PaySauce FY24 Full Year Result and Annual Report
AUDITEDFINANCIALRESULTSFORTHEYEARTOTHEENDOFMARCH2024
PaySaucereportsmaidennetprofit;advances
growthstrategy
LowerHutt,NewZealand-22May2024
SoftwareasaServiceFintechPaySauce(NZX:PYS)todayreportsamaidenfull
yearnetprofitaftertaxof$1.2mfortheyearto31March2024asthecompany
benefitedfromgrowthincustomersandincreasedinterestincome.
Italsoreportssignificantprogressinpreparingforitsnextphaseofgrowth.
PaySauceisnearingcompletionoftheproofofconceptwhichwilldemonstrate
theabilitytoexecutewholesalepayrollwiththenewGen2.0payrollengine.
PaySaucealsoextendedthereachofitsmicrobusinessappfromitscoredairy
farmermarketintonewverticalsofplumbers,buildersandhospitality.
HIGHLIGHTS
1
●
Operatingrevenue:$7.7mup33%liftedbya7%increaseincustomersto
7,368anda11%increaseinaveragemonthlyrevenueperuser(ARPU)to$91.
●
Processingfeeincome:$5.4mup17%liftedbycustomergrowthandfee
increasesaswepassedonrisingcosts.
●
Interestincome:$2.2mup96%liftedbycustomergrowthandcontinued
highinterestrates.
●
Annualisedrecurringrevenue(ARR):$8mup19%from$6.7m.
●
EBTDA:$1.06m,reversesEBTDAlossof$0.08mwithrevenuegrowthmore
2
thanoffsettinginvestmentsforgrowthandgeneralinflationarypressures.
●
Netprofitaftertax(NPAT):$1.2mmaidennetprofit,reversinga$0.6mloss.
ChairShelleyRuhasaid:“Ourachievementofourfirstfullyearnetprofitaftertax
andpositivecashflowsisasignificantmilestone,especiallyinthefaceofthe
headwindsthatgrowthcompaniessuchasPaySauceandindeedourcustomers
havefacedformuchofthelastyear.
“Persistentinflationandsubdueddemandhavepresentedachallengetonew
customergrowthoutsideourcoredairyvertical.However,ouroperatingrevenue
hasbeensupportedbyhighinterestrates,whichhaveinsulatedPaySaucefrom
thesepressures.
2
Earningsbeforetaxdepreciationandamortisationisanon-GAAPmeasureoffinancialperformance.It
isdefinedandreconciledtotheGAAPmeasureofnetprofitonpage25ofthecompany’sannualreport
releasedtotheNZXtodayandavailableonthecompany’swebsite.
1
AllcomparisonsareagainstFY23unlessotherwisestated.
“Asaprofitableandcashflowpositivecompanyweremainfirmlyinchargeofour
owndestinyandhavebeenabletoadvancestrategiesthatarenowpoisedto
deliveranaccelerationofgrowthanddrivethelong-termsustainabilityofour
business.
“Wehavealsoputinplacethefoundationsforournextphaseofgrowth.Thekey
achievementswerepilotingournewGen2.0payrollengine,significantprogress
ontheproof-of-conceptworkofournewwholesalesolutionandmigratingour
techstacktoAmazonWebServices.Itisanexcitingtimeforthecompany.”
ChiefExecutiveOfficerandCo-FounderAsanthaWijeyeratnesaid:“The2024
financialyearhasbeenayearoftransformationforPaySauce.
“We’vedeliveredonourstrategicobjectives,themostsignificantofwhichwas
re-investingforgrowth.WepilotedournewGen2.0payrollengineandare
nearingcompletionofthewholesalepayrollproofofconcept.Thisisfora
significantcustomerthathasthepotentialtoaddasignificantnumberofpeople
usingourtechnology.Thisdevelopmentwillputinplacethefoundationsofthe
company’snextphaseofgrowth.
“TheenginewillenablePaySaucetomakethefirststepsinawholesalepayroll
strategythatwillseeourtechnologyembeddedinbusinessmanagement
platforms.Itwillalso,overtime,formthecoreofourmicrobusinessappwhichwill
accelerateourgrowthintonewverticalssuchasourcurrenttargetofthe
constructionindustryandrelatedtrades.”
FINANCIALPERFORMANCE
OperatingrevenuefortheyeartotheendofMarch2024rose33%to$7.7mfrom
$5.8mintheprioryear.Theresultwasunderpinnedbythestrongriseininterest
ratesandanincreaseinthebalanceoffundsheldonaccountforcustomers,
whichledtoan96%riseininterestincome.
Processingfeeincomeroseby17%to$5.4mfrom$4.6m,anincreasedrivenbya
7%increaseincustomersto7,368from6,875atthesametimeayearagoand
priceincreasesasPaySaucepassedonthecostsofinflationtothebusiness.
Averagemonthlyrevenueperuser(ARPU)increased11%to$91from$81inthe
prioryear.ARRattheendofMarchroseto$8.0mfrom$6.7matthesametimea
yearago.
PaySauceachievedanunderlyingNPATof$0.2m,whichwasinflatedbya$1.0m
taxadjustmentasadeferredtaxassetwasrecognisedintheyear.PaySauceisnow
profitableandexpectstobeabletoutilisesomeofthecarriedforwardtaxlossesin
futureyears.
PaySaucedeliveredmaidenfullyearearningswithEBTDAreaching$1.06m
reversingtheprioryear’s$0.08mloss,whileNetProfitAfterTaxroseto$1.2mup
fromlastyear’slossof$0.6m.Inbothcasestheimprovementwasunderpinnedby
growthintotalrevenue,butthegainsweredilutedbyinvestmentsforgrowth.
Theseinvestmentsincludedthedevelopmentintothenewpayrollengineandthe
wholesalepayrollproofofconcept,enhancementstodevelopmentinfrastructure
andtheexpansionofthesalesandmarketingteams.PaySaucealsosawageneral
increaseincostsinlinewiththebroaderinflationarypressuresaffectingthe
economy.
Operatingcashflows,beforetheinflowoffundsduetocustomersandtheIRD,
roseto$1.5millionfrom$0.3mintheprioryearandPaySaucepostedpositivefree
cashflowof$0.3mafterallowingforinvestmentactivity,reversingtheprioryear
negativefreecashflowof$645k.
STRATEGICPROGRESS
Oncedelivered,thenewGen2.0payrollenginewillbeabletobequickly
configuredtocomplywithcomplexpayrollrulesinanyjurisdictionaroundthe
worldandisdesignedforsuperiorspeedandprocessing.Thewholesalesolution
willbecomplementarytotheexistingmicrobusinesssolutionwherePaySauce
willcontinuetoinvestforgrowth.
Customergrowthslowedrelativetotheyearearlierreflectingboththematurityof
thecompany’scoredairysectorverticalandtheearlystageofeffortstodiversify
andgrowourcustomerbase.Totalcustomeracquisitioncostsweresimilartothe
prioryearintotal,butincreasedonapercustomerbasisreflectingtheearlystage
ofthecompany’spenetrationintothenewconstructionandtradeverticals.
PaySauce’smonthlychurnrateincreasedto1.18%comparedto1.15%atthesame
timeayearagoastougheconomicconditionstooktheirtollonsmallbusiness
customers.Despitethis-customerlifetimevalueincreased23%to$43.4m,asthe
company’smarginsandcustomerbasegrew.
PaySaucecontinuestoachieveitsgoaltoexceedtheruleof40globalbenchmark
forSaaScompaniesandwhilethecompany’sscorehasmoderatedoverthelast
year,theinvestmentsputinplaceforthefuturepositionthecompanytoreverse
thistrendfortheyearahead.
OUTLOOK
AsanthaWijeyeratnesaidheremainedconfidentaboutPaySauce’sprospects.
“Thecurrenthigh-interestrateenvironmentappearssettopersistandunderpin
ourrevenueforatleastthenexttwelvemonths.Aswenotedatthehalfyearit
representsanaturalhedgeforPaySaucegiventheimpactelevatedinterestrates
arehavingonthebroadereconomy,”Wijeyeratnesaid.
“Againstthis,wearethrilledbytheopportunitiespresentedwiththeadvancesof
theGen2.0payrollengineandourwholesalepayrollsolution.Webelievethese
developmentscombinedarebringingourgoalof$10millioninARRintosight.”
Furtherdetailonthecompany’sperformanceisincludedintheannualreportand
investorpresentationreleasedtotheNZXtodayandalsoavailableonthe
company’sinvestorwebsite:https://www.paysauce.com/investor/#/documents
PaySaucewillhostanInvestorandMediaconferencecalltodaytodiscussthefull
yearresult.
