelling safely overseas, we’ll continue to focus on the  
New Zealand market, increasingly leveraging our partners to share and support our  
product. We’re investing strongly in development, including bringing on three interns to  
design and build a new platform application via Summer of Tech, with funding from  
Callaghan Innovation. We’re maturing our internal structures and communications, and  
developing exemplary habits in this area now will lay solid foundations for the future. ”  
 
Attachments Provided to NZX  
●FY2021 Interim Report  
●PaySauce Results Announcement  
 
  
3  

 
NON-GAAP FINANCIAL INFORMATION  
Non-GAAP (Generally Accepted Accounting Principles) financial information does not have  
a standardised meaning prescribed by GAAP and therefore may not be comparable to  
similar financial information presented by other entities. Non-GAAP information has not  
been audited, and is not prepared in accordance with NZ IFRS.  
 
The measures reported by PaySauce are used by management to monitor the  
performance of the company and are useful to investors to assess performance.   
 
Non-GAAP measures used in this release are defined in the attached report.  
 
FOR MORE INFORMATION  
Please contact investor@paysauce.com , or visit our website www.paysauce.com/investor .  
 
ABOUT PAYSAUCE  
PaySauce provides employment solutions to small businesses. PaySauce enables  
employers to pay and manage their teams accurately and efficiently using 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.  
 
 
 
4

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FY2021
Interim Report
FOR THE SIX MONTHS ENDED
30 SEPTEMBER 2020

arrow-up 37% YOY
Active Customers
3,085
8.8 : 1
LTV:CAC Ratio
arrow-up 58% YOY
Annualised Recurring Revenue (ARR)
$2.17M
arrow-up 52% YOY
Recurring Revenue
$969K
Finalist
Wellington Gold Awards 2020
76
Net Promoter Score
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flag-checkered
comment-smile
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Chair’s Letter
Dear fellow shareholders,
It’s my pleasure to present to you our Interim Report
for FY2021, our first post-COVID report in a permanently
altered national and international landscape. With the
initial shock and suddenness of the health crisis behind
us, we’re now in a position to clearly assess our post-
COVID prospects, and it’s time to focus on determining
how we can make the most of our changed reality.
Like the rest of the nation, we’re eager to look ahead
to clearer prospects, but we’re also conscious that the
global situation is far from settled. The events of 2020
served as a sharp reminder that we always need to be
prepared for anything, and with that in mind, we’re
future-proofing, becoming more consistent, unified and
durable.
While plenty has changed and the emergence of
COVID-19 has paused our plans for international
expansion, we’re still firmly focused on the other
objectives we committed to in 2020 - strengthening our
team, developing our platform, and working towards
cash-flow positivity. We have a clear pathway to make
this happen, and our team is working towards this
cohesively and single-mindedly.
But we won’t achieve our ambitions alone. Our
partnership with Xero and Figured continues to be a
central focus, and phase two of this is now in motion,
focusing on telling the story of how cloud technology
can bolster and protect our agri industry. We’re also now
deeply committed to expanding our partner network
as a channel for the sale and support of our product,
allowing us to scale exponentially.
Many thanks to Asantha and the team for their drive
and diligence, to the board for their guidance and
commitment, and to our customers for joining us on our
growth journey. Finally, let me give our thanks to you,
our shareholders, for helping us to continue to build.
Sincerely,
Nick Lewis
Chair
CEO’s Letter
To our shareholders, partners and supporters,
We’re certainly living in strange times, but we’ve never
been afraid of a challenge. While there’s been no
shortage of adversity, our business is well-suited to
adapt and adjust rapidly, and the generosity and faith
of our investors means we can continue to grow. We’re
cautiously optimistic about the domestic economy
and we’re gratified to see that the vast majority of our
customers have weathered the long term effects of the
pandemic alongside us. Our chief concern is to ensure
that we optimise our resources to take care of our
customers, our team and our shareholders.
Change can be a little intimidating during a crisis,
but we’re a fast-moving business and we can’t afford
to let things stagnate - so we’ve taken a deep breath
and embraced progress. This is clearly reflected in our
numbers, with recurring revenue up 52% year on year,
and expense growth reduced to 13% over the same
period. This demonstrates the progress we’ve already
made in transforming from start-up to scale-up.
We said a thankful farewell to Mandy Simpson, but
we welcomed Jacqueline Cheyne and Mike O’Donnell
to complement the skills and perspectives of the
remaining Board members. We’re also highly excited to
welcome three Summer of Tech interns onboard from
November, following the success of our 2019 internship
program. These bright young minds will be tasked with
building a brand new application for the PaySauce
platform, and we’re looking forward to the fresh
thinking and innovation they’ll bring with them.
On the product side, we’ve continued to expand Payroll
Giving, now supporting more than 30 Kiwi charities.
We’ve concluded the free period for PaySimple,
transitioning this product to a paid “calculator” offering
to give our customers increased choice and flexibility,
and opening up a new market of employers seeking a
more basic solution.
We’re conscious that everyone is undergoing a period
of uncertainty, caution and often heightened pressure,
and with that in mind, we want to thank all of our
friends, supporters and shareholders for your loyalty
and level-headedness. We’ve all witnessed what can be
accomplished when people hang together and act with
common purpose, and this is the most important lesson
we can take from COVID-19 and apply to our other
challenges. We firmly intend to keep prioritising people,
both by looking after our team and by running a smart
business that will reward our shareholders.
With gratitude,
Asantha Wijeyeratne
CEO and Co-Founder

