$75 Million company, $240k revenue Q1, a bit underwhelming. Heading in the right direction, though doesn't justify the valuation.
Printable View
$75 Million company, $240k revenue Q1, a bit underwhelming. Heading in the right direction, though doesn't justify the valuation.
Absolutely they have picked up small employers. They have been quite explicit about targetting the dairy industry and other farmers in the first instance. Their strategy is to have a system for small and medium businesses and SAAS is a good mechanism for achieving this. Now that the Rural Broadband Initiative has brought broadband to most of the farming community, this is viable. Paysauce is still a very small company even if it is highly overvalued. It will need to keep doubling its revenue each year for a while longer yet in order to reach a more reasonable valuation, or else the SP needs to drop dramatically. I still think they are worth tracking and keeping an eye on their growth but without buying until the valuation improves.
If anyone has the energy to calculate their operating margin, then I am interested to learn this. I just know that at present the 12 month ratio of SP to margin revenue still greatly exceeds XRO even if they are given a high operating margin of 85%.
How scalable is this outside of NZ? i.e. do the tax laws in Oz/US/EU make their solution a helpful fix? If no, this puppy will run out of steam real quick....
There are a bunch of companies who provide nice and sexy payroll solutions. They may become successful widely but need to be keep in mind that the competition for this area is so high. Also, the current price doesn't justify anything from my point of view...
Paysauce getting bigger ...people wise anyway
Jeez some big names this guy has been associated with
http://nzx-prod-s7fsd7f98s.s3-websit...886/301483.pdf
I see they are moving in to broader "employment solutions to small and medium sized businesses". A warning flag is when the use the term "employment contracts" when the current recognized term is "employment agreement" (which is of course a contract - but their are tow types of contract at play. The distinction becomes important). Go wandering off to parliament and mention "Employment Contracts" and Labour would have conniptions. And in their prior announcement where thy say " and ensures they they are always compliant" is total bull and misleading.
Bit of a weird announcement
This thread not the same since mini left us
http://nzx-prod-s7fsd7f98s.s3-websit...342/310670.pdf
SP doubles in a week. What is going on with this stock?