PaySauce FY2023 Half Year Result and Interim Report

PaySauce doubles total customer lifetime value
Lower Hutt, New Zealand - 23 November 2022
Employment fintech PaySauce (NZX:PYS) shares its FY2023 Interim Report, with CEO
Asantha Wijeyeratne noting that total customer lifetime value has doubled over the
last year to $42.7M at the end of Sept 2022.
HIGHLIGHTS
●
Total customer lifetime value doubled to $42.7M
●
Recurring revenue for the 6 month period of $2.5M (Up 79% YOY)
●
ARR of $5.58M (Up 71% YOY)
●
Net Promoter Score of 45
●
PayNow saved customers an estimated $1.1M
Wijeyeratne said that the milestone was achieved from improvement in all of the
contributing factors.
“Doubling the total customer lifetime value to $43 million reflects the evolution we’ve
made from startup to scaleup. We’re now the incumbent payroll provider for dairy
farmers, and they continue to refer us to their neighbours in rural communities. That
extends our reach to other SMEs in rural NZ. Growing customer numbers, increasing
average revenue per customer and building in greater efficiencies in serving those
customers means they stay with us longer, and increase the overall lifetime value. That
loyalty is gold, and it's reflected in our high net promoter score of 45.”

Recurring revenue was up 79% YoY, with processing fees up 60% YoY to $2.14M and
interest income increasing substantially to $0.38M, being 15% of total recurring
revenue (compared to 5% in the half year to Sept 2021).
Financial Performance
F23 H1
$000s
F22 H1
$000s
YoY %
Operating revenue2,5771,44578%
Expenses(2,777)(2,188)27%
Loss before tax, depreciation and amortisation(200)(743)(73%)
The loss before tax, depreciation and amortisation reduced to $200k for the half year.
Operating revenue increased $1.1M, and enabled greater investment into the business.
The additional expenditure was highly correlated with current and future growth,
including:
●
Additional $225K invested in research and development; and
1
●
Additional $239K invested in serving existing customers.
Customer MetricsF23 H1F22 H1YoY %
Active PaySauce customers at end of period6,6585,61119%
Churn % (monthly average) for the period0.76%0.81%(6%)
ARPU (monthly) at end of period$70$4944%
CAC (per addition) for the period$371$3409%
LTV per customer at end of period$6,424$3,79869%
Total customer LTV at end of period$42.7M$21.3M101%
LTV:CAC ratio at end of period17 : 111 : 155%
1
A further $262K was invested in research & developmentwhich was capitalised for the period,
bringing the total additional investment into research & development to $487K

OUTLOOK
Wijeyeratne went on to explain how that loyalty extends into other markets.
“What’s really exciting for me is the opportunity ahead. We’ve got a two-pronged
approach for expansion, both of which leverage the expertise we’ve already gained.
We’ve scoped the opportunity to serve the dairy industry in Australia and we’re
working with a number of other industries in Aotearoa to replicate the success we’ve
had in dairy.“
ABOUT PAYSAUCE
PaySauce is a SaaS fintech platform providing solutions for people at work in 14
jurisdictions across the Asia-Pacific region. We give employers the technology to
digitally onboard, pay and manage employees from any device. Our platform includes
rosters, mobile timesheets, payroll calculations, banking integration, automated
payments, PAYE filing, labour costing, automated general ledger entries and digital
employment contracts.
www.paysauce.com

---

Results announcement
(for Equity Security issuer/Equity and
Debt Security issuer)
Updated as at 17 October 2019
Results for announcement to the market
Name of issuerPaySauce Limited
Reporting Period6 months to 30 September 2022
Previous Reporting Period12 months to 31 March 2022
CurrencyNew Zealand Dollar
Amount (000s)Percentage change
Revenue from continuing
operations
$2,577Revenue up 78%
Total Revenue$2,577Revenue up 78%
Net profit/(loss) from continuing
operations
($425)Loss down 55%
Total net profit/(loss)($425)Loss down 55%
Interim/Final Dividend
Amount per Quoted Equity
Security
It is not proposed to pay dividends
Imputed amount per Quoted
Equity Security
Not applicable
Record DateNot applicable
Dividend Payment DateNot applicable
Current periodPrior comparable period
Net tangible assets per Quoted
Equity Security
($0.0036185)$0.00059672
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 above, and the
Interim Report and Financial Statements.
Authority for this announcement
Name of personauthorised to
make this announcement
Jaime Monaghan
Contact person for this
announcement
Jaime Monaghan
Contact phone number0225246366
Contact email addressinvestor@paysauce.com
Date of release through MAP23 November 2022
Unaudited financial statements accompany this announcement.

---

1
2023
Interim
Report

21
Now the start-up days are behind
us, the path to scale-up is getting
clearer every day.
The privilege of being self-
sustaining is not lost on us,
and nor is the optionality that
provides us with as we reinvest
for future growth.
Delivering a market-leading
product on a scalable platform to
our chosen markets will enable
us to fulfil our vision to be the
first choice people platform for
SMEs in Oceania.
Strategic plan and highlights
Leadership message
Delivering on the plan
Performance (SaaS metrics)
Financial statements
20152022
Content
02
04
06
10
20

23
71
%
101
%
55
%
$
1.4
m
113
%
The highlights
How we’re tracking
(YOY)
(YOY)
(YOY)
(YOY)
Implement
inf rastructure and
security best practice
Target SMEs in
specific industries
Service target
markets expertly
Actively seek
acquisition targets
Deepen accounting
relationships
Strengthen
integration
partnerships
Integrate with
industry experts in
target markets
Self-service by default
Wrap the product
around the customer
needs
Own rural
Employees as
customers
Hire for attitude
Career development
paths
Attract top talent
as the employer of
choice
Increased
investment
in R&D
Net
Promoter
Score of 45
5 new
partnerships
3 year strategic plan
Where we’re heading
Strategic priorities
Our role
Our values
1.
Reinvest for
long term
growth
Fun and
f resh
Resourceful
and results-
orientated
Simple and
smart
Our vision
The first choice
people platform for
SMEs in Oceania
The straight
up provider of
effortless solutions
for people at work
2.
Obsess over
customers
3.
Win-win-win
partnerships
4.
Awesome
people
Do good and
be honest
Respect and
include
Annualised Recurring Revenue (ARR)
$5.6m
Total Customer Lifetime Value (LTV)
$42.7m
LTV : CAC Ratio
17 : 1
PayNow - Earned Wages Accessed
Investment into Research & Development
$0.9m
Entered
construction
industry
Increased
efficiency
of business
operations

