PYS - PaySauce

[winner69]

Paysauce in big time now?

Love POCs

http://nzx-prod-s7fsd7f98s.s3-websit...483/406951.pdf

[Dlownz]

Paysauce in big time now?


Love POCs

http://nzx-prod-s7fsd7f98s.s3-websit...483/406951.pdf

Probably just means a great time to do a capital raise

[etrader]

This I see as a positive non price sensitive announcement that could potentially bring in good ARR if the POC comes off.

Their 2.0 which is been built for Oz can pivot into a third party payrole provider in any jurisdiction, these words tell me they can scale up at little capitals cost where a third party squires customers and scale while paying an annual upfront fee per payroll pay check with an min order PA.

I guess this rattled my head on “who” this company could be, it’s ruled out accounting software companies as they say a third party payrole provider.

My first thought is a company called DEEL is a payroll and HR firm in multi jurisdictions but is also a $12 bill listed firm so hmmmmm yeah nahÂ…. Anyway thereÂ’s plenty of water to pass under the bridge but still a positive direction.

Nice small lift in share price during the last month albeit it still very low volumes.

Paysauce in big time now?

Love POCs

http://nzx-prod-s7fsd7f98s.s3-websit...483/406951.pdf

[etrader]

I’ve wondered the same thing since I bought in several years back when SP tipped 32c during lockdowns, then it kept tracking down, they’ve stated for a while that they will only seek a capital raise if the opportunity comes up for an appropriate purchase at low PE ratios but this is still not something needed to continue day to day operation.

They hit their first break even last last year which was their target to be cashflow breakeven and still awaiting 6 month financials to see where this sits.

Drilling down today’s announcement although it’s just in the proving concept phase they’ve already shown the upside of scale, they receive the customers water interest upside which is now around $2 mill in profit with a increase as total wages are processed, the third party also run the customer service side and growth in customers so I only see upside and still not capital intensive as they scale up processing.

I’m about to purchase more in the coming days as this is the more positive of growth updates I’ve been waiting for.

Probably just means a great time to do a capital raise

[etrader]

6 Month report out Wednesday with an online presentation at 10am, results plus their pipeline and progress report to date.

Will be interested to hear the POC detail around MIQ, potential impact on ARR and what the timing of this be in 6 - 12 months before POC becomes cashflow, also keen to hear will this 3rd party bold on then allow multiple payroll companies to also take it on.

Currently the ARR sits at $7 mill business is near break even, $2 mill is profit from interest and this cash is building with interest rates and gross payroll.

To get to $10 mill given the slowdown in growth they’re obviously looking at scaling up from this flat period.

^ beta testing is already happening for Oz rollout
^ Paysauce 2.0 underway which will essentially be the multi jurisdiction platform to bold into a 3rd party.
^ interest rates still bring growth in ARR
^key hiring for people culture and non exc directors done.
^setting out a roadmap of how now to substantially scale in their chosen SME and centric industries has been updated and will continue.

Disc: current shareholder of two years (recently sold down a portion to diversify but about to jump back post 6 months )

[Rawz]

hope this new cool tech helps them sign up a lot more customers. All about the customer growth which has been avg of late

[nztx]

6 Month report out Wednesday with an online presentation at 10am, results plus their pipeline and progress report to date.

Will be interested to hear the POC detail around MIQ, potential impact on ARR and what the timing of this be in 6 - 12 months before POC becomes cashflow, also keen to hear will this 3rd party bold on then allow multiple payroll companies to also take it on.

Currently the ARR sits at $7 mill business is near break even, $2 mill is profit from interest and this cash is building with interest rates and gross payroll.

To get to $10 mill given the slowdown in growth they’re obviously looking at scaling up from this flat period.

^ beta testing is already happening for Oz rollout
^ Paysauce 2.0 underway which will essentially be the multi jurisdiction platform to bold into a 3rd party.
^ interest rates still bring growth in ARR
^key hiring for people culture and non exc directors done.
^setting out a roadmap of how now to substantially scale in their chosen SME and centric industries has been updated and will continue.

Disc: current shareholder of two years (recently sold down a portion to diversify but about to jump back post 6 months )

Very interesting model - I dont think any downturn will be anything this outfit couldn't counter or better, by grabbing further customers as many will be looking for better software / processing solutions.

Nice concept at time of hiked interest rates to have your customers give you an interest free loan as part of the deal
to pull the interesr in on, until passover time to the Revenue Coffers arrives

[winner69]

Guys, did you see this article by my mate MOD …a Paysauce shareholder and Director

Even mentions General Electric and Caterpillar ….that’s cool

https://www.thepost.co.nz/business/3...llenging-times

[etrader]

Thanks for posting Winner hadn’t spotted that so good to get another view on their pipeline.

The market essentially hasn’t really paid any notice to this firm but if you read between the line you can definitely see a gradual rollout and expansion of their chosen space been SME Payroll and if the POC comes off this should expand their throughout of payroll, increase cash holdings and bring more ARR from their current 7.6.

Q3 results would be out mid to late Jan and again I’m seeing fairly flat growth pre new announcements that potentially come off, you will see another lift in arr as interest rates continue to flow through and bring a bonus growth.

Guys, did you see this article by my mate MOD …a Paysauce shareholder and Director

Even mentions General Electric and Caterpillar ….that’s cool

https://www.thepost.co.nz/business/3...llenging-times

[etrader]

1: POC is underway with a company “currently non disclosed” due to commercial sensitivity but here’s my takeaway……. PYS has clearly forged a working understanding that they can deliver a bolt on for better payroll delivery for a multi jurisdiction existing payroll provider where PYS can bring value and deliver a product to their employees that will work.

Let’s not underrate the value here where PYS get paid a minimum commitment of employees PA upfront on a multi year agreement.

This will boost employee throughput, bring cashflow and fresh upfront capital as they roll out Ozzie, the embedded platform is the same as they will use in Oz where existing beta software is already underway so this bolt on will bring scale

PYS is now producing profit on funds held on behalf of employees and with no sign interest rates will drop this cashflow will continue to cover a lot of their annual headcount and provide positive cashflow to roll out their expansion.

PYS have YES had a flat year of customer growth but reading between the lines they’ve made their first ebit profit of 255k for 6 months which isn’t common in scale up ARR companies so shows the leadership are focused not to take external capital and build on the existing platform.

Disc: I’m a shareholder of just over 2 years and these are just my novice views so DYOR but could be a nice bottom draw in the coming 3 years if they continue the expansion.