PaySauce FY25 Full Year Result and Annual Report
AUDITED FINANCIAL RESULTS FOR THE YEAR TO THE END OF MARCH 2025
PaySauce extends unbroken record of growth with
revitalised customer recruitment
Lower Hutt, New Zealand - 21 May 2025
Software as a Service Fintech PaySauce (NZX: PYS) today reports its second
consecutive year of positive, and strongly growing operating earnings as it has
strengthened its position as the preferred provider of payroll services to New
Zealand’s micro businesses.
It also reports key strategic achievements in the following areas; diversifying its
customer base into the trades and construction verticals; further success in
building relationships with accounting partners; and significant progress towards
a unified multi-jurisdictional payroll product that leverages the full capability of the
new Gen 2.0 payroll engine.
FINANCIAL HIGHLIGHTS
1
● Operating revenue: $9.0m up 17% from $7.7m.
● Processing fee income: $6.3m up 18% lifted by an 11% increase in customers
to 8,204.
● EBTDA : $1.4m, up $0.3m as revenue growth more than offset investments
2
for growth and general inflationary pressures.
● Net profit before tax: $0.46m up $0.27m from $0.19m. Second consecutive
profit.
Chair Shelley Ruha said: “We’ve continued to deliver strong growth and
profitability whilst investing in the company’s future, with increased spend into
research and development activity as we stride closer to the completion of the
unified multi-jurisdictional payroll product that will accelerate customer and
revenue growth.”
Chief Executive Officer and Co-Founder Asantha Wijeyeratne said: “As I look back
on the 2025 financial year three strategic achievements stand out. Firstly, our
success in diversifying our business away from the core dairy industry vertical into
the trades and construction verticals.
“Secondly, our success in building relationships with accountants all around New
Zealand, a key source of customer referrals. And finally, the progress we have made
2
Earnings before tax depreciation and amortisation is a non-GAAP measure of financial performance. It
is defined and reconciled to the GAAP measure of net profit on page 17 of the company’s annual report
released to the NZX today and available on the company’s website.
1
All comparisons are against FY24 unless otherwise stated.
towards a unified multi-jurisdictional payroll product that leverages the full
capability of our new Gen 2.0 payroll engine.
“All three achievements are positioning the company to deliver a strong result in
FY26 and beyond.”
FINANCIAL PERFORMANCE
Operating revenue for the year to the end of March 2025 rose 17% to $9.0m from
$7.7m in the prior year. The result was underpinned by the increase in customer
numbers, up 11% on March 2024 to 8,204.
Processing fee income rose by 18% to $6.3m from $5.4m in FY24 lifted by the
increase in customers and an increase in the average processing fee per user,
which helped absorb some of the pricing pressures observed during the year.
Interest income rose by 6% to $2.3m due to an increase in the balance of customer
funds, however growth was limited by an easing in wholesale interest rates over
the financial year and particularly in the fourth quarter.
Average revenue per user (ARPU) fell 5% to $86 from $91 as at 31 March 2024, with
the increase in processing fee income diluted by the fall in interest rate income.
This also impacted ARR which rose to $8.5m as at 31 March 2025, compared to
$8.0m at the same time a year ago. ARR from processing fees grew 14% year on
year to $6.5m, more than offsetting the decline in ARR from interest revenue of
14% to $2.0m.
PaySauce achieved a net profit before tax of $0.46m, an increase of $0.27m from
FY24. Net profit after tax was $0.68m, down $0.55m from last year, as the FY24 net
profit after tax was inflated by a deferred tax asset of $1.02m recognised in relation
to the losses carried forward.
PaySauce delivered EBTDA of $1.35m, up $0.29m (29%), as efficiency gains from
investment into systems and processes delivered benefits. Recurring revenue
growth of $1.08m (14%) outpaced expenditure increases of $0.99m (15%).
Free cash flow of $0.50m increased $0.20m on FY24. This was driven by an increase
in net cash from operating activities (excluding funds held on behalf of customers)
of $0.69m, up 47% year on year to $2.2m.
PaySauce continued to improve its key customer metrics, seeing a reduction in
monthly churn to 0.99% per month, and an improvement in the gross margin
percentage from 77% to 78% as the cost to serve customers reduced on a per
customer basis.
Despite the decrease in overall ARPU, with the decline in interest revenue more
than offsetting the increase in processing fees, there was an increase in customer
lifetime value (LTV) to $6,700 per customer.
This growth in customer LTV, combined with the increase in customer numbers
during the year, resulted in an increase in the total customer lifetime value of 28%
to $55.3m as at 31 March 2025.
STRATEGIC PROGRESS
Having completed the new Gen 2.0 payroll engine in 2024, PaySauce has focussed
efforts on the development and roll out of a single advanced user interface which
will enable the delivery of a top of class cloud and mobile payroll experience
globally over time.
The key focus for PaySauce’s target microbusiness customer is on the mobile
experience for those employers who want to run their payroll on the go. This will
enable an accessible payroll experience for those micro employers with little to no
payroll knowledge, ensuring their onboarding and subsequent payroll processing
is as easy as possible for the non-expert user. Aligning to the requirements of
PaySauce’s target market will accelerate customer growth and enable more rapid
and effective scalability of business operations.
OUTLOOK
Asantha Wijeyeratne said he was excited about the opportunities ahead.
“Our long-term success, and the driver of growing shareholder value, is linked to
driving customer growth. Delivering these customers the two things they expect
from us - peace of mind with easy pay runs and more time to run their business
will allow us to continue to grow.
“One key initiative in the coming year will be to prove the potential for the business
in Australia. Our payroll engine is primed and we’re hyper-focused on delivering an
awesome payroll experience for microbusinesses in Australia.
“From our market analysis there is a significant opportunity for our technology to
reduce and simplify the payroll compliance burden that Australian
microbusinesses currently navigate. We’re excited at this opportunity and as an
entry point we intend to focus on the industry sectors and partnerships that we
know and have generated sustained growth in New Zealand.
“I look forward to updating you on our progress in the coming months.”
Further detail on the company’s performance is included in the annual report and
investor presentation released to the NZX today and also available on the
company’s investor website: https://www.paysauce.com/investor/#/documents
PaySauce will host an Investor and Media conference call today to discuss the full
year result.
The conference call is scheduled to begin at 10.00 am NZDT.
Investors and media are invited to attend the conference call, and can register
their interest by emailing investor@paysauce.com before 9am to receive the
conference call link.
Released for and on behalf of PaySauce by Jaime Monaghan, Chief Financial
Officer.
ENDS
ABOUT PAYSAUCE
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, and automated
general ledger entries. The PayNow feature enables customers’ employees to
access the pay they’ve earned before payday, providing a free alternative to payday
lenders. www.paysauce.com
CONTACT
Asantha Wijeyeratne
CEO PaySauce
+64 21 554 600
Please direct any investment queries to investor@paysauce.com
---
Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Results for announcement to the market
Name of issuer PaySauce Limited
Reporting Period 12 months to 31 March 2025
Previous Reporting Period 6 months to 30 September 2024
Currency New Zealand Dollar
Amount (000s) Percentage change
Revenue from continuing
operations
$8,995 17%
Total Revenue $8,995 17%
Net profit/(loss) from continuing
operations
$681 -45%
Total net profit/(loss) $681 -45%
Interim/Final Dividend
Amount per Quoted Equity
Security
It is not proposed to pay a dividend
Imputed amount per Quoted Equity
Security
Not Applicable
Record Date Not Applicable
Dividend Payment Date Not Applicable
Current period Prior comparable period
Net tangible assets per Quoted
Equity Security (in dollars and
cents per security)
-$0.00271095 -$0.00237224
A brief explanation of any of the
figures above necessary to enable
the figures to be understood
Please refer to the attached Investor presentation
Authority for this announcement
Name of person authorised to
make this announcement
Jaime Monaghan
Contact person for this
announcement
Jaime Monaghan
Contact phone number +64 22 5246366
Contact email address investor@paysauce.com
Date of release through MAP 20 May 2025
Audited financial statements accompany this announcement.
---
1
$
55.3
m
Total Customer Lifetime Value
Sep 21
Mar 22Mar 23Sep 22Sep 23Mar 24Sep 24
$60 M
$40 M
$20 M
$0 M
Mar 22Mar 23Mar 24Mar 25
$40 M
$20 M
$0 M
2025
Annual
Report
From Good
to Sauceome
23
Content
04 / Strategic plan and highlights
06 / Leadership messages
10 / Delivering on our FY25 strategy
14 / Leadership team
16 / Performance (SaaS metrics)
26 / Financial statements
56 / Corporate governance
72 / Company directory
PaySauce experienced accelerated
customer growth in 2025, a result of
groundwork established in previous
years. This expansion is fueled by
stronger market penetration via
accounting and industry partnerships.
To facilitate continued growth, our
primary focus remains serving the core
target market of employers with 1-5
employees.
We are dedicated to developing features
specifically for this segment, both
within New Zealand and internationally.
This report provides a summary review of PaySauce's operational and financial
performance for the year to 31 March 2025. It should be read in conjunction with the
company's financial statements on pages 26 to 55 of this report. The information
provided in this report has been compiled in accordance with relevant law, rules,
and corporate governance recommendations for investor reporting. Financial
information has been prepared in accordance with appropriate accounting
standards and has been audited by Grant Thornton Limited. Throughout this
report we have focused on what we believe matters most to our stakeholders and
our business. We have endeavoured to ensure all information is accurate through
internal verification and other approval processes.
45
Toward our
FY25 strategy
Highlights
Customers
11% YoY increase
8,204
1. Excludes funds due to customers and IRD
Free Cashflow
$206k YoY increase
1
$
502
k
45
Supercharge
growth
We’re hyper-focused on evolving
the user experience for employers
with 1-5 staff in New Zealand,
Australia and the Pacific Islands.
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 increased brand awareness
through new campaigns and additional
investment in marketing activities, and
we’re optimising the sign up for new
customers; and
• We’ve delivered the wholesale payroll
proof of concept and will assess future
opportunities as they arise
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:
• Demonstrated customer service
excellence with 99% of calls responded
to within an hour, and a 94% customer
satisfaction score;
• Achieved a Net Promoter Score (NPS)
of 50 demonstrating strong customer
advocacy;
• Customer feedback continues to shape
the user experience - both now and in
the future; and
• Enhancing our product with more
intuitive functionality, as well as
optimising our knowledge base helps
our customers to find the information
they need in their own time, and
reduces calls to our helpdesk team
Scalability
To ensure we can retain very
high service levels at scale,
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 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
onboard customers more efficiently.
Improvements include enhanced
automations and demonstrations
resulting in improved lead
qualification; and
• We’ve tested demand for our solution
in Australia
$
1.4
m
EBITDA
$0.3m YoY increase
$
55.3
m
Total Customer Lifetime Value (CLTV)
28% YoY increase
Processing fees
18% YoY increase
$
6.3
m
67
“
Shelley Ruha
Independent Director,
Chair
6
%
Annualised
Recurring
Revenue (ARR)
$8.5m
Extending an
unbroken record
of growth
We have achieved earnings growth and
accelerated investment in the company’s
future.
Dear shareholders,
PaySauce has strengthened its position over the past
year as New Zealand’s preferred payroll provider to micro
businesses. We have continued to grow our customer base,
recurring revenue and shareholder value, building on the
strong track record established since our NZX listing in 2018.
We also achieved a second consecutive year of positive
and strongly growing operating earnings. And now —
underpinned by improving business confidence, our
strong positive cashflow and financial position, and the
capabilities of our Gen 2.0 payroll engine — we are well
positioned to accelerate the momentum in our business.
Financial results
Operating revenue for the year to the end of March 2025
rose by 17% to $9.0m from $7.7m in FY24. The result was
supported by steady improvements in the recruitment of
new customers, up 11% on March 2024 to 8,204.
Processing fee income rose by 18% to $6.3m from $5.4m
in FY24 lifted by the increase in customers and an increase
in the average processing fee per user, which helped
absorb some of the price pressures observed during
the year. Interest income rose by 6% to $2.3m due to an
increase in the balance of customer funds.
However, growth in interest income was limited by an
easing in wholesale rates over the financial year and
particularly in the fourth quarter. Average Monthly Revenue
per User (ARPU) fell 5% to $86 from $91 in FY24 with an
increase in processing fee income diluted by the fall in
interest rate income.
Investment into research and development increased
by 29% to $2.9m from $2.2m in FY24. This continues
from the investment made in FY24 as PaySauce has
strengthened the structure, systems and processes
of the development team to accelerate the delivery
of product. More work has been capitalised toward
developing new product, when compared to
maintaining the existing product, with 61% of developer
time capitalised this year - up 5 percentage points on
FY24 of 56%.
EBTDA
2
rose 27% to $1.4m from $1.1m in FY24, helped by
the strong uplift in revenue and the company reaping the
benefits of increased scale. We have achieved earnings
growth and accelerated investment in the company’s
future despite cost increases driven by broader
inflationary pressures.
These investments include strengthening our sales
and marketing teams and enhancing our information
infrastructure to support the company’s long-term
growth ambitions.
Net profit before tax increased to $461k up from $271k
in FY24 although the after-tax result fell as the prior year
benefited from the recognition of a significantly larger
Deferred Tax Asset.
Balance sheet and cashflow
PaySauce remains in a strong financial position and well
placed to fund the growth of the business. Operating
cashflows, before the inflow of funds due to customers
and the IRD rose 47% to $2.2m from $1.5m in FY24
supporting our investment program, while free cashflow
rose 70% to $0.5m from $0.2m in FY24.
Meanwhile, we have $0.3m in cash reserves (excluding
funds due to customers and the IRD) and undrawn
facilities of $350k following the repayment and
renegotiation of the bank facility (at more favourable
terms) in June 2024.
