Investor Presentation Correction

PaySauceInvestorPresentationCorrection
LowerHutt,NewZealand-22November2023
EmploymentfintechPaySauce(NZX:PYS)advisesthatithasmadeacorrectionto
theCompany’sInvestorPresentation,releasedearliertoday.
Thecorrectionistothe“TotalRecurringRevenue”onslide13ofthepresentation.
Thefigurehasbeenupdatedto$3,551,000.
Acopyoftheupdatedpresentationisattachedandcanbefoundonthe
Company’swebsite:https://www.paysauce.com/investor/#/news.
ReleasedforandonbehalfofPaySaucebyJaimeMonaghan,ChiefFinancial
Officer.
ENDS
ABOUTPAYSAUCE
PaySauceisaSaaSfintechplatformprovidingsolutionsforpeopleatworkin14
jurisdictionsacrosstheAsia-Pacificregion.Thetechnologyenablessmall
employerstodigitallyonboard,payandmanageemployeesfromanydevice.The
platformincludesrosters,mobiletimesheets,payrollcalculations,banking
integration,automatedpayments,PAYEfiling,labourcosting,automatedgeneral
ledgerentriesanddigitalemploymentcontracts.ThePayNowfeatureenables
customers’employeestoaccessthepaythey’veearnedbeforepayday,providinga
freealternativetopaydaylenders.
www.paysauce.com
CONTACT
AsanthaWijeyeratne
CEOPaySauce
+6421554600
Pleasedirectanyinvestmentqueriestoinvestor@paysauce.com.

---

2024
2023
Results presentation
SIX MONTHS ENDED 30 SEPTEMBER 2023

The information in this presentation is of a general nature and does not
constitute financial product advice, investment advice or any other
recommendation. Nothing in this presentation constitutes legal,
financial, tax or other advice.
This presentation should be read in conjunction with, and is subject
to PaySauce’s Interim Report, market releases and information
published on PaySauce’s website - www.paysauce.com
This presentation may contain forward looking statements about
PaySauce and the environment in which PaySauce operates, which
are subject to uncertainties and elements outside of PaySauce’s
control - PaySauce’s actual results or performance may differ
materially from these statements. PaySauce gives no warranty or
representation as to its future financial performance or any future
matter.
This presentation may include statements relating to past
performance, which should not be regarded as a reliable indicator for
future performance.
This presentation may include information from third parties believed
to be reliable; however, no representations or warranties are made as
to the accuracy or completeness of such information.
While reasonable care has been taken in compiling this presentation,
none of PaySauce nor its subsidiaries, directors, employees, agents
or advisors (to the maximum extent permitted by law) gives any
warranty or representation (express or implied) as to the accuracy,
completeness or reliability of the information contained in it, nor takes
any responsibility for it. The information in this presentation has not
been and will not be independently verified or audited.
No person is under any obligation to update this presentation at any
time after its release to you or provide you with further information
about PaySauce.
Disclaimer
Please refer to the Glossary for definitions of key metrics used in this presentation.
All currency amounts are in New Zealand Dollars unless stated otherwise.
2
PaySauce

Jaime
Monaghan
Chief Financial Officer
Asantha
Wijeyeratne
CEO, Co-founder
Agenda
1. Intro & Strategy
2. Financial Results
3. Q & A
3
PaySauce

Intro & Strategy
Asantha Wijeyeratne
4
PaySauce

Maiden positive earnings
in year of transition
Annualised Recurring
Revenue (ARR)
Up 32% on Sept 2022
EBTDA
2
Up $455k YoY reversing the
Sept 2022 loss of $200k
$
255
k
$
7.4
m
Cashflow
Generating cash flow
f rom operations
1
$
464
k
48
Rule of 40
Above industry
benchmark
1 before funds due to customers and IRD. 2 Earnings before Tax, Depreciation and Amortisation
• Gen 2.0 Payroll Engine
• Agreement to deliver a proof of concept for embedded
payroll
• First period of positive EBTDA
2
• Generating cash from operating activities to reinvest for
long term growth
• Surpassing the Rule of 40 benchmark
5
PaySauce

