PaySauce Quarterly Market Update - June 2024

Wednesday 3rd July 2024

KEY YEAR-ON-YEAR PERFORMANCE HIGHLIGHTS FOR Q1 FY25

- Executed the Proof of Concept (POC) for wholesale payroll using our new Gen 2.0 engine

- ARR of $8.2m (Up 18% YoY)

- Recurring revenue of $2.1m for the quarter (Up 20% YoY)

- Processing fee revenue of $1.5m for the quarter (Up 18% YoY)

- Customers at end of the quarter - 7,611 (Up 7% YoY)

Alongside the work on the Gen 2.0 payroll engine, PaySauce has continued to grow its customer base on the existing platform, with customer numbers up 7% YoY to 7,611.

Recurring revenue for Q1 FY25 is up 20% YoY at $2.1m, with processing fees contributing $1.5m (18%). Interest revenue from funds held on behalf of customers is up 26% YoY to $0.6m.

CEO Asantha Wijeyeratne said: “It’s been an incredibly busy and exciting quarter. Hot off the heels of announcing our maiden profit - we’ve completed the Proof of Concept for wholesale payroll with the Gen 2.0 payroll engine and I’m immensely proud of what the team have delivered. I am also very grateful to the organisation that worked with us to prove the concept. This work is a pivotal piece of PaySauce’s future growth journey and actively manages our risks around potential technical debt.

“We’ve also been focused on growing our customer base on the existing platform - doubling down on our Sales and Marketing efforts to gain traction in the New Zealand market in new verticals. Auckland is a territory that is under-represented for PaySauce, and our current campaign is targeting tradies.

INVESTING FOR LONG-TERM GROWTH

The wholesale payroll proof of concept proved the capability to integrate into third party software, with all test objectives successfully delivered.

Wijeyeratne said: “We are delighted to have achieved this significant milestone and we will continue to capitalise on the internal benefits from the completion of the Gen 2.0 payroll engine. The first implementation will unify the customers we acquired as part of the SmoothPay acquisition into a single solution.

“PaySauce remains excited by the opportunities on offer for new and existing customers and we continue to work towards an acceleration of growth as we target $10 million in ARR.” Wijeyeratne said.

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, 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.

PaySauce Quarterly Market Update - Jun 2024

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