aySauce FY25 Half Year Result and Interim Report
PaySauceseesgrowthinvestmentsdeliverresults
LowerHutt,NewZealand-27November2024
SoftwareasaServiceFintechPaySauce(NZX:PYS)todayreportsitsfinancial
resultsforthehalfyeartotheendofSeptember2024,showingtheinvestmentit
madeforgrowthdeliveringsolidresults.
PaySaucetodayreports17%growthinrevenue.Togetherwithanaccelerationin
customeracquisition,growingcustomernumbers,processingfeesandaverage
revenuesperuser;PaySauceismakinggoodprogresstowardsitsgoalof$10m
AnnualisedRecurringRevenue.
HIGHLIGHTS
1
■
AnnualisedRecurringRevenue(ARR):$8.7mup17%followinganincreasein
customernumbersanda13%increaseinARPU
■
Totalrecurringrevenue:$4.3mup20%
■
Customernumbers:7,821up9%,withrateofcustomerrecruitment
accelerating;newcustomersup12%
■
Totalcustomerlifetimevalue:$50.5mup24%
■
Netprofitaftertax(NPAT):$70kup$337k
AnnualisedRecurringRevenue(ARR)
1
AllcomparisonsaretothesixmonthstotheendofSeptember2023unlessotherwisestated.
ChairShelleyRuhasaid:“IamhappytoreportthatPaySaucehasmadesignificant
progresstowardachievingitsobjectivesoverthepast6months.Significantly,the
investmentswehavemadeintorecruitingnewcustomersanddiversifyingour
portfolioofindustrieshasbeguntodeliverforPaySauce.
“Importantly,thissuccess-whichfollowsfromthepartnershipswehavestruck
withaccountantsaroundthecountryandtheinvestmentwehavemadeintothe
PaySaucebrand-hasnotcomeattheexpenseoffinancialsustainability.Having
producedourmaidennetprofitandpositivefreecashflowintheyeartoMarch
2024,wemaintainedthatpositivetrajectory.”
ChiefExecutiveOfficerandCo-founderAsanthaWijeyeratnesaid:“I’mpleasedto
presentanothersolid6monthsofgrowthacrossseveralofourkeymetrics.The
rateofgrowthhasaccelerated,andcustomerretentionhasimprovedinlinewith
theeconomicpressureseasing.
“Oursuccesscanbeprimarilylinkedtooursalesstrategy,whichhascontinuedto
focusonleveragingandexpandingouraccountingpartnerchannel.Our
investmentingrowthismeanwhilecreatingshareholdervalue,withourtotal
customerlifetimevalue(CLTV)rising24%yearonyearto$50.5matSeptember
2024.”
TotalCustomerLifetimeValue(CLTV)
FINANCIALPERFORMANCE
Recurringrevenueforthe6monthstoSeptember2024grew20%to$4.3mfrom
$3.6minthepreviousyear.Withinterestratesstabilisingoverthelast12months,
themajority(71%)oftherevenuegrowththisperiodcamefromgrowthinour
processingfeerevenuewhichtotalled$3.0mforthe6monthperiod,up$0.5m
(20%)yearonyear.Interestrevenueincreasedproportionately,up$0.2m(20%)on
thepreviouscomparableperiod(6monthstoSeptember2023).
Theincreasedprocessingfeerevenuearosefromtwokeyareas:Firstly,thesales
andmarketingactivityyieldedacceleratedgrowthincustomersnumbers,up9%
yearonyearto7,821asatSeptember2024.Secondly,themonthlyaverage
processingfeespercustomerincreased13%yearonyearto$67(from$60).
Expensesincreased20%yearonyearfrom$3.4mto$4.0maswegrewour
headcountandincreasedinvestmentforgrowthincludinginvestmentinbrand
andexpandedoursalesefforts.
EBTDAincreasedto$548kfrom$255katthesametimeayearagoandasa
2
proportionofsales,increasedto13%from7%ayearago.Netprofitaftertax(NPAT)
increasedto$70kforthe6monthperiodtoSeptember2024,animprovementof
$337konthesame6monthperiodlastyear,andreflectsthecontinuationof
sustainablegrowthachieved.
QuarterlyProcessingFeeRevenueandGrowthRate
2
EBTDAisanon-GAAPmeasureoffinancialperformance.ItisdefinedandreconciledtotheGAAP
measureofNetProfitonpage16oftheinterimreportreleasedtotheNZXtoday.
STRATEGICPROGRESS
Thepast18monthshaveseenusundertakedeliberateandcarefulexecutionof
ourthreeyearstrategy.
Duringthe6monthswewelcomedanadditional20Accountingfirms,andadded
over550newcustomersviathatchannel.Strongcustomeradvocacyremainsa
keydriverintheprovincialregions,suchasWaikato,Taranaki,Canterbury,and
Southland,broadeningthealreadysignificantmarketpresenceintheagricultural
sectorintoadjacentsmallbusinesssectors.Anincreasedphysicalpresencein
AucklandandChristchurchisalsostartingtobearfruitfollowingheightened
campaignactivitytodrivebrandawareness.
Thecentre-pieceofourbrandawarenessactivitywasanadvertisingcampaign
centredonowner-operatedbusinessesinthetradesandconstructionspace.This
campaignwasinitiallylaunchedinAucklandacrossdigitalvideochannels
(YouTube,GoogleandMeta),digitalbillboards,andradio,beforeexpandingacross
therestofthecountryviadigitalvideo.
WemeanwhileremainexcitedaboutthepotentialofourGen2.0payrollengine.
Forthemomentatleast,wehavedecidedtofocusontheopportunitiesthis
technologyoffersourcorecustomerbase,ratherthanexploitingthewholesale
opportunityweidentified.Thischangefollowsourwholesalelaunchcustomer’s
decisiontopausetheproject,andtherecognitionoftheimmenseefficiency
benefitsthenewengineofferstoPaySauceandtheserviceenhancementsitoffers
ourcustomers.
Faster,moresecuredevelopmentofnewfeatureswillbekeytoattractingnew
userstoPaySauce.Thankstothenewengine,we’renowprimedtodeliverthese
features,andanimprovedcustomerexperienceonaunifiedplatform.Ourefforts
havebeenenhancedbythemigrationofourprimaryinfrastructuretoAmazon
WebServices(AWS),whichoffersenhancedspeedandsecurityofdevelopment.
CASHFLOWANDFUNDING
OperatingcashflowbeforetheinflowoffundsduetocustomersandtheIRDrose
to$1.1mforthe6monthperiodtoSeptember2024.Aftertheinvestmentsmade
intotheproductovertheperiod-wegeneratedpositivefreecashflowof$199k,up
$252konthesameperiodlastyear.
Reflectingourlendersconfidenceinourfuture,wehaveundrawnfacilitiesof
$600k.$350kofthisfacilitywasrenegotiatedatsignificantlymorefavourable
termsafterweusedthepositivecashflowtorepayouroutstanding$650kterm
loaninJuneofthisyear.
Freecashflow(excludingfundsheldonbehalfofcustomers)
OUTLOOK
PaySauce’sboardandmanagementarepleasedtoseethedeliveryofthestrategy
todate.
“Havingenhancedourcoreoperationsforscalability,we’relisteningtoour
customersanddeliveringanexperiencetheylove.Thishasbeenrewardedwith
earlysignsofacceleratedgrowth,”Wijeyeratnesaid.
“We’reexcitedabouttheopportunitiesweseeaheadandweareconfidentthatwe
aremakingsteadyprogresstowardsouraspirationalgoalof$10millioninARR.We
lookforwardtoupdatingshareholdersonourprogresswithourQ325updateto
bereleasedearlyinthenewyear.”
Furtherdetailonthecompany’sperformanceisincludedintheinterimreportand
investorpresentationreleasedtotheNZXtodayandalsoavailableonthe
company’sinvestorwebsite:https://www.paysauce.com/investor/#/documents
PaySaucewillhostanInvestorandMediaconferencecalltodaytodiscussthe
interimresult.
Theconferencecallisscheduledtobeginat10.00amNZDT.
Investorsandmediaareinvitedtoattendtheconferencecall,andcanregister
theirinterestbyemailinginvestor@paysauce.combefore9amtoreceivethe
conferencecalllink.
ReleasedforandonbehalfofPaySaucebyJaimeMonaghan,ChiefFinancial
Officer.
