PYS - PaySauce

[Rawz]

https://www.nzx.com/announcements/390499

PYS goes cash flow positive. Excellent achievement.

Customers grew 3% qrt on qrt. Not much but Q4 is always a slow quarter for them. Maybe companies dont want to rock the boat coming into end of financial year so stay with their current payroll system.

Recurring revenue up 87% yoy

Trading 11-12x revenue

FY22 results announced next month

[nztx]

https://www.nzx.com/announcements/390499

PYS goes cash flow positive. Excellent achievement.

Customers grew 3% qrt on qrt. Not much but Q4 is always a slow quarter for them. Maybe companies dont want to rock the boat coming into end of financial year so stay with their current payroll system.

Recurring revenue up 87% yoy

Trading 11-12x revenue

FY22 results announced next month

Very easy to wonder if it isn't their clients cash sitting in the account on it's way out for disbursement
with this outfit

Cashflow Positive in some cases can be easily achieved - for example tap the clients for higher
advances levels or deferred payments of disbursements

When the bottom line starts showing "Positive" then I may start getting interested in how it happened
but that might be a fairly long time ahead

[winner69]

Nice looking charts in the announcement

[Rawz]

The thing to also watch with this company is no. of shares on issue. Will probably grow heaps via staff options and cap raises for acquisitions. Bit like ikeGPS.. number of shares on issue has increase heaps over the years with those guys.

[winner69]

https://www.nzx.com/announcements/390499

PYS goes cash flow positive. Excellent achievement.

Customers grew 3% qrt on qrt. Not much but Q4 is always a slow quarter for them. Maybe companies dont want to rock the boat coming into end of financial year so stay with their current payroll system.

Recurring revenue up 87% yoy

Trading 11-12x revenue

FY22 results announced next month

Jeez - 11-12 x revenue is very expensive

Median multiple for ANZ listed SaaS companies is 3.8 times --- upper quartile is 6.0 and bottome quartile is 2.3 times

The US listed median is 8.7 times

[percy]

Jeez - 11-12 x revenue is very expensive

Median multiple for ANZ listed SaaS companies is 3.8 times --- upper quartile is 6 and bottome quartile is 2.3 times

The US listed median is 8.7 times

Thanks for your post W69.
I have never known how to value SaaS.

[winner69]

Thanks for your post W69.
I have never known how to value SaaS.

Sometimes a mystery to me as well but the market experts have come up with these sort of valuation metrics (in the absence of any profit in most cases)

[etrader]

Will be interesting to see how the year end results come together.

I’ve been collecting more recently prior to the FY2022 annual results hoping for 5 - 10% uplift in SP.

I’ve bought into this stock from a growth upside and the fact they sit in a unique space of the rural sector.

Taking opportunities to scoop up more around 27c - 28.5 has been the focus.

[etrader]

Rawz from the stats I’m reading it looks like customers grew 38% exc smoothpay or 79% when you take that company into account.

One of the upsides is they paid a super low PE multiple but they’ve tapped that large client base and shifted into a different tiered price structure which has accelerated revenue.

Looks the volume and SP has found its limit short term as investors digest the growth.

I’ve enquired to hear the presentation post results and will be interested to hear their growth plan as this stock needs to make a few more takeovers as a low price and fold this client base in.

[etrader]

One final comment from today’s announcement was today’s volume was the highest since August last year when the shares were on a MA30 uplift.

This stock is incredibly light on average daily volume so at least a positive sign of mid sized investors grabbing parcels