Outlook
The volatile international trading environment, and the
impact that this uncertainty will have on interest rates
both here in New Zealand and offshore, represents a
headwind for the company.
Nevertheless, lower interest rates are supportive of
the economy and new business formation, a key driver
of customer growth. We are also encouraged by the
rebound we are seeing in business confidence.
With several competing payroll systems due to reach
the end of their useful life in the coming year, we believe
the investment we have made in partnerships with
accountants, industry and the sales team positions us to
capitalise on the opportunity to bring on new customers.
2. EBTDA (earnings before tax, depreciation and amortisation) is a non-
GAAP financial measure that is defined on page 17 of this report.
“
InterestProcessing Fees
Annualised Recurring Revenue
Mar 22Mar 23Mar 24Mar 25
$0 M
$2 M
$4 M
$6 M
$10 M
$8 M
Annualised recurring revenue
Interest
Processing fees
Leadership
messages
Longer-term we expect the investments in technology
will open new opportunities both in New Zealand and
further afield. We are confident we will achieve our goal
of $10m in ARR in FY26.
We look forward to providing a further update to
shareholders early in Q2 FY26 and seeing you at our
annual meeting in September.
Yours sincerely
Shelley Ruha
Independent Director, Chair
89
Energising
customer
acquisition
“
“
The new user experience plays a pivotal role in our
strategy going forward: by aligning to the requirements
of our target market, we expect to grow customers faster,
and scale our business operations more effectively.
A key initiative in the coming year will be to prove the
potential for the business in Australia. Our payroll engine
is primed and we’re hyper-focused on delivering an
awesome payroll experience for microbusinesses in
Australia. From our market analysis there is a significant
opportunity for our technology to reduce and
simplify the payroll compliance burden that Australian
microbusinesses currently navigate. We’re excited at this
opportunity and as an entry point we intend to focus on
the industry sectors and partnerships that we know and
have generated sustained growth in New Zealand.
Outlook
Our long-term success, and the driver of growing
shareholder value, is linked to driving customer growth.
Delivering these customers the two things they expect
from us - peace of mind with easy pay runs and more time
to run their business will allow us to continue to grow.
With the new partnerships we have established and
technology developments in train, we are well
positioned to build on these successes with our existing
customers and accelerate customer recruitment both in
New Zealand and offshore.
I look forward to updating you on our progress in the
coming months.
With my warm regards,
Asantha Wijeyeratne
CEO and Co-founder
Our long-term success... is linked to driving
customer growth and delivering these customers
the two things they expect from us - peace of
mind with easy pay runs and more time.
Dear Shareholders,
As I look back on the 2025 financial year three strategic
achievements stand out.
Firstly, our success in diversifying our business away
from the core dairy industry vertical into the trades and
construction verticals. Secondly, our success in building
relationships with accountants all around New Zealand, a
key source of customer referrals. And finally, the progress
we have made towards a unified multi-jurisdictional payroll
product that leverages the full capability of our new Gen
2.0 payroll engine.
All three achievements are positioning the company to
deliver a strong result in FY26 and beyond.
Customer growth
Growth in customer numbers represents the most important
driver of long-term shareholder value. Each net new
customer incrementally lifts the volume of processing fees,
the cash we hold on behalf of customers and consequently
the interest income we generate from those funds.
In FY25 we benefited from a net increase in customer
numbers of 836 to 8,204, a substantial 11% improvement
on FY24 when we added just under 500 customers. Total
new customers increased 17% to 1,755 from 1,502 in FY24.
Growth in the first half of the year was particularly strong,
with many customers choosing the end of the tax year to
move to a new payroll system.
The uplift reflects our focus on leveraging and expanding
our accounting partner channel and the investment
we have made in sales and marketing. We now have
partnerships with close to 300 accounting firms
nationwide, up from 250 at the end of FY24.
This channel is important for 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. With the trust of accounting partners, we can
take up opportunities to build customers as several
competing payroll systems come to the end of their
service life.
In return for becoming partners, accountants get training,
dedicated support on the PaySauce platform; marketing
exposure through directory listings, access to expert
webinars, priority onboarding for multiple clients and
discounts on payroll services.
The channel is also important to service the demand we
have created through our brand awareness campaigns
and the efforts we have made to diversify our business
from the core dairy vertical.
Key initiatives over the year have included 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,
then expanded across the rest of the country. Our radio
advertisements are not centred on one specific industry,
and the radio spend has been focused on several key
provincial regions (Waikato, Taranaki, Canterbury and
Southland). We also continued to support the Wellington
Lions and the Taranaki Bulls during the National Provincial
Championship (Men’s Rugby), which provided further
brand presence in these regions.
These advertising activities were supported during
the year by continued investment and engagement
with industry partners such as Master Plumbers, Master
Builders, and Federated Farmers, along with attendance
at various conferences and trade shows, including
Fieldays, BuildNZ, and EMEX (New Zealand’s largest
manufacturing and engineering industry trade show). We
also entered into a new partnership with the Hutt Valley
Chamber of Commerce, aimed at boosting our target
market exposure in our home city.
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.
Our new website due to launch in June 2025 will deliver
higher conversion rates with a significantly improved
customer journey helping new users to sign up to
PaySauce.
SaaS performance metrics
While the investments in sales and marketing lifted
customer acquisition costs by 15% to $584 per customer,
we achieved an impressive payback period of just under 7
months of revenue at an ARPU of $86.
We meanwhile reduced average monthly customer
churn by 16% during the period to 0.99% from 1.18% in
FY24, while the cost to serve per customer also fell as we
realised economies of scale in customer support following
investment in new systems.
These factors — though partly offset by declining interest
revenue per customer — lifted average customer lifetime
value by 15%, to $6,747 from $5,890 in FY24. Total customer
lifetime value rose 28%, reaching $55.3m compared to
$43.4m in FY24.
Technology development
Having completed the new Gen 2.0 payroll engine in
2024, the focus of this year’s efforts has been on the
development and roll out of our single advanced user
interface - the platform to deliver a top of class cloud
and mobile payroll experience globally. Key to our
efforts here is focusing on the mobile experience for
employers who want to run their payroll on the go, which
we recognise as important to our target customer. We’re
also staying focused on providing an accessible payroll
experience for those micro employers with little-to-
no payroll knowledge, ensuring their onboarding and
subsequent payroll processing is as easy as possible for
the non-expert user. The project is led by Jessica McLean
and Jacques Labuschagne respectively promoted into
the roles of Chief Product Officer and Chief Technology
Officer in September 2024 after co-founder and Chief
Technology Officer Troy Tarrant, and Chief Operating
Officer, Mathew Stokes stepped aside. I am proud and
pleased with the leadership they are bringing to the
development efforts and the urgency they are applying to
bringing our vision for effortless payroll to life.
Total Customer LTV
Mar 22Mar 23Mar 24Mar 25
$60 M
$40 M
$20 M
$0 M
Total Customer LTV
Asantha
Wijeyeratne
CEO, Co-founder
1011
Delivering on our
FY25 strategy
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. 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.
Complementing the uplift in brand awareness is the
development of a new website. The objective of our
website redesign is to make it as easy as possible for
potential new customers to learn about, try, and sign up
for PaySauce. The new site will enable new customers
to easily navigate rich content that helps them make
an informed decision about signing up to PaySauce,
as well as make it easier for existing customers to
find the information they need. We expect our new
website to significantly improve lead generation by
offering a more user-friendly and engaging experience
that makes it easier for potential customers to find
information and reach out to us. Enhanced navigation,
clear calls-to-action, interactive demos and
streamlined contact forms will encourage more visitors
to connect with us, ultimately increasing the number of
quality leads we receive.
Targeted upsell campaigns are also encouraging
existing customers to transition to higher-tier plans,
driving dual financial benefits. The migration to higher
tiers generates increased processing fees, while
simultaneously expanding interest income on the larger
customer balances held. This strategy not only boosts
revenue but also deepens customer engagement with
our platform’s advanced features, creating a win-win
scenario that aligns client growth with our financial
objectives.
Supercharge growth
Highlights
Increased the rate of net customer growth to 11%
YoY (from 7% the prior year)
Continued focus on building relationships with
both new and existing accountants seeing
success with a substantial increase in both new
accountants and the number of customers
referred through them
Discovery complete and design underway for our
new user experience: making payroll simple and
intuitive for small business owners in broader
markets
New campaigns and 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. The new
experience will be tailored to our target market of
microbusinesses with 1-5 employees, and will be
implemented in new markets first.
Once proven successful, we expect to migrate our
existing customers onto the new product. This critical
initiative will improve product functionality to unlock
new growth in New Zealand and beyond by leveraging
our existing presence across the APAC region..
One of PaySauce’s key growth strategies remains
focused on developing new and existing relationships
with accountants and bookkeepers. These channelsact
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.
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.
Loving our customers
Highlights
Demonstrating customer service excellence with
96% of calls responded to within 30 minutes
and 99% answered within one hour, and a 96%
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
Over the past year, we’ve doubled down on initiatives
designed to empower our customers, streamline their
experience, and drive long-term value.
We’ve been working hard to prepare an AI support
agent for launch to enhance our customer service
capabilities. This tool will handle basic inquiries
instantly, freeing our human experts to focus on
complex issues. We’ll be ensuring customers get
answers faster without compromising quality. It
is important to us that we do this with the highest
commitment to quality customer service, ethical and
responsible use of AI.
1213
DELIVERING ON OUR FY25 STRATEGY
As part of our dedication to ensuring customers can
find the answers they need quickly and easily, we’ve
been revamping our knowledge base with clearer
step-by-step guides for common customer questions.
While we’ve had a knowledge base for several years,
we recognised the need to improve the content and
structure to increase the number of issues customers
were able to resolve themselves. This has also been
important preparatory work for our AI support agent
to work effectively. Empowering customers to find the
answers they want in their own time increases customer
satisfaction and reduces the overall amount of inbound
queries. We’ve seen a significant increase in the number
of customers using our knowledge base as a result.
We have worked with a number of time and attendance
providers, increasing the number of providers who
provide compatible timesheets for our customers to
import directly into PaySauce. This allows a greater
number of existing and potential customers to connect
with a broader range of workforce management tools,
improving the attractiveness of PaySauce as a product
that they can use to run their business efficiently.
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
To streamline operations and enhance value for our
customers, we’re phasing out underutilised legacy
features, allowing us to reallocate resources toward
high-impact innovations.
This transition translates to lower maintenance costs,
higher operational efficiency, and stronger revenue
potential as customers deepen engagement with our
scalable, future-ready solutions.
PaySauce is proud to partner with the Hutt Valley
Chamber of Commerce, an organisation that
effectively unites local businesses. Becoming a
PaySauce customer itself, the Chamber offered a
valuable platform to showcase our services. Our
commitment extends to actively supporting their
initiatives through speaking engagements and
presentations at their events throughout the year.
We’re continuing to review how we do business, making
changes as necessary to benefit both our customers
and PaySauce operations. We’ve significantly improved
the banking integration for customers with ASB, BNZ,
Westpac and ANZ, allowing our customers to pay
their staff 365 days a year. We’re providing support
to those customers who still rely on making manual
internet banking transfers to pay their staff to switch to
better payment methods. PaySauce is proud to offer
customers the greatest range of payment methods
available for their payroll processing in the New Zealand
market.
Optimising our tech stack for speed, security
and scale
The PaySauce application's core has undergone
substantial upgrades. Numerous new features and
enhancements have been implemented to simplify
customer experiences. Multi-Factor Authentication
(MFA) functionality has been strengthened to enhance
security against increasing cyber threats. Building on
the successful AWS migration of PaySauce, goPayroll
has now also been fully migrated to the cloud. This cloud
migration of our complete payroll product suite delivers
enhanced stability, performance, and security.
“The PaySauce support
team members I’ve
spoken with have been
absolutely outstanding
in their support for
immediate and correct
solutions. They are
making the pay run
experience much more
enjoyable.”
Many thanks, Martha
I'm based in KeriKeri
Northland, I have not
used a payroll system
ever in my life and my
farm owner referred me
to PaySauce. I have had
a lot of my questions
and queries answered
and have had a lot of
support through the set
up process. So thank you
very much! Made it Super
easy.
Ange Cook, A & R Farms
1415
LEADERSHIP TEAM
Leadership team
We have ambitious goals, so we’ve built an ambitious leadership team.
They have the talents, mindsets and skills to achieve our goals, and will keep
PaySauce on course as we scale up for increased sustainable growth.
Shelley Ruha
Independent Director and Chair
Shelley joined the PaySauce board in
February 2022. Shelley is a professional
director with strong governance
experience within FinTech, large scale technology
infrastructure, payments innovation, banking, wealth
management and venture capital.
Current governance roles include Chair of Allied Farmers
and directorships at Heartland Bank, 9Spokes, SmartPay
and Partners Life. Prior directorships include Paymark, The
Icehouse, Hobson Wealth, TaxGift and JBWere Australia.
Asantha Wijeyeratne
Executive Director, CEO and
Co-Founder
Asantha has over 25 years’ experience
of unparalleled focus on helping small
businesses navigate the difficult landscape of effective
payroll. His formal background in accounting combined
with his ‘people first’ attitude has seen him successfully
build a number of businesses into market leadership
positions.
Most notably, Asantha was the driving force behind the
creation and growth of SmartPayroll (now Smartly) and
SmartBooks which he grew to service close to 10,000
SMEs in NZ before he left in December 2013.
Asantha’s obsession is the micro-business sector with
a tech and customer service focus. He loves seeing
someone with determination and passion turn an idea into
a business that supports them, their families and the wider
community. He gets a lot of enjoyment from making tech
work to help business owners succeed.
In recognition of his contribution to business and the
community, he was awarded a Queens Service Medal
(QSM) in the New Year’s honours list in 2013 and was a
finalist in Ernst & Young’s 2021 Entrepreneur of the Year.