45
For me, though, success isn’t just measured in financial
terms, but in the impact we have on the community
we serve. That extends not just to our accounting and
industry partners, or even just to our customers, but right
through to the employees of our customers. Through
the PayNow feature in our employee app, we estimate
that we’ve saved our customers’ employees over $1.1m
in fees and interest during the half year by enabling them
to access the wages they’ve already earned before
payday. And ultimately what’s good for our customers’
employees is good for us.
As we get into our scale up stride, it’s becoming more
apparent that it’s thanks to a diverse team of passionate
people that we’re able to achieve so much. Whether
they’ve been with us since day one, or joined as part of
our growth journey, they are all engaged around a set
of values that guide us and inspire me on a daily basis.
I’m phenomenally proud of the Payforce and all they’ve
delivered.
Yours,
Asantha Wijeyeratne
CEO, Co-founder
On behalf of the board, I’m delighted to present this
Interim Report and share the progress PaySauce has
made since our last update. The milestone we achieved
in FY22 Q4 of being self-sufficient from an operating
cash flow perspective has enabled the business to set a
strong platform to accelerate the growth in a long-term,
sustainable manner. The first half of FY23 has focused
on setting the business up to be the first choice people
platform for SMEs in Oceania. The report gives more
insight into our progress against the four key strategic
priorities which underpin that vision:
• Reinvest for long term growth;
• Obsess over customers;
• Win-win-win partnerships; and
• Awesome people.
The journey to date has delivered a product that
removes employment friction for the dairy industry.
That extended to broader rural industries as strategic
partnerships and word of mouth increased the brand
awareness in those communities. With around half of all
employing dairy farms in Aotearoa now using PaySauce,
we achieved market penetration in the dairy industry
faster than we’d anticipated. So we now look to apply
those insights to the dairy sector in Australia as well as
into new industries in New Zealand. With a substantial
proportion of new customers joining from adjacent
industries, such as hospitality and construction, we’re
able to seek growth opportunities through partnering
with industry experts. As well as improving the brand
awareness in these industries, these new relationships
have given us insight into the specific employment
friction that exists in those markets to help shape the
product roadmap. And when we see friction we smell
opportunity.
We’ve made substantial progress against our strategic
priorities so far this year. We’ve invested in our
infrastructure to ensure our tech stack is robust and
secure as we lay the foundation for scalable long-term
growth going forward. We’ve engaged a virtual chief
information security officer to provide an external
overview of the infrastructure in place to ensure security
of our data and our assets is robust. We’ve brought Jess
McLean into the business as a Chief People Officer to
create and lead a people experience team to attract,
develop and retain awesome people. The introduction
of a new partner program has also deepened the
relationships with our key channel partner - accountants.
By delivering a program that enables accountants
to become accredited in PaySauce, they are better
positioned to recommend PaySauce to their clients,
securing a win-win-win for PaySauce, the partner and
our mutual client. Relationships have played a key part
in PaySauce’s success to support us to obsess over
customers.
Sincerely,
Shelley Ruha
Independent Director, Chair
It’s been a privilege to lead the PayForce this year, as
we’ve embarked on the exciting next leg of our journey.
It’s been particularly pleasing to see good results from
the decisions on pricing, product and positioning that
have been made along the way.
As a SaaS business, the total customer lifetime value is
a key metric that I keep a close eye on. It’s a measure
of the total value of our current customers and I obsess
over it as it tells me the results of our efforts to acquire
new customers, retain existing ones and maintain profit
margins. Despite some challenges in providing our usual
standard of customer support over moving day, I’ve
seen total customer lifetime value more than double
over the last year to over $42m - a testament to the
business success.
The success has undoubtedly come from market
leadership in the New Zealand dairy industry. The
opportunity we have to replicate that success in other
industries is hugely exciting for us as we continue to
focus on SMEs and accelerate our expansion into
Australia. Employment relationships have never been
more critical as small business employers across all
verticals face a chronic skills shortage and mounting
pressures on profitability. We take our responsibility
to help those employers to be a better boss seriously
- delivering content, coaching and features to make
the employment relationship as easy as it can be –
automating admin and giving business owners back time
to do the things they love (which we’re pretty sure isn’t
payroll!).
Our focus on these priorities has driven our Annualised
Recurring Revenue to $5.6m at September 2022.
This lets us reinvest back into the business to
accelerate future growth. To date, this investment has
predominantly been in people, with additional PayForce
members added into the sales and technical teams. We
also more than doubled our investment into research
and development - which now represents 36% of total
recurring revenue over the period.
MESSAGE FROM THE CHAIRMESSAGE FROM THE CE0
Shelley Ruha
Independent Director, Chair
Asantha Wijeyeratne
CEO, Co-founder
“
“
The milestone we achieved in FY22
Q4 of being self-sufficient from an
operating cash flow perspective has
enabled the business to set a strong
platform to accelerate the growth in a
long-term, sustainable manner
H1
2021
H2
2021
H1
2022
H2
2022
H1
2023
71
%
(YOY)
Annualised Recurring
Revenue (ARR)
$5.6m
$6m
$4m
$2m