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Board
Asantha Wijeyeratne
EXECUTIVE DIRECTOR
Asantha built Smart Payroll into a market leader with
10,000 customers before departing in 2013 to create
PaySauce. He has been Executive Chair of Cloud
Investments Ltd for the past six years. In recognition of
his contribution to business and the community, he
was awarded a Queens Service Medal (QSM) in the New
Year’s honours list in 2013.
Nick Lewis
INDEPENDENT DIRECTOR & CHAIR
Nick has 15 years of governance experience in the
fintech, financial services, energy, hospitality and
education sectors. He is Chair of Kiwi Insurance (affiliate
of Kiwibank) and a director of Pioneer Energy and
Ecotricity. He was formerly the Chair of Mojo Coffee and
PledgeMe. Nick is a Chartered Financial Analyst (CFA).
Gavin Thompson
NON-EXECUTIVE DIRECTOR
Gavin is the founder and a director of Catalyst IT, New
Zealand’s largest open-source IT service provider. He
has over 25 years’ experience in developing software
systems in the manufacturing, engineering, financial,
and government sectors.
Jacqueline Cheyne
INDEPENDENT NON-EXECUTIVE DIRECTOR,
AUDIT & RISK COMMITTEE CHAIR
Jacqueline Cheyne has 25 years’ experience in financial
audit and advisory services. She was a partner at
Deloitte for 11 years in audit and assurance and also led
the Corporate Responsibility and Sustainability services
function for Deloitte New Zealand for 9 years.
Jacqueline is a Chartered Accountant (CA) and
Chartered Member of the New Zealand Institute of
Directors, and has a broad range of experience across
the financial services, public, private and not-for-profit
sectors. She is currently a Director of NZX-listed Stride
Property Group and NZ Green Investment Finance
Limited as well as a member of the XRB, the Audit
Oversight Committee of the Financial Markets Authority
and the Risk and Assurance Committee for the Ministry
of Business, Innovation and Employment.
Michael “MOD” O’Donnell
INDEPENDENT NON-EXECUTIVE DIRECTOR
Michael “MOD” O’Donnell is a professional director,
writer and advisor with a background in fintech,
ecommerce, tourism and news media.
MOD is a director of Kiwibank and of Kiwi Wealth. He is
also chairman of online booking company Timely, and a
director of online global music company Serato, online
real estate portal realestate.co.nz, tourism marketing
agency Tourism New Zealand and IP marketing
company G2G Knowhow. MOD is an independent
weekly business columnist for Stuff Media and the host
of TVNZ series “Start Me Up”.
He was previously Chief Operating Officer of Trade
Me, head of wholesale investment at Gareth Morgan
Investments and head of distribution at AMP Capital
Investors.
NEW
NEW

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The Year So Far
smile-beam Creating Happiness
In September, we conducted our latest NPS survey and
the results spoke volumes. Our final score of 76 and the
wealth of positive feedback was profoundly affirming for
our whole team. This level of customer happiness not
only indicates that users are actively recommending us,
it also improves job satisfaction for our people. All this is
closely linked to our high retention and low churn rate.
These achievements wouldn’t be possible without the
dedication and care of our team, and we believe it’s
vital to acknowledge that. We’ve recently introduced a
regular Employee of the Month award and two annual
awards, one to acknowledge outstanding contributions
to internal culture and one to celebrate exceptional
customer care. We’re really keen for our team to know
how valued they are, and we’ll continue to recognise
and reward the awesome work of the PayForce.
We’ve also received our own recognition from our
industry and region - we were once again honoured to
be named as finalists in the Wellington Gold Awards,
and for the first time we were in the running for the
Integrated Reporting Awards.
wifi Living Digital
Cloud-based services have become truly indispensable
for New Zealand businesses responding to the
pandemic. We’re still seeing businesses moving off
outdated desktop solutions as employers have reviewed
their Business Continuity Plans. This helps our clients
ensure they can continue functioning effectively as
remote businesses at higher alert levels, resulting in
ongoing organic customer growth for PaySauce as the
national COVID situation continues to evolve.
As New Zealand has pursued a COVID-19 elimination
strategy, we’ve all made some permanent changes to
the way we do business. We’ve set out to make the best
of these conditions, but there were inevitably some
setbacks. Early on, the pandemic introduced barriers to
the growth we anticipated from the global HR provider
partnership announced in March, as this new channel is
heavily reliant on in-person sales and implementation.
The increased organic growth offset the shortfall from
the new partnership.
Our own team has always made use of cloud
technology to improve collaboration and productivity
and these habits helped us make the most of remote
life. We’ve upskilled dramatically in the delivery of
information and the fostering of relationships through
online platforms, and our digital communication with
Xero and Figured was used by Slack as a case study
in responsive and agile digital sharing across multiple
teams. We conducted our ASM completely virtually and
saw a threefold increase in attendance on our 2019 in-
person shareholders’ meeting.
We’re beginning to resume some pre-COVID travel
habits, with conferences, awards ceremonies and
trade shows all slowly coming back to life, but we’re
also now actively seeking other ways to connect and
communicate. This has the additional effect of reducing
our environmental impact as a business and drastically
reducing our event-related expenses.
hand-holding-heart Giving Back
We’ve continued work on expanding and raising
awareness of Payroll Giving, with more than 30
charities now available to the 16,000 working Kiwis
on PaySauce. We’ve carefully examined our policies
for adding charities to our free payroll program, and
have restructured our criteria to ensure that we can
dedicate our resources to the most impactful causes.
We also re-committed to our certification as a Living
Wage employer in line with the increase in the national
Living Wage. We’ve also made the move towards
Integrated Reporting to hold ourselves accountable,
promote transparency and deliver greater value to our
stakeholders and community over time.
telescope Looking ahead
Overall, our big objectives including our desire to
enter the Irish market remains unchanged. Until
there’s greater certainty of travelling safely overseas,
we’ll continue to focus on the New Zealand market,
increasingly leveraging our partners to share and
support our product.
We’re investing in development, including bringing
on three interns to design and build a new platform
application via Summer of Tech, with funding from
Callaghan Innovation. This three-month, project-based
internship will not only deliver additional features for our
customers, but will also provide our senior development
team with opportunities for mentorship and coaching.
We can no longer rely on proximity to keep information
circulating internally, so we’ve significantly stepped
up our internal communications and we’re more
transparent than ever in high-level decision making and
planning. We’re thinking and behaving like a bigger,
slicker operation these days while still holding fast to our
scrappy start-up spirit. Forming exemplary habits now
around processes and sharing will lay solid foundations
for nailing these things in the future.