Gavin Thompson
Director (Non-Independent)
Gavin is a founder and director of Catalyst
IT, New Zealand’s largest open-source
IT service provider, founded in NZ and
expanded to Australia and Europe. His background
is in software development and delivery, and he has
over 30 years’ experience in software systems in the
manufacturing, engineering, financial, and government
sectors. Gavin is also a director on the board of Catalyst
Cloud, a company which grew from an infrastructure
platform for the Catalyst business into a provider of cloud
services for Aotearoa.
Gavin is passionate about open source and open
standards software and systems which allow a
collaborative and effective approach to delivering secure,
resilient and innovative solutions.
Michael "MOD" O'Donnell
Independent Non-Executive Director
Mike "MOD" O'Donnell is a professional
director, writer and advisor with a
background in FinTech, ecommerce and
news media.
MOD is deputy chair of both New Zealand Trade and
Enterprise and global online music company Serato. MOD
is also a director of Radio New Zealand, www.realestate.
co.nz, Sandfield Software and The New Zealand Hi-Tech
Trust.
MOD writes a weekly national business column for Stuff
Media on digital business.
Mark Samlal
Independent Director
Mark Samlal has over 25 years'
experience in growth leadership roles in
Asia Pacific. Mark co-founded PayAsia
in 2006 where he was Non-Executive Chair, until being
appointed as Executive Chair and Managing Director of
PayAsia in 2015. In 2017, Mark was appointed to the Board
and as Managing Director of PayGroup which listed on the
ASX in May 2018 and PayAsia became a 100% subsidiary.
PayAsia strategically executed over five acquisitions
before being acquired by Deel Inc in November 2022 and
delisted.
Mark remains the Founder of PayGroup and the General
Manager of Deel Inc Asia. Mark was also a Director and
General Manager of PayConnect Solutions that was
acquired by ADP. His previous senior roles include CEO
at Vicplas International Ltd, a Singapore Stock Exchange
listed company, as well as Executive Director of Omni
Industries in Singapore. Throughout all experience
mentioned, Mark was an invested shareholder.
Jim Sybertsma
Independent Non-Executive Director,
Audit and Risk Committee Chair
Jim has over 25 years of experience in
financial leadership positions including
CFO roles for DB Group, NZ Dairy Foods, Fliway Group,
and Hawkesby Management. During this time, Jim has
been involved in audit, compliance and corporate finance
activities across a range of industries and sizes from
start-up to scale-up.
Jim is currently a Director for Provident Insurance
Corporation Limited and Auto Drive Holdings. He is
also CFO of Hawkesby Management, a family office
investment role managing multiple investments in early
stage tech companies and listed equity portfolios
Jaime Monaghan
CFO
With an extensive commercial
background, Jaime brings incisive
leadership to our financial and strategic
planning. Jaime’s expertise in bringing business and
finance together was honed in her previous roles at
Trade Me and Kiwibank. A Scottish Accountant, Jaime is
dedicated to ensuring the best possible stewardship of
shareholders’ funds in the short, medium and long term.
PaySauce is responsible for managing a high volume of
funds on behalf of customers, with billions of dollars being
transacted every year through PaySauce systems. Jaime’s
financial acumen and excellent management is key to
overseeing this.
Jessica McLean
CPO
Jess started her career with hands-on
customer service and payroll consulting,
then moved into people and culture where
she led this function at Catalyst and Catalyst Cloud. She's
now leading our people, product and customer functions
at PaySauce, making sure we have both the talent and the
product strategies to propel PaySauce forward. She's
passionate about creating high-trust, growth-supporting
cultures and enabling high-performing teams to do what
they do best, as well as the integral function that payroll plays
in a business and ensuring we help people get that right.
Jacques Labuschagne
CTO
Jacques is a seasoned expert in delivering
technology solutions for a range of
customers, including both bespoke
solutions as well as building successful suites of core
product and service offerings. With a career that started in
software development and moved into team and project
management, Jacques most recently spent several years
as the CEO of a technology services business in the UK,
then as the COO of the NZ based business in the same
group before joining the PaySauce team in 2023. Using
a blend of technical expertise, strategic thinking and
disciplined planning and execution, he excels at managing
technology teams to deliver successful solutions.
1617
PERFORMANCE flSAAS METRICSfiPERFORMANCE flSAAS METRICSfi
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).
PaySauce SaaS
Performance
Business Results
MAR 2025 MAR 2024
$000s$000s
Processing Fees6,3225,370
Interest Income2,3292,200
Recurring Revenue8,6517,570
Cost to Serve(1,938)(1,747)
Gross Margin6,7135,823
Gross Margin %78%77%
Other Interest Income915
Other Revenue336131
Total Other Revenue345146
Customer Acquisition(1,025)(766)
Research & Development(1,168)(934)
General & Administration(3,461)(3,108)
Interest Expense(52)(97)
Earnings Before Tax, Depreciation and Amortisation 1,3521,064
Earnings Before Tax, Depreciation and Amortisation
Margin %
16%14%
Depreciation & Amortisation(817)(646)
Asset Impairment(75)(228)
Net Profit before Tax460190
Income Tax2211,042
Net Profit after Tax6811,232
Earnings Before Tax, Depreciation and Amor tisation (EBTDA) is calculated by adding back depreciation, amor tisation 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.
1819
PERFORMANCE flSAAS METRICSfiPERFORMANCE flSAAS METRICSfi
$0.50 M
$1.00 M
$0.00 M
-$0.50 M
-$1.00 M
-$1.50 M
Mar 22Mar 23Mar 24Mar 25
Free cash flow (excluding funds held on behalf of customers)
Free cash flow
(excluding funds held on behalf of customers)
Profitability
$10 M
$8 M
$5 M
$3 M
Mar 22Mar 23Mar 24Mar 25
RevenueExpenses
Profitability
3
Revenue Expenses
InterestProcessing Fees
Annualised Recurring Revenue
Mar 22Mar 23Mar 24Mar 25
$0 M
$2 M
$4 M
$6 M
$10 M
$8 M
Annualised recurring revenue
Interest
Processing fees
EarningsRecurring Revenue
MAR 2025 MAR 2024YOY Change
ARR at end of period ($000s)8,4628,0056%
Recurring revenue for the period - Total ($000s)8,6517,57014%
ARPU (monthly) at end of period ($)8691(5%)
FTEs48464%
Revenue per FTE ($000s)18716812%
How and why do we monitor recurring revenue?
PaySauce monitors the revenue received from customers
as a growth 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) multiplies the recurring
revenue generated in the last month of the period by 12 to
annualise the current recurring revenue.
Recurring revenue grew 14% year on year to $8.65m.
This was primarily driven by the increase in processing
fee revenue as interest revenue growth slowed in 2025.
Processing fee revenue increased to $6.32m, up 18%,
or $0.95m year on year. The increase in volume of
customers accounted for around 33% of this increase,
while the increase in average revenue per customer from
processing fees accounted for the remainder.
Interest revenue increased to $2.3m, up 6% or $0.13m
year on year. This was due to the increase in interest
revenue from the balance of funds held on behalf
of customers more than offsetting the impact of
decreasing interest rates over the course of the year
Annualised recurring revenue (ARR) grew 6% year on year
to $8.5m as at 31 March 2025.
PaySauce delivered its second consecutive net profit
as it continued to grow revenue and re-invest for long
term growth in a sustainable and deliberate manner.
EBTDA increased 29% year on year to $1.35m for
March 2025. This was driven primarily by the increase
in recurring revenue of $1.08m (14%) which more than
offset the $0.99m increase (15%) in expenditure. The
net profit after tax for the year was $0.68m, down from
$1.23m in 2024 - due to the previous year recognition
of a deferred tax asset of $1.02m. Excluding deferred
tax adjustments - net profit before tax was up $0.27m
(142%) to $0.46m from $0.19m in 2024.
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).
Free cash flow increased $0.20m year on year to
$0.50m for March 2025. This was driven by an increase in
net cash from operating activities (excluding funds held
on behalf of customers) of $0.69m, up 47% year on year
to $2.2m.
3
Net profit before tax
2021
PERFORMANCE flSAAS METRICSfiPERFORMANCE flSAAS METRICSfi
Mar 22Mar 23Mar 24Mar 25
80%
75%
70%
65%
60%
Gross Margin %
Gross margin %
Mar 22Mar 23Mar 24Mar 25
20%
15%
10%
5%
0%
Customer Acquisition as a % of Revenue
Total Customers
Mar 22Mar 23Mar 24Mar 25
10,000
7,500
5,000
2,500
Customer acquisition as a % of revenue
Customers
Cost to Serve
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
(CT S) 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 consists of customer suppor t 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.
Cost to serve increased to $1.9m (up 11% on last year).
PaySauce continued to increase the efficiency of the
customer support team with investment into systems
and processes, which enabled the same headcount of
support staff to support a greater number of customers.
Continued improvement of the PaySauce product also
helped make the customer journey more seamless,
helping to reduce the volume of support calls.
The increase in cost to serve was largely inflationary
with increases to salaries, and increases in data hosting
fees and bank charges in line with customer growth.
The increase in cost to serve was outpaced by a 14%
increase in recurring revenue as customer numbers grew
11% year on year. This led to a 15% increase PaySauce’s
gross margin to $6.7m, or 78% in percentage terms (up 1
percentage point on last year).
MAR 2025 MAR 2024YOY Change
Recurring revenue ($000s)8,6517,57014%
Less cost to serve ($000s)(1,938)(1,747)11%
Gross margin ($000s)6,7135,82315%
Gross margin %78%77%1pp
CTS per customer (monthly) at end of period ($)1921
(8%)
Customer
Acquisition
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.
Off the back of a slower 2024, economic conditions
improved in 2025 with reducing inflation and interest
rates, leading to an increase in business confidence.
PaySauce added more than 1,700 new customers during
the year (an increase of 11%) taking the total to just over
8,200.
The increase in customer acquisition costs outpaced
customer growth however, leading to an increase in CAC
per addition of 15% year on year to 584 per customer in
2025.
Increased investment included new headcount in both
the sales and marketing teams, as well as investment into
systems and processes to improve the effectiveness and
efficiency of lead management. PaySauce also increased
investment into digital marketing to both drive sales, and
increase brand awareness.
MAR 2025 MAR 2024YOY Change
CAC per addition58451015%
New customers1,7551,50217%
Customer acquisition costs ($000s)1,02576634%
Percentage of Recurring Revenue12%10%2 pp
2223
PERFORMANCE flSAAS METRICSfiPERFORMANCE flSAAS METRICSfi
MAR 2024MAR 2023YOY Change
Total general and administration costs ($000s)3,1082,561
21%
Percentage of Recurring Revenue41%45%
(4 pp)
G&A Cost as a % of Revenue
80%
60%
40%
20%
0%
Mar 22Mar 23Mar 24Mar 25
G&A cost as a % of revenue
R&D Capitalisation
Mar 22Mar 23Mar 24Mar 25
$3.0 M
$2.0 M
$1.0 M
$0 M
R&D investment
Research and
Development
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.
PaySauce increased investment into research and
development by 29% year on year - up to $2.9m for
2025.
This increase was primarily people cost, with new key
roles established in the product space to help increase
the quality, speed and efficiency in which the team can
develop the PaySauce product. This is evidenced by an
increase in capitalisation rate to 61% up 5 percentage
points year on year, which is a measure of how much time
is spent developing and improving products compared
to the time spent maintaining them.
With improvements made to the structure of the team,
the development process, and the infrastructure and
security over 2024 and 2025 - the development team
is poised to deliver an even better PaySauce product to
its new and existing customer base, which will help drive
customer acquisition and customer satisfaction.
MAR 2025 MAR 2024YOY Change
Research & development expensed ($000s)1,16893425%
Research & development impairment ($000s)74228(67%)
Research & development capitalised ($000s)1,6291,06653%
Total research and development costs ($000s)2,8712,22829%
Percentage of Recurring Revenue33%29%4pp
Capitalisation rate (salaries)61%56%5pp
General and
Administration
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
General and administration costs increased 11% year
on year to $3.5m, though decreased as a percentage
of recurring revenue to 40%, down 1 percentage point
on last year. The increase was largely inflationary across
people costs and overheads.
MAR 2025 MAR 2024YOY Change
Total general and administration costs ($000s)3,4613,10811%
Percentage of Recurring Revenue40%41%(1 pp)
2425
PERFORMANCE flSAAS METRICSfiPERFORMANCE flSAAS METRICSfi
Customer Lifetime
Journey
CAC
$
584
15%
YOY
New customer
joins PaySauce
Customer
Acquisition (CAC)
$584 per customer
ARPU
$
86
Customer
generates revenue
Recurring revenue
(Monthly): $86 per
customer
5%
YOY
Customer
receives support
Cost to serve (CTS)
(Monthly): $19 per
customer
Customer stays
with PaySauce
Customer lifetime
Average monthly
churn of 0.99%
CTS
$
19
8% YOY
Customer
Lifetime
8.4
yrs
20% YOY
At 31 March 2025
Total customer
lifetime value
$
55.3m
28
% YOY
Customer Lifetime
Value
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
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 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.
LTV : 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.
PaySauce saw average monthly churn decrease to
0.99%, a 16% decrease year on year as the economy
stabilised over the year and business confidence grew.
PaySauce also saw an improved gross margin of 78%,
up 1 percentage point year on year. The improvement
in these metrics led to an increase in customer LTV to
$6,747 per customer, up 15% year on year.
This increase in customer LTV combined with the increase
in the number of PaySauce customers increased total
customer LTV by 28% year on year, growing to $55.3m as
at 31 March 2025.
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
(1.11%), total customer LTV would be $5.9m (11%) lower.