ENDS
ABOUTPAYSAUCE
PaySauceisaSaaSfintechplatformprovidingsolutionsforpeopleatworkin14
jurisdictionsacrosstheAsia-Pacificregion.Thetechnologyenablessmall
employerstodigitallyonboard,payandmanageemployeesfromanydevice.The
platformincludesrosters,mobiletimesheets,payrollcalculations,banking
integration,automatedpayments,PAYEfiling,labourcosting,automatedgeneral
ledgerentriesanddigitalemploymentcontracts.ThePayNowfeatureenables
customers’employeestoaccessthepaythey’veearnedbeforepayday,providinga
freealternativetopaydaylenders.www.paysauce.com
CONTACT
AsanthaWijeyeratne
CEOPaySauce
+6421554600
Pleasedirectanyinvestmentqueriestoinvestor@paysauce.com
---
Resultsannouncement
(forEquitySecurityissuer/Equityand
DebtSecurityissuer)
UpdatedasatJune2023
Resultsforannouncementtothemarket
Nameofissuer
PaySauceLimited
ReportingPeriod
6monthsto30September2024
PreviousReportingPeriod
12monthsto31March2024
Currency
NewZealandDollar
Amount(000s)Percentagechange
Revenuefromcontinuing
operations
$4,565+27%
TotalRevenue$4,565+27%
Netprofit/(loss)from
continuingoperations
$70-126%
($267kloss,improvedto$70kprofit)
Totalnetprofit/(loss)$70-126%
Interim/FinalDividend
AmountperQuotedEquity
Security
Itisnotproposedtopaydividends
ImputedamountperQuoted
EquitySecurity
Notapplicable
RecordDate
Notapplicable
DividendPaymentDate
Notapplicable
CurrentperiodPriorcomparable
period
Nettangibleassetsper
QuotedEquitySecurity
-$0.00383985-$0.00519405
Abriefexplanationofanyof
thefiguresabovenecessary
toenablethefigurestobe
understood
TheresultincludestheconsolidatedoperationsofPaySauceLtd’swholly
ownedsubsidiariesPaySauceOperationsLimitedandRight
RemunerationLimited(together,‘theGroup’or‘PaySauce’).Asasoftware
company,theassetsontheBalanceSheetareintangible.Pleasereferto
theInterimReportandFinancialStatements.
Authorityforthisannouncement
Nameofpersonauthorisedto
makethisannouncement
JaimeMonaghan
Contactpersonforthis
announcement
JaimeMonaghan
Contactphonenumber
+64225246366
Contactemailaddress
investor@paysauce.com
DateofreleasethroughMAP26/11/2024
Unauditedfinancialstatementsaccompanythisannouncement.
---
2025
Interim
Report
2025
(and beyond...)
To
21
Content
02 / Strategy & highlights
04 / Leadership messages
08 / Delivering on the plan
12 / Performance (SaaS metrics)
18 / Finances
38 / Directory
We’re well–positioned to supercharge
growth. We’ve made significant
investment into our infrastructure,
with scalability front and centre.
We’ve listened to our customers and
we’re evolving our product to give
employers the amazing user experience
they deserve. We’re hyper-focused
on shaping our product around our
core market, and with over 100,000
employers with 1-5 staff in NZ alone,
there’s massive opportunity for us to
drive long-term value for our investors.
2025
To
(and beyond...)
Love our
customers
Supercharge
growth
Make it
scalable
23
Supercharge
growth
Scalability
Toward our FY25 strategyHighlights
Annualised Recurring
Revenue (ARR)
17% YoY increase
NPAT (Net Profit
after Tax)
$337k YoY increase
Free Cashflow
$252k YoY increase
1
$
70
k
$
8.7
m
$
199
k
$
50.5
m
Total Customer Lifetime Value
(CLTV)
24% YoY increase
1. Excludes funds due to customers and IRD
The pendulum has swung from actively
seeking wholesale opportunities to
being hyper-focused on evolving the
user experience for employers with 1-5
staff. Having successfully proven the
concept of wholesale payroll, we have
the infrastructure to deliver on any future
wholesale opportunities as they arise.
To ensure we can retain very high service
levels at scale, we’ve focused on the
improvements to how we operate. We’ve
improved our operational processes
and removed internal pain points - this
means we have more time to focus on the
activities that will make our customers
love us more.
How we’re tracking:
• We’ve clearly defined our target
market of customers with 1-5
employees, and we’re incorporating
features they’ll love by making
payroll simple and intuitive;
• We’ve delivered the wholesale
payroll proof of concept and will
assess future opportunities against
the opportunity cost of improving
our core product; and
• We’ve increased brand awareness
through new campaigns & additional
investment in marketing activities.
How we’re tracking:
• We’ve made significant upgrades
to our infrastructure, optimising for
stability and security as we scale;
• We’ve optimised tooling to improve
the customer journey to help
them onboard more efficiently.
Improvements include enhanced
automations and demonstrations
resulting in improved lead
qualification.
23
Loving our
customers
Our relationship with our customers is
mutually beneficial: they get peace of
mind and time through a great product,
and we get a dedicated fanbase as our
best source of growth.
How we’re tracking:
• Demonstrating customer service
excellence with 99% of calls
responded to within an hour, and a
94% customer satisfaction score;
• Achieved an NPS score of 50
demonstrating strong customer
advocacy; and
• Customer feedback continues to
shape the user experience - both
now and in the future.
45
Dear Shareholders
I am happy to report that PaySauce has made significant
progress toward achieving its strategic objectives over
the past 6 months.
Perhaps most significantly, the investments we have
made into acquiring new customers and diversifying
our portfolio of industries has begun to deliver for
PaySauce. We acquired 1,035 new customers in the six
months to the end of September, a 12% improvement on
the same six month period last year.
These are early but encouraging signs. Importantly, this
success - which follows from the partnerships we have
struck with accountants around the country and the
investment we have made into the PaySauce brand -
has not come at the expense of financial sustainability.
Having produced our maiden net profit and positive free
cash flow in the year to March 2024, we maintained that
positive trajectory.
We meanwhile remain excited about the potential of
our Gen 2.0 payroll engine. For the moment at least,
we have decided to focus on the opportunities this
technology offers our core customer base, rather than
exploiting the wholesale opportunity we identified.
This change follows our wholesale launch customer’s
decision to pause the project, and the recognition of
the immense efficiency benefits the new engine offers
to PaySauce and the service enhancements it offers our
customers.
Faster, more secure development of new features will
be key to attracting new users to PaySauce. Thanks
to the new engine, we’re now primed to deliver these
features, and an improved customer experience on a
unified platform. These efforts have been enhanced by
the migration of our primary infrastructure to Amazon
Web Services (AWS), which offers enhanced speed and
security of development.
Financial performance
Recurring revenue for the 6 months to September 2024
grew 20% to $4.3m from $3.6m in the previous year.
With interest rates stabilising over the last 12 months,
the majority (71%) of the revenue growth this period
came from growth in our processing fee revenue which
totalled $3.0m for the 6 month period, up $0.5m (20%)
year on year. Interest revenue increased proportionately,
up $0.2m (20%) on the previous comparable period (6
months to September 2023).
The increased processing fee revenue arose from
two key areas: Firstly, the sales and marketing activity
yielded accelerated growth in customers numbers,
up 9% year on year to 7,821 as at September 2024.
Secondly, the monthly average processing fees per
customer increased 13% year on year to $67 (from $60).
The Average Revenue per User (ARPU) also includes the
average monthly interest earned on funds held on behalf
of customers being $25, down from $26 in the previous
comparable period. The processing fees and interest
earned combined to make the total ARPU $92 for the
period (F24: $85).
Expenses increased 20% year on year from $3.4m
to $4.0m as we grew our headcount and increased
investment in key areas. The cost to serve our customers
and maintain our product was relatively flat year on year
as we capitalised on increased efficiencies and a larger
proportion of developer time was capitalised. Customer
acquisition costs increased $0.2m year on year (43%)
as we increased our investment in new campaigns and
expanded our sales effort with our accounting partner
channel. General & Administration costs increased
$0.5m year on year (32%). $0.3m of this related to
people costs and a further $0.1m related to a provision
released last year.
EBTDA increased to $548k from $255k at the same time
a year ago and as a proportion of sales, increased to
13% from 7% a year ago. However, given the reduced
revenue growth rate, we have dipped below the target
‘Rule of 40’ Software as a Service (SaaS) industry
benchmark with revenue growth plus EBTDA margin at
33 down from 46 at the end of March 2024. Our goal is to
return to delivering on this benchmark.
Net profit after tax (NPAT) increased to $70k for the 6
month period to September 2024, an improvement of
$337k on the same 6 month period last year, and reflects
the continuation of sustainable growth achieved.
Cashflow and funding
Operating cash flow before the inflow of funds due to
customers and the IRD rose to $1.1m for the 6 month
period to September 2024. After the investments made
into the product over the period - we generated positive
free cash flow of $199k, up $252k on the same period last
year. We have undrawn facilities of $600k. Reflecting our
lenders confidence in our future, $350k of this facility was
renegotiated at significantly more favourable terms after
we used the positive cashflow to repay our outstanding
$650k term loan in June of this year.
Outlook
The board and management are pleased to see the
delivery of the strategy to date.
MESSAGE FROM THE CHAIR
Re-igniting our
growth
“
The investments we have made into acquiring
new customers and diversifying our portfolio of
industries has begun to deliver for PaySauce.
Shelley Ruha
Independent Director,
Chair
17
%
Annualised
Recurring
Revenue (ARR)
$8.7m
InterestProcessing fees
Recurring Revenue
$0 M
$9 M
$8 M
$7 M
$6 M
$5 M
$4 M
$3 M
$2 M
$1 M
Sep 21
Mar 22Mar 23Sep 22Sep 23Mar 24Sep 24
Having enhanced our core operations for scalability,
we’re listening to our customers and delivering an
experience they love. This has been rewarded with early
signs of accelerated growth. We’re excited about the
opportunities we see ahead and we are confident that
we are making steady progress towards our goal of $10
million in ARR.
We thank Asantha and the entire PaySauce team for their
efforts over the past 6 months, and we are confident in
their ability to create a unified customer experience for an
increasing customer base.
Yours sincerely,
Shelley Ruha
Independent Director, Chair
“
67
MESSAGE FROM THE CEO
Delivering
sustainable
growth
“
Over the last six months we added a net 453 new
customers, a significant improvement on the net
327 new customers we added in the six months to
the end of September 2023.