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SaaS Reporting
The business results reported below provide an overview
of the performance of the business in a format that we
believe is useful for readers to assess the performance of
PaySauce as a SaaS business.
Non-Generally Accepted Accounting Principles (Non-
GAAP) measures have been included, and should not
be viewed in isolation, nor considered as substitutes for
measures reported in accordance with New Zealand
Equivalents to International Financial Reporting
Standards (NZ IFRS).
30 Sep 202030 Sep 2019
$000’s$000’s
Processing Fees876507
IRD Subsidy--*
Interest Received94129
Recurring Revenue970636*
Cost to Serve(354)(316)
Gross Margin616320*
Gross Margin %63%50%*
Other Revenue40264*
Total Other Revenue40264*
Customer Acquisition(277)(327)
Research & Development(189)(109)
General & Administration(1,003)(846)
Other Expenses-(9)
EBITDA(813)(707)
EBITDA Margin %(84%)(111%)
Depreciation & Amortisation(115)(71)
Interest Expense(18)(84)
Income Tax--
Net Loss for the period(946)(862)
30 Sep 202030 Sep 2019YOY Change
Active customers at end of period3,0852,24837%
Recurring revenue for the period ($000’s)969636*52%
ARR at end of period ($000’s)2,1691,374*58%
Churn % (monthly average) for the period1.19%1.33%-10%
ARPU (monthly) at end of period ($)5951*15%
CAC (per addition) for the period ($)35431912%
Customer LTV at end of period ($)3,1301,93462%
Total customer LTV at end of period ($000’s)9,6564,347*122%
LTV:CAC Ratio at end of period8.8 : 16.1 : 1*45%
Sep ‘15Mar ‘16Mar ‘17Mar ‘18Mar ‘19Mar ‘20Sep ‘20Sep ‘16Sep ‘17Sep ‘18Sep ‘19
ARR $1,374K
at September 2019
ARR $2,169K
at September 2020
58%
ARR GROWTH
*As at 31 March 2020, PaySauce reclassified its PAYE
intermediary subsidy revenue received as “Other
Revenue” for SaaS reporting (formerly “Recurring
Revenue”), as the subsidy ceased on 1 April 2020. This
had an impact on the SaaS metrics for the period
ended 30 September 2019 that included subsidy
revenue in their calculations.
An extract of the 30 September 2019 SaaS reporting
and associated metrics has been presented on page 12,
showing these impacts:

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Restated
Before
Adjustment
30 Sep 201930 Sep 2019
Processing Fees507507
IRD Subsidy-102
Interest Received129129
Recurring Revenue636738
Cost to Serve(316)(316)
Gross Margin320422
Gross Margin %50%57%
Other Revenue264162
Total Other Revenue264162
Restated
Before
Adjustment
30 Sep 201930 Sep 2019
Recurring revenue for the period ($000’s)636738
ARR at end of period ($000’s)1,3741,603
ARPU (monthly) at end of period ($)5159
Customer LTV at end of period ($)1,9342,563
Total customer LTV at end of period ($000’s)4,3475,762
LTV:CAC Ratio at end of period6.1 : 18.0 : 1
SaaS Metrics & Definitions
These SaaS metrics are prepared and defined to provide
readers with useful information about the performance
of PaySauce as a SaaS business.
Non-Generally Accepted Accounting Principles (Non-
GAAP) measures have been included, and should not
be viewed in isolation, nor considered as substitutes for
measures reported in accordance with New Zealand
Equivalents to International Financial Reporting
Standards (NZ IFRS).
Recurring Revenue
Recurring revenue is revenue that is expected to repeat
each period into the future.
For PaySauce, this is directly linked to the number
of customers and the pays that they run using the
PaySauce payroll product. There are currently two
sources of recurring revenue - processing fees and
interest received.
There is a direct correlation between the number
of customers processing payroll with PaySauce, and
the amounts of revenue derived from these streams
(allowing some variation due to elements such as
interest rates and number of payslips per customer per
pay run). There is no significant estimate or judgement
applied by management when recognising revenue
arising from these streams.
MRR
Monthly recurring revenue is the total recurring revenue
for the last calendar month of the reporting period.
ARR
Annual recurring revenue is the monthly recurring
revenue (MRR), multiplied by 12.
Gross Margin
The gross margin, when discussed as a SaaS term, is the
recurring revenue of the business, less the cost to serve
customers. This is often then expressed as a percentage,
where the gross margin is divided by the recurring
revenue.
Impact of Adjustments on September 2019 SaaS Reporting
Churn (monthly)
Churn is expressed as a percentage and is calculated as
the number of customers who did not run a pay in the
month, but ran at least one pay in the previous month,
divided by the total number of customers at the end of
the previous month.