Theconferencecallisscheduledtobeginat10.00amNZDT.
Investorsandmediaareinvitedtoattendtheconferencecall,andcanregister
theirinterestbyemailinginvestor@paysauce.combefore9amtoreceivethe
conferencecalllink.
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
---
Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Updated as at June 2023
Results for announcement to the market
Name of issuer PaySauce Limited
Reporting Period 12 months to 31 March 2024
Previous Reporting Period 6 months to 30 September 2023
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$7,716 33%
Total Revenue $7,716 33%
Net profit/(loss) from
continuing operations
$1,232 -321% (reversed a loss)
Total net profit/(loss) $1,232 -321% (reversed a loss)
Interim/Final Dividend
Amount per Quoted Equity
Security
It is not proposed to pay a dividend
Imputed amount per Quoted
Equity Security
Not Applicable
Record Date Not Applicable
Dividend Payment Date Not Applicable
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
-$0.00237224 -$0.00441609
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Please refer to the attached Annual Report and financial
statements
Authority for this announcement
Name of person
authorised
to make this announcement
Jaime Monaghan
Contact person for this
announcement
Jaime Monaghan
Contact phone number +64 22 5246366
Contact email address investor@paysauce.com
Date of release through MAP
22 May 2024
Audited financial statements accompany this announcement.
---
1
2023
2024
2024
Annual
Report
23
Wholesale 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
Wholesale
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
Wholesale
Payroll
Micro-business
App
A
P
I
PaySauce
Gen 2.0
Engine
A
P
I
Wholesale 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
Wholesale
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
2024 marks a milestone year with PaySauce
delivering a maiden full year profit.
The bottom-line profit is underpinned by
continued customer growth on our existing
platform, with development focussed on
our new Gen 2.0 payroll engine to drive
future growth.
The proof of concept for delivering a B2B
payroll solution is nearing completion,
proving our ability to execute wholesale
payroll to supercharge our future offering.
Contents
04 / FY24 highlights
06 / FY25 Strategy
08 / Leadership messages
12 / Delivering on the plan
22 / Leadership team
24 / Performance (SaaS metrics)
34 / Financial statements
65 / Corporate governance
82 / Company directory
45
1
3
2
4
Free
Cashflow
$
0.3
m
46
Rule of 40
1
Annualised
Recurring
Revenue
(ARR)
$
8.0
m
Up 19%
YoY
Up $0.94m
YoY
2
Above industry
benchmark
What we’ve delivered
Our FY24 strategy
Reinvest for long
term growth
Built and piloted the Gen 2.0 payroll
engine
Proof of concept for wholesale
payroll nearing completion
New micro-business payroll
application in progress
Migrated the tech stack to AWS
Obsess over
customers
Consolidated our position in the core
rural sector
Commenced marketing to new
verticals
Strong customer advocacy
maintained with NPS increase to 58
Delivered more features to delight
customers
Win-Win-Win
partnerships
Further invested in the Accountant
channel to drive customer acquisition
New partnership with Master
Plumbers and Master Builders
Evolved the payments solutions in NZ
with Akahu and ASB
Improved internal efficiencies with
Salesforce
Awesome
people
Recognised as a top 100 tech startup
employer by Matchstiq
Added product & development
capability
Building specialist functions for
scaling up
Improved internal efficiencies with
Salesforce CRM solution
How we’re performed
Highlights
1. The sum of the company’s growth rate and EBTDA margin. A figure of above 40 is an international
financial efficiency benchmark for SaaS companies. 2. Excludes funds due to customers and IRD.
NPAT
(Net Profit
after Tax)
$
1.23
m
Up $1.79m
YoY
Maiden
Profit
67
Where we’re going
Our FY25 strategy
Partnerships
Powering our go-forward strategy
The strategy going forward is to build on the solid
foundations delivered in FY24 - growing the business to
deliver value back to our shareholders.
Supercharge growth is about attracting new customers to
PaySauce. Marketing campaigns have begun with a view to
increasing brand awareness and showing small businesses
that we understand them.
We expect further investment into our Sales capability
will drive increased business from new and existing
accounting partners.
Customer love is demonstrated through our
understanding of the unique challenges that face small
business owners, giving them the two things they need
the most: peace of mind and time. Our customers are our
strongest advocates and our most effective marketing
channel.
Scalability through every stage of the customer journey
is critical to ensuring we can support the growth in a
sustainable way. From onboarding new customers, to
providing an intuitive, self-service payroll experience to
ensuring that back end processes are powered by reliable
tooling with the optimal level of human input.
These three strategic priorities are underpinned by the
three key areas of investment for PaySauce: People,
Product and Partnerships. Having strengthened these
core functions in FY24, they become the foundations of
success for FY25 and beyond.
FY24 saw significant investment into long-term growth
as a strategic priority. Having delivered on that strategic
objective, the strategy going forward delivers continued
investment into the product and platform underpinning
future priorities.
Supercharge growth
We’ll deliver growth through
two distinct paths: continuing
our work directly with the SME
market as well as opening a
whole new opportunity with
wholesale.
To get to $10m ARR, we will:
• Improve brand awareness and
opportunities with targeted
sales and marketing strategies
• Deliver new interface for both
web and mobile
• Identify new wholesale
opportunities, including new
jurisdictions
Loving our customers
Our relationship with our
customers is mutually
beneficial: they get peace
of mind and time through a
great product, and we get
a dedicated fanbase as our
best source of growth.
To make this happen, we will:
• Delight our users with features
and functionality they need and
want
• Provide customers with the
knowledge and guidance they
need to be successful
• Improve product and service
experiences with in-app support
and guidance
Scalability
To ensure we can retain
very high service levels at
scale, we’re focusing on
the improvements to how
we operate. Removing pain
points for ourselves and our
customers means we have
more time to focus on the
growth activities.
To operate more efficiently and
safely, we will:
• Create a smoother journey for
new and existing customers
• Implement AI and other new
technologies to build scalable
processes
• Optimise our tech stack for
speed, security and scale
PeopleProduct
89
InterestProcessing Fees
Annualised Recurring Revenue
Mar 21Mar 22Mar 23Mar 24
$0 M
$2 M
$4 M
$6 M
$8 M
MESSAGE FROM THE CHAIR
Shelley Ruha
Independent Director,
Chair
3. EBTDA (earnings before tax, depreciation and amortisation) is a non-GAAP financial measure that is defined on page 25 of this report.
“
“
19
%
Annualised
Recurring
Revenue (ARR)
$8.0m
In charge of
our destiny
I am delighted to report on the outstanding progress
PaySauce has made over the last year.
We have delivered our first full year net profit and positive
cashflow as we benefited from growth in customers and
increased interest income. This is a significant milestone,
especially in the face of the headwinds that growth
companies such as PaySauce and indeed our customers
have faced for much of the last year.
Persistent inflation and subdued demand have
presented a challenge to new customer growth outside
our core dairy vertical. However, our operating revenue
has been supported by high interest rates, which have
insulated PaySauce from these pressures.
As a profitable and cashflow positive company we
remain firmly in charge of our own destiny and have been
able to advance strategies that are now poised to deliver
an acceleration of growth and drive the long-term
sustainability of our business.
We have also put in place the foundations for our next
phase of growth. The key achievements were the
development of our new Gen 2.0 payroll engine, significant
progress on the proof-of-concept work of our new
wholesale solution and migrating our tech stack to Amazon
Web Services.
It is an exciting time for the company.
Financial Performance
Operating revenue for the year to the end of March 2024
rose 33% to $7.7m from $5.8m in the prior year. The
result was underpinned by the strong rise in interest rates
and an increase in the balance of funds held on account
for our customers, which led to an 96% rise in interest
income.
Processing fee income rose by 17% to $5.4m from
$4.6m, an increase driven by a 7% increase in customers
to 7,368 from 6,875 at the same time a year ago and price
increases as we passed on the costs of inflation in our
business.
Average monthly revenue per customer increased 11%
to $91 from $81 in the prior year. Annualised Recurring
Revenue (ARR) at the end of March rose to $8.0m from
$6.7m at the same time a year ago.
We achieved an underlying NPAT of $0.2m, which was
inflated by a $1.0m tax adjustment as we recognised a
deferred tax asset in the year. We are now profitable and
expect to be able to utilise some of the carried forward
tax losses in future years.