$
50.5
m
Total Customer Lifetime Value
Total Customer LTV
Sep 21
Mar 22Mar 23Sep 22Sep 23Mar 24Sep 24
$60 M
$40 M
$20 M
$0 M
Dear Shareholders
Customer growth
I’m pleased to present another solid 6 months of growth
across several of our key metrics.
The rate of growth has accelerated, and customer
retention has improved in line with the economic pressures
easing.
Over the last six months we added a net 453 new
customers, a significant improvement on the net 327
new customers we added in the six months to the end of
September 2023.
This success can be primarily linked to our sales strategy,
which has continued to focus on leveraging and
expanding our accounting partner channel. This channel
remains vital to our mid-term growth plans, acting both
as a source of recommendation to small business owners
and also as a source of direct customer growth from those
practices managing payroll for their clients.
During the 6 months we welcomed an additional 20
Accounting firms, and added over 550 new customers via
that channel. Strong customer advocacy remains a key
driver in the provincial regions, such as Waikato, Taranaki,
Canterbury, and Southland, broadening the already
significant market presence in the agricultural sector into
adjacent small business sectors. An increased physical
presence in Auckland and Christchurch is also starting to
bear fruit following heightened campaign activity to drive
brand awareness.
The centre-piece of the brand awareness activity was
an advertising campaign centred on owner-operated
businesses in the trades and construction space. This
campaign was initially launched in Auckland across digital
video channels (YouTube, Google and Meta), digital
billboards, and radio, before expanding across the rest of
the country via digital video. Over the first six months of
the campaign, PaySauce’s brand awareness has increased
at a statistically significant rate (the only brand in our
competitor set to show such an increase) and now sits
mid-pack within our competitive peer set.
I’m thrilled to see that the increased awareness is also
delivering results in new customers, with the trades and
construction vertical being our second largest for new
business after dairy for new starts this year.
We have also continued to support this space through key
partners such as Master Plumbers and Master Builders,
strengthening these relationships and attending various
conferences and trade shows around the country. On the
note of key partners and sponsors - it would be remiss to
not give a shout-out to the incredible Wellington Lions
who took out the Bunnings NPC for the 2024 campaign
- the second time since our sponsorship began! This
partnership and our other rugby partnership with the
current holders of the Ranfurly Shield, the Taranaki Bulls
forms a logical linkage between tradies, dairy farming and
the regions.
These performance improvements have come at the
cost of an increase in customer acquisition costs to $575
for each customer acquired from $510 in the year to the
end of March and $451 in the six months to the end of
September 2023.
The increased investment is creating shareholder value.
Customer number growth for the period added around
$4 million to our total customer lifetime value (CLTV), with
other key metrics, such as churn rate (down 3% year on
year), and average revenue per customer (up 8% year on
year), increasing the value of our existing customer base
by a further $6 million. This has resulted in a 24% year on
year increase in total CLTV, from $40.5m at September
2023, to $50.5m at September 2024.
Enabling Scalability
The past 18 months have seen us undertake deliberate and
careful execution of our three year strategy.
Firstly, establishing PaySauce as a profitable and cash
generating business provides us with the leverage to
reinvest for long term growth. More recently, significant
steps have been made in our product infrastructure with
the migration to AWS, and the development of our new
Gen 2.0 payroll engine. The final piece of the puzzle is the
development and roll-out of a single, unified customer
experience - the platform to deliver a top of class cloud
and mobile payroll experience globally.
As the company grows and evolves, so too do its people.
Reaching key milestones as PaySauce has grown has
brought a huge sense of achievement for myself and
the executive team. In September, we farewelled
two members of the team who were instrumental in
us reaching those milestones - my co-founder and
Chief Technology Officer (CTO), Troy Tarrant, and Chief
Operating Officer, Mathew Stokes.
With change comes opportunity, with Jacques
Labuschagne promoted into the CTO role, and Jessica
McLean’s role expanded to Chief Product Officer.
Jacques has led the development team since his arrival
at PaySauce, overseeing significant accomplishments
including the development of the Gen 2.0 payroll engine
and the migration to AWS. Jess’s extensive knowledge
of payroll systems and legislation, coupled with a deep
understanding of customers have already proven this
role to be pivotal for PaySauce’s product development
journey.
Outlook
I am thankful for the incredible work that the team have
delivered so far this year, and am excited to capitalise on
the opportunities to deliver features that our customers
love and supercharge our growth going forward.
Yours sincerely,
Asantha Wijeyeratne
CEO and Co-founder
“
Asantha
Wijeyeratne
CEO, Co-founder
DELIVERING ON THE PLAN
89
DELIVERING ON THE PLAN
Supercharge
growth
Highlights
Continued focus on building relationships with
both new and existing accountants seeing success,
driving processing fees up 20% year on year
Discovery complete and design underway for our
new user experience: making payroll simple and
intuitive for small business owners
New campaigns & additional investment in
marketing activities driving increased brand
awareness
Having grown our Product team, this revitalised group
has been engaged in an intensive discovery, research,
and planning phase in preparation for bringing a new
user experience to PaySauce’s payroll ecosystem.
This programme of work is one of our most significant
to date, and will entirely replace the current PaySauce
user interface across both web and mobile. It also
provides the means for us to migrate customers using
our acquired product, goPayroll, to PaySauce, providing
a better and more consistent experience across the
board. This critical initiative aims to significantly improve
user experience and product functionality while also
unlocking new growth in New Zealand and beyond by
leveraging goPayroll’s existing presence across the
APAC region.
We have been poring over customer feedback,
conducting analysis of user data from our current
interfaces, and undertaking competitive landscape
assessments to identify opportunities for differentiation.
At all times, the Product team’s efforts have placed our
key users’ needs front and centre: our micro-business
employers with a handful of employees who want to win
back the time they would have otherwise spent on payroll
administration and have peace of mind that they won’t be
caught out by any hidden complexities in legislation.
Having created detailed user personas and journey maps,
low-fidelity wireframes for key user flows and other critical
discovery and design phase artefacts, we’re confident
in our direction and momentum for the next phases
of delivery in the coming months. The Development
team has been working to lay the groundwork for these
changes, selecting the tools and technologies required to
support the new UX vision and demonstrating feasibility
by completing various internal proofs of concept. Taking
advantage of these new tools and frameworks will
significantly increase the team’s ability to deliver value
quickly.
One of PaySauce’s key growth strategies remains
focused on developing new and existing relationships with
accountants and bookkeepers. These channels remain
vital for mid-term growth plans, with accountants and
bookkeepers acting as both a source of recommendation
to small businesses managing their own payroll, and
as a source of customer growth from those practices
managing payroll on behalf of clients. Approximately half
of new customers who sign up to PaySauce are referred
by their accountant. Significant opportunity has been
created in the market, both with the exit of older payroll
platforms and with pricing and plan shake ups across the
competitive landscape. We have successfully converted
several payroll-managing practices across to PaySauce
from their legacy software provider.
We made increased investments in marketing activities
in the first half of FY25. PaySauce launched a major
campaign in April, aimed at growing our presence and
awareness in new domains in addition to our traditional
dairy sector base. The advertising featured a family-
run building business, acknowledging the range of
administrative tasks a small business faces, with
PaySauce providing ease and peace-of-mind to the
pain point of payroll. While construction and trades were
the key target segments of the campaign, the tone and
message were designed to be relevant to all owner-
operated small businesses. The campaign was initially
launched in Auckland across digital video (YouTube,
Google and Meta), digital billboards, and radio. We then
expanded to the rest of the country on digital channels.
Over the first six months of the campaign, PaySauce’s
brand awareness has increased (the largest increase
when compared across our competitor set) and now sits
mid-pack within our competitive peer set.
While we see continued success in our relationships
with accountants, we continue to make investments
in direct engagement with small business owners. This
includes attendance and trade stands at relevant national
industry events (such as Fieldays, BuildNZ, and EMEX;
Engineering, Machinery, and Electrical) and industry
partnership events (such as Master Plumbers, Master
Builders, and Federated Farmers).
Loving our customers
Highlights
Demonstrating customer service excellence with
99% of calls responded to within an hour, and a 94%
customer satisfaction score
Continued commitment to empowering customers
with self-service and educational material - making
the complex simple for employers
Advocacy and active involvement to ensure
representation for our customers’ interests - being
a voice for the small business owner to government
and industry
Providing top-class customer service
We’re still, as always, focused on delivering value to our
customers through high quality support and service.
Happy, loyal customers are one of our strongest assets:
word of mouth, referrals and trusted advisors carry a huge
amount of weight with prospective payroll purchasers.
Over the last six months, 92% of incoming calls were
answered within 30 minutes. Even more impressive,
99% of calls were responded to within an hour. What’s
particularly noteworthy is that these numbers hold strong
even during our busy season in June, when the dairy sector
is typically experiencing a lot of employee movements and
employers require additional support. Quick responses
are crucial, especially for customers managing time-
Delivering on our
FY25 strategy
Continued focus on
building relationships
with both new and
existing accountants
seeing success, driving
processing fees up 20%
year on year.
One of PaySauce’s
key growth strategies
remains focused on
developing new and
existing relationships
with accountants and
bookkeepers. These
channels remain vital for
mid-term growth plans.
DELIVERING ON THE PLAN
1011
sensitive tasks like payroll processing! We’re continuing
to see the benefits of offering a wide range of self-
service documentation and support, meaning customers
have access to the information they need in a way that
suits them - particularly during periods of high call
volumes.