ARPU
Average revenue per user (monthly) is the total recurring
revenue for the month, divided by the total customers
processing payroll that month.
CAC (per addition)
Customer acquisition cost (per addition) is the total cost
of acquiring customers for the period, divided by the
number of new customers processing payroll that were
acquired during the period.
LTV
Lifetime value is the estimated value of a customer
over its lifetime with PaySauce. This is calculated by
taking the ARPU multiplied by the gross margin %, then
divided by the churn %.
Total Customer LTV
Total customer lifetime value is the lifetime value
multiplied by the total customers.
LTV : CAC Ratio
This ratio reflects the return on investment for customer
acquisition. It is calculated by dividing the customer
acquisition cost (per addition) by the lifetime value of a
customer.

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EBITDA
EBITDA (earnings before interest, tax, depreciation and
amortisation) is calculated by adding back depreciation,
amortisation, interest expenditure, and income tax
expense to the amounts reported in the NZ IFRS-based
financial statements. PaySauce believes that EBITDA
provides useful insights to measure the performance of
PaySauce as a SaaS business.
EBITDA Margin %
EBITDA Margin % calculates EBITDA as a percentage of
Recurring Revenue.
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SaaS Reporting Categories
Processing Fees
This category represents the revenue generated from
customers who are using the PaySauce payroll product,
paying processing fees each pay run, based on a flat rate
plus a variable amount based on the number of payslips
in that pay run. There are no significant estimates
or uncertainty surrounding the flat and variable
components of processing fees. Revenue is recognised
when the service is supplied.
IRD Subsidy
This category represents the revenue that was generated
from the subsidy provided by Inland Revenue for payroll
intermediaries. The subsidy provided revenue based on
the number of payslips processed by PaySauce each
month.
The subsidy was removed, effective from 1 April 2020,
and this revenue stream is no longer categorised as
recurring. Impacts on our SaaS metrics relating to this
are analysed above. Further information on this can be
found on the Inland Revenue website.
Interest Received
This category represents the interest received from
funds held on behalf of our payroll customers which are
held on deposit. As customers pay their PAYE through
to us each pay run, we hold these funds and generate
interest on the balance before the payment is due to
Inland Revenue. As interest received on these funds
grows directly in relation to our customers, we consider
this an additional stream of recurring revenue.
Cost to Serve
The category includes those costs which are related
to serving our customers through the use of our
software products, and the availability of our customer
support team. Costs included are those such as hosting
expenses for our software in the cloud, maintenance of
our software products, bank fees charged per customer
transaction, and customer support.
Other Revenue
This category includes revenue that is not recurring
revenue and is not part of our regular business
operating activities with customers. Revenue included
is that which relates to grants received, other services
revenue, interest held on deposit (for those funds that
are not held on behalf of customers) and the fair value
revaluation gains / (losses) on lending during the period.
Customer Acquisition
This category includes those costs which are related
to acquiring new customers. Costs included are those
such as sales and marketing, implementation and
onboarding of customers to our system, and discounts.
These costs are expensed as incurred as they do not
relate to any specific customer or contract for services.
Research & Development
This category includes those costs which are related
to researching and developing new solutions and
solving problems for our existing and future customers.
Costs included are those associated with product
development, the majority of which are developers’
salaries.
It should be noted that measuring these costs between
years is not an accurate reflection of the actual spending
on research and development for PaySauce. This is
due to the timing and way in which some of these
costs are capitalised and projects are completed. The
reader should also consider the amount of intangible
assets recognised during the financial year. Further
detail on this can be found in the notes to the financial
statements.
General & Administration
This category captures all of the other elements of
running the business. Costs included are those such as
office running costs, finance and administration, legal
expenses, and other overhead costs.
Other Expenses
This category captures other expenses such as costs
relating to the reverse listing process, and bonus shares
issued to employees.

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FINANCIALS
Financials
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Interim Condensed Consolidated Statement of
Comprehensive Income
for the six months ended 30 September 2020
The above statement should be read in conjunction with the
accompanying notes.
30 Sep 202030 Sep 2019
UnauditedUnaudited
Notes$000’s$000’s
Revenue
Processing fees876504
Subsidy revenue-102
Interest116128
Other operating revenue174
Operating revenue101,009738
Other (losses) / gains - net11-162
Expenses
Depreciation and amortisation6, 7(115)(71)
Employee expenses12(1,227)(707)
Other expenses13(595)(901)
Finance costs14(18)(83)
Total expenses(1,955)(1,762)
Net loss before income tax(946)(862)
Tax benefit / (expense)--
Net loss for the period(946)(862)
Other comprehensive income--
Total comprehensive loss for the period(946)(862)
Loss per shareCentsCents
Basic loss per share9(0.70)(0.74)
Diluted loss per share9(0.70)(0.72)
Interim Condensed Consolidated Financial Statements
17
Comprehensive Income
18
Financial Position
20
Movements in Equity
21
Cash Flows
22
Notes

