PYS Paysauce

[winner (n)]

All good forums need a PaySauce thread

A company going places.

Director MOD seemed pretty happy with progress when I saw him last month ....without putting him on the spot and pushing for details I just casually ask 'how's PaySauce going these days?' and you can get a pretty good feel for how progress is going from the response

Impressive quarterly report out today

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/PYS/405222/386886.pdf

MOD did double his holding a few months ago ..a good sign

[Minimoke]

I can't see the fascination.

Sure. Technically its a company. But really! $6.6m in revenue. Whats the point? Why even bother listing?

I notice they dont mention expense's in this latest release. Which in their last Annual report far exceeded income. Assets matched liabilities.

There are potential costly development issues coming up. Govt should finally come up this year with a Holidays Act revision which will change the way holiday pays are calculated. This is a terribly complex issue for payroll providers and one in which no payroll provider can be fully compliant - its just an issue of how non compliant Paysauce actually is. (Especially in the area they work in)

And there is also the proposed Redundancy insurance which will need payroll tweaks.

Thankfully my shed contains a few barge poles - and one is being used on this company.

[Minimoke]

As this is a new thread (and I think I have learnt how to post images) lets start with a chart.

Its the last three years. Long term SP gets a bit tricky because PYS rose from the ashes of Energy mad - that company that thought they could bring energy efficient light bulbs to the market.

PYS came to market in December 2018.

And changing SP = currently $0.30

You cannot view this attachment.

[Left Field]

I can't see the fascination....

I agree....

While I like small cap stocks when they start growing revenue strongly and become profitable, I think it will be a long time before PYS becomes a 'buy' for me.

IMO PYS struggles with a 'unique single proposition' (Buffet favours having a strong 'franchise' with no close substitute.) PYS has strong competition in a crowded market and is reliant on accounting aggregators such as XRO, MYOB, INTUIT, ORACLE etc.

GLH's.

[Left Field]

Looks like they are now making profits?  (Haven't had time to have a good look yet)

HIGHLIGHTS
- First period of positive EBTDA of $255k, reversing the loss of $200k in the six months to Sept 2022
- Operating Revenue of $3.6m, up 40% lifted by new customer growth and higher interest income
- Annualised Recurring Revenue (ARR) of $7.4m up 32% on six months to Sept 2022

https://www.nzx.com/announcements/422062

Looking at expanding SAAS revenue by imbedding their systems with other service providers (I guess a bit like SKO and Booking.com) ..... interesting and one to watch.

[Minimoke]

Looks like they are now making profits?  (Haven't had time to have a good look yet)

HIGHLIGHTS
- First period of positive EBTDA of $255k, reversing the loss of $200k in the six months to Sept 2022
- Operating Revenue of $3.6m, up 40% lifted by new customer growth and higher interest income
- Annualised Recurring Revenue (ARR) of $7.4m up 32% on six months to Sept 2022

https://www.nzx.com/announcements/422062

Looking at expanding SAAS revenue by imbedding their systems with other service providers (I guess a bit like SKO and Booking.com) ..... interesting and one to watch.

I noted in post #2 a $6.6m FY income. So doesn't really count as a company for me back then.

And now they report $3.6m half year so if I annualise I get $7.2m and this is apparently off the back of higher interest income.

I am so underwhelmed I can't even be bothered drilling into the accounts.

This just seems to me to be a total waste of an NZX listing

[BlackPeter]

I noted in post #2 a $6.6m FY income. So doesn't really count as a company for me back then.

And now they report $3.6m half year so if I annualise I get $7.2m and this is apparently off the back of higher interest income.

I am so underwhelmed I can't even be bothered drilling into the accounts.

This just seems to me to be a total waste of an NZX listing

As long as they pay their dues to NZX, I would not consider them as a total waste.

Nobody needs to buy the shares, do they?

[Minimoke]

As long as they pay their dues to NZX, I would not consider them as a total waste.

Nobody needs to buy the shares, do they?

Of cause Paysause are free to do what ever they like as are investors.

What I meant was it seems to me to be a total waste having an NZX listing when the compliance costs for such a minnow of a company would far outweigh any perceptible benefit.

I should declare my bias. I consider a company with a $7m income to be a level above something like a Mr Green franchise holder. Something just a bit above a job creation programme for someone.  I don't like their carry over loss position. And there's a swinging brick that is unspoken - which is the Holiday Pay review. If this ever sees the light of day they will be up for substantial costs implementing those changes.

[Left Field]

Well done PYS.....maiden profit!

https://www.nzx.com/announcements/431425

HIGHLIGHTS
 - Operating revenue: $7.7m up 33% lifted by a 7% increase in customers to 7,368 and a 11% increase in average monthly revenue per user (ARPU) to $91. 
- Processing fee income: $5.4m up 17% lifted by customer growth and fee increases as we passed on rising costs. 
- Interest income: $2.2m up 96% lifted by customer growth and continued high interest rates.
- Annualised recurring revenue (ARR): $8m up 19% from $6.7m.  - EBTDA: $1.06m, reverses EBTDA loss of $0.08m with revenue growth more than offsetting investments for growth and general inflationary pressures.
- Net profit after tax (NPAT): $1.2m maiden net profit, reversing a $0.6m loss.