We’ve been keeping a close eye on customer sentiment
and satisfaction to make sure our callers are happy with
the service they receive. We’re excited to report that
our Customer Satisfaction (CSAT) score is an impressive
94%, putting us well above industry standards and firmly
in the realm of world-class customer service. In fact, our
score is 16 percentage points higher than the average
for call centres and 14 points above the average for
software and SaaS companies. This clearly shows that
our customers are really satisfied with the phone support
they get from our team, exceeding top benchmarks
across various industries. It’s especially noteworthy given
the high expectations typically found in the software and
technology sectors. This score reflects our commitment
to delivering outstanding customer experiences and
positions us as a leader in customer satisfaction within
our industry. Our NPS responses, feedback out in the
field and customer responses all consistently show us
that PaySauce customers love the service they receive
from our Support team.
We’re all about helping our customers understand their
obligations in a straightforward way. We do this by diving
into research, standing up for their needs, and providing
helpful information. Our team keeps a close eye on the
latest rules and best practices so we can provide the
most relevant information. We also advocate for our
customers, making sure small business voices are heard
with regulators and industry leaders. In August, our CPO
Jess met with David Seymour to discuss some of the
issues with the Holidays Act and make submissions in
relation to the upcoming Holidays Act Reform Bill. We’ve
also met with leaders in the banking space to advocate for
improvements in our mutual customers’ experiences.
We take all this knowledge and turn it into easy-to-read
guides, articles, and online resources that break down
complex topics. By doing this, we make it easier for
our customers to navigate their responsibilities with
confidence, setting them up for success in their fields.
This year, we have published white papers and guides on
parental leave legislation quirks and tax changes. We also
published a series of articles throughout Money Month
focusing on financial literacy and wellbeing.
Community groups
We’ve re-engaged with our community and charity
customers this year. We continue to offer them free payroll
in recognition of their charitable status. We believe that
supporting these organisations is not just a responsibility
but an opportunity to strengthen our community ties.
In exchange for this valuable service, the charity shows
that they are supported by PaySauce on their websites or
other promotional materials as appropriate. This mutually
beneficial arrangement not only helps charities reduce
their operational costs but also enhances our visibility and
commitment to social responsibility. By collaborating in
this way, we aim to create lasting partnerships that support
charitable missions while showcasing our dedication to
giving back.
Scalability
Highlights
Upgrades to core PaySauce application and
infrastructure optimisation to continue usability,
stability and security enhancements
Strategic portfolio management to consolidate and
unify offerings, including sunsetting some non-
core applications
System enhancements that optimise the journey
for new customers, including automations,
improved lead qualification, and improvements to
demo processes
Creating a smoother journey for
customers
We have continued to make improvements to our core
Salesforce systems and processes. The foundation of
these improvements has been the creation of a new
linear lead management process, which differentiates
between customer and accountant leads and
incorporates a staged process based on a lead’s
actions and their sales support needs. We’ve rolled out
some great new automations and improvements that
are all about creating a more efficient system for both
new and existing customers. One of the big changes
is our new lead qualification process. This helps us
quickly sort and understand incoming leads, so we know
exactly where each potential customer is in their buying
journey. With this info, we can offer a more timely and
personalised experience. Once leads are qualified, our
system automatically updates their status, which means
our team can reach out right away and ensure a seamless
onboarding process.
We’ve rolled out some great new automations and
improvements that are all about creating a more efficient
system for both new and existing customers. One of the
big changes is our new lead qualification process. This
helps us quickly sort and understand incoming leads, so
we know exactly where each potential customer is in their
buying journey. With this info, we can offer a more timely
and personalised experience. Once leads are qualified,
our system automatically updates their status, which
means our team can reach out right away and ensure a
seamless onboarding process.
We’ve also revamped the “Contact Us” section on our
website, making it easier for potential customers to
schedule demos and engage with us right from the start.
Plus, we’ve set up automated emails to keep everyone in
the loop about next steps and what to expect throughout
their journey with us - ensuring communication is clear and
helpful at every stage!
Optimising our tech stack for speed,
security and scale
The core of the PaySauce application has continued
to receive significant upgrades, improving usability,
stability and security. The team has implemented a range
of new features, improvements and bug fixes to make
our customers’ lives even easier, and enhancing our MFA
functionality in order to provide additional safety in a time
of ever-increasing cyber risk.
Following the successful migration of PaySauce into
AWS, we’ve now also completed the cloud migration
of goPayroll in order to bring the final elements of our
payroll product suite into the cloud, with a corresponding
increase in stability, performance and security.
In our efforts to consolidate and unify our product
portfolio, we’ve also decided to sunset some offerings
that no longer align with our intended future direction,
such as the digital contract portal we offer on behalf of
Federated Farmers which we will retire in March 2025. It is
decisions like these that allow us to be more disciplined in
achieving our core goals: focusing on those things which
will bring the most value to our customers.
“
“
You couldn’t make me any happier - every time I
ring the lovely ladies on the end of the phone are
so nice and helpful - everything is worked out and
I tell everyone to use you for their payroll
Ezicab Taxis, Invercargill
1213
PERFORMANCE fiSAAS METRICSflPERFORMANCE fiSAAS METRICSfl
Customer Lifetime Journey
CAC
$
575
28%
YOY
New customer
joins PaySauce
Customer acquisition
cost (CAC)
$575 per customer
ARPU
$
92
Customer pays
a monthly
subscription
Recurring revenue
(Monthly): $92 per
customer
8%
YOY
Customer
receives support
Cost to serve (CTS)
(Monthly): $21 per
customer
Customer stays
with PaySauce
Customer lifetime
Average monthly
churn of 1.11%
CTS
$
21
- % YOY
Customer
Lifetime
7.5
yrs
3% YOY
The business results and SaaS metrics reported in the following
sections 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 and should be read alongside the
consolidated financial statements and the related notes in this report.
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).
At 30 September 2024
Total customer
lifetime value
$
50.5m
24
% YOY
Customer
lifetime value
(CLTV)
$6,451 per
customer
CLTV
$
6,451
CLTV : CAC
11:1
10% YOY
15% YOY
Customer Acquisition
Sep 2024Sep 2023*YOY Change
CAC per addition57545128%
New customers1,03592712%
Customer acquisition costs ($000s)59641843%
Percentage of Recurring Revenue14%12%(2 pp)
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.
__
*PaySauce changed the methodology in how it recognises customer activity during the period. As a result, the comparative period metrics have
been restated to equivalent values. The following metrics relating to Customer Acquisition were impacted:
• New customers increased from 822 to 927.
• CAC per addition decreased from $508 to $451.
Recurring Revenue
Sep 2024Sep 2023YOY Change
ARR at end of period ($000s)8,6577,37817%
Recurring revenue for the period - Total ($000s)4,2553,55120%
ARPU (monthly) at end of period ($)92858%
FTEs47439%
Revenue per FTE ($000s)978416%
Rule of 403348(15 pts)
How and why do we monitor recurring revenue?
PaySauce monitors the recurring revenue received from customers as a grow th metric. As a SaaS company, the revenue
repeats via subscriptions and interest earned on customer funds. Annualised Recurring Revenue (ARR) takes the most
recent month’s recurring revenue and multiplies it by twelve. From the perspective of a single customer, PaySauce looks
at Average Revenue per User (ARPU), which 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.
1415
PERFORMANCE fiSAAS METRICSflPERFORMANCE fiSAAS METRICSfl
Cost to Serve
Sep 2024Sep 2023YOY Change
Recurring revenue ($000s)4,2553,55120%
Less cost to serve ($000s)(947)(873)8%
Gross margin ($000s)3,3082,67824%
Gross margin %78%75%3pp
CTS per customer (monthly) at end of period ($)2121-
How and why do we monitor cost to serve?
PaySauce monitors the cost of servicing customers as an efficiency metric. This includes software hosting costs as well
as customer support costs. The cost to serve per customer (CTS) divides the total cost to serve by the total number of
customers for the period. The lower the CTS, the more efficient PaySauce is at servicing customers, and the higher the
gross margin.
Customer Lifetime Value
Sep 2024Sep 2023*YOY Change
Customers at end of period7,8217,2029%
Average monthly churn rate for the period (%)1.111.14(3%)
Churned customers582600(3%)
LTV per customer at end of period ($)6,4515,62715%
Total customer LTV at end of period ($000s)50,45440,52924%
LTV:CAC ratio at end of period11 : 112 : 1(10%)
How and why do we monitor customer lifetime?
PaySauce monitors how long we expect customers to remain by looking at the propor tion of customers who stop
processing pays through PaySauce. Customers who don’t process pays are considered churned customers, and the
propor tion of those, relative to the remaining customers, is the churn rate. 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.
Note - 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 (1.16%), total customer LTV would be $0.9m (2%) higher.
__
*PaySauce changed the methodology in how it recognises customer activity during the period. As a result, the comparative period metrics have
been restated to equivalent values. The following metrics relating to Customer Lifetime Value were impacted:
• Customer lifetime decreased f rom 9.2 years to 8 years
• Average monthly churn rate increased f rom 0.91% to 1.14%
• LTV per customer decreased f rom $7,070 to $5,627
• Total Customer LTV decreased f rom $50.9m to $40.5m
• LTV:CAC ratio decreased f rom 14 : 1 to 12 : 1.