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FINANCIALS
Interim Condensed Consolidated Statement of
Financial Position
as at 30 September 2020
The above statement should be read in conjunction with the
accompanying notes.
30 Sep 202031 Mar 2020
UnauditedAudited
Notes$000’s$000’s
Assets
Current assets
Cash and cash equivalents1915,45813,589
Deposits194,1001,650
Trade and other receivables415149
Other current assets7575
Prepayments and other short-term assets174155
Total current assets19,82215,618
Non‑current assets
Property, plant and equipment6440476
Intangible assets7693562
Total non‑current assets1,1331,038
Total assets20,95516,656
Liabilities
Current liabilities
Trade and other payables5301356
Funds due to customers and IRD1916,95713,449
Employee benefits336186
Other liabilities1543
Lease liabilities4139
Interest bearing liabilities-15
Total current liabilities17,65014,088
The above statement should be read in conjunction with the
accompanying notes.
For and on behalf of the Board of Directors, who
authorised the issue of these Interim Condensed
Consolidated Financial Statements on 26th November
2020:
Nick Lewis
26 November 2020
Chair
Jacqueline Cheyne
26 November 2020
Chair of Audit & Risk Committee
30 Sep 202031 Mar 2020
UnauditedAudited
Notes$000’s$000’s
Non‑current liabilities
Lease liabilities305326
Total non‑current liabilities305326
Total liabilities17,95514,414
Net assets3,0002,242
Equity
Share capital812,47810,774
Accumulated losses(9,478)(8,532)
Equity attributable to the owners of the Company3,0002,242

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FINANCIALS
The above statement should be read in conjunction with the
accompanying notes.
Attributable to equity holders of the
Company
Share CapitalAccumulated
losses
Total
Notes$000’s$000’s$000’s
Unaudited
Balance as at 1 April 202010,774(8,532)2,242
Comprehensive loss
Net loss for the period‑(946)(946)
Other comprehensive income‑--
Total comprehensive loss‑(946)(946)
Transactions with owners
Issue of ordinary shares81,704-1,704
Total transactions with owners1,704‑1,704
Balance as at 30 September 202012,478(9,478)3,000
Unaudited
Balance as at 1 April 20195,508(6,169)(661)
Comprehensive loss
Net loss for the period-(862)(862)
Other comprehensive income---
Total comprehensive loss‑(862)(862)
Balance as at 30 September 20195,508(7,031)(1,523)
Interim Condensed Consolidated Statement of
Movements in Equity
for the six months ended 30 September 2020
The above statement should be read in conjunction with the
accompanying notes.
30 Sep 202030 Sep 2019
UnauditedUnaudited
Notes$000’s$000’s
Cash flows from / (used in) operating activities
Receipts from customers1,052670
Interest received9297
Payments to suppliers and employees(1,766)(1,562)
Taxes (paid) / refunded(8)12
Interest paid on lease liability(16)(22)
Interest paid(2)(4)
Net cash from (used in) operating activities before increase in
funds due to customers and IRD
19(648)(809)
Increase in funds due to customers and IRD193,5085,207
Net cash from operating activities172,8604,398
Cash flows from / (used in) investing activities
Purchases of property, plant and equipment(21)(44)
Funds on deposit(2,450)-
Purchases of intangible assets(190)(146)
Net cash (used in) investing activities(2,661)(190)
Cash flows from / (used in) financing activities
Net proceeds from issue of shares and convertible notes1,704773
Loan advances / (repayments)-200
Repayments of principal portion of lease liability(19)(7)
Repayments of other borrowings(15)(6)
Net cash from financing activities1,670960
Net increase in cash and cash equivalents1,8695,168
Cash and cash equivalents at beginning of the period13,5896,313
Cash and cash equivalents at end of the period15,45811,481
Interim Condensed Consolidated Statement of
Cash Flows
for the six months ended 30 September 2020