MAR 2025 MAR 2024YOY Change
Customers at end of period8,2047,36811%
Average monthly churn rate for the period (%)0.991.18(16%)
Churned customers9191,009(9%)
LTV per customer at end of period ($)6,7475,89015%
Total customer LTV at end of period ($m)55.343.328%
LTV:CAC ratio at end of period12 : 112 : 1-
Customer
lifetime value
(CLTV)
$6,747 per
customer
CLTV
$
6,747
CLTV : CAC
12:1
Flat YOY
15% YOY
2627
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
Consolidated Financial
Statements
For the year ended 31 March 2025
Directors’ Report 27
Independent Auditor’s Report 28
Consolidated Financial Statements 32
Consolidated Statement of Comprehensive Income 32
Consolidated Statement of Financial Position 33
Consolidated Statement of Movements in Equity 35
Consolidated Statement of Cash Flows 36
Notes to the Consolidated Financial Statements 37
Company Directory 72
Directors’ Report
The Board of Directors have pleasure in presenting the annual report of PaySauce Limited, incorporating the consolidated
financial statements and the independent auditor’s report, for the year ended 31 March 2025.
In the opinion of the directors of PaySauce Limited, the consolidated financial statements and notes on pages 32 to 55:
• comply with New Zealand Generally Accepted Accounting Practice (“NZ GAAP”) and present fairly the consolidated
financial position of the Group as at 31 March 2025 and the results of their operations and cash flows for the year
ended on that date; and
• have been prepared using appropriate accounting policies, which have been consistently applied and supported by
reasonable judgements and estimates.
The directors consider that they have taken adequate steps to safeguard the assets of the Group and to prevent
and detect fraud and other irregularities. Internal control procedures are also considered to be sufficient to provide
reasonable assurance as to the integrity and reliability of the consolidated financial statements.
For and on behalf of the Board of Directors:
Shelley Ruha Jim Sybertsma
Chair Chair of Audit & Risk Committee
20 May 2025 20 May 2025
2829
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
Grant Thornton New Zealand Audit Limited
L4, Grant Thornton House
152 Fanshawe Street
PO Box 1961
Auckland 1140
T +64 (0)9 308 2570
www.grantthornton.co.nz
Independent
Auditor’s Report
To the Shareholders of PaySauce Limited
Report on the Audit of the
Consolidated Financial Statements
Opinion
We have audited the consolidated financial statements of PaySauce Limited and its controlled subsidiaires (the
“Group”) on pages 32 to 55 which comprise the consolidated statement of financial position as at 31 March 2025,
and the consolidated statement of comprehensive income, consolidated statement of movements in equity and
consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements,
including material accounting policy information.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position
of PaySauce Limited as at 31 March 2025 and its financial performance and cash flows for the year then ended in
accordance with New Zealand Equivalents to International Financial Reporting Standards (NZ IFRS) issued by the
New Zealand Accounting Standards Board and IFRS Accounting Standards issued by the International Accounting
Standards Board.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) (ISAs (NZ)) issued
by the New Zealand Auditing and Assurance Standards Board. Our responsibilities under those standards
are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
section of our report. We are independent of the Group in accordance with Professional and Ethical Standard
1 International Code of Ethics for Assurance Practitioners (including International Independence Standards)
(New Zealand) issued by the New Zealand Auditing and Assurance Standards Board and the International
Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including
International Independence Standards) (IESBA Code), and we have fulfilled our other ethical responsibilities in
accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
Other than in our capacity as auditor we have no relationship with, or interests in, the Group.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit
of the consolidated financial statements of the current period. These matters were addressed in the context of
our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters. We have determined the matters described below to be the key
audit matters to be communicated in our report.
Why the audit matter is significantHow our audit addressed the key audit matter
Intangible assets – Impairment and Capitalisation of
internally developed software including impairment
of intangible assets not yet ready for use
Intangible assets carrying value of $3,359,000 at 31
March 2025 ($2,399,000 at 31 March 2024) is comprised
of computer software, development in progress and
customer relationships.
The Group is a Software as a Service (“SaaS”) provider
and incurs significant expenditure in developing and
maintaining its software assets.
NZ IAS 38 Intangible Assets outlines the criteria for
capitalisation of costs associated with developing the
software including assessing whether the software will
generate future economic benefits.
As disclosed in Note 8, capitalised software costs are
recognised at cost and subsequently amortised over
their estimated useful lives. Costs that do not meet the
criteria for capitalisation are expensed to profit or loss as
incurred.
In addition to the above, the software asset includes
development in progress of $1,487,000 at 31 March
2025 ($972,000 at 31 March 2024). NZ IAS 36 Impairment
of Assets requires intangible assets that are not yet
available for use to be tested annually for impairment.
Capitalisation of internally generated intangible
assets and impairment testing of intangible assets
under development involves significant estimate and
judgement and therefore is also a key audit matter.
We evaluated the appropriateness of intangible asset
capitalisation and assessed impairment testing of
intangible assets.
In respect to capitalised intangible assets, our
procedures, amongst others, included the following:
• obtained understanding of the controls and
processes implemented by management to
ensure that capitalisation assessments are
appropriate and that costs are appropriately
determined;
• obtained from management their paper analysing
asset additions during the period, and the basis of
determination of costs for capitalised assets;
• selected samples of projects capitalised during
the year and ensured the capitalisation criteria
within NZ IAS 38 – Intangible Assets have been
appropriately satisfied; and
• reviewed a sample of projects for whether
costs capitalised during the year were directly
attributable to development projects, including
review of supporting documents that were linked
to relevant projects.
In respect to impairment assessments, our procedures,
amongst others, included the following:
• performed procedures to evaluate and challenge
the Group’s determination of CGUs. This included
reviewing internal management reporting to
assess the level at which the Group monitors
performance, comparing CGU’s to our knowledge
of the Group’s operations and reporting systems,
and reconciling assets allocated to CGUs to
accounting records;
• obtained management’s impairment assessments
and tested the completeness and mathematical
accuracy of the value in use calculations;
• considered and challenged key assumptions to
assess the models’ compliance with NZ IAS 36,
and the appropriateness of the post-tax discount
rates, based on their experience and external
evidence;
• compared the forecast cash flows used for FY25
to the Board approved business plan; and
• Reviewed managements assessment of redundant
or superseded development activities and
assessed this against our knowledge of the
Group’s operations.
Other procedures of note included the following:
• Reviewed disclosures in the consolidated
financial statements for reasonableness and
appropriateness
3031
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
Information Other than the Consolidated Financial Statements and Auditor’s Report thereon
The Directors are responsible for the other information. The other information comprises the strategic plan and highlights,
leadership messages, delivering on our FY25 strategy, leadership team, performance (SaaS metrics), Directors’ report,
and the corporate governance disclosures, but does not include the consolidated financial statements and our auditor’s
report thereon. Our opinion on the consolidated financial statements does not cover the other information and we do not
express any form of audit opinion or assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial
statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work
we have performed, we conclude that there is a material misstatement of this information, we are required to report that
fact. We have nothing to report in this regard.
Directors’ responsibilities for the Consolidated Financial Statements
The Directors are responsible on behalf of the Group for the preparation and fair presentation of the consolidated
financial statements in accordance with New Zealand equivalents to International Financial Reporting Standards issued
by the New Zealand Accounting Standards Board and International Financial Reporting Standards, and for such internal
control as the Directors determine is necessary to enable the preparation of consolidated financial statements that are
free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the Directors are responsible on behalf of the Group for assessing
the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless the Directors either intend to liquidate the Group or to cease operations, or
have no realistic alternative but to do so.
Auditor’s responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with
ISAs (NZ) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these consolidated financial statements.
A further description of the auditor’s responsibilities for the audit of the financial statements is located on the External
Reporting Board’s website at: https://www.xrb.govt.nz/standards/assurance-standards/auditors-responsibilities/
audit-report-1
Restriction on use of our report
This report is made solely to the Company’s shareholders, as a body. Our audit work has been undertaken so that
we might state to the Company’s shareholders, as a body those matters which we are required to state to them in
an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Company and its shareholders, as a body, for our audit work, for this report or
for the opinion we have formed.
Grant Thornton New Zealand Audit Limited
B Smith, Partner
Auckland
20 May 2025
3233
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
Consolidated Statement
of Comprehensive Income
For the year ended 31 March 2025
20252024
Notes$000s$000s
Operating revenue 48,9957,717
Expenses
Employee expenses
5
(5,076)
(4,470)
Other expenses
6
(2,516)(2,086)
Depreciation and amortisation
7,8
(817)
(646)
Asset impairment
8
(74)
(228)
Finance costs
9
(52)(97)
Total expenses (8,535)(7,527)
Net profit before income tax
460
190
Tax benefit
10
221
1,042
Net profit for the period
681
1,232
Other comprehensive income
--
Total comprehensive profit for the period6811,232
Earnings per shareCentsCents
Basic earnings per share11
0.48
0.88
Diluted earnings per share11
0.48
0.88
The above statement should be read in conjunction with the accompanying notes.
Consolidated Statement
of Financial Position
As at 31 March 2025
20252024
Notes$000s$000s
Assets
Current assets
Cash and cash equivalents
21
309603
Cash and cash equivalents - customer funds
21
12,0348,909
Term deposits - customer funds
21
24,20024,700
Trade receivables
181173
Other assets
343500
Total current assets 37,06734,885
Non-current assets
Deferred tax assets
10
1,200979
Term deposits - customer funds
21
1,700
-
Property, plant and equipment
7
352
371
Intangible assets
8
3,359
2,399
Total non-current assets
6,611
3,749
Total assets
43,678
38,634
Liabilities
Current liabilities
Trade and other payables
522
398
Funds due to customers and IRD
21
37,935
33,609
Employee benefits
364
332
Other liabilities
435
390
Lease liabilities
140
134
Interest bearing liabilities
-
650
Total current liabilities 39,39635,513
The above statement should be read in conjunction with the accompanying notes.
3435
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
Consolidated Statement
of Financial Position
As at 31 March 2025
20252024
Notes$000s$000s
Non-current liabilities
Lease liabilities11177
Total non-current liabilities 11177
Total liabilities 39,50735,590
Net assets 4,1713,044
Equity
Share capital
12
14,15913,659
Reserves
18
158212
Accumulated losses
(10,146)(10,827)
Equity attributable to the owners of the Company 4,1713,044
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 Consolidated Financial Statements on 20
May 2025:
Shelley Ruha Jim Sybertsma
Chair Chair of Audit & Risk Committee
20 May 2025 20 May 2025
Consolidated Statement
of Movements in Equity
For the year ended 31 March 2025
Share-based
payment reserve
Share
Capital
Accumulated
losses
Total
Notes$000s$000s$000s$000s
Balance as at 1 April 2024 21213,659(10,827)3,044
Comprehensive profit
Net profit for the period--681681
Other comprehensive income----
Total comprehensive profit--681681
Transactions with owners
Share-based payments, net of tax
18
446--446
Share-based payments paid up
12
(500)500--
Total transactions with owners(54)500-446
Balance as at 31 March 202515814,159(10,146)4,171
Share-based
payment reserve
Share
Capital
Accumulated
losses
Total
Notes$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 tax
18
211--211
Share-based payments paid up
12
(241)241--
Issue of ordinary shares
12
-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.
3637
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
Consolidated Statement
of Cash Flows
For the year ended 31 March 2025
20252024
Notes$000s$000s
Cash flows from operating activities
Receipts from customers6,1365,082
Interest received2,5142,205
Payments to suppliers and employees(6,436)(5,803)
Taxes (paid) / refunded(16)13
Interest paid on operating leases(32)(22)
Net cash from operating activities before increase in funds
due to customers and IRD
212,1661,475
Increase in funds due to customers and IRD
21
4,3261,240
Net cash from operating activities176,4922,715
Cash flows used in investing activities
Funds on term deposit(1,200)(500)
Investment in intangible assets(1,629)(1,066)
Purchases of property, plant and equipment
(35)(113)
Net cash used in investing activities (2,864)(1,679)
Cash used in financing activities
Loan repayments
(650)-
Repayments of principal portion of lease liability
(127)(122)
Interest paid on borrowings
(20)(75)
Net cash used in financing activities (797)(197)
Net increase in cash and cash equivalents 2,831839
Cash and cash equivalents at beginning of the period
9,5128,673
Cash and cash equivalents at end of the period12,3439,512
The above statement should be read in conjunction with the accompanying notes.
Notes to the Consolidated Financial
Statements
For the year ended 31 March 2025
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 consolidated financial statements for the Company and its subsidiaries (the "Group") for the year ended 31 March
2025 were authorised in accordance with a resolution of the directors for issue on 20 May 2025 and are audited.
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”)
• in accordance with New Zealand equivalents to International Financial Reporting Standards (“NZ IFRS”) and other
applicable Financial Reporting Standards, as appropriate for profit oriented entities
• in accordance with International Financial Reporting Standards (“IFRS”)
• in accordance with the requirements of the Financial Markets Conduct Act 2013;
• 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.
b. Accounting standards that are issued but not yet effective
NZ IFRS 18 Presentation and Disclosure in Financial Statements
In May 2024, the New Zealand External Reporting Board (XRB) issued NZ IFRS 18 Presentation and Disclosure in Financial
Statements (effective for annual reporting periods beginning on or after 1 January 2027). This standard replaces NZ IAS 1
Presentation of Financial Statements and primarily introduces a defined structure for the statement of comprehensive
income and disclosure of management-defined performance measures (a subset of non-GAAP measures) in a single
note together with reconciliation requirements. It also includes enhanced principles on aggregation and disaggregation
which apply to the primary financial statements and notes in general. The Company is yet to adopt this standard and is in
the process of assessing its impacts particularly with respect to the structure of the Company's statement of profit or
loss, and the additional disclosures required for management performance measures. However, there will be no impact
on the Company's net profit.