67
Infrastructure
We’ve invested time into the infrastructure to ensure
the tech stack is optimised for future growth. While
optimising the production environment to ensure an
awesome experience for our customers remains a
key priority, the investment in this half has focused on
improving testing environments, deployment processes
and Disaster Recovery practices to ensure and
standardise deployment processes.
Security
As a cloud-based software business, cyber security is
always front of mind to protect our customers’ data, our
assets and our reputation. We’ve engaged a virtual CISO
to provide security services. This has involved looking to
identify any potential vulnerabilities in our infrastructure
and implementing any necessary changes to manage
this risk appropriately.
Operational systems
We’ve invested further in the business and operational
systems to help improve internal processes too and help
our team deliver more efficiently. Significant investment
was made to integrate a new CRM and a new phone
system to ensure an awesome customer experience
when they look to us for support.
Sales and marketing
Now that around half of all employing dairy farmers are
using PaySauce to pay their employees, we’ve added
a BDM to the PayForce to deepen our relationship with
the Accountants. The Accountants not only support
our existing dairy farmer customers, but offer reach
into adjacent markets in the broader rural sectors. The
CAANZ partnership will strengthen our position and
reach with Accountants in Australia.
Customer support
We understand how critical payroll is to small businesses
and we’ve increased our Customer Support team to
ensure we’re available to those customers by phone and
email.
Knowledge base
We’ve used the insights from our customers to identify
the most common questions and delivered a knowledge
base of those FAQs. Customers can search these to find
a solution for themselves in their own time.
Recognising our customers
We created Farm Boss Appreciation Day. By understanding
our customers and the industry they operate in, we are able
to show them some aroha. We created a tool to help farm
bosses in NZ understand how much they’re appreciated by
their staff.
PayNow
We not only obsess over our customers, but also their
employees. In this reporting period, we’ve extended
over $1.4m in PayNow requests to employees looking to
access wages they’ve earned before payday for FREE.
This is estimated to have saved our customers over $1.1m
in fees and interest charges they’d have incurred
if they’d used a payday lender.
By investing in the inf rastructure, following best in class architecture and security
practices, and locking in adjacent markets, we’ll make the business scalable in a
sustainable way. This will enable a platform f rom which to launch into Australia.
By targeting specific markets we gain a deep
understanding of our customers and the
employment friction they experience. This is reflected
in the Net Promoter Score we achieved of 45.
Reinvesting for long
term growth
Obsessing over
customers
DELIVERING ON THE PLANDELIVERING ON THE PLAN
“
“
I think that PaySauce is a fantastic
app, the helpdesk people are so
helpful and are wonderful to deal
with, nothing is ever an issue and
my only problem is that I wish I
knew about PaySauce sooner!!!
Highlights
Engaged a third party to enhance
security
Engaged a third party to help shape
mobile development plan
Increased investment in R&D to 36%
of recurring revenue
Launched the knowledge base to
help customers self-serve
Further invested in internal system
and process improvements
Highlights
Net Promoter Score of 45
Created Farm Boss
appreciation day
PayNow saved customers
an estimated $1.1m in
interest and fees
100
-100
0

89
Channel partnerships
We’ve continued to value the relationship with
our Accounting partners and cemented that this
year through a new strategic partnership with
CAANZ. That arrangement gives us speaking and
activation opportunities at CAANZ events where
we’re able to demonstrate the value of PaySauce
to Accountants so we’re front of mind when their
clients require payroll services.
Rural industry partnerships
Dairy NZ, Dairy Womens Network and Federated
Farmers remain key rural industry partnerships we
value. These partnerships ensure we remain up to
date with whats front of mind for our customers in
these sectors.
Sponsorship partnerships:
We continued to support Taranaki Rugby Football Union
as a First XV partner and entered a new sponsorship
partnership with Wellington Rugby Football Union,
providing back of shorts coverage for PaySauce across
all of the Wellington Lions players and jersey sponsorship
for three of the Wellington Pride. With Wellington
Lions having secured both the Ranfurly Shield and the
Bunnings NPC title, there was broad television coverage
of our branding.
Branching out beyond rural
Whilst there’s still headroom for growth in the broader
rural market in NZ, we’ve acquired new customers in
both the hospitality and construction sectors too,
without actively marketing to them. This clearly signals
the product is fit for purpose for these customers and
we’ve initiated a discovery phase to better understand
any industry specific employment friction that currently
exists within those areas. This will inform our product
roadmap in the second half of the year.
New Chief People Officer
We hired Jess McLean to lead a dedicated People
Experience function. Jess has the knowledge and
experience to ensure we’re successful as we grow the
payforce to deliver our strategy both in NZ and Australia.
Expanded our tech team
We’ve bolstered our tech team. The increased
capacity facilitates enhanced support and greater
standardisation of our technical functions. This in turn
enables newly acquired talent to learn and add value
quickly.
Employee share scheme aligns values
We introduced another employee share scheme to
ensure that the payforce are rewarded for delivery
of their objectives and incentivised to remain in the
business.
By forming partnerships with organisations that
already support our target markets, we’re able
to ensure that we win, our partner wins and our
mutual client wins too.
Attracting awesome people to PaySauce enables us to hire based
on attitude, skills and alignment of values. By offering training and
experiences that enable the payforce to develop ensures they choose
to remain in the business longer.
Win-win-win
partnerships
Awesome people
DELIVERING ON THE PLANDELIVERING ON THE PLAN
Highlights
Brand coverage through Wellington
Lions successful season
New relationship with CAANZ for
reach into Australia
New employee share scheme
Highlights
New Chief People Officer to lead the
PX team
Attracted top talent to new roles in
Product and Sales & Marketing
New Employee Share Scheme
PaySauce’s awesome people prove their
talent, helping us become finalists at
Wellingtons 2022 Gold Awards

