PYS - PaySauce

[etrader]

Winner as you mention when will the decay in growth % happen, as you know it’s easier to get huge % lifts off a low base but as PYS matures the % will slow but I’m hoping even if the $ value increases.
$3.6 mill in ARR if this became $5.6 would still be good just the % starts to tail.

Big questions for me are:
1: What’s their cash burn with current growth and will this mean a heavily discounted 1:7 option plan like 2020.

2: Is there another smoothpay style firm that they can acquire for a low PE to absorb another 3000 customers and transition them across to our platform.

3: collaborations with key accountant firms were Xeros best advertising when the likes of MYOB using a CD rom were one of the few choices.

4: A small side note in their latest report was they will continue to monitor govt regulations if there’s any significant changes to find other opportunities which could be a positive sign after loosing the employee subsidy.

Disc: Current holder and only to happy to acquire around 27.5c as and when investors want to move out

[Rawz]

I think the number to watch is customer growth.. which looks to be a high 30% annual growth rate. Not bad.

Maybe a cash raise on the horizon? If it was priced mid 20cents and the funds were for a similar smoothpay type acquisition it could be worth a punt since PYS is now cashflow positive.

One to watch

[Rawz]

Twitter sold for 30x revenue. PYS cheap as based on 7x

Both companies sort of techy aye

[etrader]

Exert from the paper today after Twitter and locally PushPay, this as mentioned could have a flow on effect as investors digest multiples on offer.

Currently the founder owns over 20% and the top 20 makes up most of the issued shares so any takeover of these minors would come at a decent increase to get those guys selling out.

The news of a potential takeover buoyed other tech stocks, with cinema software company Vista Group up 1.7% to $1.80, and travel software company Serko up 0.8% to $4.84.

“What we are seeing with Pushpay today does push up that whole sector, on the back of suspecting that if there is interest in Pushpay, potentially there could be interest in other stocks as well,” McIntyre said.

[etrader]

Shareholders:

Looking back at the FY 2021 there were 1389 shareholder with the 76% of those holding under 10,000 shares, 222 between 10,001 - 50,000 making up a further 15% of the register making up 91% of total shareholders.

On the reverse those invested over 50k shares make up only 104 investors that control 94% of the shares.

It will be interesting to see if there’s been an increase in individual shareholders but I await the movement of the top 20 to see what shift that’s had during the SP staying fairly flat.

I’ve been acquiring on dips with a .28c average and have a cheeky buy in with a low ball price if anyone feels the need to exit cheap

[etrader]

PaySauces results are released in 15 trading days on the 25th and although I’m not expecting anything to new as their continuous disclosure meant the gross sales and growth have already been disclosed.

I’ve used the soft trading to keep knocking off bundles sub 27.5c meaning the funds set aside has allowed me to build a larger position so creeping into the top 50 was always the goal when price determined a fair entry price.

I’m now sitting tight on the holding but will await results to see if the balance of funds will help enthusiasm to increasing the holding again.

Things I’ll be keeping in mind as front and centre:
* trend continues with growth of new customers and total employees
* increasing margins as the smoothpay is absorbed into their model
* forecasts from their online presentation showing how their growth will continue and the possible steps to work towards ongoing cash surplace.
* forecast around any potential capital raise
* net cash on hand setting aside clients monies for IRD payments
* any direction if they’re going to grow organically or expand through buyouts.

Last I will be interested to see the top 20 holders and if their positions have changed a lot, a couple of institutions put into the mix would change the top 20.

These are just my novice views as a minor shareholder but trust that value is created.
*

[etrader]

Tomorrow is the annual results and although they’ve previously given gross sales and % of growth it will be interesting to see the audited results and as previously mentioned the cashflow positive Q4.

I will be interested to see if there’s a Capital fundraising mention or at lease what their net cash is exc the clients IRD funds which are not an asset.

Will watch with interest in the top 20 movements is there any new heavy hitters along with how many new shareholders have come onboard.

[Rawz]

https://www.nzx.com/announcements/392979

HIGHLIGHTS
- Cashflow positive for the quarter ended 31 March 2022.
- ARR of $4.5M as at 31 March 2022 (83% YoY increase).
- Acquired and fully integrated the SmoothPay business.
- Over 6,000 customers as at 31 March 2022 (79% YoY increase).
- $2M of earned wages accessed through the BNZ PayNow feature in FY2022.
- Total customer LTV of $30M as at 31 March 2022 (96% YoY increase).
- LTV : CAC ratio of 14 : 1 as at 31 March 2022 (67% YoY increase).

Cap raise coming this year. What they should do is find another smoothpay type acquisition and raise funds for it + $5m for growth.

Still on the watchlist

[winner69]

Muted market reaction

Waiting for etrader to start collecting again ....share price will take off then

[Rawz]

Best wait for the cap raise.... it's coming

Nothing wrong with raising funds either. Its early stage. They say they have just left the start-up phase.
But one would expect a discount so thats why i am thinking wait and see