FY24 - a year of transition
• Strong ARR growth continued - up 32% YoY
to $7.4m
• Interest income up 105% YoY
• Processing Fees growth lower at 15% YoY as
the business transitions
• Growth in processing fees came from
8% increase in new customers, and a 7%
increase in average processing fees per
customer
• Reached market penetration in dairy and
entry into new verticals is still in its infancy
32
%
$
7.4
m
Annualised
Recurring
Revenue (ARR)
$8m
$4m
$6m
$2m
MAR 23SEP 23SEP 22MAR 22SEP 21MAR 21SEP 20
InterestProcessing fees
6
PaySauce

We are in transition to our
platform for the future
Gen 1.0 goPayroll +
SmoothPay (acquisition)
Serving 1500 customers in
NZ, AU and PI
Gen 1.0
Existing code base serving
5600 customers In NZ
Gen 2.0
Embedded payroll opportunity
Rapid global
scalability by
embedding into
existing providers with
large customer base
End customer
relationship and
support is owned
by the 3rd party
provider
Fixed term, multi
year contract,
invoiced annual in
advance
CUSTOMER
ACQUISITION
CUSTOMER
SUPPORT
REVENUE
RECOGNITION
Tax and
compliance
filing
integration
Payment
solution
integration
Embedded
Payroll
Gen 2.0 Payroll
Engine Rev
Micro-business
App
Configure
jurisdiction
rules
PaySauce
Gen 2.0
Engine
Very large
under-served market
of micro-businesses
with 1−5 employees
acquired directly and
through accountants
PaySauce owns
the customer
relationship and
provides direct
support
Monthly
subscription on a
pay as you go basis
CUSTOMER
ACQUISITION
CUSTOMER
SUPPORT
REVENUE
RECOGNITION
Micro-business App opportunity
C
O
N
N
E
C
T
S

T
H
R
O
U
G
H

A
P
I
C
O
N
N
E
C
T
S

T
H
R
O
U
G
H

A
P
I
Embedded
Payroll
Micro-business
App
A
P
I
PaySauce
Gen 2.0
Engine
A
P
I
Embedded payroll opportunity
Rapid global
scalability by
embedding into
existing providers with
large customer base
End customer
relationship and
support is owned
by the 3rd party
provider
Fixed term, multi
year contract,
invoiced annual in
advance
CUSTOMER
ACQUISITION
CUSTOMER
SUPPORT
REVENUE
RECOGNITION
Tax and
compliance
filing
integration
Payment
solution
integration
Embedded
Payroll
Micro-business
App
Configure
jurisdiction
rules
PaySauce
Gen 2.0
Engine
Very large
under-served market
of micro-businesses
with 1−5 employees
acquired directly and
through accountants
PaySauce owns
the customer
relationship and
provides direct
support
Monthly
subscription on a
pay as you go basis
CUSTOMER
ACQUISITION
CUSTOMER
SUPPORT
REVENUE
RECOGNITION
4−6 months
sales and
implementation
TIME TO
SALE
Download the app
and pay staff the
same day
TIME TO
SALE
Serve new
customer base
following
implementation
SALES
CYCLE
Support
Accounting and
Direct marketing
channels
SALES
CYCLE
Micro-business App opportunity
C
O
N
N
E
C
T
S

T
H
R
O
U
G
H

A
P
I
C
O
N
N
E
C
T
S

T
H
R
O
U
G
H

A
P
I
PaySauce
7

Gen 2.0 Payroll Engine affords us
commercial optionality
Embedded payroll opportunity
Rapid global
scalability by
embedding into
existing providers with
large customer base
End customer
relationship and
support is owned
by the 3rd party
provider
Fixed term, multi
year contract,
invoiced annual in
advance
CUSTOMER
ACQUISITION
CUSTOMER
SUPPORT
REVENUE
RECOGNITION
Tax and
compliance
filing
integration
Payment
solution
integration
Embedded
Payroll
Gen 2.0 Payroll
Engine Rev
Micro-business
App
Configure
jurisdiction
rules
PaySauce
Gen 2.0
Engine
Very large
under-served market
of micro-businesses
with 1−5 employees
acquired directly and
through accountants
PaySauce owns
the customer
relationship and
provides direct
support
Monthly
subscription on a
pay as you go basis
CUSTOMER
ACQUISITION
CUSTOMER
SUPPORT
REVENUE
RECOGNITION
Micro-business App opportunity
C
O
N
N
E
C
T
S