We delivered maiden full year earnings with EBTDA
3
reaching $1.1m reversing the prior year’s $80k loss,
while Net Profit After Tax rose to $1.2m up from last
year’s loss of $558k. In both cases the improvement
was underpinned by growth in total revenue, but the
gains were diluted by investments for growth. These
investments included piloting the new payroll engine and
the wholesale solution, enhancements to our information
infrastructure and the expansion of the sales and
marketing teams. We also saw a general increase in costs
in line with the broader inflationary pressures affecting
the economy.
Operating cashflows, before the inflow of funds due to
customers and the IRD rose to $1.5 million from $264k in
the prior year and we posted positive free cashflow of
$296k after allowing for investment activity, reversing the
prior year negative free cashflow of $645k.
Outlook
The board and management remain confident about
the company’s prospects. The current high-interest
rate environment appears set to persist and underpin
our revenue for at least the next twelve months. As we
noted at the half year it represents a natural hedge for
PaySauce given the impact elevated interest rates are
having on the broader economy.
Against this, we are thrilled by the opportunities
presented with the advances of the Gen 2.0 payroll
engine and our wholesale payroll solution. We believe
these developments combined are bringing our goal of
$10 million in ARR into sight.
We thank the PaySauce team for their dedication over
this past year.
Shelley Ruha
Independent Director, Chair
We’ve delivered profitability, positive
cashflow, and advanced strategies that
will enable us to deliver an acceleration
of growth and drive the long-term
sustainability of our business
1011
MESSAGE FROM THE CEO
“
Asantha Wijeyeratne
CEO, Co-founder
Total Customer LTV
Mar 21Mar 22Mar 23Mar 24
$50 M
$40 M
$30 M
$20 M
$10 M
$0 M
23
%
Total Customer
lifetime value
$43m
Poised for an
acceleration
in growth
The 2024 financial year has been a year of transformation
for PaySauce.
We’ve delivered on our strategic objectives, the most
significant of which was re-investing for growth.
We piloted our new Gen 2.0 payroll engine, and are
nearing completion of the wholesale payroll proof of
concept. This is for a significant customer that has the
potential to add a significant number of people using
our technology. This development will put in place the
foundations of the company’s next phase of growth.
The engine will enable PaySauce to make the first steps in
a wholesale payroll strategy that will see our technology
embedded in business management platforms. It will
also, over time, form the core of our microbusiness app
which will accelerate our growth into new verticals such
as our current target of the construction industry and
related trades.
Strategic Progress
Once delivered, the new Gen 2.0 payroll engine will be
able to be quickly configured to comply with complex
payroll rules in any jurisdiction around the world and is
designed for superior speed and processing.
The wholesale solution will be complementary to our
existing microbusiness solution. New contracts can
deliver an immediate and significant uplift in ARR with
pricing set at rates per pay slip and agreements set with
contracted minimum volumes.
Contract periods for the wholesale solution are expected
to be fixed term over multiple years and where the service
is offered in New Zealand, PaySauce will continue to earn
interest on balances held on behalf of clients. Meanwhile,
the cost to serve customers is expected to be lower
since the wholesale customer owns the direct customer
relationship.
Against this there is a longer sales cycle than the mobile
app. Additionally, there are development costs as
PaySauce will be contracted to maintain ongoing Service
Level Agreements.
To ready the company for the expected increase in
service demand generated by this new strategy we
have migrated production servers and back-end tools
to Amazon Web Services (AWS). This shift will allow
us to scale quickly and give us the flexibility to offer
continuous product upgrades.
Customer Growth
We meanwhile continued to drive the adoption of our
microbusiness app.
Customer growth slowed relative to the year earlier,
growing 7% year on year, reflecting both the maturity of
the company’s core dairy sector vertical and the early
stage of efforts to diversify and grow our customer base.
Total customer acquisition costs were similar to the
prior year in total, but increased on a per customer basis
reflecting the early stage of our penetration into the new
construction and trade verticals.
A key step to grow in these markets has been to focus
our sales and marketing efforts on partnering with
accountants and industry associations such as Master
Plumbers and Master Builders.
We are pleased with the progress we have made with
accountants. We have recruited more than 50 separate
firms to our partnership programme and they have already
referred us more than 600 potential customers.
Digital marketing campaigns have begun alongside the
industry association partnerships to further grow our
brand awareness in this space.
We have also expanded our sales and marketing teams
with the appointment of a new Marketing Manager, as well
as a new Head of Sales and new Business Development
managers, the latter of which have a focus on developing
new and existing relationships with chartered
accountants, who are trusted advisors to thousands of
potential and existing customers.
Our monthly churn rate increased to 1.18% compared to
1.15% at the same time a year ago as tough economic
conditions took their toll on our small business
customers. Despite this - customer lifetime value
increased 23% to $43.4m, as we grew our margins and
our customer base.
PaySauce continues to achieve its goal to exceed the
rule of 40 global benchmark for SaaS companies and
while our score has moderated over the last year, the
investments we have put in place for future, position the
company to reverse this trend for the year ahead.
With the wholesale payroll proof of concept
nearing completion and our expanding
reach into new target verticals - we’re poised
for an acceleration in growth in FY25
We continue to attribute our success to a payroll product
that is easy to use, and the incredible knowledge
and efforts of our customer support team. This is
underpinned by the determination of the wider team and
a vindication of our strategy to prioritise the recruitment
and retention of great people. Alongside Shelley, I want
to thank them for their efforts and dedication over the
last year.
“
Looking Forward
I am proud of what we achieved over the last year and
the promise offered in the coming twelve months and
beyond by the advances in our technology and our new
wholesale strategy. We have now put in place all the
building blocks for an acceleration of growth.
I look forward to updating you on progress at the end of
the first quarter and at our annual meeting in September.
Asantha Wijeyeratne
Executive Director, CEO and Co-Founder
1213
Wholesale 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
Wholesale
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
Wholesale
Payroll
Micro-business
App
A
P
I
PaySauce
Gen 2.0
Engine
A
P
I
Wholesale 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
Wholesale
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
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
Wholesale 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
Wholesale
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
Wholesale
Payroll
Micro-business
App
A
P
I
PaySauce
Gen 2.0
Engine
A
P
I
Wholesale 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
Wholesale
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
DELIVERING ON THE PLAN
STRATEGIC PRIORITY #1
Re-invest for long
term growth
40
%
By investing in our inf rastructure, following
best in class architecture and security
practices, and locking in adjacent markets,
we’ve made the business scalable in
a sustainable way. This has delivered a
platform f rom which to launch our Gen 2.0
payroll engine, creating wholesale payroll
opportunities as well as strengthening our
existing product offerings.
PaySauce Gen 2.0 Payroll Engine
The Gen 2.0 payroll engine is a step-change in the
architectural evolution for PaySauce. The modular
architecture enables different components to be pieced
together to deliver a first-class payroll experience for
different end users, tailored to their needs. In the year ended
March 2024, the two key products developed were the
payroll engine and the Application Programming Interface
(API).
The payroll engine has been designed and built to provide
a payroll calculation service that can be re-used in different
jurisdictions with minimal to no code changes. By using a
unique but simple rules configuration tool, international
expansion into new jurisdictions is simplified: new rules can
easily be configured to enable accurate calculations and
application of local legislation or regulation. The payroll
engine also enables jurisdiction-specific tax filing, tax
payment and employee payments.
The API provides our Partner development teams with
an interface to the payroll engine. The API will enable an
accelerated uptake for end users looking to add payroll
services to their existing customers. The API is largely
re-usable between jurisdictions, but can receive specific
customisations based on key legislative features of
jurisdictions that we enter. The flexibility of the API allows
us to decide on a case-by-case basis if customer-
specific extensions are a good fit for the core product
offering or if they are considered a bespoke solution
for the customer. This allows us to be very focused on
meeting customer needs without sacrificing operational
efficiency.
Combined, the payroll engine and API have two primary
use cases. Firstly, they’ll enable PaySauce to offer a
wholesale payroll product to larger enterprises who
already provide adjacent services to customers, adding
a revenue stream for them, for PaySauce, and reducing
subscription services for the mutual customers.
Development commenced this year on a proof of
concept for the first consumer of the payroll engine and
API, and is nearing completion as we work through the
final desired outcomes.
Secondly, PaySauce will build a beautiful new interface
powered by our new payroll engine and API. This
new application for micro-businesses will initially be
launched in New Zealand. This will allow new customers
employing 1-5 employees to onboard, manage, make
payments and file tax records for their staff from their
phone. Delivering a new interface for both new and
existing customers allows us to unify our current product
portfolio, which currently consists of several offerings.
