Investor presentation correction

PaySauce investor presentation correction

Lower Hutt, New Zealand - 21 May 2025

Software as a Service Fintech PaySauce (NZX: PYS) advises that it has made a
correction to the Company's Investor Presentation, released earlier today.

The correction is to the Free Cashflow number shown on the Highlights, in slide 5
of the presentation. The figure has been updated to $502k.

A copy of the updated presentation is attached and can be found on the
Company's website: https://www.paysauce.com/investor/#/news.

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 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
$
502
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