1011
PERFORMANCE (SAAS METRICS)
We use SaaS metrics to measure each stage of the
customer’s journey - the path to Total Customer
Lifetime Value. Metrics are explained further in the
following sections.
*The business results and SaaS metrics repor ted in the
following sections provide an over view of the per formance of
the business in a format that we believe is useful for readers to
assess the per formance 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).
PaySauce customer
lifetime journey
PERFORMANCE (SAAS METRICS)
For the six months ended 30 September 2022
Customer pays a monthly
subscription
Recurring Revenue
(Monthly): $70 per customer
Customer receives
support
Cost to Serve (CTS)
(Monthly): $21 per customer
Customer stays with
PaySauce
Customer Lifetime
Average monthly churn
of 0.76%
New customer joins
PaySauce
Customer Acquisition
(CAC)
$371 per customer
Customer Lifetime Value
(CLTV)
$6,424 per customer
At 30 September 2022
Customers
Calculated from...
Customer LTV
Total Customer
Lifetime Value
$
371
$
70
$
6,424
17:1
CLTV
LTV : CAC
$
42.7m
101
% YOY
$6,424X6,658
69% YOY
PaySauce customer
Clovally Farms
$
21
19% YOY
11
yrs

1213
PERFORMANCE (SAAS METRICS)PERFORMANCE (SAAS METRICS)
$
371
per customer
$
70
per customer
Continued customer growth has resulted in reaching an
important milestone with around 50% of all employing
dairy farms now using PaySauce. This level of market
penetration has accelerated the shift in focus to new
industries. Overall brand awareness has increased through
a new sponsorship agreement with Wellington Rugby
Football Union and a new partnership agreement with
Master Builders Association will help us hone in on the
construction sector.
A new partnership with CAANZ has also increased reach
and engagement to new and existing accounting partners
with conferences and seminars around New Zealand. This
is bolstered by a new Partner Programme introduced to
further develop relationships with accounting partners
and create a win-win referral model.
Recurring revenue grew 79% year on year to $2.5m for the
half year to September 2022. This arose from increased
processing fee revenue due to growth in customer
numbers and pricing changes, as well as increased interest
revenue due to the increasing interest rate environment
and the balance of funds held on behalf of customers.
New customer
joins PaySauce
Customer Acquisition
(CAC)
Customer pays a
monthly subscription
Recurring Revenue
H1 2022H1 2021YOY Change
Customer acquisition costs ($000’s)
348375
(7%)
New customers (organic)
9391,102
(15%)
CAC per addition
371340
9%
H1 2022H1 2021YOY Change
ARR at end of period ($000s)
5,5763,267
71%
Recurring revenue for the period - Total ($000s)
2,5251,408
79%
ARPU (monthly) at end of period ($)
7049
44%
FTEs
3831
23%
Revenue per FTE ($000s)
6847
45%
Annualised recurring revenue (ARR ) grew 71% year on year
to $5.6m as at September 2022.
H1
2021
H2
2021
H1
2022
H2
2022
H1
2023
ARR (Interest)ARR (Processing fees)
How and why do we monitor
customer acquisition?
PaySauce monitors the cost
of acquiring new customers
as an efficiency metric. The
customer acquisition cost
(CAC) divides the total cost
of acquisition across the new
customers for the period.
Customer acquisition is more
efficient the lower the CAC
per new customer metric.
Definitions. Customer
acquisition costs relate to
acquiring and onboarding
new customers. These
consist of sales and
marketing people costs and
expenses such as digital
marketing, events and
sponsorship. These costs are
expensed as incurred as they
do not relate to any specific
customer or contract for
services.
How and why do we
monitor recurring revenue?
PaySauce monitors the
revenue received from
customers as a grow th
metric. Looking at it from
a customer journey angle,
this is the Average Revenue
per User (ARPU) and is
derived by dividing the total
recurring revenue by the
number of customers in a
period. PaySauce measures
this metric on a monthly
basis - the higher the ARPU,
the more value received from
each customer.
Definitions. Recurring
revenue is revenue that is
expected to repeat into the
future. Recurring revenue for
PaySauce consists of:
• Processing Fees
- the monthly or annual
subscription customers
pay for PaySauce payroll
products.
• Interest Income - interest
earned from funds held
on behalf of PaySauce
customers. As interest
earned on these funds
grows directly in relation to
the number of customers,
this is considered an
additional recurring
revenue stream.
Annualised recurring revenue
(ARR) multiples the recurring
revenue generated in the
last month of the period by
12 to annualise the current
recurring revenue.
$6m
$4m
$2m

1415
PERFORMANCE (SAAS METRICS)PERFORMANCE (SAAS METRICS)
$
21
PaySauce made further investment into servicing
customers during the period with additional headcount and
enhancements to CRM and phone systems. This investment
enabled greater efficiencies in serving our customers. The
revenue growth (up 79%) outpaced growth in cost to serve
(up 46%) resulting in an increased gross margin percentage
of 7 percentage points year on year to 70%.
With the dairy industry making up the majority of the
PaySauce customer base, additional demand is placed
on the customer support team over June and July each
year. This is due to “moving day”, a big day in the farming
calendar when a large number of dairy farmers move
to new farms. This results in an increase in cost to serve
during these periods with additional temporary resources
required, which has a seasonal impact on the gross margin
as demonstrated above.
Customers value the critical service that PaySauce provides
and are estimated to remain customers for an average of 11
years. This estimated lifetime is derived from the average
monthly churn rate of 0.76% over the last 12 months.
Decreased churn and an increased gross margin per
customer resulted in a 69% increase in customer LTV to
$6,424. Comparing this to the average cost of acquiring
a new customer, PaySauce estimates a 17 : 1 return on
investment of acquiring new customers, based on the LTV :
CAC ratio at September 2022.
This increase in LTV combined with the increase in the number
of PaySauce customers increased total customer LTV by
101% year on year, growing to $42.7m as at 30 September
2022. This is demonstrated on pages 10 to 11.
Customer receives
support
Cost to Serve (CTS)
Customer stays with
PaySauce
Customer Lifetime
H1 2022H1 2021YOY Change
Recurring revenue ($000’s)
2,5251,408
79%
Less cost to serve ($000’s)
(759)(520)
46%
Gross margin ($000’s)1,76688899%
Gross margin %
70%63%
7pp
Customer LTV is particularly sensitive to churn and assumes
these levels will remain consistent over an extended future
period. Using the average churn levels for the last three years
(0.92%), total customer LTV would be $7.5m (18%) lower.
H1 2022H1 2021YOY Change
Customers at end of period
6,6585,611
19%
Average monthly churn rate for the period (%)
0.760.81
(6%)
LTV per customer at end of period ($)
6,4243,798
69%
Total customer LTV at end of period ($000s)
42,77021,312
101%
LTV:CAC ratio at end of period
17 : 111 : 1
55%
11
yrs
per customer
80%
H1
2021
H2
2021
H1
2022
H2
2022
H1
2023
60%
Gross margin