These will be merged into this one new suite.
Proof of
concept for
first wholesale
payroll
opportunity
nearing
completion
Successfully
migrated the tech
stack to AWS
Invested in
product and
development
specialist talent
Increased
investment into
R&D by 40% YoY
AWS
1415
Mar 24Mar 23Mar 22Mar 21
$0.5m
$1.0m
$1.5m
$2.0m
FY24
4
Investment
into R&D
R&D Investment
AWS Migration
FY24 saw PaySauce's largest technological change
to date, with the entire suite of test and production
environments shifted from Catalyst Cloud to Amazon
Web Services (AWS). Following substantial planning
and preparation, the migration ran successfully within
the scheduled maintenance window and customers
experienced a seamless transition to the new servers.
AWS unlocks improved tooling and servicing of
PaySauce’s architecture, including faster release
cycles, the ability to increase capacity on demand and
a reduction in reliance on key PaySauce team members
through the use of appropriate managed services.
Now supporting over 7,000 customers, business
continuity planning is even more critical. AWS lowers
the barriers to the implementation of highly available
systems, allowing normal operation to continue should
a range of previously service-interrupting events occur.
Amazon’s global presence and extensive support for
infrastructure as code also allows the team to quickly
spin up customer-ready copies of PaySauce in alternate
regions on demand. These capabilities combined with
strong security features such as secrets management,
threat detection, web application firewalling and audit
logging mean a big step forward in the ability to manage
and control technical risks without slowing the product
delivery pipeline.
Reinvesting in the product
Reinvestment for growth has been the focus for
PaySauce this year with investment into product
development being a core component of this. Increased
investment has been made into headcount, outsourced
development and streamlining internal processes as
PaySauce builds for scale. The three focus points for the
year have been:
• Enhancing the existing product architecture and
infrastructure for scale;
• Using the Gen 2.0 payroll engine to deliver a Proof of
Concept for the first wholesale payroll opportunity;
and
• Enhancing the existing products in response to
customers needs.
As the key strategic deliverable in FY24, investment into
Product and Development increased 12% year on year,
reflecting 26% of total recurring revenue (31% in 2023).
The incremental investment improved the efficiency
of development release cycles. This efficiency gain is
reflected in the capitalisation rate which improved 7
percentage points to 56%.
Tooling for growth
Our success has come from the love we’ve shown our
customers and the love they’ve shown us in return. Our
Customer Support centre offers exceptional service,
giving our customers the peace of mind that they’re in
safe hands. To ensure that we can continue to support an
increasing number of customers, investment into tooling
has allowed our Customer Support team to offer better
service. Through partners like Salesforce, we’ve been
able to streamline the CRM and utilise AI capability to
ensure our Support staff can confidently provide timely
responses to customers.
New Verticals
Having obtained market dominance in the rural sectors in
New Zealand, the benefit of targeting specific verticals
and demonstrating that we understand them deeply is
essential. The construction sector and related trades were
targeted for growth and partnerships with key players,
such as Master Plumbers and Master Builders were formed
in FY24. Market penetration takes time and the successes
and lessons taken from entering the dairy sector will
be applied to the new sectors, with meaningful growth
anticipated from new verticals in FY25.
$
2.0
m
Wholesale
Payroll
Micro-business
App
A
P
I
PaySauce
Gen 2.0
Engine
A
P
I
4. Expensed and capitalised
1617
DELIVERING ON THE PLAN
STRATEGIC PRIORITY #2
Obsess over
customers
Customers remain our best marketing tool,
and FY24 saw PaySauce implement further
improvements to the service offered to
our customers. A focus on improving the
customer experience is good for business
too! The team implemented more intuitive
features that reduced the volume of calls
to the call centre, enabling the Customer
Support team to continue excelling without
the need for additional headcount. The
result was reflected in the increase in the Net
Promoter Score (NPS) to 58 - a result we’re
very proud of.
of 96%Customer Support
The improvements have also come through investment
into our internal systems, including a new phone system
enabling faster response times and ultimately faster
resolutions for customers. Improved reporting metrics
also enable a faster customer satisfaction (CSAT)
score, which allows us to better understand whether
customers’ queries have been resolved.
Customer-led improvements
With Salesforce’s CRM integrated into the Customer
Support team, categorisation of new customer cases is
simpler to use, making the data capture more accurate
and more timely. This in turn leads to more informed
decisioning in relation to prioritisation of product
feature improvements, as well as how we can support
our customers with educational resources. We know our
customers don’t go into business to be payroll experts,
and providing knowledge articles or interactive webinars
further strengthens their peace of mind.
Wholesale payroll opportunities
To date, we’ve had very close contact with our customers
and served them either directly, or through one of our
incredibly supportive Accountant channel partners.
In FY24, we identified the opportunity to leverage a
new Gen 2.0 Payroll Engine to serve a new customer
base through a wholesale offering. Our product team
is nearing completion on the proof of concept with our
first potential wholesale payroll customer. Once the first
wholesale payroll opportunity is executed, the customer
relationship will change to a more technical one, with
the customer owning the relationship with the end users
(small business owners and their employees).
Achieved Net Promoter Score of
58 (well above industry average)
58
NPS
PayNow saved customers an
estimated $2.5m in interest
and fees in FY24
Customer satisfaction score
(CSAT) of 96%
Product improvements reduced
customer case volumes by 7%
year on year, despite growing our
customer base 7%
7
%
$
2.5
m
96
%
1819
Win-win-win
partnerships
DELIVERING ON THE PLAN
STRATEGIC PRIORITY #3
Over 50 New
Accountants joined
and referred 600
customers
Accountants
Customers
50
600
PaySauce uses partnerships to ensure a
better outcome for PaySauce, PaySauce’s
customers, and the chosen partner.
Partnerships are used to enhance PaySauce’s
product and to reach audiences in target
markets.
Product partnerships include Akahu,
who enable banking APIs, AplyID who
enable AML verification of our customers’
employees, and BNZ who provide interest
and fee-free lending to ensure we can keep
our PayNow product free. By leveraging their
industry expertise, we can provide a better
customer experience (and provide a genuine
alternative protecting them f rom predatory
payday lenders!).
Partnerships to reach audiences include sponsorship,
channel, industry and distribution partnerships.
Sponsorship partnerships are generally intended to
increase awareness of the PaySauce brand. These
include our partnerships with Wellington Rugby and
Taranaki Rugby Football Union. Both unions are PaySauce
customers, and both have been Bunnings Warehouse
NPC Champions during our partnerships.
In FY24, we’ve focussed on expanding our reach beyond
the rural sectors in New Zealand. A new partnership with
Master Plumbers enables us to target the under-served
plumbing sector with a first class payroll product that
enables plumbers to pay their workers from their van.
Partnering with industry experts gives confidence to the
sector that the product is suitable for them, and people
like them. The partnerships enable PaySauce to present
at conferences and talk to the sector directly to better
understand their industry specific needs.The move into
more urban locations is deliberate to emphasise that
PaySaue is much more than an agri-payroll provider.
Investment into a larger sales team has been focused
on targeting the largest cities, with two Auckland based
BDMs and a newly appointed BDM in Christchurch. With
Accountants being our primary channel partners, the
focus from our sales team has been to increase the reach
to make PaySauce the payroll solution that Accountants
recommend to their clients.
PaySauce partnered with Salesforce to develop AI
capabilities to help augment their employees’ technical
knowledge, ensuring customers are provided with
effective and efficient support. The AI allows Customer
Support employees to broaden their capabilities by
leveraging a centralised company-wide knowledge base.
PaySauce implemented an internal chatbot, powered
by Salesforce’s Service Cloud Einstein, to assist with
framing research and customer responses. This supports
the capability of the Customer team, allowing them to
confidently shape answers and respond to customers
in a timely manner. New employees add value faster
with the ability to “fact check” the responses before
communicating back to the customer – maintaining their
values of prioritising the customer experience.
New industry partnership
with Master Plumbers
New
partnerships
Strong new tech
partnerships with Amazon
and Salesforce
2021
DELIVERING ON THE PLAN
STRATEGIC PRIORITY #4
Grew Product & Development
Team by 50%
Recognised as top 100 tech/
startup employer by Matchstiq
Top 100
tech/
startup
employer
Awesome
people
People are the largest investment at
PaySauce, with over $5m paid to our
people in FY24. As well as increasing
headcount in our key growth areas, we
invested in tools that supported our
people to be more efficient.