T
H
R
O
U
G
H

A
P
I
C
O
N
N
E
C
T
S

T
H
R
O
U
G
H

A
P
I
Embedded
Payroll
Micro-business
App
A
P
I
PaySauce
Gen 2.0
Engine
A
P
I
Embedded payroll opportunity
Rapid global
scalability by
embedding into
existing providers with
large customer base
End customer
relationship and
support is owned
by the 3rd party
provider
Fixed term, multi
year contract,
invoiced annual in
advance
CUSTOMER
ACQUISITION
CUSTOMER
SUPPORT
REVENUE
RECOGNITION
Tax and
compliance
filing
integration
Payment
solution
integration
Embedded
Payroll
Micro-business
App
Configure
jurisdiction
rules
PaySauce
Gen 2.0
Engine
Very large
under-served market
of micro-businesses
with 1−5 employees
acquired directly and
through accountants
PaySauce owns
the customer
relationship and
provides direct
support
Monthly
subscription on a
pay as you go basis
CUSTOMER
ACQUISITION
CUSTOMER
SUPPORT
REVENUE
RECOGNITION
4−6 months
sales and
implementation
TIME TO
SALE
Download the app
and pay staff the
same day
TIME TO
SALE
Serve new
customer base
following
implementation
SALES
CYCLE
Support
Accounting and
Direct marketing
channels
SALES
CYCLE
Micro-business App opportunity
C
O
N
N
E
C
T
S

T
H
R
O
U
G
H

A
P
I
C
O
N
N
E
C
T
S

T
H
R
O
U
G
H

A
P
I
8
PaySauce

Strategic priorities
Re-invest for
long term
growth
Obsess over
customers
STRATEGIC PRIORITY #2STRATEGIC PRIORITY #1
Win-win-win
partnerships
Awesome
people
STRATEGIC PRIORITY #3STRATEGIC PRIORITY #4
Highlights
Embedded payroll
opportunity
Micro business payroll
opportunity
Enhanced infrastructure
and security
Highlights
Accelerated
development of Gen 2.0
payroll engine
Product improvements
reduced customer
support calls
PayNow saved customers
an estimated $1.1m in
interest and fees
Highlights
Strengthened banking
connections through API
and Akahu
Increasing our reach into
local accounting firms
National brand
exposure through rugby
sponsorships
Highlights
4 new senior roles in Sales
and Product teams
New employee share
scheme for FY24
Winner of the 2degrees
Wellington Regional
Business Excellence Awards
9
PaySauce

Financial Results
Jaime Monaghan
10
PaySauce

Customer value growth
SEP
CAC
$
508
ARPU
$
85
At 30 September 2023
Total Customer
Lifetime Value
$
50.9m
19
% YOY
New customer joins
PaySauce
Customer Acquisition
(CAC)
$508 per customer
Customer pays a
monthly subscription
Recurring Revenue
(Monthly): $85per
customer
Customer Lifetime
Value (CLTV)
$7,070 per customer
Customer receives
support
Cost to Serve (CTS)
(Monthly): $21 per
customer
+37%

YOY
+ 22%

YOY
CTS
$
21
Customer
Lifetime
9.2
yrs
CLTV
$
7,070
CLTV : CAC
14:1
0%

YOY
-20%

YOY
10%

YOY
-17%

YOY
Customer stays with
PaySauce
Customer Lifetime
Average monthly churn
of 0.91%
“PaySauce is easy to
use, saves me time...
oh, and the customer
support is amazing”
Craig Turner
Espresso Repair
Specialists
Macro-economic conditions and cost
discipline support value accretio
11
PaySauce

• CAC: Fewer customers acquired,
and cost to acquire increased
• Cost to serve each customer
held at $21 per month as
inflationary pressures were offset
by efficiency improvements in
operations
• Revenue growth supported by
increased ARPU, new customers
and increased interest revenue
• Revenue per FTE increased to
$84k
• Customer churn increased to
0.91% per month, reducing the
implied customer lifetime to just
over 9 years
Customer
Acquisition
(CAC)

SEP 2023SEP 2022YOY Change
Customer acquisition costs ($000s)41834820%
New customers (organic)
822939
(12%)
CAC per addition
508371
37%
Recurring
Revenue