H1
2021
H2
2021
H1
2022
H2
2022
H1
2023
Total Customer LTV
How and why do we monitor
customer lifetime? PaySauce
monitors the retention of
customers. This is measured
using the churn metric which
calculates the percentage
of customers that stop using
PaySauce products each
month. The lower the churn
rate, the higher the derived
lifetime of each customer and
the more value generated from
them. The customer lifetime
value is assessed relative to
the customer acquisition cost
(CAC) to determine the return
on investment of acquiring
new customers.
Definitions. Monthly average
churn rate is the 12 month
average of the net reduction
of customers in a calendar
month. This is expressed as
the percentage of the total
customers at the star t of
that month. The estimated
customer lifetime (in months)
is derived using the inverse of
monthly average churn rate
(being 1 divided by the monthly
average churn rate).
Customer lifetime value (LTV)
is a measure of the gross
margin each customer brings
in over the time they use
PaySauce. LT V is calculated by
multiplying the gross margin
per customer by the estimated
customer lifetime.
Total customer LT V is a
measure of the estimated
value of the current customer
base, assuming that churn,
revenue and cost to ser ve
remain constant. This measure
is calculated by multiplying
customer LT V by the total
number of customers.
LT V : CAC is a measure of
the return on investment of
acquiring a new PaySauce
customer. This measure is
calculated by dividing the
customer LT V by the CAC per
addition.
How and why do we
monitor cost to serve?
PaySauce monitors the cost
of servicing customers as
an efficiency metric. The
cost to serve per customer
(CTS) divides the total cost
to ser ve by the total number
of customers for the period.
The lower the CTS, the more
efficient PaySauce is at
servicing customers.
Definitions. Cost to ser ve
relates to ser vicing PaySauce
customers. These consist
of customer support costs
and expenses such as cloud
hosting, maintenance of our
software products, and bank
fees charged per customer
transaction.
Gross margin represents our
recurring revenue less the
cost to ser ve our customers,
and is also often expressed
as a percentage, where the
gross margin is divided by the
recurring revenue.
$50m
$25m

1617
PERFORMANCE (SAAS METRICS)PERFORMANCE (SAAS METRICS)
Research and development
costs relate to building new
products and features as
well as enhancing the current
products and infrastructure.
These costs predominantly
consist of the software
development team salaries,
and are either expensed or
capitalised in line with NZ
IFRS requirements. Costs are
expensed if they are primarily
related to researching new
products or maintaining
existing products, and
capitalised if they are related
to developing new and
improving existing products.
Development costs are
discussed in aggregate
below - to demonstrate the
total spend on R&D for the
business in the period before
capitalisation under NZ IFRS
requirements.
Since reaching the milestone of cashflow break-even
for the quarter ended March 2022, PaySauce has been
reinvesting for growth. Product development is a core
component to this with investment into headcount,
outsourced development and streamlining internal
processes as PaySauce builds for scale. The two focus
points for the period have been:
• Enhancing the existing product architecture and
infrastructure for scale.
• Enhancing the existing products in response to
customers needs.
The capitalisation rate is a measure of how much time is
spent developing and improving products compared to
the time spent maintaining them. This measure improved
7 percentage points year on year to 48% as a result of
streamlining internal processes to execute on the growth
strategy.
Research and development costs increased 113% year
on year, and as a percentage of recurring revenue, these
increased 5 percentage points to represent 36% of
recurring revenue.
General and administration costs increased 14% year on
year at $1.2m, and made up 46% of recurring revenue,
down from 73% last year. Improvements to structure and
process of management, finance and administration
has resulted in greater efficiencies in supporting the
operational arms of the business without significant
investment in new headcount. This continues the positive
downward trend of general and administration costs as a
percentage of recurring revenue as economies of scale
are realised.
Research &
Development
(Building the
product)
General &
Administration
(Keeping the
lights on)
General and administration
costs are the overhead
related costs of running
the business which include
management remuneration,
director fees, office
running costs, finance and
administration, legal and
consulting expenses and
other overheads.
H1 2022H1 2021YOY Change
Research & development expensed ($000’s)
480255
89%
Research & development capitalised ($000’s)
439177
148%
Total research and development costs ($000’s)919432113%
Percentage of recurring revenue
36%31%
5pp
Capitalisation rate
48%41%
7pp
H1 2022H1 2021YOY Change
Total general and administration costs ($000’s)
1,1691,025
14%
Percentage of Recurring Revenue
46%73%
(26 pp)
125%
H1
2021
H2
2021
H1
2022
H2
2022
H1
2023
100%
75%
50%
25%
G&A Cost as a % of revenue