Jacques Labuschagne joined the team as Head of
Delivery, leveraging his previous expertise to improve
the discipline and structure in our development function.
The team was split into squads to focus work into two
streams: delivering the Gen 2.0 payroll engine and
continuing to improve the existing product supporting
the current customer base. Overall, we grew our Product
& Development Team by 50%, including specialist
DevOps talent and more development capability. We
continue to also utilise the expertise of contractors
or specialist partners when needed to support our
permanent inhouse team, staying flexible with how we
resource our projects on an as-needs basis.
While our overall headcount has not increased
significantly, the make up of our workforce has changed
shape to focus more on our technology function.
The investment into a better resourced Product &
Development function is bearing fruit, with a significant
improvement in the velocity of work here - directly
impacting our ability to deliver on our strategic
objectives.
Our Sales & Marketing Team has been boosted with the
addition of our new Head of Sales and new Business
Development Managers: they bring a depth of collective
experience selling payroll solutions as well as a deep
understanding of our accountancy partner channel. Our
new Marketing Manager brings a wealth of experience in
managing campaigns to support brand awareness and
drive sales, and has driven a number of improvements
and efficiencies as well as new campaigns and initiatives
to help us reach more small business employers.
We’re well known for our excellent customer service.
This year, we’ve focused on supporting this team with
increased tooling at their disposal to help with both on
the job learning and training as well as easier access for
our customers to reach help when it is needed.
We’ve continued our commitment to looking after
the PayForce and helping them to share in PaySauce’s
success, and this year our Employee Share Scheme
continued - albeit with changes for it to be simpler to
administer and for employees to understand. Almost all
of the PayForce are shareholders, which means everyone
is committed to our ongoing success.
New Sales
& Marketing
teams
50
%
2223
Gavin Thompson
Director (Non-Independent)
Gavin is a founder and director of
Catalyst IT, New Zealand’s largest
open-source IT service provider. His
background is in software development and delivery,
and he has over 30 years’ experience in software
systems in the manufacturing, engineering, financial,
and government sectors. Gavin is also a director on the
board of Catalyst Cloud, a company which grew from an
infrastructure platform for the Catalyst business into a
provider of cloud services for Aotearoa.
Gavin is passionate about open source and open
standards software and systems which allow a
collaborative and effective approach to delivering
secure, resilient and innovative solutions.
Michael "MOD" O'Donnell
Independent Director
Mike "MOD" O'Donnell is a professional
director, writer and advisor with a
background in FinTech, ecommerce and
news media.
MOD is chair of New Zealand’s largest craft brewery
Garage Project and deputy chair of both New Zealand
Trade and Enterprise and global online music company
Serato. MOD is also a director of Radio New Zealand,
www.realestate.co.nz, Sandfield Software and he is a
Trustee of The New Zealand Hi-Tech Trust.
MOD is an independent weekly business columnist for
Stuff Media and the host of TVNZ series "Start Me Up".
He was previously Chief Operating Officer of Trade Me,
Chief Operating Officer of vWork and Head of Wholesale
Investment at Gareth Morgan Investments.
Mark Samlal
Independent Director
Mark Samlal has over 25 years'
experience in growth leadership roles
in Asia Pacific. Most recently Mark co-
founded PayAsia in 2006 where he was Non-Executive
Chair, until being appointed as Executive Chair and
Managing Director of PayAsia in 2015. In 2017, Mark
was appointed to the Board and as Managing Director
of PayGroup which listed on the ASX in May 2018 and
PayAsia became a 100% subsidiary. During this time,
Mark strategically executed over five acquisitions
before being acquired by Deel Inc by way of scheme of
arrangement in November 2022 and delisted.
Mark remains the Founder of PayGroup and the General
Manager of Deel Inc Asia. Mark was also a Director and
General Manager of PayConnect Solutions that was
acquired by ADP. His previous senior roles include CEO
at Vicplas International Ltd, a Singapore Stock Exchange
listed company, as well as Executive Director of Omni
Industries in Singapore. Throughout all experience
mentioned, Mark was an invested shareholder.
Jim Sybertsma
Independent Director, Audit & Risk
Committee Chair
Jim has over 25 years of experience in
financial leadership positions including
CFO roles for DB Group, NZ Dairy Foods, Fliway Group,
and Hawkesby Management. During this time, Jim has
been involved in audit, compliance and corporate
finance activities across a range of industries and sizes
from start-up to scale-up.
Jim is currently a Director for Provident Insurance
Corporation Limited, Auto Drive Holdings and First Glass.
He is also CFO of Hawkesby Management, a family office
investment role managing multiple investments in early
stage tech companies and listed equity portfolios
Troy Tarrant
CTO & Co-Founder
Troy has over 20 years experience in
IT development, product design and
architecture - ten of those years focused
solely on HR and payroll applications. He's worked
on projects across the board, from small business
to government. He's built PaySauce to enable rapid
development, security and scale.
Mathew Stokes
COO
Mathew has a strong finance and
technology background and amplifies
this with his passion for innovation,
streamlining operations and enhancing customer
experiences. Mathew actively contributes to the
finance and technology sectors, providing invaluable
insights and guidance. He is regularly invited to speak
on international stages about his insights on technology
and customer operations at scale, and also ensures
that we run a tight ship on compliance and regulatory
requirements.
Jaime Monaghan
CFO
With an extensive commercial
background, Jaime brings incisive
leadership to our financial and strategic
planning. Jaime’s expertise in bringing business and
finance together was honed in her previous roles at
Trade Me and Kiwibank. A Scottish Accountant, Jaime is
dedicated to ensuring the best possible stewardship of
shareholders’ funds in the short, medium and long term.
PaySauce is responsible for managing a high volume
of funds on behalf of customers, with billions of dollars
being transacted every year through PaySauce systems.
Jaime’s financial acumen and excellent management is
key to overseeing this.
Jessica McLean
CPO
Jess has had a career that started with
hands-on customer service and payroll
consulting, then moved into people
& culture. She's now leading our people and product
functions at PaySauce, making sure we have both the
talent and the product strategies to propel PaySauce
forward. She's passionate about creating high-trust,
growth-supporting cultures and enabling high-
performing teams to do what they do best, as well as
the integral function that payroll plays in a business and
ensuring we help people get that right.
Jacques Labuschagne
Head of Delivery
Jacques is a seasoned expert in
delivering technology solutions for a
range of customers, including both
bespoke solutions as well as building successful suites
of core product and service offerings. With a career
that started in software development and moved
into team and project management, Jacques most
recently spent several years as the CEO of a technology
services business in the UK, then as the COO of the
NZ based business in the same group before joining
the PaySauce team in 2023. Using a blend of technical
expertise, strategic thinking and disciplined planning
and execution, he excels at managing technology teams
to deliver successful solutions.
Shelley Ruha
Independent Director and Chair
Shelley joined the PaySauce board in
February 2022. Shelley is a professional
director with strong governance
experience within FinTech, large scale technology
infrastructure, payments innovation, banking, wealth
management and venture capital.
Current governance roles include Chair of Allied Farmers
and directorships at Heartland Bank, 9Spokes and
Partners Life. Prior directorships include Paymark, The
Icehouse, Hobson Wealth, TaxGift and JBWere Australia.
Asantha Wijeyeratne
Executive Director, CEO and Co-
Founder
Asantha has over 20 years’ experience
of unparalleled focus on helping small
businesses navigate the difficult landscape of effective
payroll. His formal background in accounting combined
with his ‘people first’ attitude has seen him successfully
build a number of businesses into market leadership
positions.
Most notably, Asantha was the driving force behind the
creation and growth of SmartPayroll and SmartBooks
which he grew to service close to 10,000 SMEs in NZ
before he left in December 2013.
Asantha’s obsession is the small business sector with
a tech and customer service focus. He loves seeing
someone with determination and passion turn an idea
into a business that supports them, their families and
the wider community. He gets a lot of enjoyment from
making tech work to help business owners succeed.
In recognition of his contribution to business and the
community, he was awarded a Queens Service Medal
(QSM) in the New Year’s honours list in 2013 and was a
finalist in Ernst & Young’s 2021 Entrepreneur of the Year.
LEADERSHIP TEAM
Leadership team
We have ambitious goals, so we’ve built an
ambitious leadership team. They have the
talents, mindsets and skills to achieve our
goals, and will keep PaySauce on course as we
scale up for increased sustainable growth.
