Lower Hutt, New Zealand, 27 November 2020 – Employment solutions provider PaySauce (NZX:PYS) today shared its 2021 Interim Report for the six months ended September 2020. PaySauce CEO Asantha
Wijeyeratne calls the report for the first half of the 2021 financial year “our first reporting milestone since the dust
has begun to settle on the nation’s COVID-19 situation.”HIGHLIGHTS
LTV:CAC of 8.8:1 (Lifetime Value to Customer Acquisition Cost)
58% Annualised Recurring Revenue (ARR) growth
37% customer growth
Finalist in Cyber Gold Category - Wellington Gold Awards 2020
Net Promoter Score (NPS) of 76
GAAP reported total comprehensive loss for the period increased $84k from $862k to $946k. Last year’s result included
$264k of income that did not recur in FY2021:
$102k of IRD subsidy revenue which ceased as at 31 March 2020; and
$162k in relation to the reversal of fair value adjustments
Wijeyeratne reflects on the period’s progress:
“We’ve continued to grow against all the odds, and this comes down to the phenomenal support of our partners, customers
and shareholders. We’ve all witnessed what can be accomplished when people band together and act with common purpose,
and this is the most important lesson we can take from COVID-19 and apply to our other challenges.”FINANCIAL HIGHLIGHTSFinancial PerformanceSept 2020Sept 2019ChangeChange %Recurring revenue ($000’s)97063633452%Gross Margin ($000’s)61632029692%Gross Margin (%)63501326%
The 92% improvement in the gross margin is a product of the improvement in the gross margin percentage from 50% to 63%
as PaySauce evolves from startup to scale-up. It is also a product of the 37% increase in customer numbers as the
company continues to deliver a great product to its customers, as evidenced by the high Net Promoter Score (NPS) of 76.Recurring Revenue MetricsSept 2020Sept 2019ChangeChange %Customer numbers3,0852,24883737%ARR ($000’s)2,1691,37479558%ARPU (monthly) ($)5951815%
Changes made to the pricing model late last year have introduced greater stability and control over Average Revenue per
user (ARPU) by boosting the amount of controllable revenue (processing fees), compared with interest income which is
subject to variable interest rates. The increase in processing fees is substantial at $12.30 (30% YOY) per user in
contrast to the $4.70 (49% YOY) decline per user in interest income. The increase in ARPU and customer numbers underpin
the growth in Annualised Recurring Revenue (ARR) this year.OUTLOOK
Wijeyeratne on the outlook for PaySauce in the next six months:
“Until there’s greater certainty of travelling safely overseas, we’ll continue to focus on the New Zealand market,
increasingly leveraging our partners to share and support our product. We’re investing strongly in development,
including bringing on three interns to design and build a new platform application via Summer of Tech, with funding from
Callaghan Innovation. We’re maturing our internal structures and communications, and developing exemplary habits in this
area now will lay solid foundations for the future.”Attachments Provided to NZX
FY2021 Interim Report
PaySauce Results AnnouncementNON-GAAP FINANCIAL INFORMATION
Non-GAAP (Generally Accepted Accounting Principles) financial information does not have a standardised meaning
prescribed by GAAP and therefore may not be comparable to similar financial information presented by other entities.
Non-GAAP information has not been audited, and is not prepared in accordance with NZ IFRS.
The measures reported by PaySauce are used by management to monitor the performance of the company and are useful to
investors to assess performance.
Non-GAAP measures used in this release are defined in the attached report.