3839
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
c. Basis of consolidation
The Group financial statements incorporate the financial statements of the Company and its subsidiaries as at 31 March
2025. All subsidiaries are wholly owned and controlled by the Company as at 31 March 2025 and have a reporting date of
31 March 2025 (note 20).
All transactions and balances between the Group are eliminated on consolidation. Amounts reported in the financial
statements of subsidiaries have been adjusted where necessary to ensure consistency with the accounting policies
adopted by the Group.
d. Foreign currency translation
Functional and presentation currency
Items included in the consolidated financial statements of the Group's entities are measured using the currency of the
primary economic environment in which the entity operates (New Zealand). The consolidated financial statements are
presented in New Zealand dollars ($), which is the Group's functional and presentation currency.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates
of the transactions or valuation where items are re-measured.
e. Goods and Services Tax (GST)
All revenue and expense transactions are recorded exclusive of GST. Assets and liabilities are similarly stated exclusive of
GST, with the exception of receivables and payables, which are stated inclusive of GST.
f. Leases
Lease liabilities are initially measured at the present value of the remaining lease payments, discounted at the Group’s
incremental borrowing rate. Subsequently, the carrying value of the liability is adjusted to reflect interest and lease
payments made.
PaySauce re-measured the right-of-use asset and corresponding lease liability for the property lease at 85 The
Esplanade, Petone during the period.
3. Use of critical accounting estimates and judgements
The preparation of the 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 estimates and judgements used in applying accounting policies that have the most significant
effect on the amounts recognised in the consolidated financial statements are included below and in the following notes:
• Intangible Assets (Note 8)
• Tax Expense (Note 10)
4. Operating revenue
20252024
$000s$000s
Revenue from contracts with customers
• Processing fees6,3225,370
• Other services revenue7164
Revenue from other sources
• Interest income2,3432,220
• Other revenue25963
Total operating revenue8,9957,717
There are no significant estimates or judgements surrounding recognition of revenue.
Revenue from contracts with customers
Processing fees
Revenue from processing fees includes both fixed and incremental components based on the number of employees and
pays processed for the customer. Revenue is recognised at the point in time the service is provided, which is when the
customer’s payroll has been paid to customers’ employees.
Other services revenue
Revenue from sales of digital contracts are recognised when the customer has used the service. Revenue is recognised at
the point in time the service is provided, which is when the customer uses the contract builder application.
Revenue from other sources
Interest income
Interest income is earned on all funds held on behalf of customers, including net wages payable to customers’ employees
and PAYE and other deductions payable to the IRD (see note 21). The interest earned on these customers’ funds is
determined to be operating revenue by the Group. Interest income is accrued using the effective interest rate method.
Other revenue
Other revenue is recognised upon completion of services at a point in time.
4041
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
5. Employee expenses
20252024
$000s$000s
Employee benefits/entitlements4,3153,712
Employee benefits/entitlements - share-based payments663582
Fringe benefit tax2622
Other employee expenses72154
Total employee expenses5,0764,470
Short term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service
is provided.
Employee expenses above contain research and development expenditure of $0.976 million for the year ended 31 March
2025 (2024: $0.764 million).
6. Other expenses
20252024
$000s$000s
Advertising, PR and marketing311256
Audit fees8279
Communications and subscriptions331302
Customer and transactional691550
Other overheads678538
Infrastructure and security343250
Travel80111
Total other expenses2,5162,086
Other expenses above contain research and development expenditure of $0.192 million for the year ended 31 March 2025
(2024: $0.170 million).
7. Property, plant and equipment
Right-of-use
Asset (Property)
Office
Equipment
Leasehold
Improvements
Computer
Equipment
Total
Year ended 31 March 2025$000s$000s$000s$000s$000s
Opening net book value
20386280371
Additions
1677-33207
Disposals
-(2)-(2)(4)
Depreciation
(141)(21)(2)(58)
(222)
Closing net book value
22970-53352
As at 31 March 2025
Cost
4931444236877
Accumulated depreciation
(264)(74)(4)(183)(525)
Net book value
22970-53352
Right-of-use
Asset (Property)
Office
Equipment
Leasehold
Improvements
Computer
Equipment
Total
Year ended 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
203
86280371
As at 31 March 2024
Cost
3421534242741
Accumulated depreciation
(139)(67)(2)(162)(370)
Net book value
20386280371
Items of computer, office equipment, leasehold improvements are measured at cost less accumulated depreciation and
accumulated impairment losses.
Cost includes expenditure that is directly attributable to the acquisition of the asset. Purchased software that is integral
to the functionality of the related equipment is capitalised as part of that equipment.
Any gain or loss on disposal of an item of property, plant and equipment is recognised in profit or loss within the
Statement of Comprehensive Income.
4243
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
Depreciation is recognised in profit or loss on a straight line basis over the estimated useful lives of each item of
equipment. Depreciation methods, useful lives and residual values are reviewed at each reporting period and adjusted
if appropriate. The depreciation rates for the current and comparative years of significant items of property, plant and
equipment are as follows:
Right-of-use asset 20 - 50%
Office equipment 8.5 - 67%
Leasehold improvements 50%
Computer equipment 40%
The carrying values of property, plant and equipment are reviewed annually for impairment when events or changes in
circumstances indicate the carrying value may not be recoverable.
8. Intangible assets
Development in
progress
Computer
Software
Customer
Relationships
Total
Year ended 31 March 2025$000s$000s$000s$000s
Opening net book value97212741532,399
Additions85--85
Development costs recognised as an asset1,544--1,544
Development in progress recognised as Software(1,061)1,061--
Asset impairment(53)(21)-(74)
Amortisation-(524)(71)(595)
Closing net book value1,4871,790823,359
As at 31 March 2025
Cost1,4873,5393545,380
Accumulated amortisation-(1,749)(272)(2,021)
Net book value1,4871,790823,359
Development in
progress
Computer
Software
Customer
Relationships
Total
Year ended 31 March 2024$000s$000s$000s$000s
Opening net book value7999862242,009
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 value9721,2741532,399
As at 31 March 2024
Cost
9722,6283543,954
Accumulated amortisation-(1,354)(201)(1,555)
Net book value9721,2741532,399
Finite life intangible assets
Acquired computer software licences and costs associated with developing computer software are capitalised on the
basis of the costs incurred to acquire and bring the specific software into use. All intangible assets of PaySauce are finite
life intangible assets.
Development expenditure initially recognised as an expense is not recognised as an asset in subsequent periods.
Costs associated with maintaining computer software programs are recognised as an expense as incurred. Where
development activities result in the replacement of previously capitalised functionality, the associated development
costs are classified as maintenance activity and accordingly expensed, unless the previously capitalised functionality has
been fully amortised.
Developed and acquired software is measured at cost less accumulated amortisation and impairment losses, if any.
Amortisation is recognised in the Statement of Comprehensive Income on a straight-line basis over no more than 5 years.
The remaining useful life of each asset is reviewed at least annually and the period of amortisation amended accordingly.
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.
4445
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
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 31 March 2025, 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.
Indicators of impairment were identified for one of the assets that was no longer expected to be utilised. Upon
assessment of the recoverable amount of the asset, it was determined that an impairment of $0.021 million be
recognised (2024: $Nil).
Development in progress has been tested for impairment by reviewing the nature of the events that originally gave rise
to the recognition of the asset, the estimation of future generation of cash flows and any anticipated changes to the
business or product circumstances.
Indicators of impairment were identified for development in progress assets during the year, with some assets in this
category no longer expected to be completed. Upon assessment of the recoverable amount of the development in
progress assets, it was determined that an impairment of $0.053 million be recognised (2024: $0.228 million).
9. Finance Costs
20252024
$000s$000s
Interest paid2075
Finance cost - Interest on lease3222
Total finance costs5297
10. Tax expense & deferred tax
20252024
(a) Income tax$000s$000s
Net profit before tax for the period460190
At the New Zealand statutory income tax rate of 28%12953
Non-deductible expenditure (permanent differences)(53)42
Prior period adjustments (temporary differences)(25)18
Recognition/(utilisation) of tax losses(50)(113)
Deferred tax adjustments
• Reversal of temporary differences(102)20
• Recognition of tax losses carried forward as deferred tax asset3221,022
Income tax benefit2211,042
Tax expense comprises current and deferred tax. Current tax and deferred tax is recognised in profit or loss except to the
extent that it relates to a business combination, or items recognised directly in equity or in other comprehensive income.
20252024
(b) Deferred tax assets & liabilities$000s$000s
Opening deferred tax assets1,022-
Recognised in profit or loss
• Lease liabilities71-
• Provisions and accruals96-
• Unused tax losses3231,022
Closing deferred tax assets1,5121,022
Opening deferred tax liabilities4362
• Recognised in profit or loss
• Intangible assets(20)(20)
• Right of use asset64-
• Share-based payments65-
• Software assets160-
Closing deferred tax liabilities31243
Net deferred tax asset / (liability)1,200979
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for
financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for:
• temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business
combination and that affects neither accounting nor taxable profit or loss;
• temporary differences related to investments in subsidiaries and jointly controlled entities to the extent that it is
probable that they will not reverse in the foreseeable future; and
• taxable temporary differences arising on the initial recognition of goodwill.
The Group has recognised deferred tax assets in accordance with the key estimates and judgements below.
Key estimates and judgements
The Group holds tax losses of $8.346 million as at 31 March 2025 (2024: $8.523 million) available to carry forward, subject
to shareholder and business continuity being maintained. Deferred tax assets are only recognised to the extent that it is
probable that future taxable profits will be available to use against the asset. These are reviewed at each reporting period
and adjusted if appropriate. Management has adjusted the deferred tax asset as at 31 March 2025 to $1.344 million,
representing tax losses of $4.802 million converted at the company tax rate of 28%. Tax losses carried forward but not
yet recognised as deferred tax assets therefore total $3.543 million as at 31 March 2025.
4647
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
11. Earnings per share
20252024
Basic earnings per share
Net profit used in calculating earnings per share ($000s)6811,232
Weighted average number of ordinary shares for basic earnings per share141,956,883139,739,655
Basic earnings per share (cents)0.480.88
There are no financial instruments on issue that will dilute the basic earnings per share amounts for the year ended 31
March 2025.
Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Company by the
weighted average number of fully paid up ordinary shares on issue during the period.
12. Share capital
DateDetailsWeighted Average price
(cents per share)
Number of
Shares
$000s
1 April 2024Opening Balance140,982,14613,659
Issue of shares relating to employee
share schemes
0.22702,003,161460
Other share-based payments0.2180183,51940
31 March 2025Closing Balance143,168,82614,159
DateDetailsWeighted Average price
(cents per share)
Number of
Shares
$000s
1 April 2023Opening Balance139,207,93513,212
Issue of shares relating to employee
share schemes
0.25531,630,846412
Other share-based payments0.2436143,36535
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 (2024: None).
Capital Risk Management
The Group considers its capital to comprise its fully paid up, ordinary share capital and accumulated retained earnings.
When managing capital, management's objective is to achieve optimal long term capital returns to shareholders and
benefits for other stakeholders. Management also aims to maintain a capital structure that ensures the lowest cost of
capital available to the Group.
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.
20252024
$000s$000s
Directors’ fees230191
Short term employee benefits1,4341,128
Share-based payments387303
Total key management personnel compensation2,0511,622
Director fees pool
The maximum aggregate amount of remuneration payable in respect of all Directors’ fees, based on the current number
of Directors is $230k 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.
4849
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
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:
20252024
Related party transactions during the period$000s$000s
Cloud hosting services supplied by entities controlled by related parties
Catalyst.Net Limited
20-
Catalyst Cloud Limited3101
20252024
Related party balances payable at period end$000s$000s
Directors' Fees3536
Cloud Hosting Services-4
14. Financial instruments
The Group’s financial assets mainly comprise of Cash and Cash Equivalents and Term Deposits. Cash and Cash
Equivalents is comprised of cash on hand. Term Deposits are measured at amortised cost. Cash and Cash Equivalents
and Term Deposits includes funds collected from customers as a PAYE intermediary (note 21).
Classification and measurement of financial liabilities
The Group’s financial liabilities include trade and other payables, funds due to customers and IRD, other liabilities
(including an overdraft facility used to operate our BNZ PayNow feature).
Financial liabilities are initially measured at fair value, and, where applicable, adjusted for transaction costs. Subsequently,
financial liabilities are measured at amortised cost using the effective interest method.
Categories of Financial Assets & Liabilities
The carrying amounts presented in the statement of financial position relate to the following categories of assets and
liabilities.
20252024
Financial assets$000s$000s
Financial assets at amortised cost
Cash and cash equivalents309603
Cash and cash equivalents - customer funds12,0348,909
Term deposits25,90024,700
Trade and other receivables181173
Total financial assets38,42434,385
20252024
Financial liabilities$000s$000s
Financial liabilities at amortised cost
Funds due to customers and IRD37,93533,609
Trade and other payables427321
Other liabilities434390
Interest bearing liabilities-650
Total financial liabilities38,79634,970
The Group is exposed to a variety of financial risks. The financial risks arise from the business activities of the Group. The
specific financial risks that the Group is exposed to are discussed below.
a. Credit risk
As a SaaS business with minimal credit exposure, credit risk is relatively low relating to revenue received from customers
and any associated trade receivables. For other financial assets (including cash and bank balances), the Group minimises
credit risk by dealing exclusively with high credit rating counterparties.