SEP 2023SEP 2022YOY Change
ARR at end of period ($000s)7,3785.57632%
Recurring revenue for the period - Total ($000s)
3,5512,525
41%
ARPU (monthly) at end of period ($)
8570
22%
FTEs
4338
13%
Revenue per FTE ($000s)
8468
24%
SEP
Cost to Serve
(CTS)

SEP 2023SEP 2022YOY Change
Recurring revenue ($000s)3,5512,52541%
Less cost to serve ($000s)
(873)(759)
15%
Gross margin ($000s)2,6781,76652%
Gross margin %
75%70%
5pp
CTS per customer (monthly) at end of period ($)
2121
-
Customer
Lifetime

SEP 2023SEP 2022YOY Change
Customers at end of period7,2026,6588%
Average monthly churn rate for the period (%)
0.910.76
20%
LTV per customer at end of period ($)
7,0706,424
10%
Total customer LTV at end of period ($000s)
50,91842,770
19%
LTV:CAC ratio at end of period
14 : 117 : 1
(20%)
12
PaySauce

Delivering maiden positive earnings
• Maiden positive EBTDA result
of $255k
• Positive net operating
cashflow of $464k*
• PaySauce grew total
recurring revenue 41%
YoY due to increased
interest income, additional
customers and additional
ARPU
• Gross margin grew 52% YoY
from higher revenue and
greater efficiency
SEP 23 ($000s)SEP 22 ($000s)Change 
Earnings / (Loss) before tax, impairment,
depreciation & amortisation
255(200)(227%)
Net operating cashflow*464(88)$552k
Cash and Cash equivalents*356609$253k
Total recurring revenue3,5512,525 41%
Gross margin2,6771,76652%
Gross margin %75%70%5pp
Net loss(267)(425)(37%)
*excludes funds due to customers and the IRD, collected in performing our role as a PAYE intermediary,
13
PaySauce

Sustainable growth & the rule of 40
The rule of 40 provides a measure of two
key metrics for SaaS businesses: growth
and earnings.
PaySauce uses the combination of recurring
revenue growth, and EBTDA* to assess
against this measure.
In a year of transition, PaySauce has
continued to increase profitability while the
rate of growth has slowed. A score of 40
is widely seen as the benchmark for SaaS
companies. At 48 - PaySauce has surpassed
this benchmark with annual recurring
revenue growing +41% and an improved
EBTDA margin of 7%.
*Earnings before Tax, Depreciation and Amortisation.
Recurring revenue growthEBTDA Margin (%)
SEP 23MAR 22SEP 22MAR 23SEP 21MAR 21
-100%
-50%
0%
50%
100%
BenchmarkPYS Rule of 40
100
-25
0
25
50
75
SEP 23MAR 23SEP 22MAR 22SEP 21MAR 21
-23836716748
14
PaySauce

Positioned for an acceleration in growth
Large opportunity by
leveraging the Gen 2.0
Payroll engine
• Enterprise sized, global
employment providers seeking
embedded payroll solution.
• The product is scalable. Embedded
payroll provides high volume
payroll in a very cost effective,
efficient and scalable way.
Challenging macro-
environment

It is supportive of interest revenue
but challenging for customers.
Growth advances
We are advancing our plans to grow
into new verticals and deliver our
micro-business app.
Our goals are in sight
The Gen 2.0 Payroll engine enables
a faster path to $10 million ARR and
beyond.
Embedded payroll opportunity
Rapid global
scalability by
embedding into
existing providers with
large customer base
End customer
relationship and
support is owned
by the 3rd party
provider
Fixed term, multi
year contract,
invoiced annual in
advance
CUSTOMER
ACQUISITION
CUSTOMER
SUPPORT
REVENUE
RECOGNITION
Tax and
compliance
filing
integration
Payment
solution
integration
Embedded
Payroll
Gen 2.0 Payroll
Engine Rev
Micro-business
App
Configure
jurisdiction
rules
PaySauce
Gen 2.0
Engine
Very large
under-served market
of micro-businesses
with 1−5 employees
acquired directly and
through accountants
PaySauce owns
the customer
relationship and
provides direct
support
Monthly
subscription on a
pay as you go basis
CUSTOMER
ACQUISITION
CUSTOMER
SUPPORT
REVENUE
RECOGNITION
Micro-business App opportunity
C
O
N
N
E
C
T
S

