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 Metrics1||Quarter ending Mar 2020||Quarter ending Mar 2019||% YOY Change|
|Total recurring revenue|
|NZD $429K||NZD $193K||122%|
|# Employees (at end of qtr)||13,178||7,237||82%|
|# Payslips (total for qtr)||93,191||46,812||99%|
|# Payroll customers (at end of qtr)||2,492||1,384||80%|
|Gross value of payroll processed||NZD $151M||NZD $73M||111%|
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.
KEY YEAR-ON-YEAR PERFORMANCE HIGHLIGHTS FOR THE QUARTER
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
information about the quarter results to 31 March 2020,
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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. www.paysauce.com
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.
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.