Running out of new farms to introduce it to?
https://www.paysauce.com/customers/
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Running out of new farms to introduce it to?
https://www.paysauce.com/customers/
I've noticed this has come back significantly.
Is this due to banks now processing payments 365 days a year? Potentially will reduce PYS's interest income.
SP has been dropping since financials were published...
Looks like some of the weakness was because the COO had to cash in his share bonus with an on market sale... Selling for an average of 22.5. ouch
I’ve been invested in PYS since Oct 2021 when Kiwis were bored at home dumping $ in stocks, my investment was about going long and prepared for up to 5 years to see where it heads.
Yes as you say PYS just keeps drifting back cent by cent and personally I’m not sure where the floor is, their latest results are solid in terms of a challenging economy but investors, competitors and potential suitors or any future takeover will be observing how they are “currently” maturing around the farming sector for growth where they now process over 50% of all farms.
ARR is the key metric for me alongside net churn of 8% PA which means they need to grow new customers at 8% to be neutral but from memory their net growth was 14% in the last year.
Options are; capital raise to make an acquisition where the capital deployed will bring new customers to the table and overlay their model for absorbing.
When the share price was 28c it would have been ideal to get $5 mill of capital as a war chest but they have clearly stated that they will only raise capital if there’s a company worth buying where returns are good.
My last metric and this is a cyclic return but the OCR has massively played in their corner where interest returns that were .25 are suddenly 3.25 to 3.5% and the net cashflow on short term deposit has massively contributed to their ARR which they group interest as a split of revenue.
How long this cycle lasts for with higher returns is hard to grip but during a low season of customer growth the $1 bill of wages process PA is bringing a positive level of upside.
Currently 65% of the shares are held by founders, key management and staff so it’s an illiquid stock volume wise and for a competitor to takeover would mean paying a significant upside to try and even get 19.9% before a takeover offer is needed.
I researched into “paygroup” which was taken over by DEEL from USA and they paid a 79% premium to secure that as they were rolling out in Oz, not saying PYS has the same premium attached or even could be a target but it was observed that the founder of paygroup post takeover got invited onto the PYS board in exchange fee for a small group of shares issued, from memory 27k worth.
Currently I’m sitting on a chunk of shares neither buying or selling but happy to hold and see how growth rolls out over the coming two years.
DYOR as this is purely my views as a small shareholder and just digesting the reports they post.
Etrader … saw Mike O’Donell a month or so ago …..MOD still happy way Paysauce tracking
But then he’d have to say that eh
Its just more the current market conditions, that growth is a little out of favour with most investors. They are so close to being Ebitda positive and when they announce their suite is ready for AUS use and they sign up a few customers there it should get the market quite interested particularly given the fact they are funding their own growth. I'm still waiting on their ARR to get to $7m and positive Ebitda before I'll look at taking an initial position, which they should achieve this quarter and means they are a sustainable operation. The real incentive is when they start making ground on their AUS expansion.
Good comments there Silverblizzard 🙌
So ARR could be $7 mill possibly in q1 or 2 possibly and looking over the accounts they had mad an 80k loss for year end so I’m thinking if revenue holds the churn remains under 1% each month and surely there’s been some new customers break even is getting closer.
Very small volume I realise but happy to see it lift off the 22.5c SP back to 25c but of course it needs volume.
The key next is how are they going to get back to 30-45% growth PA again ? My only view is to purchase a competitor at a fair price, drop the synergies into their model and crank new growth.
KEY YEAR-ON-YEAR PERFORMANCE HIGHLIGHTS FOR THE QUARTER
- Recurring revenue of $1.73M for the quarter (Up 48% YOY)
- Processing fee revenue of $1.24M for the quarter (Up 21% YOY)
- ARR of $7M (Up 41% YOY)
- Active customers at end of period 7,087 (Up 9% YOY)
212 net new customer in q1 after taking out the natural churn, growth of new customer has definitely slowed.
Cracking ARR of $7 mill is positive and 490k in revenue alone from interest bringing it to around $2 mill or nearly 30% of ARR which they fold it in with.
If interest rates hadn’t cranked this would be an average result.
Still a red flag remains around growth in new customers