1617
PERFORMANCE fiSAAS METRICSflPERFORMANCE fiSAAS METRICSfl
PaySauce SaaS performance
SEP 2024 SEP 2023
$000s$000s
Processing Fees3,0352,536
Interest Income1,2201,015
Recurring Revenue4,2553,551
Cost to Serve(947)(873)
Gross Margin3,3082,678
Gross Margin %78%75%
Other Interest Income76
Other Revenue30351
Total Other Revenue31057
Customer Acquisition(596)(418)
Research & Development(454)(501)
General & Administration(1,991)(1,512)
Interest Expense(29)(49)
Earnings Before Tax, Depreciation and Amortisation 548255
Earnings Before Tax, Depreciation and Amortisation Margin %
13%7%
Depreciation & Amortisation(379)(305)
Asset Impairment(21)(228)
Income Tax(78)11
Net Profit / (Loss)70(267)
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.
Cost to serve consists
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 serve our
customers, and is also
often expressed as a
percentage, where the
gross margin is divided by
the recurring revenue.
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.
Earnings Before Tax,
Depreciation and
Amortisation (EBTDA) is
calculated by adding back
depreciation, amortisation,
asset impairment and
income tax expense to the
amounts reported 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
Free cash flow is a non-
GAAP financial measure
that has been included
to demonstrate net
cash generated by, and
invested into the business.
PaySauce defines free
cash flow as cash flows
generated from operating
activities less cash flows
used for investing activities
(excluding funds held on
behalf of customers).
The Rule of 40 provides
a balanced measure of
two key metrics for SaaS
businesses: growth and
profitability. PaySauce
uses the combination of
recurring revenue growth,
and EBTDA to assess
against this measure. A
score of 40 is widely seen
as the benchmark for SaaS
companies.
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 start 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.
LTV is calculated by
multiplying the gross
margin per customer by
the estimated customer
lifetime.
Total customer LTV is a
measure of the estimated
value of the current
customer base, assuming
that churn, revenue and
cost to serve remain
constant. This measure is
calculated by multiplying
customer LTV by the total
number of customers.
LTV : CAC is a measure of
the return on investment of
acquiring a new PaySauce
customer. This measure is
calculated by dividing the
customer LTV by the CAC
per addition.
1819
FINANCIAL STATEMENTSFINANCIAL STATEMENTSFINANCIAL STATEMENTS
Consolidated Financial
Statements
For the six months ended 30 September 2024
19 Interim Condensed Consolidated Statement of Profit or Loss
and Other Comprehensive Income
20 Interim Condensed Consolidated Statement of Financial Position
22 Interim Condensed Consolidated Statement of Changes in Equity
24 Interim Condensed Consolidated Statement of Cash Flows
25 Notes to the Interim Condensed Consolidated Financial Statements
38 Company Directory
Interim Condensed Consolidated Statement
of Profit or Loss and other Comprehensive
Income
For the six months ended 30 September 2024
6 months to
30 Sep 2024
6 months to
30 Sep 2023
Year to
31 Mar 2024
UnauditedUnauditedAudited
Notes$000s
$000s
$000s
Operating revenue 8
4,565
3,608
7,717
Expenses
Employee expenses
9
(2,679)
(2,288)
(4,470)
Other expenses
12
(1,309)(1,016)
(2,086)
Depreciation and amortisation
4,5
(379)(305)
(646)
Asset impairment
5
(21)(228)
(228)
Finance costs
11
(29)
(49)(97)
Total expenses
(4,417)
(3,886)
(7,527)
Net profit / (loss) before income tax
148
(278)
190
Tax benefit / (expense)
(78)11
1,042
Net profit / (loss) for the period
70
(267)
1,232
Other comprehensive income
-
-
-
Total comprehensive profit / (loss) for the period
70
(267)
1,232
Earnings / (loss) per shareCentsCentsCents
Basic earnings / (loss) per share7
0.05
(0.19)0.88
Diluted earnings / (loss) per share7
0.05(0.19)
0.88
The above statement should be read in conjunction with the accompanying notes.
2021
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
Interim Condensed Consolidated Statement
of Financial Position
As at 30 September 2024
Sep 2024Sep 2023Mar 2024
UnauditedUnauditedAudited
Notes$000s$000s$000s
Assets
Current assets
Cash and cash equivalents
16
62
356603
Cash and cash equivalents - customer funds
16
11,824
10,581
8,909
Term deposits - customer funds
16
24,50021,100
24,700
Trade receivables
134
98173
Other assets
304
515
500
Total current assets
36,82432,650
34,885
Non-current assets
Deferred tax assets
902
-979
Property, plant and equipment
4
290351
371
Intangible assets
5
2,9862,039
2,399
Total non-current assets
4,1782,390
3,749
Total assets
41,00235,040
38,634
Liabilities
Current liabilities
Trade and other payables
356326
398
Funds due to customers and IRD
22
36,32431,681
33,609
Employee benefits
411488
332
Other liabilities
427350
390
Lease liabilities
7269
134
Interest bearing liabilities--650
Total current liabilities 37,590
32,914
35,513
The above statement should be read in conjunction with the accompanying notes.
Interim Condensed Consolidated Statement
of Financial Position
As at 30 September 2024
Sep 2024Sep 2023Mar 2024
UnauditedUnauditedAudited
Notes$000s$000s$000s
Non-current liabilities
Lease liabilities6914277
Employee benefits-20-
Interest bearing liabilities-650-
Total non-current liabilities 6981277
Total liabilities 37,65933,72635,590
Net assets 3,3431,3143,044
Equity
Share capital
6
13,87613,30313,659
Reserves
15
224337212
Accumulated losses
(10,757)(12,326)(10,827)
Equity attributable to the owners of the Company3,3431,3143,044
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 26 November 2024:
Shelley Ruha Jim Sybertsma
Chair Chair of Audit & Risk Committee
26 November 2024 26 November 2024
2223
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
Interim Condensed Consolidated Statement
of Changes in Equity
For the six months ended 30 September 2024
Share-based
payment
reserveShare Capital
Accumulated
lossesTotal
Unaudited
Notes
$000s$000s
$000s$000s
Balance as at 1 April 2024 212
13,659
(10,827)3,044
Comprehensive profit
Net profit for the period--
7070
Other comprehensive income--
--
Total comprehensive profit--
7070
Transactions with owners
Share-based payments, net of tax45-
-45
Share-based payments paid up
15
(33)33
--
Issue of ordinary shares-184
-184
Total transactions with owners12217
-229
Balance as at 30 September 202422413,876
(10,757)3,343
Share-based
payment
reserveShare Capital
Accumulated
lossesTotal
Unaudited
Notes
$000s$000s
$000s$000s
Balance as at 1 April 2023
24213,212
(12,059)1,395
Comprehensive loss
Net loss for the period--
(267)(267)
Other comprehensive income--
--
Total comprehensive loss--
(267)(267)
Transactions with owners
Share-based payments, net of tax189--189
Share-based payments paid up
15
(94)91-(3)
Total transactions with owners
9591-186
Balance as at 30 September 2023
33713,303(12,326)1,314
Interim Condensed Consolidated Statement
of Changes in Equity
For the six months ended 30 September 2024
Attributable to equity holders of the Company
Share-based
payment reserve
Share
Capital
Accumulated
lossesTotal
AuditedNotes$000s$000s$000s$000s
Balance as at 1 April 2023 24213,212(12,059)1,395
Comprehensive profit
Net profit for the period--1,2321,232
Other comprehensive income----
Total comprehensive profit--1,2321,232
Transactions with owners
Share-based payments, net of tax211--211
Share-based payments paid up
15
(241)241--
Issue of ordinary shares-206-206
Total transactions with owners(30)447-417
Balance as at 31 March 202421213,659(10,827)3,044
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 2024
6 months to
30 Sep 2024
6 months to
30 Sep 2023
Year to
31 Mar 2024
UnauditedUnauditedAudited
Notes$000s$000s$000s
Cash flows from operating activities
Receipts from customers3,1442,4465,082
Interest received1,4421,0262,205
Payments to suppliers and employees(3,472)(2,997)(5,803)
Taxes refunded--13
Interest paid on operating leases(9)(11)(22)
Net cash from operating activities before
increase in funds due to customers and IRD
161,105
464
1,475
Increase / (decrease) in funds due to customers
and IRD
16
2,715(689)1,240
Net cash from / (used in) operating activities143,820
(225)
2,715
Cash flows from / (used in) investing
activities
Funds on term deposit2003,100(500)
Investment in intangible assets(874)(467)(1,066)
Purchases of property, plant and equipment
(31)(49)(113)
Net cash from / (used in) investing activities (705)
2,584
(1,679)
Cash flows used in financing activities
Loan repayments
(650)--
Repayments of principal portion of lease liability
(71)(57)(122)
Interest paid on borrowings
(20)(38)(75)
Net cash used in financing activities (741)
(95)
(197)
Net increase in cash and cash equivalents 2,374
2,264
839
Cash and cash equivalents at beginning of the
period
9,5128,6738,673
Cash and cash equivalents at end of the
period
11,886
10,937
9,512
The above statement should be read in conjunction with the accompanying notes.
Notes to the Consolidated financial
Statements
For the six months ended 30 September 2024
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.
PaySauce is a SaaS fintech platform providing solutions for people at work in 14 jurisdictions across the Asia-Pacific
region. The technology enables small employers to digitally onboard, pay and manage employees from any device.
