PYS - PaySauce

[winner69]

All looking with Paysauce …positive update

Will try to catch up with Mike to get latest gossip

http://nzx-prod-s7fsd7f98s.s3-websit...319/410470.pdf

[etrader]

Key takeaways:

● ARR of $8.2m (Up 23% YOY)
● Recurring revenue of $2m for the quarter (Up 26% YOY)
● Processing fee revenue of $1.4m for the quarter (Up 15% YOY)
● Active customers at end of period 7,320 (Up 7% YOY)

*Personal thoughts are 30% of their ARR is now interest which reflects the slow and steady growth in processing fees which is a blend of total existing growth plus the 7% lift in new customers post churn.

* ARR “should” hit $10 mill by Dec 31 this year if the current modest rate of growth continues assuming total wages processed continues at a fair rate, interest rates hold around current levels and growth in new clients increases around 8 - 10%.

* now for the exciting part heading into 24 and beyond is the PoC for embedded processing, they’re already developing beta gen 2.0 for Ozzie which allows multi jurisdictions to be processed, they were developing gen 2.0 anyway to prepare for Oz launch so as a result they’re able to imbed that new tech into the proof of concept if it goes ahead.

* reading the POC announcement you’ll spot that if it goes ahead they will receive an upfront payment to process a minimum number of employees which will be paid at the beginning and each year on a multi year contract, Paysauce will process these wages and also benefit from the upside of all interest held bringing multi benefits to the contract.

* the cashflow from this contract if it goes ahead will bring a significant increase in revenue they state from an undisclosed multi jurisdiction payroll provider “not an accounting company” which to me would rule out the Xero style companies.

* disc: current shareholder so DYOR as these are just my personal non professional views

All looking with Paysauce …positive update

Will try to catch up with Mike to get latest gossip

http://nzx-prod-s7fsd7f98s.s3-websit...319/410470.pdf

[silverblizzard888]

Looks like everything is nearly in place for their next growth phase, just a matter of when they test the waters on new markets and hit their next stage of growth. In the meantime its a waiting game and they continue to run at breakeven. Haven't gotten myself to pull the trigger on buying yet, but should do once theres a positive sign on their next growth market.

[Ggcc]

Looks like everything is nearly in place for their next growth phase, just a matter of when they test the waters on new markets and hit their next stage of growth. In the meantime its a waiting game and they continue to run at breakeven. Haven't gotten myself to pull the trigger on buying yet, but should do once theres a positive sign on their next growth market.

I am in the same boat as you I feel.

[etrader]

Apologies tried to edit a mistake but wouldn’t allow.

Should hit 10 mill ARR IN DECEMBER 31 this year at current fair growth, this is not taking in the embedded payroll licence if that gets confirmed downstream

I am in the same boat as you I feel.

[Rawz]

“Embedding our payroll technology into employment software that’s already in the market has been a long-standing goal for PaySauce. We’ve always known employment software providers have wanted a solution they could deploy in multiple jurisdictions. These providers are rapidly consolidating and with that move, demand is growing for payroll solutions that can be quickly deployed in multiple territories.“

Can someone give me an idea of what or who the ‘employment software’ is that PYS is talking about here

[etrader]

Rawz would love to help on that one but we’re all in the dark on this due to the confidentiality of the POC agreement.

Did a quick google around employment software and you will not companies acquiring each other as the industry consolidates between fewer bigger players.

I’m not really aware of this side of employment as I’ve always used a small payroll firm but it appears there’s companies that are looking to embed this into their existing customer base so I can only see it as positive if it goes ahead.

“Embedding our payroll technology into employment software that’s already in the market has been a long-standing goal for PaySauce. We’ve always known employment software providers have wanted a solution they could deploy in multiple jurisdictions. These providers are rapidly consolidating and with that move, demand is growing for payroll solutions that can be quickly deployed in multiple territories.“

Can someone give me an idea of what or who the ‘employment software’ is that PYS is talking about here

[Almost-confused]

Feeling really positive about PYS for 2024. The potential to integrate with other employment software providers could provide massive growth quickly. And a good diversification away from the Direct business model.

I'm back buying

[Almost-confused]

Interesting disclosure. CEO selling 2.7m shares to ACC off market

[etrader]

ACC becomes 6th largest shareholder in one swoop making it the first institution from what I can see, this is based on last years annual list.

ACC is not only a provider of health care but an investment vehicle that invests into listed companies to get uplift which boosts ACC fund.

Prior to this off market transaction pys had around 65% of their shares held by founders, key staff and their leadership, I see this move as positive and not a sell down of the founders but a gradual easing to allow more liquidity to the shareholders.

POC is currently in its gen 2.0 beta build phase which coincides with the Oz launch meaning multi jurisdictions can be processed for various offshore tax systems, this 2.0 is the same that will get imbedded into a potentially new employment software business.

Asantha has separately transferred smaller holdings to various key staff and even family members which has given others the opportunity to get some skin in the game.

Could it take 6 months for the POC update ? Or could it sync with their annual report due late may who knows but I’m at least staying positive that they have a way of scaling up new customers as the 7% growth is way to low.

Interesting disclosure. CEO selling 2.7m shares to ACC off market