Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


PaySauce Grows Recurring Revenue and Customer Numbers

PaySauce Grows Recurring Revenue by 122% and Customer Numbers by 80%


SaaS employment solutions provider PaySauce (NZX:PYS) finishes the financial year ended March 2020 with continued growth. Year-on-year, total recurring revenue2 grew 122% to $429K for the final quarter of FY20. The number of employees in New Zealand being paid through PaySauce payroll software increased by 82% to 13,178 people, and the total number of employers processing pays through PaySauce increased by 80% to 2,492.

Key Metrics1Quarter ending Mar 2020Quarter ending Mar 2019% YOY Change
Total recurring revenue
without Subsidy[2]
NZD $429KNZD $193K122%
# Employees (at end of qtr)13,1787,23782%
# Payslips (total for qtr)93,19146,81299%
# Payroll customers (at end of qtr)2,4921,38480%
Gross value of payroll processedNZD $151MNZD $73M111%

As a maturing start-up, one of PaySauce’s chief objectives is to become profitable while continuing to grow and develop. This quarter has seen $4M of capital successfully raised, while behind the scenes, the business has progressively optimised systems and processes to work towards becoming cash-flow positive.

CEO and co-founder of PaySauce, Asantha Wijeyeratne, says: “This last quarter has been huge for partnerships, with steady progress on our agri-oriented alliance with Xero and Figured, and a new strategic partnership with a major global HR software vendor. We are proud that our software is making a small contribution to ensure NZ businesses can continue operating. This, along with the incredible support from our shareholders, allows us to offer our employees and our clients some certainty in these unprecedented times.”

The overall number of employees dropped marginally from the record level at the end of Dec 2019, with a seasonal decline from some large employers in January and February before increasing again by March.

Recurring revenue up 122% to $429K
Total employees paid through PaySauce up 82% to 13,178
Number of payroll customers up 80% to 2,492

For more information about the quarter results to 31 March 2020, please contact

PaySauce is software at work for people, providing employment solutions to small and medium-sized businesses. PaySauce enables business owners to pay and manage employees accurately and efciently using the web, iOS, and Android applications. The PaySauce platform includes mobile timesheets, payroll calculations, banking integration, PAYE ling, labour costing, automated general ledger entries and digital employment contracts.

[1]Customer numbers are prepared on the same basis as previous quarterly updates, are unaudited, and may include Non-GAAP financial information which does not have a standardised meaning prescribed by GAAP and therefore may not be comparable to similar financial information presented by other entities.

[2]Total recurring revenue no longer includes the IRD PAYE intermediary subsidy revenue claims. As previously indicated, from 1 April 2020, the government will no longer pay the subsidy to payroll intermediaries. This revenue stream will therefore no longer be categorised as recurring revenue for PaySauce, as reflected in the current and comparative quarters shown in the table above. If the subsidy was still included as recurring revenue the March 2020 quarter would show recurring revenue of $497K, a 107% increase on the March 2019 quarter of $240K.

© Scoop Media

Business Headlines | Sci-Tech Headlines


Banking: Westpac NZ Lowers Merchant Fees For Small Businesses

Westpac NZ is rolling out a new merchant fee pricing structure that will lead to cost savings for more than 10,000 small and medium Kiwi businesses, and could make contactless transactions more widely available for customers. On 1 September, most ... More>>

REINZ: Million Dollar Plus Property Sales Increase 11.7% Nationally

The number of properties sold around the country for one million dollars or more during the first half (H1) of 2020 increased by 11.7% compared to H1 2019, with 5,426 million-dollar plus properties sold (up from 4,858 in H1 2019) according to the Real ... More>>

Waste: Government To Regulate Plastic Packaging, Tyres, E-Waste

The Government is stepping up action to deal with environmentally harmful products – including plastic packaging, tyres and e-waste – before they become waste. As part of the wider plan to reduce the amount of rubbish ending up in landfills, ... More>>


Bankers Association: Banking Becomes First Living Wage Accredited Industry

Banking has become New Zealand’s first fully living wage accredited industry, leading to nearly 1800 employees and contractors moving onto the living wage and gaining greater economic independence for them and their families. As of today, all ... More>>


Economy: Funding For 85% Of NZ Not-For-Profit Entities Impacted By COVID-19

Results of a recent Institute of Directors poll show that 85% of board members on not-for-profit organisations say COVID-19 has moderately or significantly affected their funding. The ‘pulse check’ conducted in the first two weeks of July looked ... More>>

Volcano Detection: Eruption Alert System Would Have Given 16 Hours’ Warning At Whakaari

An alert system that could have given 16 hours’ warning of last year’s eruption at Whakaari/White Island is ready for deployment, University of Auckland scientists say, with warning systems for Ruapehu and Tongariro the next priority. ... More>>

Property: Queenstown Rents Experience Biggest Drop In Seven Years

Rental prices in the Queenstown-Lakes district saw the biggest annual percentage drop in seven years after falling 28 per cent on June last year, according to the latest Trade Me Rental Price Index. Trade Me Property spokesperson Aaron Clancy said ... More>>

Seismology: The Quiet Earth

As many daily activities came to a halt during lockdown, the Earth itself became quiet, probably quieter than it has been since humans developed the technology to listen in. Seismologists have analysed datasets from more than 300 international ... More>>

RNZ: James Shaw Says Kiwibank, Not Ministers Should Decide On Investors

Climate Change Minister James Shaw says Kiwibank's decision to stop doing business with companies dealing in fossil fuels is the right one. More>>


FMA: Kiwis Confident Financial Markets Will Recover From COVID-19, Plan To Increase Investments

Despite the majority (60%) of investors experiencing losses as a result of COVID-19, the outlook on investing remains positive, according to a Financial Markets Authority (FMA) survey. Most Kiwis (71%) were optimistic that the pandemic will pass eventually ... More>>

FIRST Union: Warehouse Using Covid For Cover As Extensive Restructure Makes Everyone Worse Off

(FIRST Union comments on The Warehouse consultation and proposed restructure) 'Unfortunately the Warehouse have done the disappointing thing and used Covid-19 to justify a bunch of operational business decisions that will leave hundreds of workers without jobs ... More>>


Stats NZ: Mixed Performance By Regions Leaves National Emissions Picture Unchanged

Approximately two-thirds of New Zealand’s regions recorded decreases in their total greenhouse gas emissions, while one-third of regions saw increases between 2007 and 2018, Stats NZ said today. “While some regions reduced their emissions, ... More>>

RNZ: Economic Activity And Business Confidence Bouncing Back

Two surveys from ANZ show business confidence and economic activity have rebounded, but uncertainty about the future remains extreme. More>>