The platform includes rosters, mobile timesheets, payroll calculations, banking integration, automated payments, PAYE
filing, labour costing, automated general ledger entries and digital employment contracts. The PayNow feature enables
customers’ employees to access the pay they’ve earned before payday, providing a free alternative to payday lenders.
The interim condensed consolidated financial statements for the Company and its subsidiaries (the "Group") for the
six months ended 30 September 2024 were authorised in accordance with a resolution of the directors for issue on 26
November 2024 and are unaudited.
2. Summary of material accounting policies
a. Basis of preparation
These consolidated financial statements have been prepared:
• in accordance with New Zealand Generally Accepted Accounting Practice (“NZ GAAP”);
• to 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), which is the functional currency of the Group, 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; and they
• should be read in conjunction with the audited consolidated financial statements for the Group as at and for the year
ended 31 March 2024
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 2024,
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.
2627
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
Going concern
The consolidated financial statements have been prepared on a going concern basis.
The Group made a net profit before tax of $0.148 million for the six months ended 30 September 2024 (2023: loss of
$0.277 million), had equity at 30 September 2024 of $3.343 million (2023: $1.314 million) and net current liabilities of
$0.766 million (2023: $0.264 million). The Group had positive operating cash flows before funds due to customers and
IRD of $1.104 million for the six months ended 30 September 2024 (2023: $0.464 million). The Group also has debt
facilities of $0.600 million to draw upon as 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
EquipmentTotal
For the 6 month period to
30 September 2024
$000s$000s$000s$000s$000s
Opening net book value
20386280371
Additions
-5-2833
Disposals
-(2)--(2)
Depreciation
(70)(10)(1)(31)
(112)
Closing net book value
13379177290
As at 30 September 2024
Cost
3421474245738
Accumulated depreciation
(209)(68)(3)(168)(448)
Net book value
13379177290
Unaudited
Right-of-use
Asset (Property)
Office
Equipment
Leasehold
Improvements
Computer
EquipmentTotal
For the 6 month period to
30 September 2023
$000s$000s$000s$000s$000s
Opening net book value
22860466358
Additions
4028-2088
Disposals
-----
Depreciation
(62)(9)(1)(23)(95)
Closing net book value
20679363351
As at 30 September 2023
Cost
48015115243889
Accumulated depreciation
(274)(72)(12)(180)(538)
Net book value
20679363351
Audited
Right-of-use
Asset (Property)
Office
Equipment
Leasehold
Improvements
Computer
EquipmentTotal
For the year to
31 March 2024
$000s$000s$000s$000s$000s
Opening net book value
22860466358
Additions
10445-67216
Disposals
-(1)-(3)(4)
Depreciation
(129)(18)(2)(50)
(199)
Closing net book value
20386280371
As at 31 March 2024
Cost
342153424274 1
Accumulated depreciation
(139)(67)(2)(162)(370)
Net book value
20386280371
5. Intangible assets
Unaudited
Development
in progress
Computer
Software
Customer
RelationshipsTotal
For the 6 month period to
30 September 2024
$000s$000s$000s$000s
Opening net book value9721,2741532,399
Additions59-–59
Development costs recognised as an asset815--815
Development in progress recognised as
Software(471)471--
Asset impairment
-(21)-(21)
Amortisation-(231)(35)(266)
Closing net book value1,3751,4931182,986
As at 30 September 2024
Cost1,3753,0783544,807
Accumulated amortisation-(1,585)(236)(1,821)
Net book value1,3751,4931182,986
2829
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
Unaudited
Development in
progress
Computer
Software
Customer
Relationships
Total
For the 6 month period to
30 September 2023
$000s$000s$000s$000s
Opening net book value
7999862242,009
Additions2224-46
Development costs recognised as an asset422--422
Development in progress recognised as Software(153)153--
Asset impairment(228)--(228)
Amortisation-(175)(35)(210)
Closing net book value8629881892,039
As at 30 September 2023
Cost8622,252354 3,468
Accumulated amortisation-(1,264)(165)(1,429)
Net book value8629881892,039
Audited
Development in
progress
Computer
Software
Customer
Relationships
Total
For the year to
31 March 2024
$000s$000s$000s$000s
Opening net book value
7999862242,009
Additions5226-78
Development costs recognised as an asset988--988
Development in progress recognised as Software(639)639--
Asset impairment(228)--(228)
Amortisation-(377)(71)(448)
Closing net book value
9721,2741532,399
As at 30 September 2023
Cost9722,628354 3,954
Accumulated amortisation-(1,354)(201) (1,555)
Net book value
9721,2741532,399
6. Share capital
UNAUDITED
DateDetails
Weighted Average price
(cents per share)
Number of
Shares$000s
1 April 2024Opening Balance140,982,14613,659
Issue of shares relating to
employee share schemes
0.2391
823,632197
Other share based
payments
0.2337
85,59020
30 September 2024Closing Balance141,891,36813,876
UNAUDITED
DateDetails
Weighted Average price
(cents per share)
Number of
Shares$000s
1 April 2023
Opening Balance139,207,93513,212
Issue of shares relating to
employee share schemes
0.2538
359,84591
30 September 2023
Closing Balance139,567,78013,303
AUDITED
Issue of shares relating to
employee share schemes
0.2526
1,271,001321
Other share based payments
0.2436
143,36535
31 March 2024Closing Balance140,982,14613,659
The disclosure for the movements in the share capital has been simplified due to the size and nature of the categories
presented. The disclosure for the year ended 31 March 2024 has also changed from what was presented in the group
financial statements to align the comparative period disclosure with the newly simplified categories. The change in
disclosure does not impact the reporting results of operations, for the categories presented on the face of the financial
statements.
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.
Dividends
No dividends were declared or paid during the reporting period (2023: None).
3031
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
7. Earnings per share
6 months to
30 Sep 2024
6 months to
30 Sep 2023
Year to
31 Mar 2024
UnauditedUnauditedAudited
Basic earnings per share
Net profit / (loss) used in calculating earnings per share ($000s)70(267)1,232
Weighted average number of ordinary shares for basic earnings per
share140,697,531139,447,832139,739,655
Basic earning / (loss) per share (cents)0.05(0.19)0.88
There are no financial instruments on issue that will dilute the basic earnings per share amounts for the period ended 30
September 2024.
8. Operating revenue
6 months to
30 Sep 2024
6 months to
30 Sep 2023
Year to
31 Mar 2024
UnauditedUnauditedAudited
$000s$000s$000s
Revenue from contracts with customers
-Processing fees3,0352,5365,370
-Other services revenue423964
Revenue from other sources
-Interest income1,2301,0212,220
-Other revenue2581263
Total operating revenue4,5653,6087,717
9. Employee expenses
6 months to
30 Sep 2024
6 months to
30 Sep 2023
Year to
31 Mar 2024
UnauditedUnauditedAudited
$000s$000s$000s
Employee benefits/entitlements2,3001,8503,712
Employee benefits/entitlements - share based payments330340582
Fringe benefit tax121022
Other employee expenses3788154
Total employee expenses2,6792,2884,470
10. Research & Development
6 months to
30 Sep 2024
6 months to
30 Sep 2023
Year to
31 Mar 2024
UnauditedUnauditedAudited
$000s$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)454501934
Total research & development454501934
11. Finance Costs
6 months to
30 Sep 2024
6 months to
30 Sep 2023
Year to
31 Mar 2024
UnauditedUnauditedAudited
$000s$000s$000s
Interest paid203875
Finance cost - interest on lease91122
Total finance costs294997
12. Other expenses
6 months to
30 Sep 2024
6 months to
30 Sep 2023
Year to
31 Mar 2024
UnauditedUnauditedAudited
$000s$000s$000s
Advertising, PR and marketing214150256
Audit fees424279
Communications and subscriptions159140302
Customer and transactional316250550
Other overheads396229538
Infrastructure and security144143250
Travel3862111
Total other expenses1,3091,0162,086
3233
FINANCIAL STATEMENTSFINANCIAL 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.
The table below summarises remuneration paid to key management personnel.
6 months to
30 Sep 2024
6 months to
30 Sep 2023
Year to
31 Mar 2024
UnauditedUnauditedAudited
$000s$000s$000s
Directors’ fees9595191
Short term employee benefits9385431,128
Share-based payments13673303
Total key management personnel compensation1,1697111,622
Director fees pool
The maximum aggregate amount of remuneration payable in respect of all Directors’ fees, based on the current number of
Directors is $190k per annum. Each non-executive director receives fees of $40k per annum, with a further $25k and $5k per
annum added for the Chair of the Board and the Chair of the Audit & Risk Committee respectively. Directors are not included
in the company share schemes and they are not entitled to earn additional payments. There is no requirement for Directors to
own shares, though they may elect to receive PaySauce Ordinary Shares in lieu of Directors fees.
Other remuneration disclosures
Outside of director fees, executive salaries and the employee share scheme - there are no contractual agreements in
relation to other types of remuneration.
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.
Outside of these transactions, and the Directors’ fees and short term employee benefits noted above, all other related
party transactions are outlined below:
Sep 2024Sep 2023Mar 2024
UnauditedUnauditedAudited
Related party transactions during the period
$000s$000s$000s
Cloud hosting services supplied by entities controlled by
related parties
Catalyst Cloud Limited261101
Sep 2024Sep 2023Mar 2024
UnauditedUnauditedAudited
Related party balances payable at period end
$000s$000s$000s
Directors' Fees
121636
Cloud Hosting Services
194
PaySauce Limited has a standby debt facility agreement with Director Gavin Thompson. The facility totals $0.25M and
can be drawn on demand, within three years from the date of the agreement (December 2021). The interest rate in the
agreement is linked to the floating interest rate of ASB Bank Limited. As at 30 September 2024, no funds have been drawn.