(i) Credit risk concentration profile
The Group manages credit risk by placing its cash and short term investments with high quality financial institutions. The
majority of the Cash and Cash Equivalents are held with ASB Bank, BNZ and Kiwibank, which hold the following credit
ratings:
Credit Ratings Standard &
Poors Rating
Fitch
Rating
Moody's
Rating
ASB BankAA-A+Aa3
BNZAA-A+A1
KiwibankNot ratedAAA1
5051
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
(ii) Exposure to credit risk
As the Group does not hold any collateral, the maximum exposure to credit risk is represented by the carrying amount of
the financial assets as at the end of the reporting period.
b. Liquidity risk
Liquidity risk arises mainly from business activities. The Group manages liquidity risk by ensuring cash flow is planned
ahead of time, and funding is planned and organised when required, to ensure the Group will be able to meet its financial
obligations. The following table sets out the maturity profile of the financial liabilities as at the end of the reporting period
based on contractual undiscounted cash flows (including interest payment computed using contractual rates or, if
floating, based on the rate at the end of the reporting period):
Carrying
amount
Total0-6
months
7-12
months
1-2
years
2-5
years
Year ended 31 March 2025$000s$000s$000s$000s$000s$000s
Funds due to customers and IRD37,93537,93537,935---
Trade and other payables427427427---
Other liabilities434434434---
Lease liabilities252252687210012
Total39,04839,04838,8647210012
Carrying
amount
Total0-6
months
7-12
months
1-2
years
2-5
years
Year ended 31 March 2024$000s$000s$000s$000s$000s$000s
Funds due to customers and IRD33,60933,60933,609---
Trade and other payables321321321---
Other liabilities390390390---
Lease liabilities21221270634237
Interest bearing liabilities650662662---
Total35,18235,19435,052634237
c. Interest rate risk
PaySauce’s interest rate risk arises from the interest that it earns from its cash and cash equivalents. These funds are
subject to variable interest rates that expose PaySauce to cash flow interest risk rate. PaySauce does not currently use
any derivative products to manage interest rate risk.
As at balance date, $1.7 million of funds held in term deposits were subject to interest periods of greater than 12 months.
An analysis of the sensitivity of the Group’s earnings due to movements in interest rates is shown below:
20252024
Effect on net profit before tax$000s$000s
Cash and cash equivalents and term deposits
Each 100 basis point increase in interest rate362335
Each 100 basis point decrease in interest rate(362)(335)
The above information is calculated by applying the effective movement to the average balance of cash and cash
equivalents and term deposits. Cash and cash equivalents and Term Deposits totalled $38.15 million as at 31 March 2025
(2024: $34.21 million).
15. Interest bearing liabilities
The Group repaid the BNZ loan of $0.65m in full on 20 June 2024 in line with the revenue based funding agreement.
The group entered into a new agreement on 14 June 2024 for an overdraft facility of $0.35m.
The Group is required to maintain an interest coverage ratio of 3 or more, and is tested at the end of each financial quarter.
The funding is also provided on the basis that no dividend be paid out during the term of the facility.
The overdraft is secured over all present and acquired property of the Group.
As at 31 March 2025 the overdraft facility carried an interest rate of 8.88%, which includes a 2.5% fixed component.
20252024
$000s$000s
BNZ Term Loan-650
Total interest bearing liabilities-650
16. Fair values of financial assets and liabilities
The carrying values of short term financial assets and liabilities approximate their fair values. Short term financial assets
include cash, trade and other receivables and related party receivables.
5253
FINANCIAL STATEMENTSFINANCIAL STATEMENTSFINANCIAL STATEMENTS
17. Reconciliation of net profit after tax to net cash flows from operations
20252024
$000s$000s
Net profit after taxation6811,232
Add back non-cash & non-operating items:
Depreciation & amortisation817646
Asset impairments & loss on disposal of fixed assets74232
Share-based payment expense445418
Other non-cash & non-operating items20(948)
Total non-cash & non-operating items:2,0371,580
Movement in working capital:
(Increase)/decease in Trade and other receivables(8)(49)
(Increase)/decease in Other assets(63)182
Increase in Funds due to customers and IRD4,3261,240
Increase/(decrease) in Trade and other payables124(229)
Increase/(decrease) in Employee benefits 32(54)
Increase in Other liabilities4445
Total movements in working capital4,4551,135
Net cash inflow from operating activities6,4922,715
18. 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.
Employee share scheme expenses for the year ended 31 March 2025 are as follows:
To t a l
For the year ended 31 March 2025$000s
FY25 ESS582
Legacy ESS & other share-based payments121
Total share-based payment expense703
To 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.
Share-based payment reserve
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 year ended 31 March 2025 are
as follows:
DateDetails$000s
1 April 2024Opening Balance212
FY25 ESS - expensed375
FY24 & FY25 ESS - shares issued(318)
Legacy ESS & other share-based payments - expensed70
Legacy ESS & other share-based payments - shares issued(181)
31 March 2025Closing Balance158
DateDetails$000s
1 April 2023Opening Balance242
FY24 ESS - expensed
286
FY24 ESS - shares issued(173)
Legacy ESS & other share-based payments - expensed101
Legacy ESS & other share-based payments - shares issued(244)
31 March 2024Closing Balance212
5455
FINANCIAL STATEMENTSFINANCIAL STATEMENTSFINANCIAL STATEMENTS
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.
Share-based payment liabilities
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:
20252024
Share-based payment liabilities$000s$000s
Current8291
Total share-based payment liabilities8291
The employee liabilities in the consolidated statement of financial position also include other employee entitlements
such as accrued leave.
19. Segment reporting
The Group is organised into one reportable operating segment only, being SaaS based employment and payment
solutions for people at work in 14 jurisdictions across the Asia-Pacific region, primarily within New Zealand. Providing
employers the technology to digitally onboard, pay and manage employees from any device. The PaySauce platform
includes rosters, mobile timesheets, payroll calculations, banking integration, automated payments, PAYE filing, labour
costing, automated general ledger entries and digital employment contracts. The chief operating decision maker has
been identified as the Board of Directors, as it makes all key strategic resource allocation decisions (such as those
concerning acquisition, divestment and significant capital expenditure).
Overseas revenue earned is not material and no separate geographical segment has been reported.
20. Investments in subsidiary
The Company had the following subsidiaries at 31 March 2025:
Entity NameDate of
incorporation
Nature of
business
Equity
held (%)
Value
held ($)
Country of
incorporation
Balance
date
PaySauce Operations
Limited
07/01/2015SaaS
Employment
Solutions
100309,278New Zealand31 March
Right Remuneration
Limited
22/01/2015PAYE
Intermediary
100-New Zealand31 March
Payroll.Kiwi Limited01/08/2017Employee
Share Scheme
Bare Trustee
100-New Zealand31 March
PaySauce Pty Limited08/02/2023SaaS
Employment
Solutions
100-Australia31 March
Only PaySauce Operations Limited, Right Remuneration Limited and PaySauce Pty Limited are consolidated in these
consolidated financial statements, as Payroll.Kiwi Limited is a non-trading company.
21. 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.
22. Contingencies
As at 31 March 2025 the Group had no contingent liabilities or assets (2024: $nil)
23. Events occurring after the reporting period
No adjusting or significant non-adjusting events have occurred between the reporting date and the date of authorisation.
5657
CORPORATE GOVERNANCECORPORATE GOVERNANCE
Corporate
Governance
Strong corporate governance protects the Company and as a
result our shareholders, customers, staff, and stakeholders. Our
approach to the recommendations outlined in the NZX Corporate
Governance Code (the Code) are set out below.
This section is structured around the principles detailed in the Code, and explains how PaySauce is
applying the Code’s recommendations. PaySauce documents referred to in this section are also
available online at https://www.paysauce.com/investor/
The Board considers that, as at 20 May 2025, the Company complied with the recommendations
set by the NZX Corporate Governance Code dated 31 January 2025, unless stated in the sections
outlined below, or in PaySauce’s Corporate Governance Code.
Principle 1 – Code of ethical behaviour
“Directors should set high standards of ethical behaviour, model this behaviour
and hold management accountable for these standards being followed
throughout the organisation.”
Code of ethics
Our code of ethics exists to help our directors, senior management, and employees with not just doing well, but doing
good.
This sets the standard of conduct for all our people. It's intended to support decision-making that aligns with PaySauce's
values, business goals, and legal and policy obligations. The board approves the code of ethics, which covers:
• conflicts of interest
• accepting gifts or benefits
• protecting company assets
• complying with laws and policies
• maintaining confidentiality
• valuing personnel
• transparency
All new directors and employees receive a copy of the code of ethics.
Securities trading policy
PaySauce respects the integrity of New Zealand’s financial markets and insider trading laws. Our securities trading policy
outlines how those laws apply, and the rules we've put in place to help ensure our people follow the law.
Directors, certain employees, and related parties need approval from PaySauce to trade in the company’s shares. Trading
is limited to defined “trading windows”.
The directors’ shareholdings and trading of shares during the year by the directors is published under Directors’
disclosures. A director or senior manager must advise the NZX promptly if they trade in the company’s shares.
Principle 2 – Board composition and performance
“To ensure an effective board, there should be a balance of independence, skills,
knowledge, experience”
The board of directors
The directors are responsible for the corporate governance practices of the company. The board's practices are detailed
in the Company’s corporate governance code, which lays out protocols for board operations.
This code complies with the relevant recommendations in the NZX Corporate Governance Code, and is reviewed
annually.
The board’s primary role is to represent and promote the interests of shareholders, ultimately adding long-term value to
the company’s shares.
5859
CORPORATE GOVERNANCECORPORATE GOVERNANCE
The board carries out its responsibilities according to the following mandate.
• the Board shall have a minimum number of three directors and a maximum of 10;
• the Board shall have at least two directors ordinarily resident in New Zealand;
• the Board shall maintain at least two Independent Directors (as defined in the NZX Main Board Listing Rules). Where
there are eight or more directors, the board will maintain three or one-third (rounded down to the nearest whole
number) of the total number of directors, whichever is the greater;
• a majority of the directors should not be executives of the Company;
• a director should not have any significant conflict of interest that is potentially detrimental to the Company, other
than and to the extent dealt with in the Corporate Governance Code of the Company;
• the Board seeks diversity in the skills, attributes and experience of its members across a broad range of criteria, to
represent the diversity of shareholders, business types and regions in which the Company operates; and
• the Board elects a Chair, and can replace them at any time.
• Management must provide the board with accurate information within the timeframe required for the board to
effectively discharge its duties.
• The effectiveness and performance of the board and its individual members should be re-evaluated annually.
As at 31 March 2025 the Board comprised of six Directors:
• Asantha Wijeyeratne – Executive Director and CEO
• Gavin Thompson – Non-Executive Director
• Michael O’Donnell – Independent Director
• Shelley Ruha – Independent Director (Chair of Board)
• Mark Samlal – Independent Director
• Jim Sybertsma – Independent Director (Chair of Audit & Risk Committee)
Independence of directors is determined by assessing the directors against the following factors:
• Not currently, or historically (within 3 years) employed in an executive role with PaySauce;
• Not currently holding a senior role in a provider of material professional services to PaySauce;
• No current material business relationship (i.e. as a supplier or customer) to PaySauce;
• Not currently a substantial product holder of PaySauce or a senior manager of a product holder of PaySauce;
• No current material contractual relationship with PaySauce, other than as a director;
• No close family ties with anyone who would fall into the above categories;
• Has not been a director of PaySauce for a length of time that may compromise independence.
More information on the directors, including their relevant interests, and shareholdings, is provided in the Directors’
disclosures section of this report and is on the company’s website.
Day-to-day management of PaySauce is delegated to the Chief Executive and the Executive team.
The board’s responsibilities
The primary responsibilities of the board are to:
• provide overall governance and strategic leadership;
• oversee management’s implementation of the Company’s strategic objectives and performance;
• oversee the development, adoption and communication of a clear strategy for the Company;
• oversee accounting and reporting systems and ensure the quality and independence of the Company’s external
audit process;
• adopt and regularly review the risk management framework;
• appoint a Chair of the Board and the CEO;
• review and approve the Company’s operating budgets and major capital expenditure;
• adopt and review the Company’s remuneration policy and other corporate governance documents;
• ensure compliance with the Company’s constitution, continuous disclosure obligations, and the relevant laws, listing
rules and regulations and auditing and accounting principles;
• implement and periodically review the Company’s Code of Ethics, foster high standards of ethical conduct and
personal behaviour and hold accountable those who engage in unethical behaviours;
• periodically assess its own effectiveness in carrying out these functions and the other responsibilities of the Board.
On appointment to the board by the shareholders, new directors sign a written agreement that covers the terms of their
appointment.
Every year, the board and sub-committees critically evaluate their own performance and processes. This will identify any
training opportunities for individual directors to maintain relevant and up-to-date skills for their role.
Independent professional advice
With the prior approval of the Chair, each director may seek independent legal and professional advice, at the company’s
expense, about any aspect of PaySauce's operations to assist in fulfilling their duties as a director.
Diversity
The PaySauce board and management are determined that all staff and all eligible candidates for vacant positions should
have equal opportunity to demonstrate their skills and experience. This forms the basis of our diversity policy.
PaySauce embraces uniqueness in our people and welcomes diversity. We believe that difference builds resilience and
innovation. We encourage our employees to be curious and open-minded, embracing wide-ranging perspectives and
working to meet the needs of individuals.
Our approach to diversity is to continually develop a work environment that supports equality, exchange and inclusion.
We believe in accommodating, rather than minimising, the different needs of our people.
The Board has considered the need for measurable objectives for diversity and determined that it is not yet appropriate
to set measurable objectives due to market conditions and the stage of the company's development. That decision will
be reconsidered annually. When appropriate the Board, or a committee appointed by the Board, will set measurable
objectives for achieving diversity (which, at a minimum, will address gender diversity). The Board will annually review those
objectives and the Company’s progress in achieving them. Despite being a small team, there is diversity across age,
gender identity, race, first language, religion and mobility.
6061
CORPORATE GOVERNANCECORPORATE GOVERNANCE
We held the following gender diversity as at 31 March 2025:
As at 31 March 2025
DirectorsExecutive TeamEmployees
Male
5
2
20
Female
1225
Total
6445
As at 31 March 2024
DirectorsExecutive TeamEmployees
Male
5
4
18
Female
1223
Total
6641
Principle 3 – Board committees
“The board should use committees where this will enhance its effectiveness in key
areas, while still retaining board responsibility.”