2425
PERFORMANCE fiSAAS METRICSflPERFORMANCE fiSAAS METRICSfl
PaySauce SaaS
Performance
Business Results
The business results and SaaS metrics reported in
the following sections provide an overview of the
performance of the business in a format that we
believe is useful for readers to assess the performance
of PaySauce as a SaaS business and should be read
alongside the consolidated financial statements and the
related notes in this report.
Non-Generally Accepted Accounting Principles (Non-
GAAP) measures have been included and should not be
viewed in isolation, nor considered as substitutes for
measures reported in accordance with New Zealand
Equivalents to International Financial Reporting
Standards (NZ IFRS).
MAR 2024 MAR 2023
$000s$000s
Processing Fees5,3704,592
Interest Income2,2001,123
Recurring Revenue7,5705,715
Cost to Serve(1,747)(1,569)
Gross Margin5,8234,146
Gross Margin %77%73%
Other Interest Income1515
Other Revenue13182
Total Other Revenue14697
Customer Acquisition
(766)(709)
Research & Development(934)(991)
General & Administration(3,108)(2,561)
Interest Expense(97)(62)
Earnings Before Tax, Depreciation and Amortisation 1,064(80)
Earnings Before Tax, Depreciation and Amortisation Margin %14%(1%)
Depreciation & Amortisation(646)(498)
Asset Impairment(228)-
Income Tax1,04220
Net Profit / (Loss)1,232(558)
Earnings Before Tax, Depreciation and Amor tisation (EBTDA) is calculated by adding back depreciation, amor tisation 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.
EBTDA Margin % is EBTDA as a percentage of recurring revenue and is calculated by dividing EBTDA by recurring revenue
2627
PERFORMANCE fiSAAS METRICSflPERFORMANCE fiSAAS METRICSfl
PaySauce delivered its maiden net profit as it continued
to grow revenue and re-invest for long term growth in a
sustainable and deliberate manner.
EBTDA increased $1.14m year on year for March 2024
to $1.1m. This was driven primarily by the increase in
recurring revenue of $1.85m (33%) which more than
offset the $1.14m increase (18%) in expenditure. The net
profit for the year was $1.23m, up $1.79m on the net loss
of $558k of the prior year. The result includes a deferred
tax asset of $1.02m that was recognised during the year.
Recurring Revenue Earnings
$0.00 M
$0.50 M
-$0.50 M
-$1.00 M
-$1.50 M
-$2.00 M
Mar 21Mar 22Mar 23Mar 24
Free cash flow (excluding funds held on behalf of customers)
Free cash flow
(excluding funds held on behalf of customers)
Profitability
$8 M
$6 M
$4 M
$2 M
Mar 21Mar 22Mar 23Mar 24
RevenueExpenses
Profitability
Revenue* Expenses
*Revenue excludes recognition of deferred tax asset of $1.02m
Free cash flow is a non-GAAP financial measure that has
been included to demonstrate net cash generated by, and
invested into the business. PaySauce defines free cash
flow as cash flows generated from operating activities less
cash flows used for investing activities (excluding funds
held on behalf of customers).
Free cash flow increased by $0.94m year on year for
March 2024, primarily driven by an increase in net cash
from operating activities before increase in funds due
to customers and IRD of $1.21m.
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.
A score of 40 is widely seen as the benchmark for SaaS
companies.
How and why do we monitor recurring revenue?
PaySauce monitors the revenue received from customers
as a growth metric. Looking at it from a customer journey
angle, this is the Average Revenue per User (ARPU) and
is derived by dividing the total recurring revenue by the
number of customers in a period. PaySauce measures this
metric on a monthly basis - the higher the ARPU, the more
value received from each customer.
Definitions
Recurring revenue is revenue that is expected to repeat into
the future. Recurring revenue for PaySauce consists of:
• Processing Fees - the monthly or annual subscription
customers pay for PaySauce payroll products.
• Interest Income - interest earned from funds held on
behalf of PaySauce customers. As interest earned on
these funds grows directly in relation to the number of
customers, this is considered an additional recurring
revenue stream.
Annualised recurring revenue (ARR) multiplies the recurring
revenue generated in the last month of the period by 12 to
annualise the current recurring revenue.
Recurring revenue grew 32% year on year to $7.6m. This
arose from increases in both processing fee revenue and
interest revenue.
Processing fee revenue increased to $5.37m, up 17%,
or $0.78m year on year. The increase in volume of
customers accounted for just over half of this increase,
while the increase in average revenue per customer
accounted for the remainder.
Interest revenue increased to $2.2m, up 96% or $1.08m
year on year. This was due to the increase in interest
rates, as well as an increase in the balance of funds held
on behalf of customers.
Annualised recurring revenue (ARR) grew 19% year on
year to $8m as at 31 March 2024.
MAR 2024MAR 2023YOY Change
ARR at end of period ($000s)8,0056,70119%
Recurring revenue for the period - Total ($000s)7,5705,71632%
ARPU (monthly) at end of period ($)918111%
FTEs464210%
Revenue per FTE ($000s)16813821%
InterestProcessing Fees
Annualised Recurring Revenue
Mar 21Mar 22Mar 23Mar 24
$0 M
$2 M
$4 M
$6 M
$8 M
Annualised recurring revenue
Interest
Processing fees
PaySauce has
surpassed the rule
of 40 benchmark
with annual recurring
revenue growing
+32% and an improved
EBTDA margin of +14%.
Exceed global benchmark
for SaaS companies
Rule of
40
2829
PERFORMANCE fiSAAS METRICSflPERFORMANCE fiSAAS METRICSfl
This enabled the customer support team to support a
greater number of customers, more effectively, with
the same headcount - evidenced by an NPS score of
58 at March 2024 (up 10 from 48 in March 2023). The
increase in cost to serve was largely inflationary, and
was outpaced by a 32% increase in recurring revenue,
of which a large portion of the increase was the result of
an increase in interest revenue. This led to an increased
gross margin of 77% for the year (up 4 percentage points
on last year).
MAR 2024MAR 2023YOY Change
Recurring revenue ($000s)
7,5705,71632%
Less cost to serve ($000s)
(1,747)(1,569)11%
Gross margin ($000s)5,8234,14640%
Gross margin %77%73%
4pp
Customer
Acquisition
PaySauce has continued its expansion outside of the
rural sector into new verticals, forming key partnerships
including Master Plumbers and Master Builders, as the
company prepares to deliver new digital marketing
campaigns in this space to increase brand awareness.
Accounting partners contribute to a large portion of
new customers and continue to be a focus as PaySauce
expands its network and deepens relationships with
existing accounting partners as well as bringing on new
ones.
MAR 2024MAR 2023*YOY Change
CAC per addition510413
24%
New customers1,5021,717
(13%)
Customer acquisition costs ($000s)766709
8%
Percentage of Recurring Revenue10%12%(2 pp)
* PaySauce changed the methodology in how it recognises customer activity during the period. As a result, the comparative period
metrics have been restated to equivalent values. The following metrics relating to Customer Acquisition were impacted:
-New customers increased f rom 1,417 to 1,717.
-CAC per addition decreased f rom $500 to $413.
Mar 21Mar 22Mar 23Mar 24
80%
75%
70%
65%
60%
Gross Margin %
Gross margin %
Mar 21Mar 22Mar 23Mar 24
30%
20%
10%
0%
Customer Acquisition as a % of Revenue
Customer acquisition as a % of revenue
How and why do we monitor cost to serve?
PaySauce monitors the cost of servicing customers as
an efficiency metric. The cost to serve per customer
(CTS) divides the total cost to serve by the total number
of customers for the period. The lower the CTS, the more
efficient PaySauce is at servicing customers.
Definitions
Cost to serve consists of customer support costs and
expenses such as cloud hosting, maintenance of our
software products, and bank fees charged per customer
transaction.
Gross margin represents our recurring revenue less the
cost to serve our customers, and is also often expressed
as a percentage, where the gross margin is divided by the
recurring revenue.
Cost to serve increased to $1.7m (up 11% on last year).
PaySauce continued to make investment into new
systems and tools to increase the efficiency of the
customer support team and set up the team for scalable
growth.
How and why do we monitor customer acquisition?
PaySauce monitors the cost of acquiring new customers
as an efficiency metric. The customer acquisition cost
(CAC) divides the total cost of acquisition across the new
customers for the period. Customer acquisition is more
efficient the lower the CAC per new customer metric.
Definitions
Customer acquisition costs relate to acquiring and
onboarding new customers. These consist of sales and
marketing people costs and expenses such as digital
marketing, events and sponsorship. These costs are
expensed as incurred as they do not relate to any specific
customer or contract for services.