3435
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
14. Reconciliation of total comprehensive profit / (loss) to net cash flows from operations
6 months to
30 Sep 2024
6 months to
30 Sep 2023
Year to
31 Mar 2024
UnauditedUnauditedAudited
$000s$000s$000s
Total comprehensive profit / (loss) for the period70(267)1,232
Add back non-cash & non-operating items:
Depreciation & amortisation379305646
Asset impairments & loss on disposal of fixed assets21228232
Share based payment expense228189418
Other non-cash & non-operating items9836(948)
7964911,580
Movement in working capital:
(Increase) / decrease in Trade and other receivables3926(49)
Decrease in Other assets196123182
Increase / (decrease) in Funds due to customers and IRD2,715(689)1,240
Decrease in Trade and other payables(42)(301)(229)
Increase / (decrease) in Employee benefits 78122(54)
Increase in Other liabilities38345
3,024(716)1,135
Net cash inflow from / (used in) operating activities3,820(225)2,715
15. Employee Share Scheme
The Group entered into an employee share scheme (ESS) for the year ended 31 March 2025. The structure of the FY25
scheme is the same as the FY24 scheme outlined in the financial statements for the year ended 31 March 2024, as follows:
An ESS agreement is entered into between each eligible employee and the Company stipulating the value of fully paid
up ordinary shares granted. Shares are issued quarterly, at the end of each quarter, and the number of shares granted is
determined by the volume weighted average share price on each issue date.
New employees may enter the scheme on a quarterly basis as they become eligible, with the benefit pro-rated
accordingly. Equally, employees who leave or become ineligible for the scheme forfeit their right to be issued shares as
part of the ESS agreement.
This equity settled remuneration attracts income tax on the employees. The income tax and other deductibles are
deducted and the net amount of ordinary shares are issued to employees.
ESS expenses for the six months ended 30 September 2024 are as follows:
UnauditedTo t a l
For the six months ended 30 September 2024$000s
FY25 ESS290
Legacy ESS & other share based payments41
Total share based payment expense331
UnauditedTo t a l
For the six months ended 30 September 2023$000s
FY24 ESS209
Legacy ESS & other share based payments80
Total share based payment expense289
AuditedTo t a l
For the year ended 31 March 2024$000s
FY24 ESS442
Legacy ESS & other share based payments140
Total share based payment expense582
The disclosure for share based payment expenses has been simplified due to the size and nature of the categories
presented. The disclosure for the year ended 31 March 2024 has also changed from what was presented in the group
financial statements to align the comparative period disclosure with the newly simplified categories. Legacy ESS refers
to the FY22 and FY23 schemes. The change in disclosure does not impact the reporting results of operations, for the
categories presented on the face of the financial statements.
3637
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
The share based payment reserve is used to record the accumulated value of shares that have been expensed to
the profit and loss, but not yet issued. Movements in the share based payment reserve for the six months ended 30
September 2024 are as follows:
UNAUDITED
DateDetails$000s
1 April 2024Opening Balance212
FY24 & FY25 ESS - expensed185
FY24 & FY25 ESS - shares issued(176)
Legacy ESS & other share based payments - expensed56
Legacy ESS & other share based payments - shares issued(53)
30 September 2024Closing Balance224
UNAUDITED
DateDetails$000s
1 April 2023Opening Balance242
FY24 & FY25 ESS - expensed137
FY24 & FY25 ESS - shares issued(94)
Legacy ESS & other share based payments - expensed62
Legacy ESS & other share based payments - shares issued(10)
30 September 2023Closing Balance337
AUDITEDFY24 & FY25 ESS - expensed149
FY24 & FY25 ESS - shares issued(80)
Legacy ESS & other share based payments - expensed49
Legacy ESS & other share based payments - shares issued(243)
31 March 2024Closing Balance212
The disclosure for the movements in the share based payment reserve has been simplified due to the size and nature of
the categories presented. The disclosure for the year ended 31 March 2024 has also changed from what was presented
in the group financial statements to align the comparative period disclosure with the newly simplified categories. Legacy
ESS refers to the FY22 and FY23 schemes. The change in disclosure does not impact the reporting results of operations,
for the categories presented on the face of the financial statements.
Liabilities associated with share based payments are accrued based on the estimated value of the future income tax and
other deductibles for the individuals that will be paid by PaySauce on behalf of each employee when shares are issued.
The accrued liability at balance date was as follows:
Sep 2024Sep 2023Mar 2024
UnauditedUnauditedAudited
Share-based payment liabilities
$000s$000s$000s
Current9113991
Non-current-20-
Total share-based payment liabilities9115991
The employee liabilities in the consolidated statement of financial position also include other employee entitlements
such as accrued leave.
16. 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 term deposit balances and in accordance with section RP6 of the Income Tax
Act 2007, PaySauce can earn interest on these funds, but the funds must only be used 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 movement in funds. The value of restricted funds at
reporting date is represented by funds due to customers and IRD as disclosed in the Statement of Financial Position.
17. Contingencies
As at 30 September 2024 the Group had no contingent liabilities or assets (2023: $nil)
18. Events occurring after the reporting period
No adjusting or significant non-adjusting events have occurred between the reporting date and the date of authorisation.
3839
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
Company Directory
Directors:
Shelley Ruha
Asantha Wijeyeratne
Gavin Thompson
Michael O’Donnell
Mark Samlal
Jim Sybertsma
Registered Office:
85 The Esplanade
Petone, 5012
New Zealand
Website:
www.paysauce.com
Auditor:
Grant Thornton New Zealand Audit Limited
Stock Exchange:
NZX
Share Registrar:
MUFG Pension & Market Services
150 Customers Street West
Auckland, 1010
New Zealand
NZ Company Number:
1719868
NZBN:
9429034458099
Investor Calendar
FY25 Year end
31 March 2025
Annual Shareholders Meeting
September 2025
FY26 Half year
30 September 2025
FY26 Interim result announcement
November 2025
40
FINANCIAL STATEMENTS
---
Results presentation
FOR THE 6 MONTHS ENDED 30 SEPTEMBER 2024
The information in this presentation is of a general nature and does
not constitute financial product advice, investment advice or any
other recommendation. Nothing in this presentation constitutes
legal, financial, tax or other advice.
This presentation should be read in conjunction with, and is subject
to PaySauce’s Interim Report, market releases and information
published on PaySauce’s website - www.paysauce.com
This presentation may contain forward looking statements about
PaySauce and the environment in which PaySauce operates, which
are subject to uncertainties and elements outside of PaySauce’s
control - PaySauce’s actual results or performance may differ
materially from these statements. PaySauce gives no warranty or
representation as to its future financial performance or any future
matter.
This presentation may include statements relating to past
performance, which should not be regarded as a reliable indicator
for future performance.
This presentation may include information from third parties believed
to be reliable; however, no representations or warranties are made as
to the accuracy or completeness of such information.
While reasonable care has been taken in compiling this presentation,
none of PaySauce nor its subsidiaries, directors, employees, agents
or advisors (to the maximum extent permitted by law) gives any
warranty or representation (express or implied) as to the accuracy,
completeness or reliability of the information contained in it, nor takes
any responsibility for it. The information in this presentation has not
been and will not be independently verified or audited.
No person is under any obligation to update this presentation at any
time after its release to you or provide you with further information
about PaySauce.
Disclaimer
Please refer to the Glossary for definitions of key metrics used in this presentation. All currency amounts are in New Zealand Dollars unless stated otherwise.
2
PaySauce
Jaime
Monaghan
Chief Financial Officer
Asantha
Wijeyeratne
CEO, Co-founder
Agenda
1. Intro & Strategy
2. Financial Results
3. Q & A
3
PaySauce
Intro & Strategy
Asantha Wijeyeratne, CEO
4
PaySauce
Highlights
Delivering growth, profitability and positive cashflow
Free Cashflow
Maintained positive f ree
cash flow
1
- $252k year
on year improvement in
f ree cash flow
$
199
K
$
50.5
m
CLTV
Total Customer
Lifetime Value (CLTV)
grew 24% year on year
1 . before funds due to customers and IRD
Maintained profitability and positive free
cashflow
Accelerated customer growth, new
customers up 12% year on year
Increased the value of our existing customer
base
Upgrades to software infrastructure -
enhancing speed, security, stability
Up $252k
YoY
Up 24%
YoY
ARR
Annualised recurring
revenue (ARR) grew 17%
year on year
$
8.7
m
Up 17%
YoY
NPAT
Maintained profitability
- $337k year on year
improvement in net
profit after tax
$
70
K
Up $337K
YoY
5
PaySauce
Building for scalable growth
• ARR grew 17% to $8.7m year on year
• Processing fee component of ARR was up
23% year on year at $6.3m
• Growth in processing fee revenue was due to
a 9% increase in customer count and a 13%
increase in ARPU
• Interest revenue component of ARR was
up 5% year on year at $2.3m due to lower
interest rates
17
%
Annualised Recurring
Revenue (ARR)
$8.7m
InterestProcessing fees
Recurring Revenue
$0 M
$9 M
$8 M
$7 M
$6 M
$5 M
$4 M
$3 M
$2 M
$1 M
Sep 21
Mar 22Mar 23Sep 22Sep 23Mar 24Sep 24
6
PaySauce
Delivering customer growth
Loving our customers
• 94% Customer Satisfaction Score
• 99% response rate to calls within an hour, and 92% within
30 minutes
• 3% year on year decrease in churn
Supercharge growth
• Increased brand awareness with additional investment
into Sales and Marketing campaigns
• Continued focus on building relationships with both
new and existing accountants
• This led to:
• 12% year on year increase in new customers (1,035 for
the 6 months to September)
• 9% year on year increase in customer number to 7,821
Scalability
• System enhancements to optimise the journey for new
customers through automation
• Upgrades to infrastructure - enhancing speed, security,
stability via AWS
Loving our
customers
Supercharge
growth
Scalability
We’ll deliver growth
through two distinct
paths: continuing our
work directly with the
SME market as well
as opening a whole
new opportunity with
wholesale.