22
PaySauce Limited
23
Interim Report FY2021
FINANCIALS
Notes to the Interim
Consolidated
Financial Statements
For the six months ended 30 September 2020
1. General information
PaySauce Limited (the “Company” or “PaySauce”), is a
limited liability company, domiciled and incorporated in
New Zealand and registered under the Companies Act
1993.
These interim condensed consolidated financial
statements presented are for PaySauce Limited,
together with its subsidiaries (the “Group”) for the six
months ended 30 September 2020. The financial
statements were authorised for issue in accordance with
a resolution of the Directors on 26 November 2020 and
are unaudited.
The Group provides cloud based employment
solutions software to small and medium-sized
businesses, including mobile timesheets, payroll
calculations, banking integration, PAYE filing, labour
costing, automated general ledger entries and digital
employment contracts.
PaySauce is a for-profit entity listed on the New Zealand
Stock Exchange (“NZX”).
2. Basis of preparation
These unaudited interim condensed consolidated
financial statements for the Group for the six months
ended 30 September 2020 have been prepared in
accordance with New Zealand Generally Accepted
Accounting Practice (“NZ GAAP”) and comply with
the requirements of the New Zealand Equivalent to
International Accounting Standard 34: Interim Financial
Reporting (“NZ IAS 34”), on the assumption that the
Group is a going concern, and should be read in
conjunction with the audited consolidated financial
statements for the Group as at and for the year ended 31
March 2020.
All significant accounting policies have been applied
on a basis consistent with those used in the audited
consolidated financial statements for the Group for the
year ended 31 March 2020 other than as disclosed in
Note 3 below.
Where presentation has changed in the current period,
comparative amounts have been restated to align with
the current year’s presentation.
There are no seasonality or cyclicality influences on the
results of the Group.
These unaudited interim condensed consolidated
financial statements are presented in New Zealand
Dollars (NZD).
The unaudited interim condensed consolidated
financial statements have been prepared using the
same accounting policies and methods of computation
as, and should be read in conjunction with, the financial
statements and related notes included in the audited
consolidated financial statements for the Group for the
year ended 31 March 2020.
3. Use of critical accounting
estimates and judgements
The preparation of the interim condensed consolidated
financial statements in conformity with NZ IFRS requires
management to make judgements, estimates and
assumptions that affect the application of accounting
policies and the reported amounts of assets, liabilities,
income and expenses. Actual results may differ from
these judgements, estimates and assumptions.
Estimates and underlying assumptions are reviewed on
an on-going basis. Revisions to accounting estimates
are recognised in the period in which the estimates are
revised and in any future periods affected.
Information about critical judgements in applying
accounting policies that have the most significant effect
on the amounts recognised in the interim condensed
consolidated financial statements is included in the
following notes:
COVID-19
Management considers that COVID-19 did not have a
significant negative impact on the business operations,
financial performance, nor the financial position of
the Group during the period. Management has made
this judgement by looking at a range of indicators -
and hasn’t seen any material negative impacts on the
following key indicators:
• Customer churn
• Customer size
• Registrations and sign-ups for new customers
• Aged receivables
• Losses of major partnerships
Expansion to the Irish market remained on hold due to
continued uncertainty of overseas travel. Domestically,
organic growth exceeded expectations as more clients
sought a cloud-based solution and this compensated
for the shortfall in expected growth from our new
partnership with a global HR provider which is more
reliant on in-person sales and implementation. With a
sole focus on the domestic market, overall growth was
in line with management’s expectations.
While the pandemic is largely under control in New
Zealand, management continues to monitor the
progress of the New Zealand government in keeping
COVID-19 out of New Zealand, and will continue to
assess any impact on the business operations, financial
performance, and financial position of the Group in
the event of any resurgences in New Zealand. At this
stage, management does not consider there to be
any significant risk to the Group. The factors which
management considered in forming this judgement are
as follows:
• PaySauce’s business operations are always ready to
operate with minimal interruption upon enactment
of our Business Continuity Plan (BCP)
• The PaySauce product is cloud-based, which
enables customers to continue to use the service
uninterrupted when they enact their BCP.
PaySauce’s customer base predominantly consists
of businesses from New Zealand’s agricultural
primary industry, one of the other least impacted
sectors during the first outbreak of COVID-19 in New
Zealand
• PaySauce is yet to see, and does not anticipate
seeing customers (based on experience from the
first outbreak and lockdown period) asking to
defer payments, partly due to the nature of our
billing (at a point in time as the service is provided,
automatically deducted), and that the cost is
relatively small on a monthly per customer basis
compared to other business expenses
• Payroll is the core of our service provision, and is an
essential service for New Zealand businesses.
Going concern
The interim condensed consolidated financial
statements have been prepared on a going concern
basis.
The Group made a net loss before tax of $945,975
for the six months ended 30 September 2020 (2019:
$862,028), had equity at 30 September 2020 of
$2,999,643 (31 March 2020: $2,242,344) and net current
assets/(liabilities) of $2,172,217 (31 March 2020: $1,529,612).
The Group does not currently generate sufficient
revenues to meet operating costs and the Group does
not operate a facility of debt to draw upon.
The Directors consider after making due enquiry and
having regard to the circumstances which they consider
reasonably likely to affect the Group for the foreseeable
future, which is not less than 12 months from the date
these financial statements are approved for issue, that
the going concern assumption is valid.
The Groups ability to meet forecasted financial
performance will depend on the rate of growth in
revenue from customers, primarily through customer
acquisitions.
The uncertainty of meeting forecasted financial growth
creates a material uncertainty that may cast doubt

24
PaySauce Limited
25
Interim Report FY2021
FINANCIALS
4. Trade and other receivables
30 Sep 202031 Mar 2020
UnauditedAudited
$000’s$000’s
Trade receivables15149
15149
5. Trade and other payables
30 Sep 202031 Mar 2020
UnauditedAudited
$000’s$000’s
Trade payables237288
Accruals2955
GST payable305
Other creditors58
301356
6. Property, plant and equipment
UnauditedRight‑of‑
use Asset
(Property)
Office
Equipment
Leasehold
Improvements
Computer
Equipment
VehicleTotal
$000’s$000’s$000’s$000’s$000’s$000’s
Six months ended
30 September 2020
Opening net book value353398715476
Additions-7-14-21
Disposals---(2)-(2)
Depreciation(25)(7)(1)(17)(5)(55)
Closing net book value32839766‑440
As at 30 September 2020
Cost39667911749638
Accumulated depreciation(68)(28)(2)(51)(49)(198)
Net book value32839766‑440
7. Intangible assets
UnauditedWebsiteDevelopment
in progress
Computer
Software
Total
$000’s$000’s$000’s$000’s
Six months ended 30 September 2020
Opening net book value‑46516562
Development costs recognised as an asset-11576191
Development in progress recognised as Software-(51)51-
Amortisation--(60)(60)
Closing net book value‑110583693
As at 30 September 2020
Cost271101,0331,170
Accumulated amortisation(27)-(450)(477)
Net book value‑110583693
on PaySauce’s ability to continue as a going concern
and therefore PaySauce may be unable to realise
its assets and discharge its liabilities in the normal
course of business. Notwithstanding the uncertainty to
meet forecast growth the Directors are confident that
PaySauce remains a going concern.
Capitalisation of intangible assets
Management considers the time and associated salary
cost of development staff to fall under the classification
of development expenditure for assessment purposes
in accordance with the principles outlined in the
intangible assets accounting policy in note 2(h) in the
audited consolidated financial statements for the Group
for the year ended 31 March 2020. No weighting of
overheads is applied in these calculations.
Accounting for finite life intangible assets
At each reporting date, the useful lives and residual
values of finite life intangible assets are reviewed for
indicators of impairment. As at 30 September 2020,
the assets were assessed for impairment, taking into
account the condition of the assets, expected period
of use of the assets by the Group, and expected
disposal proceeds from any future sale of the assets.
Management assessed that there were no indicators of
impairment.
Development in progress has been tested for
impairment by reviewing the nature of the events
that originally gave rise to the recognition of the asset,
the estimation of future generation of cash flows and
any anticipated changes to the business or product
circumstances. Management concluded that there was
no impairment of this asset as at 30 September 2020.

