PaySauce Quarterly Market Update - Jun 2022

Thursday 7th July 2022

Employment fintech PaySauce (NZX: PYS ) has seen continued strong growth for the quarter with recurring revenue up 86% year on year (YOY) and Annualised Recurring Revenue (ARR) up to $4.94m (69% increase YOY).

CFO Jaime Monaghan said that the results were driven from all three key metrics: customer growth, average processing fees and interest income earned on the float.

“The sales in the quarter to June are historically underpinned by customer growth from the dairy sector. This was true again this year, however it’s notable that we’re attracting many more customers from other rural sectors, as well as in hospitality and construction.”

“It’s also rewarding to see customers deepening their relationships with us with increasing numbers seeing the value that our Premium subscription offers. This, and the rising interest rate environment are driving up the Average Revenue Per User”

Additional graphs are included in the attached PDF.

KEY YEAR-ON-YEAR PERFORMANCE HIGHLIGHTS FOR THE QUARTER

- Recurring revenue of $1.17M (86% increase YOY)

- Processing fees (PaySauce and SmoothPay) of $1.03M (72% increase YOY)

- ARR of $4.94M (69% increase YOY)

- Active customers at end of period 6,514 (24% increase YOY)

Recurring revenue was up 86% year on year, primarily from processing fee revenue (including SmoothPay) surpassing $1M in the quarter (Up $431k: 72% YoY).

Growth from interest revenue also increased substantially, up $108k (348%) as the float held on behalf of customers increased $5.2M (42% YoY). As a PAYE intermediary, PaySauce can invest those funds to receive interest revenue and this is included in PaySauce’s Recurring Revenue. Due to the rapidly rising interest rate environment, term deposits which matured during the quarter were reinvested at significantly higher interest rates.

ABOUT PAYSAUCE

PaySauce is a SaaS fintech platform providing solutions for people at work in 14 jurisdictions across the Asia-Pacific region. We give employers the technology to digitally onboard, pay and manage employees from any device. Our platform includes rosters, mobile timesheets, payroll calculations, banking integration, automated payments, PAYE ﬁling, labour costing, automated general ledger entries and digital employment contracts.

www.paysauce.com

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