1819
PERFORMANCE (SAAS METRICS)PERFORMANCE (SAAS METRICS)
PaySauce achieved continued revenue growth which
underpins the performance for the 6 months ended 30
September 2022. Recurring revenue grew 79% year on
year as a result of both increases in processing fee and
interest revenue. Deliberate investment towards revenue
generating activities combined with careful management
of other operating costs ensured that revenue growth
outperformed growth in operating costs, leading to an
EBTDA loss of $0.2m for the period, an improvement
of $0.5m.
Cashflows (excluding loan drawdown and movement
of funds held on behalf of customers) were ($0.6m) for
the 6 months ended 30 September 2022. PaySauce
has reinvested for growth, making investment in people,
product and processes as the business continues to build
for scale after achieving a cash positive quarter ended
March 2022.
SaaS P&LBusiness results
Earnings Before Tax,
Depreciation and
Amor tisation (EBTDA) is
calculated by adding back
depreciation, amortisation
and income tax expense
to the amounts repor ted in
the NZ IFRS-based financial
statements. PaySauce
believes that this measure
provides useful insights to
measure the performance
of PaySauce as a SaaS
business.
EBTDA Margin % is EBTDA as
a percentage of recurring
revenue and is calculated by
dividing EBTDA by recurring
revenue
Cashflow represents
the operational cash
movements. This includes
all cash movements other
than funds received from a
loan drawdown and all cash
movements relating to funds
held on behalf of customers.
Sept 2022Sept 2021
Processing Fees
2,1421,339
Interest Income
38369
Recurring Revenue2,5251,408
Cost to Serve
(759)(520)
Gross Margin1,766888
Gross Margin %70%63%
Other Interest Income
74
Other Revenue
4533
Total Other Revenue5237
Customer Acquisition
(348)(375)
Research & Development
(480)(255)
General & Administration
(1,169)(1,025)
Interest Expense
(21)(13)
Earnings Before Tax, Depreciation and Amortisation (200)(743)
Earnings Before Tax, Depreciation and Amortisation Margin %(8%)(53%)
Depreciation & Amortisation
(235)(203)
Income Tax
107
Net Loss for the period(425)(939)
H1
2021
H2
2021
H1
2022
H2
2022
H1
2023
RevenueExpenses
$200 K
$0 K
-$200 K
-$400 K
H2
2021
F21
Q2
F21
Q3
F21
Q4
F22
Q1
F22
Q2
F22
Q3
F22
Q4
F23
Q1
F23
Q2
H1
2022
H2
2022
H1
2023
For the six months ended 30 September 2022
$30m
$20m
$10m

2021
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
Interim Condensed Consolidated
Statement of Comprehensive Income
For the six months ended 30 September 2022

Sept 2022
Sept 2021
Unaudited
Unaudited
NOTES
$000s$000s
Operating revenue 82,5771,445
Expenses
Employee expenses
9(1,760)(1,435)
Other expenses
12(996)(739)
Depreciation and amortisation
4,5(235)(203)
Finance costs
11
(21)(14)
Total expenses(3,012)(2,391)
Net loss before income tax

(435)(946)
Tax benefit
107
Net loss for the period
(425)(939)
Other comprehensive income
--
Total comprehensive loss for the period
(425)(939)
Loss per share
CentsCents
Basic loss per share7(0.31)(0.71)
Diluted loss per share
7
(0.31)(0.71)
The above statement should be read in conjunction with the accompanying notes.
Interim Condensed Consolidated
Statement of Financial Position
As at 30 September 2022
Sept 2022Mar 2022
Unaudited
Audited
Notes$000s$000s
Assets
Current assets
Cash and cash equivalents
29,80726,255
Deposits
-1,675
Trade receivables
9481
Other assets

428392
Total current assets 30,32928,403
Non-current assets
Property, plant and equipment4121137
Intangible assets
5
1,8611,586
Total non-current assets 1,9821,723
Total assets 32,31130,126
Liabilities
Current liabilities
Trade and other payables341454
Funds due to customers and IRD
29,19827,338
Employee benefits
332282
Other liabilities
350291
Lease liabilities3466
Total current liabilities 30,25528,431
The above statement should be read in conjunction with the accompanying notes.

2223
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
Interim Condensed Consolidated
Statement of Financial Position (cont.)
As at 30 September 2022

Sept 2022Mar 2022
Unaudited
Audited
Notes
$000s$000s
Non-current liabilities
Employee benefits4827
Interest bearing liabilities650-
Total non-current liabilities 69827
Total liabilities 30,95328,458
Net assets 1,3581,668
Equity

Share capital613,11313,039
Reserves172131
Accumulated losses (11,927)(11,502)
Equity attributable to the owners of the Company 1,3581,668
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 23rd November 2022:
Shelley Ruha Jacqueline Cheyne
Chair Chair of Audit & Risk Committee

23 November 2022 23 November 2022
Interim Condensed Consolidated
Statement Of Movements In Equity
For the six months ended 30 September 2022
Attributable to equity holders of the Company
Share-based
payment reserve
Share CapitalAccumulated
lossesTo t a l
Notes$000s$000s$000s$000s
Unaudited
Balance as at 1 April 2022 13113,039(11,502)1,668
Comprehensive loss
Net loss for the period--(425)(425)
Other comprehensive income----
Total comprehensive loss--(425)(425)
Transactions with owners
Share-based payments, net of tax1541--41
Issue of ordinary shares6-74-74
Total transactions with owners4174-115
Balance as at 30 September 202217213,113(11,927)1,358
Unaudited
Balance as at 1 April 2021 -12,652(10,220)2,432
Comprehensive loss
Net loss for the period--(939)(939)
Other comprehensive income----
Total comprehensive loss--(939)(939)
Transactions with owners
Issue of ordinary shares6-348-348
Total transactions with owners-348-348
Balance as at 30 September 2021-13,000(11,159)1,841

The above statement should be read in conjunction with the accompanying notes.

2425
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
Interim Condensed Consolidated
Statement of Cash flows
For the six months ended 30 September 2022

Sept 2022
Sept 2021
UnauditedUnaudited
Notes
$000s$000s
Cash flows from / (used in) operating activities
Receipts from customers2,0301,237
Interest received26864
Payments to suppliers and employees(2,384)(1,995)
Interest paid(2)(14)
Net cash used in operating activities before increase in funds
due to customers and IRD
(88)(708)
Increase in funds due to customers and IRD1,8602,793
Net cash from operating activities141,7722,085
Cash flows from / (used in) investing activities
Funds on deposit1,675(1,675)
Investment in intangible assets(448)(177)
Purchases of property, plant and equipment (46)(23)
Other investing activities -(27)
Net cash from / (used in) investing activities 1,181(1,902)
Cash flows from / (used in) financing activities
Loan advances650-
Interest paid (19)-
Repayments of principal portion of lease liability (32)(20)
Net cash from / (used in) financing activities 599(20)
Net increase in cash and cash equivalents 3,552162
Cash and cash equivalents at beginning of the period 26,25521,756
Cash and cash equivalents at end of the period29,80721,918