26
PaySauce Limited
27
Interim Report FY2021
FINANCIALS
8. Share capital
DateDetailsNotesNumber of Shares$000’s
Unaudited
1 April 2019Opening Balance116,870,8755,508
30 September 2019Closing Balance116,870,8755,508,339
Unaudited
1 April 2020Opening Balance131,341,12110,774
Rights issuei3,430,2451,153
Rights issueii1,647,237551
30 September 2020Closing Balance136,418,60312,478
i. On 30 April 2020: PaySauce completed the second
allotment of shares under its rights issue announced
to shareholders on 11 February 2020. The allotment
on 30 April 2020 resulted in 3,430,245 shares being
issued at a price of $0.34 cents per share, a net raise
of $1,152,850 after directly attributable costs.
ii. On 15 May 2020: PaySauce completed the final
allotment of shares under its rights issue announced
to shareholders on 11 February 2020. The allotment
on 15 May 2020 resulted in 1,647,237 shares being
issued at a price of $0.34 cents per share, a net raise
of $550,424 after directly attributable costs. This
completed the fully subscribed rights issue.
All ordinary shares do not have a par value. They have
equal voting rights and share equally in dividends and
surplus on liquidation.
No dividends were declared or paid during the
reporting period (2019: None).
9. Earnings / (loss) per share
There are no financial instruments on issue that will
dilute the basic earnings per share amounts for the six
months ended 30 September 2020. Basic earnings
per share is calculated by dividing the profit / (loss)
attributable to equity holders of the Company by the
weighted average number of ordinary shares on issue
during the period.
30 Sep 202030 Sep 2019
UnauditedUnaudited
Basic earnings per share
Net loss used in calculating earnings per share ($000’s)(946)(862)
Weighted average number of ordinary shares for basic earnings per share135,451,209116,870,875
Basic loss per share (cents)(0.70)(0.74)
Diluted earnings per share
Loss for the period ($000’s)(946)(862)
Plus interest savings from convertible notes ($000’s)-15
Net loss used in calculating earnings per share ($000’s)(946)(847)
Weighted average number of ordinary shares for diluted earnings per share135,451,209117,517,021
Diluted loss per share (cents)(0.70)(0.72)
10. Operating revenue
30 Sep 202030 Sep 2019
UnauditedUnaudited
$000’s$000’s
Revenue from contracts with customers876504
Revenue from other sources133234
Total operating revenue1,009738

28
PaySauce Limited
29
Interim Report FY2021
FINANCIALS
11. Other gains / (losses) - net
12. Employee expenses
30 Sep 202030 Sep 2019
UnauditedUnaudited
$000’s$000’s
Fair value gain / (loss) on revaluation of related party loan-144
Fair value gain / (loss) on revaluation of convertible note conversion feature-18
Total other gains / (losses) - net‑162
30 Sep 202030 Sep 2019
UnauditedUnaudited
$000’s$000’s
Salaries1,165667
Kiwisaver employer contribution3421
Staff medical insurance75
Fringe benefit tax2114
Total employee expenses1,227707
13. Other expenses
30 Sep 202030 Sep 2019
UnauditedUnaudited
$000’s$000’s
Administration and Management Services73150
Advertising, PR and Marketing60130
Audit Fees2925
Hosting Expenses4028
Legal, Consulting and Accounting35151
Listing Costs-9
Office Running and Rent1729
Other Overheads326302
Travel1577
Total other expenses595901
14. Finance costs
30 Sep 202030 Sep 2019
UnauditedUnaudited
$000’s$000’s
Interest Paid24
Finance Cost - Interest on Convertible Note-15
Finance Cost - Interest on Lease1622
Finance Cost - Interest on Related Party Lending-42
Total finance costs1883
15. Taxation
The Group holds tax losses of $5,846,570 as at 31 March
2020, available to carry forward, but not recognised
in the financial statements. These are subject to
shareholder continuity being maintained.

