PaySauce Limited Analysis

Overview

PaySauce is a multiple award-winning cloud-based FinTech business, delivering Software as a Service payroll solutions to small and medium sized enterprises ("SMEs").

PaySauce has a particular focus on agricultural SMEs. PaySauce enables SME owners to pay staff accurately and efficiently using web, iOS, and Android applications. The PaySauce platform includes mobile timesheets, payroll calculations, banking integration, PAYE filing, labour costing, automated general ledger entries and digital employment contracts

PaySauce was founded in 2015 by Asantha Wijeyeratne, a New Zealand FinTech entrepreneur with a record of success in building SME service businesses, and Troy Tarrant, a software architect and developer with a background in creating payroll and human resource solutions. Their vision is to take the Kiwi-grown PaySauce software platform to businesses around the globe, helping SME owners spend less time paying staff and more time doing what they love.

Performance

The following information was extracted from PaySauce Limited's Full Year results, released 22 May 2024:

HIGHLIGHTS

• Operating revenue: $7.7m up 33% lifted by a 7% increase in customers to 7,368 and a 11% increase in average monthly revenue per

user (ARPU) to $91.

• Processing fee income: $5.4m up 17% lifted by customer growth and fee increases as we passed on rising costs.
• Interest income: $2.2m up 96% lifted by customer growth and continued high interest rates.
• Annualised recurring revenue (ARR): $8m up 19% from $6.7m.
• EBTDA: $1.06m, reverses EBTDA loss of $0.08m with revenue growth more than offsetting investments for growth and general

inflationary pressures.

• Net profit after tax (NPAT): $1.2m maiden net profit, reversing a $0.6m loss.

Chair Shelley Ruha said: “Our achievement of our first full year net profit after tax and positive cashflows is a significant milestone, especially in the face of the headwinds that growth companies such as PaySauce and indeed our customers have faced for much of the last year.