PaySauce added more than 1,500 new customers during
the year (an increase of 7%) taking the total to 7,300
amid tough economic conditions, inflation and subdued
demand. While slower than originally anticipated,
Cost to Serve
3031
PERFORMANCE fiSAAS METRICSflPERFORMANCE fiSAAS METRICSfl
Research and development costs relate to building new
products and features as well as enhancing the current
products and infrastructure. These costs predominantly
consist of the software development team salaries, and
are either expensed or capitalised in line with NZ IFRS
requirements. Costs are expensed if they are primarily
related to researching new products or maintaining existing
products, and capitalised if they are related to developing
new and improving existing products. Development costs
are discussed in aggregate below - to demonstrate the
total spend on R&D for the business in the period before
capitalisation under NZ IFRS requirements.
PaySauce increased investment into research &
development by 25% year on year - up to $2.2m for
the year ended 31 March 2024. This included $0.2m of
development in progress which was written off during
the period as part of the impairment testing process.
Investment has primarily been made into additional
headcount as PaySauce, growing 50% year on year and
included several key hires that have led to improvements
both with the structure of the team, and the security
of the product. This is evidenced by an increase in
capitalisation rate to 56% up 7 percentage points year
on year, which is a measure of how much time is spent
developing and improving products compared to the
time spent maintaining them.
Our investment into additional headcount has resulted
in cost savings of our non-people, and outsourced
expenditure as we’ve built efficiencies to help manage
these costs as we scale our product and customer base.
R&D made up 29% of our Recurring Revenue, down 2
percentage points from last year.
General &
Administration
MAR 2024 MAR 2023YOY Change
Research & development expensed ($000s)934991
(6%)
Research & development impairment ($000s)228-
-
Research & development capitalised ($000s)1,066791
35%
Total research and development costs ($000s)2,2281,782
25%
Percentage of Recurring Revenue29%31%
(2pp)
Capitalisation rate56%49%
7pp
General and administration costs are the overhead related
costs of running the business which include management
remuneration, director fees, office running costs, finance
and administration, legal and consulting expenses and other
overheads
General and administration costs increased 21% year
on year to $3.1m though decreased as a percentage of
recurring revenue at 41% compared to 45% last year. The
increase was primarily driven by an increase in people
costs as a result of inflationary pressures and bringing
several team members in line with market rates.
MAR 2024MAR 2023YOY Change
Total general and administration costs ($000s)3,1082,561
21%
Percentage of Recurring Revenue41%45%
(4 pp)
G&A Cost as a % of Revenue
125%
100%
75%
50%
25%
Mar 21Mar 22Mar 23Mar 24
G&A cost as a % of revenue
Äу$ CaʄǶtalǶsatǶoɃ
Mar 21Mar 22Mar 23Mar 24
$2Ά00 M
$1Ά50 M
$1Ά00 M
$0Ά50 M
$0Ά00 M
R&D investment
Research &
Development
3233
PERFORMANCE fiSAAS METRICSflPERFORMANCE fiSAAS METRICSfl
Customer Lifetime
Value
Customer Lifetime
Journey
How and why do we monitor customer lifetime?
PaySauce monitors the retention of customers. This is
measured using the churn metric which calculates the
percentage of customers that stop using PaySauce products
each month. The lower the churn rate, the higher the derived
lifetime of each customer and the more value generated from
them. The customer lifetime value is assessed relative to the
customer acquisition cost (CAC) to determine the return on
investment of acquiring new customers.
Definitions
Monthly average churn rate is the 12 month average of the net
reduction of customers in a calendar month. This is expressed
as the percentage of the total Ccustomers at the star t of that
month. The estimated customer lifetime (in months) is derived
using the inverse of monthly average churn rate (being 1
divided by the monthly average churn rate).
Customer lifetime value (LTV) is a measure of the gross margin
each customer brings in over the time they use PaySauce. LTV
is calculated by multiplying the gross margin per customer by
the estimated customer lifetime.
Total customer LTV is a measure of the estimated value of the
current customer base, assuming that churn, revenue and
cost to serve remain constant. This measure is calculated by
multiplying customer LTV by the total number of customers.
LTV : CAC is a measure of the return on investment of acquiring
a new PaySauce customer. This measure is calculated by
dividing the customer LTV by the CAC per addition.
Tough economic pressures faced by customers during
the year, with high interest rates and inflation, has
provided a natural hedge for PaySauce. On one hand,
PaySauce saw average monthly churn increase to 1.18%,
a 3% increase year on year. On the other, PaySauce saw
an increase in interest revenue lead to an improved gross
margin of 77%, up 4 percentage points year on year.
On balance, this led to an increase in customer LTV to
$5,890 per customer, up 15% year on year.
This increase in customer LTV combined with the increase
in the number of PaySauce customers increased total
customer LTV by 23% year on year, growing to $43.4m as
at 31 March 2024.
Customer LTV is particularly sensitive to churn and assumes
these levels will remain consistent over an extended future
period. Using the average churn levels for the last three years
(1.16%), total customer LTV would be $0.9m (2%) higher.
CAC
$
510
24%
YOY
New customer
joins PaySauce
Customer
Acquisition (CAC)
$510 per customer
ARPU
$
91
Customer pays
a monthly
subscription
Recurring revenue
(Monthly): $91per
customer
11%
YOY
Customer
receives support
Cost to serve (CTS)
(Monthly): $21 per
customer
Customer stays
with PaySauce
Customer lifetime
Average monthly
churn of 1.18%
CTS
$
21
6% YOY
Customer
Lifetime
7
yrs
3% YOY
At 31 March 2024
Total customer
lifetime value
$
43.4m
23
% YOY
Customer
lifetime value
(CLTV)
$5,890 per
customer
CLTV
$
5,890
CLTV : CAC
12:1
Flat YOY
15% YOY
MAR 2024MAR 2023*YOY Change
Customers at end of period7,3686,875
7%
Average monthly churn rate for the period (%)1.181.15
3%
Churned customers1,009894
13%
LTV per customer at end of period ($)5,8905,142
15%
Total customer LTV at end of period ($000s)43,39935,348
23%
LTV:CAC ratio at end of period12 : 112 : 1
-
* PaySauce changed the methodology in how it recognises customer activity during the period. As a result, the comparative period
metrics have been restated to equivalent values. The following metrics relating to Customer Lifetime Value were impacted:
-Customer lifetime decreased f rom 11.1 years to 7.3 years
-Average monthly churn rate increased f rom 0.75 to 1.15%
-Churned customers increased f rom 594 to 894
-LTV per customer decreased f rom $7,817 to $5,142
-Total Customer LTV decreased f rom $53.7m to $35.4m
-LTV:CAC ratio decreased f rom 16 : 1 to 12 : 1.
3435
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
Consolidated Financial
Statements
For the year ended 31 March 2024
Director’s Report 35
Independent Auditor’s Report 36
Consolidated Financial Statements
Consolidated Statement of Comprehensive Income 40
Consolidated Statement of Financial Position 41
Consolidated Statement of Movements in Equity 43
Consolidated Statement of Cash Flows 44
Notes to the Consolidated Financial Statements 45
Company Directory 82
Directors’ Report
The Board of Directors have pleasure in presenting the annual report of PaySauce Limited, incorporating the consolidated
financial statements and the independent auditor’s report, for the year ended 31 March 2024.
In the opinion of the directors of PaySauce Limited, the consolidated financial statements and notes on pages 40 to 64:
• comply with New Zealand Generally Accepted Accounting Practice (“NZ GAAP”) and present fairly the consolidated
financial position of the Group as at 31 March 2024 and the results of their operations and cash flows for the year
ended on that date; and
• have been prepared using appropriate accounting policies, which have been consistently applied and supported by
reasonable judgements and estimates.
The directors consider that they have taken adequate steps to safeguard the assets of the Group and to prevent
and detect fraud and other irregularities. Internal control procedures are also considered to be sufficient to provide
reasonable assurance as to the integrity and reliability of the consolidated financial statements.