Audit and Risk Committee
The Audit and Risk Committee (“ARC”) assists the board in financial reporting, and risk and financial/secretarial
compliance.
The ARC makes recommendations to the board on appointing external auditors to ensure their independence. The ARC
also monitors 5-yearly rotation of the lead audit partner.
The ARC facilitates communication between the board and external auditors. The committee’s responsibilities include:
• reviewing the appointment of the external auditor, the annual audit plan, and addressing auditor recommendations
• reviewing publicly released dividend proposals and financial information
• ensuring that appropriate financial systems and internal controls are in place.
The ARC must include at least three directors, and consist of only non-executive directors and have a majority of
independent directors. At least one member must be a director with an accounting or financial background.
The Chair of the Board cannot also be the Chair of the ARC. The current members are Jim Sybertsma (Chair), Michael
O’Donnell, and Gavin Thompson, of which Jim, and Michael are independent directors.
The committee usually invites the Executive Team, and at least twice a year invites the external auditors to attend ARC
meetings.
Principle 4 – Reporting and disclosure
“The board should demand integrity in financial and non-financial reporting, and in
the timeliness and balance of corporate disclosures.”
Reporting and disclosure
The board is committed to providing accurate, thorough, and timely information to existing shareholders and to the
market. This means all investors can make informed decisions about PaySauce.
As an NZX listed company, PaySauce must comply with disclosure requirements under the NZX Main Board Listing Rules.
PaySauce recognises the importance of these requirements in providing equal access for all investors, or potential
investors, to price-sensitive information.
The disclosure and communications policy outlines PaySauce's obligations to meet disclosure requirements. It also
covers related issues, including external communications.
PaySauce has not provided detailed reporting on environmental, economic and social sustainability risks. Whilst
PaySauce is not yet captured by the mandatory climate risk disclosure reporting regime, management does not consider
the business has material exposure to climate risk given the nature of our business and the increasing diversification of our
customer base.
PaySauce publishes key governance and other relevant documents in the investor centre of our website:
https://www.paysauce.com/investor/
Announcements made to the NZX and reports are also posted on the company’s website.
Principle 5 – Remuneration
“The remuneration of directors and executives should be transparent, fair and
reasonable.”
The board is responsible for setting individual directors’ fees, and monitoring the remuneration of the Chief Executive and
Executive Team.
PaySauce has in place a remuneration policy, outlining the key principles that influence remuneration practices. This can
be found in the Company’s Corporate Governance Code, located on the Company’s website (at the date of this report,
located in section 15 of the Company’s Corporate Governance Code at
https://www.paysauce.com/investor/).
Further details and disclosures are outlined in the disclosures section of this document.
Principle 6 – Risk management
“Directors should have a sound understanding of the material risks faced by
the issuer and how to manage them. The board should regularly verify that the
Company has appropriate processes that identify and manage potential and
material risks.”
The board is responsible for overseeing internal controls to manage key risks, and has overall responsibility for managing risk.
The company maintains a risk register to identify and manage risk. The Executive Team is responsible for maintaining this
register, and reporting to the board on a regular basis.
Through the ARC, the board considers the recommendations of external auditors. The board sees that those
recommendations are investigated and appropriate action is taken, where necessary.
6263
CORPORATE GOVERNANCECORPORATE GOVERNANCE
Principle 7 – Auditors
“The board should ensure the quality and independence of the external audit
process.”
The Audit and Risk Committee (“ARC”) makes recommendations to the board to appoint an external auditor. The
committee also monitors the independence and effectiveness of the external auditor, and reviews and approves any
non-audit services they perform.
The committee meets with the external auditor at least twice a year to approve the terms of engagement, audit partner
rotation (at least every 5 years) and audit fee, and to review and provide feedback on the annual audit plan.
The committee routinely meets with PaySauce’s external auditor, Grant Thornton, without management present. Grant
Thornton also attends PaySauce's ASM.
The company continually monitors its internal control environment.
Principle 8 – Shareholder rights and relations
“The board should respect the rights of shareholders and foster constructive
relationships with shareholders that encourage them to engage with the issuer.”
Information for shareholders
The company seeks to help investors understand its activities, by communicating effectively and providing clear and
balanced information. In addition to interim and annual reporting, the company also chooses to release quarterly trading
updates to the market.
The company website (www.paysauce.com) provides an overview of the business and information about its activities.
This includes details of the company’s services, latest news, investor information, key corporate governance information,
and copies of significant NZX announcements. The website also provides profiles of the directors and the Executive Team.
Shareholders have the right to vote on PaySauce's major decisions, in line with the requirements of the Companies Act
1993 and the NZX Main Board Listing Rules.
Communicating with shareholders
PaySauce works to keep investors well informed, and regularly provides information about current operations and future
plans. This is achieved through our NZX market announcements and presentations to retail investors.
PaySauce sends notice of the ASM to shareholders, and publishes it on the company website at least 28 days before the
meeting each year.
Disclosures
Employee remuneration
The table below sets out the number of PaySauce Group employees and former employees who received remuneration
and other benefits, including non-cash benefits and share-based remuneration in excess of $100,000 per annum.
Director remuneration is not included in the table below, and instead set out in a separate section below.
Remuneration rangeEmployees - 2025Employees - 2024
$100,000 - $109,99922
$110,000 - $119,99942
$120,000 - $129,99932
$130,000 - $139,999
2
1
$140,000 - $149,999
2
-
$150,000 - $159,9991-
$160,000 - $169,999
3
3
$180,000 - $189,999
-
1
$190,000 - $199,999-1
$210,000 - $219,999
1-
$220,000 - $229,999
1
-
$240,000 - $249,999
1
-
$250,000 - $259,999
1
1
$300,000 - $309,999
-
1
$310,000 - $319,999
1
1
$330,000 - $339,999
1
-
$350,000 - $359,999
-
1
$450,000 - $459,999
1-
Donations
No cash donations were made by the Group during the year ended 31 March 2025 (2024: $Nil). Donations in kind of
$230,000 were given to 127 charities and non-profit organisations during the period (2024: $175,000, and 102).
6465
CORPORATE GOVERNANCECORPORATE GOVERNANCE
Board meeting attendance
Board meetings are held in person and/or by teleconference. The Directors attended the following board meetings
during the year ended 31 March 2025:
DirectorBoard Meetings AttendedARC Meetings Attended
Asantha Wijeyeratne9 of 9-
Gavin Thompson9 of 93 of 3
Michael O'Donnell7 of 93 of 3
Shelley Ruha9 of 9-
Mark Samlal9 of 9-
Jim Sybertsma9 of 93 of 3
Note - If a director was not a member of a particular committee at the time of the relevant meetings ‘-‘ has been
recorded.
Directors’ share transactions
Directors disclosed, pursuant to section 148 of the Companies Act 1993 and Part 5 of the Financial Markets Conduct Act
2013, the following acquisitions and disposals of relevant interest in PaySauce ordinary shares during the year ended 31
March 2025:
DirectorRegistered holder /
associated entity
Number of
shares acquired
/ (disposed)
ConsiderationDate
Asantha WijeyeratnePayroll.Kiwi Limited41,708$10,828Mar-25Discretionary bonus
paid and applied to
paying up unpaid
Employee Share
Scheme Shares
Asantha WijeyeratneCloud Investments
Limited
(419,158)$82,262Feb-25On-market sale of
shares
Asantha WijeyeratnePayroll.Kiwi Limited37,158$7,733Jan-25 Shares issued as part
of the FY25 Employee
Share Scheme
Mark SamlalMark Samlal48,054$10,000Jan-25Issued shares in lieu of
director remuneration
Asantha WijeyeratneCloud Investments
Limited
(46,194)$0 Dec-24Off-market sale of
shares - gifted for no
consideration
Asantha WijeyeratnePayroll.Kiwi Limited(153,806)$0 Dec-24Off-market sale of
shares - gifted for no
consideration
Asantha WijeyeratnePayroll.Kiwi Limited38,567$7,733Oct-24Shares issued as part
of the FY25 Employee
Share Scheme
Mark SamlalMark Samlal49,875$10,000Oct-24Issued shares in lieu of
director remuneration
Michael O'DonnellMichael O'Donnell10,308$2,595Jul-24 On-market purchase
of shares
Asantha WijeyeratnePayroll.Kiwi Limited32,179$7,733Jul-24 Shares issued as part
of the FY25 Employee
Share Scheme
Mark SamlalMark Samlal41,615$10,000Jul-24Issued shares in lieu of
director remuneration
Mark SamlalMark Samlal43,975$10,000Apr-24Issued shares in lieu of
director remuneration
Directors’ remuneration
The total Directors’ fees and other remuneration received by the Directors for the period ended 31 March 2024 is outlined
below:
31-Mar-2531-Mar-24
DirectorDirector feesOther
remuneration
TotalDirector feesOther
remuneration
Total
Asantha
Wijeyeratne
Nil$451,431$451,431Nil$358,826$358,826
Gavin Thompson$40,000Nil$40,000$40,000Nil$40,000
Jacqueline
Cheyne*
NilNilNil$24,375Nil$24,375
Michael
O'Donnell
$40,000Nil$40,000$40,000Nil$40,000
Shelley Ruha$65,000Nil$65,000$65,000Nil$65,000
Mark Samlal$40,000Nil$40,000$10,000Nil$10,000
Jim Sybertsma$45,000Nil$45,000$11,250Nil$11,250
*Jacqueline Cheyne resigned as an Independent Director and Chair of the Audit & Risk Committee, effective 30
September 2023.
6667
CORPORATE GOVERNANCECORPORATE GOVERNANCE
Executive Director remuneration
Asantha Wijeyeratne is the Chief Executive Officer, and held this position as at 31 March 2025. He did not receive any
remuneration in his capacity as a Director, but was remunerated as Chief Executive Officer as follows:
31-Mar-2531-Mar-24
CEO Remuneration
Asantha Wijeyeratne
Asantha Wijeyeratne
Salary
$336,963$305,576
Bonuses
$58,688-
Employee Share Scheme
$55,780$53,250
To t a l
$451,431
$358,826
Insurance of Directors and Officers
PaySauce has a Directors’ and officers’ liability insurance policy in place. This provides insurance for the liabilities of the
Directors and officers for acts or omissions in their capacity as Directors or employees. The insurance policies do not
cover dishonest, fraudulent, malicious, or wilful acts or omissions.
General Disclosures of Interest
Director/ExecCompanyNature of Interest
Asantha WijeyeratneBuzz Hospitality LimitedDirector
Catalyst IT LimitedShareholder
Cloud Investments LimitedDirector & Shareholder
Manuka Café LimitedDirector
Payroll.Kiwi LimitedDirector
PaySauce LimitedDirector & Shareholder
PaySauce Operations LimitedDirector
Right Remuneration LimitedDirector
Wijeyeratne & Co LtdDirector & Shareholder
Gavin ThompsonCatalyst Cloud LimitedDirector
Catalyst IT LimitedDirector & Shareholder
Catalyst.Net LimitedDirector
Catalyst IT Australia Pty LtdDirector
Catalyst IT Europe LtdDirector
PaySauce LimitedDirector & Shareholder
PaySauce Operations LimitedDirector
Truenet LimitedDirector
Michael O'DonnellPaySauce LimitedShareholder, Independent Director
Realestate.co.nz LimitedDirector
Radio New Zealand LimitedDirector
NZ Trade + Enterprise / G2GDeputy Chair
Serato Audio Research LimitedDeputy Chair
Stuff MediaNational Columnist
High Tech New ZealandTrustee
Sandfield SoftwareDirector
Tech Startup CouncilMember
Shelley RuhaAnaley Holdings LimitedDirector and Shareholder
IT & Business Consulting LimitedDirector
Analey Investments LimitedDirector and Shareholder
Heartland Bank LimitedIndependent Director
Partners Group Holdings LimitedIndependent Director
Partners Life LimitedDirector
PaySauce LimitedShareholder, Independent Chair
New Zealand Rural Land Management GP
Limited
Director
Allied Farmers LimitedIndependent Chair
Allied Farmers Rural LimitedDirector
LONZ 2008 Holdings LimitedDirector
Allied Farmers Property Holdings LimitedDirector
Rural Funding Solutionz LimitedDirector
QWF Holdings LimitedDirector
Allied Farmers (New Zealand) LimitedDirector
Clearwater Hotel 2004 LimitedDirector
6869
CORPORATE GOVERNANCECORPORATE GOVERNANCE
LONZ 2008 LimitedDirector
UFL Lakeview LimitedDirector
Lifestyles of New Zealand Queenstown
Limited
Director
5M No.2 LimitedDirector
ALF Nominees LimitedDirector
New Farmers Livestock Finance LimitedDirector
9 Spokes International LimitedIndependent Director
9 Spokes Trustee LimitedDirector
9 Spokes Knowledge LimitedDirector
9 Spokes US Holdings LimitedDirector
9 Spokes UK LimitedDirector
9 Spokes Australia LimitedDirector
9 Spokes US LimitedDirector
Smartpay HoldingsDirector
Mark SamlalPaySauce LimitedShareholder, Independent Director
MS&MS Pty LtdDirector
Pay AsiaManaging Director
Astute Corporation Pty LtdDirector
Managed Payroll Services Pty LtdDirector
Integrated Workforce Solutions PTY LtdDirector
IWS BOOKKEEPING AUSTRALIA PTY. LTDDirector
Payroll HQ Pty LtdDirector
Pay Asia Australia Pty LtdDirector
Pay Asia Pty LtdDirector
PayMY Outsourcing Sdn BhdDirector
Pay Asia LimitedDirector
Pay Asia HR Services Limited IncDirector
CONG TY TNH H PAY ASIA VIETNAMDirector
Pay Asia (Thailand) LimitedDirector
PT Payasia Konsultansi IndonesiaDirector
Payasia Company LimitedDirector
Pay Asia Management Private LimitedDirector
Payasia BPO Payroll India Private LimitedDirector
PAYGROUP NZ LIMITEDDirector
PayGroup (Shanghai) Human Resource Co.,
Ltd.
