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Thread: PYS - PaySauce

  1. #16
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    Quote Originally Posted by winner69 View Post
    SilverBack commented — Paysauce claimed that it was the only Payroll solution that met this (Payday filing) requirement from 1 April and I have no reason to discredit that claim.

    I’m sure MYOB, Xero and all the others would discredit that claim

    Mate uses MYOB and he’s been doing payday filing from early March (opted in) for his 20 person payroll

    In saying i’ve heard some users say Paysauce is OK
    I do not use Paysauce or deal with anyone who does. Perhaps the claim related to automated filing using a B2B interface with IRD?
    Anyway, the substance of my post was that PYS is extremely overvalued at present, even based on its own revenue projections.

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    I do not use Paysauce or deal with anyone who does. Perhaps the claim related to automated filing using a B2B interface with IRD?
    Anyway, the substance of my post was that PYS is extermely over valued.

  3. #18
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    Quote Originally Posted by SilverBack View Post
    I do not use Paysauce or deal with anyone who does. Perhaps the claim related to automated filing using a B2B interface with IRD?
    Anyway, the substance of my post was that PYS is extremely overvalued at present, even based on its own revenue projections.
    Heres a company claiming to be first to pay day file, rather than "only"
    https://www.flexitime.co.nz/payday-f...0aAll8EALw_wcB

  4. #19
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    Its timely that they give a market updater today - which doesnt make pretty reading.

    1384 customers covering 7237 employees. So that is 5.2 employees per customer

    $72m in payroll processed. So thats $52,000 per customer or $9,950 per employee

    Quite clearly their market is the very small employer with employees likely to be seasonal workers. From that we can conclude their sales / marketing costs are going to be huge relative to the number of sales made. Which is a major worry given they only have $240k in recurring revenue in a quarter.

    Number of payslips issued = 46,812. Which is a dumb metric as payslips dont have to be issued. The number = 6.4 payslips per employee which doesnt make sense if they are paid weekly, fortnightly or monthly.

    (They are certainly over-cooking the payday filing thing. Which is simply just sending a table file to IRD electronically each pay. No mention of Holiday Act compliance which is the real and pressing concern attendees at their Dairy Women Group meetings should have. Given the new minimum wage I would have thought that would have been more pressing - especially given the average rate of pay going through payroll. )

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    Minimoke said - They are certainly over-cooking the payday filing thing. Which is simply just sending a table file to IRD electronically each pay.

    Dress it up and make it look and feel magical it probably is magic.
    ”You can't cross the sea merely by standing and staring at the water.” -Rabindranath Tagore

  6. #21
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    $75 Million company, $240k revenue Q1, a bit underwhelming. Heading in the right direction, though doesn't justify the valuation.

  7. #22
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    Quote Originally Posted by winner69 View Post
    Minimoke said - They are certainly over-cooking the payday filing thing. Which is simply just sending a table file to IRD electronically each pay.

    Dress it up and make it look and feel magical it probably is magic.
    Its sending up a smoke screen over their lack of understanding of paying holidays.

  8. #23
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    Quote Originally Posted by minimoke View Post
    Its timely that they give a market updater today - which doesnt make pretty reading.

    1384 customers covering 7237 employees. So that is 5.2 employees per customer

    $72m in payroll processed. So thats $52,000 per customer or $9,950 per employee

    Quite clearly their market is the very small employer with employees likely to be seasonal workers. From that we can conclude their sales / marketing costs are going to be huge relative to the number of sales made. Which is a major worry given they only have $240k in recurring revenue in a quarter.

    Number of payslips issued = 46,812. Which is a dumb metric as payslips dont have to be issued. The number = 6.4 payslips per employee which doesnt make sense if they are paid weekly, fortnightly or monthly.

    (They are certainly over-cooking the payday filing thing. Which is simply just sending a table file to IRD electronically each pay. No mention of Holiday Act compliance which is the real and pressing concern attendees at their Dairy Women Group meetings should have. Given the new minimum wage I would have thought that would have been more pressing - especially given the average rate of pay going through payroll. )
    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%.

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    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....

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    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...

  11. #26
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    Quote Originally Posted by pg0220 View Post
    There are a bunch of companies who provide nice and sexy payroll solutions. .
    But do they calculate pay correctly? A quick look at Paysausce indicates it doesnt.

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