T
H
R
O
U
G
H

A
P
I
C
O
N
N
E
C
T
S

T
H
R
O
U
G
H

A
P
I
Embedded
Payroll
Micro-business
App
A
P
I
PaySauce
Gen 2.0
Engine
A
P
I
Embedded payroll opportunity
Rapid global
scalability by
embedding into
existing providers with
large customer base
End customer
relationship and
support is owned
by the 3rd party
provider
Fixed term, multi
year contract,
invoiced annual in
advance
CUSTOMER
ACQUISITION
CUSTOMER
SUPPORT
REVENUE
RECOGNITION
Tax and
compliance
filing
integration
Payment
solution
integration
Embedded
Payroll
Micro-business
App
Configure
jurisdiction
rules
PaySauce
Gen 2.0
Engine
Very large
under-served market
of micro-businesses
with 1−5 employees
acquired directly and
through accountants
PaySauce owns
the customer
relationship and
provides direct
support
Monthly
subscription on a
pay as you go basis
CUSTOMER
ACQUISITION
CUSTOMER
SUPPORT
REVENUE
RECOGNITION
4−6 months
sales and
implementation
TIME TO
SALE
Download the app
and pay staff the
same day
TIME TO
SALE
Serve new
customer base
following
implementation
SALES
CYCLE
Support
Accounting and
Direct marketing
channels
SALES
CYCLE
Micro-business App opportunity
C
O
N
N
E
C
T
S

T
H
R
O
U
G
H

A
P
I
C
O
N
N
E
C
T
S

T
H
R
O
U
G
H

A
P
I
15
PaySauce

Questions
PaySauce
16

Glossary
Recurring Revenue: Recurring revenue
is revenue that is expected to repeat
each period into the future. For
PaySauce, this is directly linked to the
number of customers, their size, and
the number of pays they run using the
PaySauce payroll products. There are
currently two sources of recurring
revenue - processing fees and interest
income.
ARR: The total recurring revenue for the
last calendar month of the reporting
period, multiplied by 12.
ARPU (monthly): Average revenue per
user (monthly) is the total recurring
revenue for the month, divided by the
total customers processing payroll that
month.
Gross margin: When discussed as a
SaaS term, is the recurring revenue of
the business, less the cost to serve
customers. This is often then expressed
as a percentage, where the gross
margin is divided by the recurring
revenue.
Churn (monthly): Churn is expressed
as a percentage calculated as the net
reduction of customers in a calendar
month divided by the total customers at
the start of that month.
LT V: Lifetime value is the estimated
value of a customer over its lifetime with
PaySauce. This is calculated by taking
the monthly ARPU multiplied by the
gross margin percentage, then divided
by the monthly churn percentage.
Total Customer LTV: Total customer
lifetime value is the lifetime value
multiplied by the total customers.
LTV : CAC: This ratio reflects the return
on investment for customer acquisition.
It is calculated by dividing the lifetime
value of a customer by the customer
acquisition cost (per addition).
PayNow: A unique feature in the
PaySauce mobile application, which lets
employee’s access the money they’ve
already earned, effectively letting them
choose their own payday on demand.
Refer to paysauce.com/paynow for
further details.
Rule of 40: The rule of 40 provides
a balanced measure of two key
metrics for SaaS businesses: growth
and profitability. PaySauce uses the
combination of recurring revenue
growth, and EBTDA to assess against
this measure.
EBTDA: Earnings Before Tax,
Depreciation and Amortisation
is calculated by adding back
depreciation, amortisation and
income tax expense to the amounts
reported in the NZ IFRS-based financial
statements. PaySauce believes that
this measure provides useful insights to
measure the performance of PaySauce
as a SaaS business.
Note - the terms and metrics above are
Non-Generally Accepted Accounting
Principles (non-GAAP) measures and
should not be viewed in isolation, not
considered substitutes for measures
reported in accordance with New
Zealand Equivalents to International
Financial Reporting Standards (NZ IFRS).
Refer to the PaySauce Annual Report for
further information.
17
PaySauce

85 The Esplanade, Petone,
Lower Hutt 5012, New Zealand
www.paysauce.com/investor