The above statement should be read in conjunction with the accompanying notes.
Notes to the Interim Condensed Consolidated Financial Statements for
the six months ended 30 September 2022
1. General information
PaySauce Limited (the “Company” or “PaySauce”), is a for-profit limited liability company, domiciled and incorporated in
New Zealand and registered under the Companies Act 1993. The company is an FMC Reporting Entity for the purpose of
the Financial Markets Conduct Act 2013. PaySauce is listed on the New Zealand Stock Exchange (“NZX”) that trades under
the ticker PYS.
The Group provides Software as a Service (SaaS) solutions for people at work in 14 jurisdictions across the Asia-Pacific
region. Providing employers the technology to digitally onboard, pay and manage employees from any device. The
PaySauce platform includes rosters, mobile timesheets, payroll calculations, banking integration, automated payments,
PAYE filing, labour costing, automated general ledger entries and digital employment contracts.
The interim condensed consolidated financial statements for the Company and its subsidiaries (the “Group”) for the
six months ended 30 September 2022 were authorised in accordance with a resolution of the directors for issue on 23
November 2022 and are unaudited.
2. Summary of significant accounting policies
Basis of preparation
These unaudited interim condensed consolidated financial statements have been prepared:
• in accordance with New Zealand Generally Accepted Accounting Practice (“NZ GAAP”);
• comply with the requirements of the New Zealand Equivalent to International Accounting Standard 34: Interim
Financial Reporting (“NZ IAS 34”);
• on the basis of historical cost;
• in New Zealand dollars (NZD) with all values rounded to the nearest one thousand dollars ($1,000) unless otherwise
stated;
• on the assumption that the Group is a going concern;
• should be read in conjunction with the audited consolidated financial statements for the Group as at and for the year
ended 31 March 2022
There are no seasonality or cyclicality influences on the results of the Group.
The unaudited interim condensed consolidated financial statements have been prepared using the same significant
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 2022,
other than as disclosed in the sections below.
3. Use of critical accounting estimates and judgements
The preparation of the interim condensed consolidated financial statements requires PaySauce to make a number of
judgements, estimates and assumptions. Estimates and underlying assumptions are reviewed on an on-going basis.
Information about critical judgements and significant estimates used in applying accounting policies that have the most
significant effect on the amounts recognised in the interim condensed consolidated financial statements are included
below and in the following notes:
• Intangible Assets (Note 5)

2627
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
Going concern
The consolidated financial statements have been prepared on a going concern basis.
The Group made a net loss before tax of $0.43m for six months year ended 30 September 2022 (2021: $0.93m), has
equity at 30 September 2022 of $1.36m (Mar 2022: $1.67m) and net current assets/(liabilities) of $0.07m (Mar 2022:
($0.03m)). The Group has the ability to generate sufficient revenues to meet operating costs, with excess cash invested
into growth initiatives. The Group drew on the $0.65m debt facility from BNZ in June 2022, which is due for repayment in
June 2024. The group has a further debt facility of $0.25m to draw upon if required.
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.
4. Property, plant and equipment
Unaudited
Right-of-use
Asset (Property)
Office
Equipment
Leasehold
Improvements
Computer
EquipmentTo t a l
Year ended 30 September
2022
$000s$000s$000s$000s$000s
Opening net book value5929743138
Additions-10-3646
Disposals-(1)--(1)
Depreciation
(30)(6)(4)(22)
(62)
Closing net book value2932357121
As at 30 September 2022
Cost2038811193495
Accumulated depreciation(174)(56)(8)(136)(374)
Net book value2932357121
5. Intangible assets
Unaudited
Development in
progress
Computer
Software
Customer
RelationshipsTo t a l
Year ended 30 September 2022$000s$000s$000s$000s
Opening net book value4008912951,586
Additions12810-138
Development costs capitalised311--311
Development in progress recognised as
Software
(217)217--
Amortisation
-(139)(35)
(174)
Closing net book value6229792601,861
As at 30 September 2022
Cost6221,9113542,887
Accumulated amortisation
-(932)(94)
(1,026)
Net book value6229792601,861
Key estimates and judgements
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 below. No indirect people
costs, nor weighting of overheads is applied in these calculations.

Development expenditure is capitalised if, and only if the Group can demonstrate all of the following:
• its ability to measure reliably the expenditure attributable to the asset under development;
• the product or process is technically and commercially feasible;
• its future economic benefits are probable;
• its ability to use or sell the developed asset; and
• the availability of adequate technical, financial and other resources to complete the asset under development.
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 2022, the assets were assessed for indicators of 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’s assessment concluded that there were no indicators of impairment.
Development in progress has been assessed for indicators of 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’s assessment concluded that there were no indicators
of impairment of this asset as at 30 September 2022.

2829
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
6. Share capital
DateDetailsNotesNumber of Shares$000s
Unaudited
1 April 2022Opening Balance138,583,81913,039
Issue of ordinary shares(i)
273,24474
30 September 2022Closing Balance138,857,06313,113
Unaudited
1 April 2021Opening Balance137,026,27812,652
Share based payment(ii)
1,416,164348
30 September 2021Closing Balance138,442,44213,000
Fully paid up, ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary
shares are recognised as a deduction from equity, net of any tax effects.
(i) On 31 May 2022: Shares issued (unpaid) as part of the 31 March 2022 employee share scheme were paid up as
tranche 1 of the scheme vested for those employees who met the vesting conditions. 273,244 shares were fully paid
up via a discretionary bonus approved by the board. This resulted in an issue of 273,244 ordinary shares at $0.2842
per share, totalling an issue of $0.078m. Directly attributable costs totalled $0.004m, bringing the net share issue to
$0.074m.

