PYS - PaySauce

[etrader]

PaySauce tacks between .28c - .32c and has light volumes going through daily.

Who sees a way forward to grow this both organically or through purchasing competitors.

What sort of growth PA would it take for this to hit $1 ? Maybe $12 mill PA .

I’ve been collecting a tiny bundle at the lower cycles.

[etrader]

Just floating a random thought around avoiding having two tiny SAAS firms listed.

GEO / PYS (logical merger) now this is not even speculation just throwing it out there for some feedback.

Having a flick over the balance sheet, annual sales, cash on hand $6 mill and recurring revenue at a similar level to Paysauce would it make logical sense to merge.

That would take revenue to around $7 mill cash on hand and a similar mindset on SAAS outcomes.

There’s only 1300 investors and a few control nearly the entire firm so a decision to avoid multiple listings, compliance costs, director fees etc

[Rawz]

Just floating a random thought around avoiding having two tiny SAAS firms listed.

GEO / PYS (logical merger) now this is not even speculation just throwing it out there for some feedback.

Having a flick over the balance sheet, annual sales, cash on hand $6 mill and recurring revenue at a similar level to Paysauce would it make logical sense to merge.

That would take revenue to around $7 mill cash on hand and a similar mindset on SAAS outcomes.

There’s only 1300 investors and a few control nearly the entire firm so a decision to avoid multiple listings, compliance costs, director fees etc

Not a bad idea etrader.

However Geo is trading at 7x sales multiple. PYS was able to buy a bunch of customers in their last acquisition at 1.5x sales and then triple the sales per customer buy upselling. thus buying them for 0.5x sales....

PYS trading 7x est FY22 sales...

[etrader]

Appreciate the update on GEO trading multiple so I guess if there was ever a friendly merger it would be something to consider around reduced compliance costs, multiple directors and some synergy ip cross selling between databases.

Organically as PSY stand if they don’t takeover any other companies it will take some years to crack $10 mill and other players will have emerged.

This stock will never the the Xero but as a micro SAAS can continue to carve out their space.

I’m not a chartist but there is definitely resistance over .32c and eases back to .28c and seems to maintain that range.

Results for year end come out normally in May and given all the updates during Q1 - Q3 already I can’t see any growth that’s unexpected.

My quick view would be around 45% growth is revenue, double digit customer growth and a small loss on the books.

[etrader]

31st March is FY22 with reporting historically around mid May.

Looking back to last years annual report there were around 1300 shareholders with 105 holders over 50k parcels so it will be interesting to see how this has moved.

The top 20 control most of the shares and the largest % of holders with parcels of up to 10k shares.

There could be some historic holdings from when this was Mad Energy making lightbulbs prior to the reverse takeover.

Personally I’m not expecting anything big but a steady growth in stats around customers and recurring revenue.

Who would agree if we see total growth of 50% or more this could touch late 30’s per share.

Apart from organic growth how can this stock go to that next level.

[etrader]

255% increase in employees from Q2020 to Q2021 has seen a huge uplift due to the very strategic purchase of smoothpay and already this is paying off in a lift in revenue from the update tiered pricing.

I’ve been acquiring shares around the 28.5c level each time they dip and I’m transparent around my posts as I have entered the top 100 shareholders it’s only right to disclose my position.

I will take advantage off any dips and have funds set aside pre FY2022 to Aquire a lot more as a 3 - 5 year hold.

I’m personally not seeing any massive correction in SP over the coming season but a steady as she goes approach of 45% growth would be very healthy.

I realise there’s an incredibly small shareholder base of 1300 plus from last report but from the couple of holders on this page where do you see the next portion of growth coming.

My outside views:

1: Smoothpay was purchased for 1.5 x revenue being a share swop and folding the founder into PYS as as key to this asset.

YOY growth of 45% might slow down as a % as they mature but still creating additional revenue value each quarter of equal or more.

Cash reserves on hand to accelerate growth and currently no noise around seeking additional funds.

More employers looking to divest internal costs out of the business so PYS will benefit from this restructuring as employers find recruitment harder in a tight employment landscape.

These are just my novice views from reading the reports accessible to us all but I’m excited with scaling up my portfolio around a SAAS that still has scale and possibly some nice upside once the revenue base keeps growing.

DYOR and wish the couple of holders on this page the best also.

[nztx]

It might take a miracle or PYS being taken over to see Apr 2020 0.59 SP peaks again IMO
that's if anyone stumps up to that level or the majors want to sell out

[etrader]

Absolutely agree, I was going back through the charts and couldn’t see any reason for the spike back then, there wasn’t any major news and it was well after they merged with energymad

I’m going long on this but only expecting very small growth in the next year.

[Rawz]

How much cash do they hold?

I thought it was heaps but then double checked and realized it was all cash to be paid to IRD (paye tax).

Have sold my shares a few weeks back because I set in place some new rules to invest by.. PYS didn’t meet the rules but I am following

[etrader]

Rawz yes it’s ironic when you first spot around $20 plus cash on hand which as you say is on behalf of IRD from employers.

From memory payroll companies got paid $2 per employee from the govt and the company paying the wages either paid a subscription or some firms do a charitable donation, but from one of the last reports I’m sure the govt no longer pay that and they’ve adjusted revenue to not inc that to pro rata sales growth.

It’s all about recurring revenue now from employers but you might see a short increase in interest from money held as rates turn

Anyway I will await mid May