Director
PayGroup Pty LtdEmployee - Founder and CEO
PYG NXT 1 IncDirector
Jim SybertsmaPaySauce LimitedShareholder, Independent Director
Provident Insurance Corporation LimitedDirector
Autodrive Holdings LimitedDirector
RIMANUI FARMS LIMITEDAdvisory Board Member
Hawkesby Management LimitedChief Financial Officer
Note - In some cases, shareholding indicated above may not be held directly. Furthermore, there may be subsidiaries of
the above entities in which the Directors are also interested, without necessarily being a Director, Shareholder, or Officer
of that entity.
Director interests in shares
Directors held the following relevant interests in PaySauce ordinary shares at 31 March 2025:
DirectorSecurities held by Director or associated entity*
Asantha Wijeyeratne35,891,606
Gavin Thompson2,276,978
Michael O'Donnell97,835
Shelley Ruha275,877
Mark Samlal525,344
Jim Sybertsma74,650
*Whilst directors are not required to own shares as part of their directorships, all have chosen to own shares.
7071
CORPORATE GOVERNANCECORPORATE GOVERNANCE
Substantial product holders
The substantial product holders in PaySauce ordinary shares as at 31 March 2025 were as follows:
Substantial product holderShares held% of issued shares
Wijeyeratne & Co Limited27,750,43319.38%
Perpetual Trust Limited21,466,66714.99%
Gondolin Trust16,354,82611.42%
Cloud Investments Limited8,062,3075.63%
Adminis Custodial Nominees
7,830,8445.47%
Twenty largest equity security holders
The 20 largest holders of PaySauce ordinary shares as at 31 March 2025 were as follows:
RankShareholders/InvestorsShares held% of issued shares
1Wijeyeratne & Co Limited27,750,43319.38%
2Perpetual Trust Limited21,466,66714.99%
3Gondolin Trust16,354,82611.42%
4Cloud Investments Limited8,062,3075.63%
5Adminis Custodial Nominees
7,830,844
5.47%
6New Zealand Central Securities4,239,3572.96%
7New Zealand Depository Nominee3,540,7722.47%
8David Russell Stewart & Adrienne Ruth Stewart3,433,0002.40%
9Charlotte Anne Lockhart3,211,1832.24%
10Ian Stewart Frame & Pamela Anne Frame2,652,7651.85%
11Gavin Thompson2,276,9781.59%
12Woodward Family2,120,0001.48%
13Krishnakumar Guda1,870,0001.31%
14Bhagwanji Bhula Rama1,645,0001.15%
15Malcolm William Campbell1,515,0001.06%
16Hugh Anthony Pradeep Fernando1,471,1021.03%
17Cloud Investments Two Limited1,457,5571.02%
18Geoffrey Wiliam Bennett1,344,9540.94%
19Victoria Ann Taylor1,252,0210.87%
20Lim Family1,232,7950.86%
Spread of security holders
The spread of holders of PaySauce ordinary shares as at 31 March 2025 are listed below:
ShareholdersShares
Size of holding (shares)Number%Number%
1 - 10,00086472.48%1,580,7981.10%
10,001 - 50,00018815.77%4,464,3163.12%
50,001 - 100,000574.78%3,955,1322.76%
100,001 - 500,000534.45%10,619,5887.42%
500,001 - 1,000,00090.76%6,803,5104.75%
1,000,001 and over211.76%115,745,48280.85%
Totals1,192100.00%143,168,826100.00%
NZX waivers from listing rules
No waivers were granted to PaySauce by NZX during the year ended 31 March 2025, and there were no waivers that
PaySauce relied upon during this period.
7273
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
Investor Calendar
Annual Shareholders Meeting
September 2025
FY26 Half year
30 September 2025
FY26 Interim result announcement
November 2025
FY26 Year end
31 March 2026
Company Directory
Directors:
Asantha Wijeyeratne
Gavin Thompson
Jim Sybertsma
Mark Samlal
Michael O’Donnell
Shelley Ruha
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 Corporate Markets
Level 30, PwC Tower, 15 Customs St West,
Auckland CBD,
New Zealand
NZ Company Number:
1719868
NZBN:
9429034458099
74
FINANCIAL STATEMENTS
---
Results presentation
FOR THE YEAR ENDED 31 MARCH 2025
$
55.3
m
Total Customer Lifetime Value
Sep 21
Mar 22Mar 23Sep 22Sep 23Mar 24Sep 24
$60 M
$40 M
$20 M
$0 M
Mar 22Mar 23Mar 24Mar 25
$40 M
$20 M
$0 M
From Good
to Sauceome
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 Annual 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
- $206k year
on year improvement in
f ree cash flow
$
518
K
$
55.3
m
CLTV
Total Customer
Lifetime Value (CLTV)
grew 28% year on year
1 . before funds due to customers and IRD
Maintained profitability and substantially
increased free cashflow
Accelerated customer growth,
new customers up 17% year on year
Increased the value of our existing customer
base
Up 70%
YoY
Up 28%
YoY
Processing fees
Processing fee revenue
grew 18% year on year
$
6.3
m
Up 18%
YoY
EBTDA
Maintained positive
EBTDA - $0.3m year on
year improvement in
EBTDA
$
1.4
m
Up 27%
YoY
5
PaySauce
Delivering on our strategy
Loving our customers
• 94% Customer Satisfaction Score
• 99% response rate to calls within an hour, and 96% within
30 minutes
• Customer churn below 1% per month
Supercharge growth
• Increased brand awareness with additional investment
into Sales and Marketing campaigns
• Continued focus on building relationships with both new
and existing accountants
• New website build near completion - will optimise the
sign up process and accelerate customer growth.
Scalability
• System enhancements to optimise the journey for new
customers through automation.
• Upgrades to infrastructure - enhancing speed, security,
stability via AWS
• Tested demand for our solution in Australia
Supercharge
growth
Scalability
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’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.
Loving our
customers
We’re hyper-focused
on evolving the
user experience for
employers with 1-5 staff
in New Zealand, Australia
and the Pacific Islands.
6
PaySauce
Financial Results
Jaime Monaghan, CFO
7
PaySauce
Financial results
• Continued profitability from
the previous year’s result
and grew net profit before
deferred tax adjustments.
• Generated positive free
cash flow
3
of $0.5m -
enabling repayment of the
$0.65m term loan during
the period.
• PaySauce grew total
recurring revenue 14% year
on year - largely from an
increase in processing fees
(up $0.95m year on year).
• Gross margin grew 15%
year on year from higher
revenue and greater
efficiency.
FY 25 FY 24 Change
Processing Fees $6.32m $5.37m 18%
Interest Income$2.33m$2.20m 6%
Total recurring revenue $8.65m $7.57m 14%
Gross margin$6.71m$5.82m15%
Gross margin percentage78%77%1pp
Earnings / (Loss) before tax, depreciation
& amortisation (EBTDA)
$1.35m$1.06m$0.29m
Net profit before tax (NPBT)$0.46m$0.19m$0.27m
Net profit after tax (NPAT)
2
$0.68m$1.23m$0.55m
Free cash flow
3
$0.50m$0.30m$0.20m
2 Includes $0.32m recognised as a Deferred Tax Asset for prior losses carried forward (FY24: $1.02m)
3 excludes funds due to customers and the IRD, collected in performing our role as a PAYE intermediary
8
PaySauce
Results summary
• Revenue continued to outperform expenditure for the year
ended 31 March 2025 - delivering a net profit before tax of
$0.46m - an improvement of $0.27m on the previous year.
• Free cashflow (excluding movement of funds held on behalf of
customers) increased by $0.2m year on year to $0.5m for the
year to March 2025.
• This enabled PaySauce to repay the $650k BNZ Term Loan
during the period - refinancing with more favourable terms via a
bank overdraft facility of $350k. This facility was not drawn as at
31 March 2025, but remains available if needed.
4 excludes deferred tax income arising from the recognition of deferred tax from losses carried forward.
Profitability
4
Revenue Expenses
Free cash flow
(excluding funds held on behalf of customers)
Profitability
$10 M
$8 M
$5 M
$3 M
Mar 22Mar 23Mar 24Mar 25
RevenueExpenses
$0.50 M
$1.00 M
$0.00 M
-$0.50 M
-$1.00 M
-$1.50 M
Mar 22Mar 23Mar 24Mar 25
Free cash flow (excluding funds held on behalf of customers)
9
PaySauce
Revenue growth
• Recurring Revenue grew 14% to $8.65m for the
year ended 31 March 2025.
• Processing fees increased 18% year on year as
customer growth returned to double digits.
• Interest income increased 6% year on year.
• Growth in processing fees came from an 11%
increase in customer count, and a 6% increase
in ARPU from processing fees.
InterestProcessing Fees
Annualised Recurring Revenue
Mar 22Mar 23Mar 24Mar 25
$0 M
$2 M
$4 M
$6 M
$10 M
$8 M
Interest
Processing fees
14
%
$8.65m
$6.3m
$5.4m
$4.6m
$3.2m
$2.3m
$2.2m
$1.1m
$0.2m
10
PaySauce
Customer Acquisition
MAR
2025
MAR
2024
YOY
Change
CAC per addition58451015%
New customers1,7551,50217%
Customer acquisition costs
($000s)
1,02576634%
Percentage of Recurring
Revenue
12%10%2 pp
Recurring Revenue
MAR
2025
MAR
2024
YOY
Change
ARR at end of period ($000s)8,4628,0056%
Recurring revenue for the period -
Total ($000s)
8,6517,57014%
ARPU (monthly) at end of period ($)8691(5%)
FTEs48464%
Revenue per FTE ($000s)18716812%
Cost to Serve
MAR
2025
MAR
2024
YOY
Change
Recurring revenue ($000s)8,6517,57014%
Less cost to serve ($000s)(1,938)(1,747)11%
Gross margin ($000s)6,7135,82315%
Gross margin %78%77%1pp
CTS per customer (monthly) at
end of period ($)
1921(8%)
Customer Lifetime Value
MAR
2025
MAR
2024
YOY
Change
Customers at end of period8,2047,36811%
Average monthly churn rate for
the period (%)
0.991.18(16%)
Churned customers9191,009(9%)
LTV per customer at end of
period ($)
6,7475,89015%
Total customer LTV at end of
period ($m)
55.343.328%
LTV:CAC ratio at end of period12 : 112 : 1-
11
PaySauce
Customer metrics
• Total customer lifetime value increased 28% to
$55.3m due to an increases in both customers (to
8,204) and lifetime value to $6,747 per customer.
• Marketing investment targeted new customers
via brand awareness campaigns, increasing
the relative acquisition cost, and successfully
acquiring new customers.
• Processing fees per customer increased, but
reduced interest rates pulled the average
revenue per customer lower. NZ Official Cash
Rate (OCR) in March 2025: 3.75% (March 2024:
5.50%).
• Cost to serve each customer decreased
as PaySauce increase efficiency of serving
customers.
• Customer churn reduced below 1% per month,
increasing the implied customer lifetime.
CAC
$
584
15%
YOY
ARPU
$
86
5%
YOY
CTS
$
19
8% YOY
Customer
Lifetime
8.4
yrs
20% YOY
At 31 March 2025
Total customer
lifetime value
$
55.3m
28
% YOY
Customer
lifetime value
(CLTV)
$6,747 per
customer
CLTV
$
6,747
CLTV : CAC
12:1
Flat YOY
15% YOY
New customer joins
PaySauce
Customer acquisition
(CAC)
$584 per customer
Customer
generates revenue
Recurring revenue
(Monthly): $86 per
customer
Customer receives
support
Cost to serve (CTS)
(Monthly): $19 per
customer
Customer stays
with PaySauce
Customer lifetime
Average monthly churn
of
0.99%
12
PaySauce
Reinvest for long term growth
• PaySauce increased investment into research &
development by 29% year on year to $2.9m.
• Investment into the development team with several key
hires that led to improvements both with the structure
of the team, and the security of the product. Increasing
the speed in which PaySauce will be able to deliver future
product.
• Investment into the product team - enabling intensive
discovery, research, and planning in preparation for
bringing a new user experience to PaySauce’s payroll
ecosystem.
R&D investment
R&D Capitalisation
Mar 22Mar 23Mar 24Mar 25
$3.0 M
$2.0 M
$1.0 M
$0 M
MAR 2025 MAR 2024YOY Change
Research & development expensed ($000s)1,16893425%
Research & development impairment ($000s)74228(67%)
Research & development capitalised ($000s)1,6291,06653%
Total research and development costs ($000s)2,8712,22829%
Percentage of Recurring Revenue33%29%4pp
Capitalisation rate (salaries)61%56%5pp
13
PaySauce
Accelerated customer growth
• Diversifying broader than the rural sector into
the trades and construction.
• Building relationships with accountants
all around New Zealand, a key source of
customer referrals.
• Progress towards a payroll product that
leverages the full capability of our new Gen
2.0 payroll engine.
Our long-term success, and the driver of growing shareholder value, is linked to driving customer
growth. Delivering these customers the two things they expect from us - peace of mind with easy
pay runs and more time to run their business will allow us to continue to grow.
With the new partnerships we have established and technology developments in train, we are
well positioned to build on these successes with our existing customers and accelerate customer
recruitment both in New Zealand and offshore.
“
“
Total Customers
Mar 22Mar 23Mar 24Mar 25
10,000
7,500
5,000
2,500
Customers
14
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).
Earnings before tax, depreciation &
amortisation (EBTDA) 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.
15
PaySauce
85 The Esplanade, Petone,
Lower Hutt 5012, New Zealand
www.paysauce.com/investor
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