[BlackPeter]

Well done PYS.....maiden profit!

https://www.nzx.com/announcements/431425

HIGHLIGHTS
 - Operating revenue: $7.7m up 33% lifted by a 7% increase in customers to 7,368 and a 11% increase in average monthly revenue per user (ARPU) to $91. 
- Processing fee income: $5.4m up 17% lifted by customer growth and fee increases as we passed on rising costs. 
- Interest income: $2.2m up 96% lifted by customer growth and continued high interest rates.
- Annualised recurring revenue (ARR): $8m up 19% from $6.7m.  - EBTDA: $1.06m, reverses EBTDA loss of $0.08m with revenue growth more than offsetting investments for growth and general inflationary pressures.
- Net profit after tax (NPAT): $1.2m maiden net profit, reversing a $0.6m loss.

They are already for some time around. Wondering in which decade they are going to cover their previous losses ... ?

[Minimoke]

They are already for some time around. Wondering in which decade they are going to cover their previous losses ... ?

I still remain totally unexcited by this company. $7.5m in revenue is just so ho hum

Id point out that while they have made a net profit of $1.232m their increase in interest income was $1.855m. At this point I loose interest in delving into the accounts any further.,

[Minimoke]

After these mediocre results I did get to wondering what paySauses moat is and that led me to wondering how many payroll providers there are in NZ. Answer = heaps

https://www.nzppa.co.nz/directory-of-payroll-suppliers/

[BlackPeter]

After these mediocre results I did get to wondering what paySauses moat is and that led me to wondering how many payroll providers there are in NZ. Answer = heaps

https://www.nzppa.co.nz/directory-of-payroll-suppliers/

Jeez - that's a lot, isn't it? Wondering as well whether PaySauce picked a good name - anybody checking for a provider on this list probably gives up searching after a handful of pages (call the first three?) and takes a provider starting with the earlier letters in the alphabet.

[HAWKDOG]

news out.  Entering the Australian market.

PaySauce charts Australian launch; reiterates guidance
Friday 26th September 2025

Text too small?
At its annual meeting today, Software-as-a-Service fintech PaySauce (NZX: PYS ) will announce that it has established a beachhead in the Australian market, with dairy farmers in Victoria now using the company's payroll solution in a pilot ahead of a formal launch in 2026.

 

The company will also detail how — in a first for Australia's 700,000 micro-businesses — the first of eight dairy farmers participating in the pilot have used the PaySauce solution to calculate and pay their employees from a single app — bypassing as many as five separate systems they relied upon to achieve a compliant pay run.

 

The first pilot participant has cut the time spent paying their employees from an hour and a half to mere minutes. The pilot, which makes use of the advanced rules-based architecture of PaySauce's Gen 2.0 payroll engine, is expected to expand to ten participants in the coming months. Its goals are to refine the PaySauce system ahead of the commercial launch next year.

 

At the meeting PaySauce will also reiterate its target of achieving annual recurring revenues (ARR) of $10 million in FY26, supported by an expected turnaround in business confidence and by leveraging its product investments to drive growth in its core New Zealand market.

 

PaySauce Chair Shelley Ruha said: "The first pay runs for the pilot participants in Australia are a significant achievement for the PaySauce team and a significant step towards achieving the next phase of our growth plans.

 

"Our next target of $10m in ARR is in sight as we leverage the investments made into our product to start delivering accelerated growth both in New Zealand and over time in Australia as we prove the product via the pilot and then launch commercially."

 

CEO PaySauce Asantha Wijeyeratne said: "We are delighted to have initiated this pilot, which marks the first step toward rolling our solution out to the Australian dairy sector — and, in time, to the broader Australian micro-business market.

 

"Right now, there is no single solution for managing employment and payroll for micro-businesses in Australia; that's the gap we are filling, and it is one that we are targeting to drive an acceleration in PaySauce's growth.

 

"The PaySauce solution delivers end-to-end payroll significantly reducing the time they spend on payroll and delivering the peace of mind that comes from knowing that payments are compliant with the complex awards and the raft of other payroll regulations."

 

PaySauce sees considerable potential in Australia where there are more than 700,000 micro-businesses who all share similar pain points when it comes to payroll including a steady rise in the compliance burden.

 

"In the last year alone, inspectors visited 360 farms, investigated 521 businesses during crop seasons, and issued more than $760,000 in fines to employers who failed to meet their payslip and record-keeping obligations," Mr Wijeyeratne said.

 

"We are beginning with Victoria's 2,500 dairy farmers, who face some of the highest compliance pressures. Over time, we intend to extend this solution beyond dairy to other sectors facing the same challenges."

 

The PaySauce Annual Shareholders Meeting is being held online. It will commence at 3:00pm and is accessible to shareholders and other interested parties via the following link: https://meetings.mpms.mufg.com/pys25.

 

The annual meeting addresses and presentations will be released to the NZX ahead of the meeting commencing this afternoon.

 

ENDS

[HAWKDOG]

I haven't looked too deeply into this company but will this weekend.

A few things that catch my eye:

positives
- 51% insider ownership
- Trading for less than cash in the bank - The company has 36.54 million in cash and 251,000 in debt, giving a net cash position of 36.29 million or 0.25 per share.
- operating revenue is up to 9 mill from 5.5 in 2023

negatives
- revenue growth has fallen significantly over the last 3 years.


as mentioned in previous comments - crowded space but could potentially be a buyout target.