Our relationship with
our customers is
mutually beneficial:
they get peace of
mind and time through
a great product, and
we get a dedicated
fanbase as our best
source of growth.
To ensure we can
retain very high
service levels at scale,
we’re focusing on
the improvements
to how we operate.
Removing pain points
for ourselves and our
customers means we
have more time to
focus on the growth
activities.
7
PaySauce
Financial Results
Jaime Monaghan, CFO
8
PaySauce
Financial results
• Continued profitability from
the full year result
• Generated positive free
cash flow* of $0.2m -
enabling repayment of the
$0.65m term loan during
the period
• PaySauce grew total
recurring revenue 20% year
on year - largely from an
increase in processing fees
(up $499k year on year)
• Gross margin grew 24%
year on year from higher
revenue and greater
efficiency
SEP 24 SEP 23 Change
Annualised recurring revenue (ARR)$8.7m$7.4m17%
Total recurring revenue $4.26m $3.55m 20%
Gross margin$3.31m$2.68m24%
Gross margin percentage78%75%3pp
Net profit / (loss) after tax (NPAT)$0.07m($0.27m)$0.34m
Earnings / (Loss) before tax, depreciation
& amortisation (EBTDA)
$0.55m$0.26m$0.29m
Free cash flow*$0.20m($0.05m)$0.25m
*excludes funds due to customers and the IRD, collected in performing our role as a PAYE intermediary.
9
PaySauce
Results summary
• Revenue continued to outperform expenditure for the 6 months
to September 2024, increasing revenue 27% year on year whilst
limiting expenditure growth to 20%.
• PaySauce delivered a net profit before tax of $0.15m, and
improvement of $0.43m on the comparative 6 month period.
• Free cashflow (excluding movement of funds held on behalf
of customers) increased by $0.25m year on year to $0.19m for
September 2024.
• This enabled PaySauce to repay the $650k BNZ Term Loan
during the period - refinancing with more favourable terms via
an overdraft facility of $350k. This facility was not drawn as at 30
September 2024, but remains available if needed.
*excludes funds due to customers and the IRD, collected in performing our role as a PAYE intermediary.
Profitability
$5 M
$4 M
$3 M
$2 M
$1 M
Sep 21Mar 22Sep 22Mar 23Sep 23Sep 24Mar 24
RevenueExpenses
Profitability
Revenue* Expenses
$0.00 M
$0.50 M
-$0.50 M
-$1.00 M
-$1.50 M
Free cash flow (excluding funds held on behalf of customers)
Sep 21Mar 22Sep 22Mar 23Sep 23Sep 24Mar 24
Free cash flow
(excluding funds held on behalf of customers)
10
PaySauce
Customer metrics
• More customers acquired, cost to acquire
increased
• Higher average revenue per customer driven
by processing fee growth
• Cost to serve each customer remained flat
• Customer retention increased slightly,
increasing the implied customer lifetime
• Total customer lifetime value increased to
$50.5m (up 24%), resulting from an increase
in customers to 7,821 and customer lifetime
value to $6,451 per customer
*PaySauce has changed the methodology in how it recognises customer activity since the previous
comparative period. Refer to the interim report for full details on the impacts on comparative customer
metrics.
CAC
$
575
28%
YOY
New customer joins
PaySauce
Customer acquisition
(CAC)
$575 per customer
ARPU
$
92
Customer pays
a monthly
subscription
Recurring revenue
(Monthly): $92per
customer
8% YOY
Customer receives
support
Cost to serve (CTS)
(Monthly): $21 per customer
Customer stays
with PaySauce
Customer lifetime
Average monthly churn
of 1.11%
CTS
$
21
– % YOY
Customer
Lifetime
7.5
yrs
3% YOY
At 30 September 2024
Total customer
lifetime value
$
50.5m
24
% YOY
Customer
lifetime value
(CLTV)
$6,451 per
customer
CLTV
$
6,451
CLTV : CAC
11:1
10% YOY
15% YOY
11
PaySauce
Customer Acquisition
Sep
2024
Sep
2023
YOY
Change
CAC per addition57545128%
New customers1,03592712%
Customer acquisition costs
($000s)
59641843%
Percentage of Recurring
Revenue
14%12%(2 pp)
Cost to Serve
Sep
2024
Sep
2023
YOY
Change
Recurring revenue ($000s)4,2553,55120%
Less cost to serve ($000s)(947)(873)8%
Gross margin ($000s)3,3082,67824%
Gross margin %78%75%
3pp
CTS per customer (monthly)
at end of period ($)
2121-
Recurring Revenue
Sep
2024
Sep
2023
YOY
Change
ARR at end of period ($000s)8,6577,37817%
Recurring revenue for the
period - Total ($000s)
4,2553,55120%
ARPU (monthly) at end of
period ($)
92858%
FTEs47439%
Revenue per FTE ($000s)978416%
Rule of 403348(15 pts)
Customer Lifetime Value
Sep
2024
Sep
2023
YOY
Change
Customers at end of period7,8217,2029%
Average monthly churn rate
for the period (%)
1.111.14(3%)
Churned customers582600(3%)
LTV per customer at end of
period ($)
6,4515,62715%
Total customer LTV at end of
period ($000s)
50,45440,52924%
LTV:CAC ratio at end of
period
11 : 112 : 1(10%)
12
PaySauce
Positioned to supercharge growth
• The investment made into infrastructure, sales and
marketing activity over the last 18 months is now
driving growth;
• We’ve made it easier for new customers to join us
by automating the onboarding process and we’ve
improved reporting to enable our Accountants to add
more value to their clients;
• We’ve got a clear roadmap of features that our
customers have told us they want with many already
well underway.
We’re well–positioned to supercharge growth. We’ve made significant investment
into our infrastructure, with scalability front and centre. We’ve listened to our
customers and we’re evolving our product to give employers the amazing user
experience they deserve. We’re hyper-focused on shaping our product around our
core market, and with over 100,000 employers with 1-5 staff in NZ alone, there’s
massive opportunity for us to drive long-term value for our investors.
$0 M
0%
5%
10%
15%
20%
25%
$1.6 M
$1.4 M
$1.2 M
Jun 23Dec 23Sep 23Mar 24Jun 24Sep 24
21%
16%15%
16%
18%
21%
“
“
YoY% G r o w t h R a t e Quarterly Processing Fee Revenue
13
PaySauce
Glossary
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.
ARR multiples the recurring revenue
generated in the last month of the
period by 12 to annualise the current
recurring revenue.
ARPU (monthly) is the average revenue
per user per month and is calculated
by the total recurring revenue for the
month, divided by the total customers
processing payroll that month.
CAC per addition divides the cost of
acquiring customers by the number
of new customers acquired during the
period.
Cost to serve consists of customer
support costs and expenses such as
cloud hosting, maintenance of our
software products, and bank fees
charged per customer transaction.
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.
Churn (monthly) is expressed as a
percentage calculated as the net
reduction of customers in a calendar
month divided by the total customers at
the start of that month.
LT V is the estimated value of a customer
over its lifetime with PaySauce. This
is calculated by taking the monthly
ARPU multiplied by the gross margin
percentage, then divided by the
monthly churn percentage.
Total Customer LTV (CLTV) is a measure
of the estimated value of the current
customer base, assuming that churn,
ARPU and cost to serve remain
constant. This measure is calculated by
multiplying customer LTV by the total
number of customers.
LTV : CAC is a measure of the return
on investment of acquiring a new
PaySauce customer. This measure is
calculated by dividing the customer LTV
by the CAC per addition.
Free cash flow refers to cash flows
generated from operating activities less
cash flows used for investing activities
(excluding funds held on behalf of
customers).
Rule of 40: The rule of 40 provides
a balanced measure of two key
metrics for SaaS businesses: growth
and profitability. PaySauce uses the
combination of recurring revenue
growth, and EBTDA to assess against
this measure.
Earnings Before Tax, Depreciation
and Amortisation (EBITA) is calculated
by adding back depreciation,
amortisation, impairment and income
tax expense to the amounts reported
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.
Note - these terms and metrics are
Non-Generally Accepted Accounting
Principles (non-GAAP) measures and
should not be viewed in isolation, not
considered substitutes for measures
reported in accordance with New
Zealand Equivalents to International
Financial Reporting Standards (NZ
IFRS). Refer to the PaySauce Interim
Report for further information.
14
PaySauce
85 The Esplanade, Petone,
Lower Hutt 5012, New Zealand
www.paysauce.com/investor
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.