(ii) On 31 May 2021: PaySauce acquired the business and assets of SmoothPay Limited. PaySauce issued 1,416,164
ordinary shares as consideration for the purchase, issued at a price of $0.2648 per share, totalling a purchase price of
$0.375 million. Directly attributable costs totalled $0.027 million, bringing the net share issue to $0.348 million.
Dividends
No dividends were declared or paid during the reporting period (Sept 2021: None).
7. Earnings / (loss) per share
Sept 2022Sept 2021
UnauditedUnaudited
Basic earnings per share
Net loss used in calculating earnings per share ($000s)(425)(939)
Weighted average number of ordinary shares for basic earnings per share138,765,982137,970,387
Basic loss per share (cents)(0.31)(0.71)
There are no financial instruments on issue that will dilute the basic earnings per share amounts for the six months ended
30 September 2022.
8. Operating revenue
Sept 2022Sept 2021
UnauditedUnaudited
$000s$000s
Revenue from contracts with customers
Processing fees2,1421,339
Other services revenue3733
Revenue from other sources
Interest income39073
Other revenue8-
Total operating revenue2,5771,445

3031
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
9. Employee expenses
Sept 2022Sept 2021
UnauditedUnaudited
$000s$000s
Employee benefits/entitlements1,5021,409
Employee benefits/entitlements - share based payments171-
Fringe benefit tax-17
Other employee expenses879
Total employee expenses1,7601,435
10. Research & Development
Sept 2022Sept 2021
UnauditedUnaudited
$000s$000s
Research & development costs expensed (included in note 9 - Employee expenses
under Employee benefits/entitlements, and note 12 - Other expenses under
Infrastructure and security)
480255
Total research & development480255
11. Finance Costs

Sept 2022Sept 2021
UnauditedUnaudited
$000s$000s
Interest paid19-
Finance cost - Interest on lease214
Total finance costs2114
12. Other expenses
Sept 2022Sept 2021
UnauditedUnaudited
$000s$000s
Advertising, PR and marketing10569
Audit fees3630
Communications and subscriptions107102
Customer and transactional219151
Directors’ fees9595
Professional services1932
Office running, rent and insurance5363
Other overheads7587
Infrastructure and security24560
Travel4250
Total other expenses996739
The allocation of other expenses has been improved to provide the reader with a more accurate representation of
the expenditure incurred. The disclosure for the six months ended 30 September 2021 has also changed from what
was presented in the group financial statements to align the comparative period disclosure with the newly created
categories. The change in disclosure does not impact the reporting results of operations, for the categories presented
on the face of the financial statements.
13. 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.

3233
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
The table below summarises remuneration paid to key management personnel.
Sept 2022Sept 2021
UnauditedUnaudited
$000s$000s
Directors’ fees6395
Short term employee benefits470392
Total key management personnel compensation533487

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 those entities. A number of those entities
subscribe to services provided by the Group. None of the 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:
Sept 2022Sept 2021
UnauditedUnaudited
Related party transactions during the period$000s$000s
Consulting services supplied by entities controlled by related parties
Catalyst.Net Limited
-6
Cloud hosting services supplied by entities controlled by related parties
Catalyst Cloud Limited
5752

Sept 2022Mar 2021
UnauditedAudited
Related party balances payable at period end$000s$000s
Directors’ Fees1111
Cloud Hosting Services119
PaySauce Limited entered into a standby debt facility agreement with Director Gavin Thompson in December 2021. The
facility totals $0.25m and can be drawn on demand, within two years from the date of the agreement. The agreement is
made at arm’s length, with the interest rate linked to the floating interest rate of ASB Bank Limited. As at 30 September
2022, no funds have been drawn.
14. Reconciliation of net loss after tax to net cash flows from operations
Sept 2022Sept 2021
UnauditedUnaudited
$000s$000s
Net Loss after taxation(425)(939)
Add back / (deduct) non-cash & non-operating items:
Depreciation & amortisation235203
Share based payment expense115-
Other non-cash & non-operating items19(52)
(56)(788)
Movement in working capital:
Increase in Trade and other receivables(12)(40)
Increase in Other assets(36)(51)
Increase in Funds due to customers and IRD1,8602,793
Increase/(decrease) in Trade and other payables(114)83
Increase in Employee benefits 7247
Increase in Other liabilities5841
Net cash inflow from operating activities1,7722,085
15. Employee share scheme
The Group entered into an employee share scheme for the year ended 31 March 2023. There are no significant changes
to any key estimates, judgements or assumptions from the 31 March 2022 scheme outlined in the financial statements for
the year ended 31 March 2022.
Employee share scheme expenses for the six month period ended 30 September 2022 are as follows:
UnauditedMarch 2023
Employee Share
Scheme
March 2022
Employee Share
SchemeTo t a l
For the period ended 30 September 2022$000’s$000’s$000’s
Share based payment expense, net of tax8726113
Tax on share based payment expense
451358
Total share based payment expense13239171
The share based payment reserve is used to record the accumulated value of unvested shares and share options that
remain exercisable.

3435
FINANCIAL STATEMENTS
SEPT 2022
Unaudited
Share based payment reserve$000s
Balance at 1 April 2022131
Employee Share Scheme (31 March 2022) - Share based payment expense, net of tax 26
Employee Share Scheme (31 March 2022) - Shares vested and fully paid up(72)
Employee Share Scheme (31 March 2023) - Share based payment expense, net of tax87
Balance at 30 September 2022172
16. Events occurring after the reporting period
No adjusting or significant non-adjusting events have occurred between the reporting date and the date
of authorisation.
Company Directory
Directors:
Asantha Wijeyeratne
Gavin Thompson
Jacqueline Cheyne
Michael O’Donnell
Shelley Ruha
Registered Office:
21-23 Andrew Avenue
Lower Hutt, 5010
New Zealand
Website:
www.paysauce.com
Auditor:
Grant Thornton New Zealand Audit Limited
Stock Exchange:
NZX
Share Registrar:
Link Market Services Limited
80 Queen Street
Auckland, 1010
New Zealand
NZ Company Number:
1719868
NZBN:
9429034458099

36
FINANCIAL STATEMENTS