30
PaySauce Limited
31
Interim Report FY2021
FINANCIALS
16. Key management personnel
and related parties
Key management personnel compensation
Key management personnel are defined as those
persons having authority and responsibility for planning,
directing and controlling the activities of the Group,
directly or indirectly and include the Directors, the
Chief Executive Officer and the Executive Leadership
Team.
The table below summarises remuneration paid to key
management personnel.
Related party transactions and balances
A number of key management personnel, or their
related parties, hold positions in other entities that result
in them having control or significant influence over
the financial or operating policies of these entities. A
number of these entities subscribe to services provided
by the Group. None of these related party transactions
are significant to either party, and are completed on
arm’s length terms. Outside of these transactions, and
the Directors’ fees and short term employee benefits
noted above, all other related party transactions are
outlined below:
30 Sep 202030 Sep 2019
UnauditedUnaudited
$000’s$000’s
Directors’ fees5130
Short term employee benefits404150
Total key management personnel compensation455180
30 Sep 202030 Sep 2019
UnauditedUnaudited
Related party transactions during the period$000’s$000’s
Consulting services supplied by entities controlled by related parties
Catalyst.Net Limited-10
Marsland Consulting Limited-33
Cloud hosting services supplied by entities controlled by related parties
Catalyst Cloud Limited4028
30 Sep 202031 Mar 2020
UnauditedAudited
Related party balances payable at period end$000’s$000’s
Directors’ Fees39
Cloud Hosting Services68
Consulting Services-6

32
PaySauce Limited
33
Interim Report FY2021
FINANCIALS
17. Reconciliation of net loss
after tax to net cash flows from
operations
30 Sep 202030 Sep 2019
UnauditedUnaudited
$000’s$000’s
Net Loss after taxation(946)(862)
Add back / (deduct) non-cash items:
Depreciation & amortisation11571
Loss on disposal of fixed assets23
Other non-cash & non-operating items-(104)
(829)(892)
Movement in working capital:
(Increase)/decrease in Trade and other receivables12741
(Increase)/decrease in Prepayments and other assets1326
Increase/(decrease) in Funds due to customers and IRD3,5085,207
Increase/(decrease) in Trade and other payables(80)3
Increase/(decrease) in Employee benefits14924
Increase/(decrease) in Other liabilities(28)(11)
Net cash inflow from operating activities2,8604,398
18. Segment reporting
The Group is organised into one reportable operating
segment only, being cloud based employment solutions
software to small and medium-sized New Zealand
businesses. The Group’s product and service offering is
that of mobile timesheets, payroll calculations, banking
integration, PAYE filing, labour costing, automated
general ledger entries and digital employment
contracts. The chief operating decision maker has been
identified as the Board of Directors, as it makes all key
strategic resource allocation decisions (such as those
concerning acquisition, divestment and significant
capital expenditure).
19. Funds due to customers and
IRD
As a PAYE intermediary, PaySauce collects funds from
clients which are payable to both clients’ employees
(as the employees’ net wages and salaries) and the IRD
(as the applicable PAYE, student loan and other IRD
liabilities). These funds are included in PaySauce’s cash
and deposit balances, and in accordance with section
RP6 of the Income Tax Act 2007, PaySauce can earn
interest on these funds, but must only use them as
follows:
• Payment of net salary or wages to employees of
PaySauce’s clients.
• Payment of IRD obligations resulting from pays
run on PaySauce software to the IRD, including
PAYE deductions, student loan deductions,
superannuation contributions and any other
amount of tax withheld from a payment of salary or
wages to IRD.
Under the financial reporting standards movements
in these funds do not meet the definition of either
investing or financing activities and so must be classified
as operating cash flows. However as stated above the
use of these funds is restricted and they cannot be used
to cover other PaySauce expenses, the company has
therefore presented operating cash flows in the Cash
Flow Statement as both before and after this funds
movement.
20. Contingencies
As at 30 September 2020 the Group had no material
contingent liabilities or assets (March 2020: $nil)
21. Events occurring after the
reporting period
No adjusting or significant non-adjusting events have
occurred between the reporting date and the date of
authorisation.

34
PaySauce Limited
35
Interim Report FY2021

Directors:
Asantha Wijeyeratne
Gavin Thompson
Jacqueline Cheyne
Michael O’Donnell
Nick Lewis
Registered Office:
21-23 Andrew Avenue
Lower Hutt, 5010
New Zealand
Website:
www.paysauce.com
Auditor:
Grant Thornton
Stock Exchange:
NZX
Share Registrar:
Link Market Services Limited
80 Queen Street
Auckland, 1010
New Zealand
NZ Company Number:
1719868
NZBN:
9429034458099
Company
Directory
34
PaySauce Limited

www.paysauce.com


---

PPaySauce Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Results for announcement to the market
Name of issuer PaySauce Limited
Reporting Period 6 months to 30 September 2020
Previous Reporting Period 12 months to 31 March 2020
Currency NZD (New Zealand Dollar)
Amount (000s) Percentage change
Revenue from continuing
operations
$1,009 Up 12%
Total Revenue $1,009 Up 12%
Net profit/(loss) from
continuing operations
($946) Loss up 10%
Total net profit/(loss) ($946) Loss up 10%
Interim/Final Dividend
Amount per Quoted Equity
Security
No dividends are proposed to be paid
Imputed amount per Quoted
Equity Security
Not Applicable
Record Date Not Applicable
Dividend Payment Date Not Applicable
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.017 NZD $0.014 NZD
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
PaySauce Limited has no operational activity, and as a result
this announcement is based on the consolidated operations of
its wholly owned subsidiaries PaySauce Operations Limited and
Right Remunerations Limited (together, ‘the Group’ or
‘PaySauce’).

Please refer to the comments in the Market update, and the
Interim Report.
Authority for this announcement
Name of person

authorised
to make this announcement
Jaime Monaghan
Contact person for this
announcement
Jaime Monaghan
Contact phone number 022 5246366
Contact email address investor@paysauce.com
Date of release through MAP

27/11/2020

Unaudited financial statements accompany this announcement.