For and on behalf of the Board of Directors:
Shelley Ruha Jim Sybertsma
Chair Chair of Audit & Risk Committee
21 May 2024 21 May 2024
3637
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
Grant Thornton New Zealand Audit Limited
L4, Grant Thornton House
152 Fanshawe Street
PO Box 1961
Auckland 1140
T +64 (0)9 308 2570
www.grantthornton.co.nz
Independent
Auditor’s Report
To the Shareholders of PaySauce Limited
Report on the Audit of the
Consolidated Financial Statements
Opinion
We have audited the consolidated financial statements of PaySauce Limited (the “Company”) and its controlled
subsidiaries (“the Group”) on pages 40 to 64 which comprise the consolidated statement of financial position
as at 31 March 2024, and the consolidated statement of comprehensive income, consolidated statement
of movements in equity and consolidated statement of cash flows for the year then ended, and notes to the
consolidated financial statements, including the material accounting policy information.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the
financial position of the Group as at 31 March 2024 and its financial performance and cash flows for the year then
ended in accordance with New Zealand Equivalents to International Financial Reporting Standards (‘NZ IFRS’)
issued by the New Zealand Accounting Standards Board and International Financial Reporting Standards (“IFRS”).
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) (ISAs (NZ)) issued
by the New Zealand Auditing and Assurance Standards Board. Our responsibilities under those standards
are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
section of our report. We are independent of the Group in accordance with Professional and Ethical Standard
1 International Code of Ethics for Assurance Practitioners (including International Independence Standards)
(New Zealand) issued by the New Zealand Auditing and Assurance Standards Board and the International
Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including
International Independence Standards) (IESBA Code), and we have fulfilled our other ethical responsibilities in
accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
Other than in our capacity as auditor we have no other relationship with, or interests in, the Company or any of its
subsidiaries.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit
of the consolidated financial statements of the current period. These matters were addressed in the context of
our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters. We have determined the matters described below to be the key
audit matters to be communicated in our report.
Why the audit matter is significantHow our audit addressed the key audit matter
Intangible assets – Capitalisation of internally
developed software and impairment testing of
intangible assets not yet ready for use
Intangible assets carrying value of $2,399,000 at 31
March 2024 ($2,009,000 at 31 March 2023) is comprised
of computer software, development in progress and
customer relationships.
The Group is a Software as a Service (“SaaS”) provider
which incurs significant expenditure in developing and
maintaining its software assets.
NZ IAS 38 Intangible Assets outlines the criteria for
capitalisation of costs associated with developing the
software including whether the software will generate
future economic benefits
As disclosed in Note 5, capitalised software costs are
recognised at cost and subsequently amortised over
their estimated useful lives. Costs that do not meet the
criteria for capitalisation are expensed to profit or loss as
incurred.
In addition to the above, the software asset includes
development in progress. NZ IAS 36 Impairment of Assets
requires intangible assets that are not yet available for
use to be tested annually for impairment.
Capitalisation of internally generated intangible
assets and impairment testing of intangible assets
under development involves significant estimate and
judgement and therefore is also a key audit matter.
We evaluated the appropriateness of intangible asset
capitalisation and assessed impairment testing of
intangible assets.
In respect to capitalised intangible assets, our
procedures, amongst others, included the following:
• obtained an understanding of the nature and
background of the activities and costs that are
capitalised;
• reviewed a sample of projects and assessed
whether they met the capitalisation criteria in NZ
IAS 38 Intangible Assets; and
• agreed a sample of costs capitalised to sufficient
and audit evidence to ensure they were reasonable
and appropriate.
In respect to impairment assessments, our procedures,
amongst others, included the following:
• reviewed individual development projects for
indicators of impairment;
• performed procedures to evaluate and challenge
the Group’s determination of CGUs;
• obtained management’s impairment assessments
and tested the completeness and mathematical
accuracy of the value in use calculations;
• compared the forecast cash flows used for FY24
to the Board approved business plan;
• assessed managements historical accuracy in
cash flow forecasting; and
• used our internal valuation experts to assess the
models’ compliance with NZ IAS 36, and to review
the appropriateness of key assumptions.
Other procedures of note included the following:
• Reviewed disclosures in the consolidated
financial statements for reasonableness and
appropriateness.
3839
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
Information Other than the Financial Statements and Auditor’s Report thereon
The Directors are responsible for the other information. The other information comprises the F24 highlights, F25 strategy,
leadership messages, delivering on the plan, leadership team, Performance (SaaS metrics), corporate governance,
company directory, the Directors’ report, and the corporate governance disclosures, but does not include the
consolidated financial statements and our auditor’s report thereon. Our opinion on the consolidated financial statements
does not cover the other information and we do not express any form of audit opinion or assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial
statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work
we have performed, we conclude that there is a material misstatement of this information, we are required to report that
fact. We have nothing to report in this regard.
Directors’ responsibilities for the Consolidated Financial Statements
The Directors are responsible on behalf of the Group for the preparation and fair presentation of the consolidated
financial statements in accordance with NZ IFRS issued by the New Zealand Accounting Standards Board and IFRS, and
for such internal control as the Directors determine is necessary to enable the preparation of consolidated financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the directors are responsible on behalf of the Group for assessing
the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or
have no realistic alternative but to do so.
Auditor’s responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with
ISAs (NZ) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these consolidated financial statements.
A further description of the auditor’s responsibilities for the audit of the financial statements is located on the External
Reporting Board’s website at: https://www.xrb.govt.nz/standards/assurance-standards/auditors-responsibilities/
audit-report-1
Restriction on use of our report
This report is made solely to the Company’s shareholders, as a body. Our audit work has been undertaken so
that we might state to the Company’s shareholders, as a body those matters which we are required to state to
them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the Company and the Company’s shareholders, as a body, for our
audit work, for this report or for the opinion we have formed.
Grant Thornton New Zealand Audit Limited
B Smith, Partner
Auckland
21 May 2024
4041
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
Consolidated Statement
of Comprehensive Income
For the year ended 31 March 2024
20242023
Notes$000s$000s
Operating revenue 87,7175,813
Expenses
Employee expenses
9
(4,470)(3,739)
Other expenses
12
(2,086)(2,092)
Depreciation and amortisation
4,5
(646)(498)
Asset impairment
5
(228)-
Finance costs
11
(97)(62)
Total expenses (7,527)(6,391)
Net profit / (loss) before income tax 190(578)
Tax benefit
13
1,04220
Net profit / (loss) for the period 1,232(558)
Other comprehensive income
--
Total comprehensive profit / (loss) for the period1,232(558)
Earnings / (loss) per shareCentsCents
Basic earnings / (loss) per share70.88(0.40)
Diluted earnings / (loss) per share70.88(0.40)
The above statement should be read in conjunction with the accompanying notes.
Consolidated Statement
of Financial Position
As at 31 March 2024
20242023
Notes$000s$000s
Assets
Current assets
Cash and cash equivalents
22
603504
Cash and cash equivalents - customer funds
22
8,9098,169
Term deposits - customer funds
22
24,70024,200
Trade receivables
173124
Other assets
500638
Total current assets 34,88533,635
Non‑current assets
Deferred tax asset
13
979-
Property, plant and equipment
4
371358
Intangible assets
5
2,3992,009
Total non‑current assets 3,7492,367
Total assets 38,63436,002
Liabilities
Current liabilities
Trade and other payables398627
Funds due to customers and IRD
22
33,60932,369
Employee benefits332372
Other liabilities
390346
Lease liabilities134114
Interest bearing liabilities
14
650-
Total current liabilities 35,51333,828
The above statement should be read in conjunction with the accompanying notes.
4243
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
Consolidated Statement
of Financial Position
As at 31 March 2024
20242023
Notes$000s$000s
Non‑current liabilities
Lease liabilities77115
Employee benefits-14
Interest bearing liabilities
14
-650
Total non‑current liabilities 77779
Total liabilities 35,59034,607
Net assets 3,0441,395
Equity
Share capital
6
13,65913,212
Reserves
19
212242
Accumulated losses
(10,827)(12,059)
Equity attributable to the owners of the Company 3,0441,395
For and on behalf of the Board of Directors, who authorised the issue of these Consolidated Financial Statements on 21
May 2024:
Shelley Ruha Jim Sybertsma
Chair Chair of Audit & Risk Committee
21 May 2024 21 May 2024
The above statement should be read in conjunction with the accompanying notes.
Consolidated Statement
of Movements in Equity
For the year ended 31 March 2024
Attributable to equity holders of the Company
Share‑based
payment reserve
Share
Capital
Accumulated
losses
Total
Notes$000s$000s$000s$000s
Balance as at 1 April 2023 24213,212(12,059)1,395
Comprehensive profit
Net profit for the period--1,2321,232
Other comprehensive income----
Total comprehensive profit‑‑1,2321,232
Transactions with owners
Share-based payments, net of tax
19
211--211
Share-based payments paid up
6
(241)241--
Issue of ordinary shares
6
-206-206
Total transactions with owners(30)447‑417
Balance as at 31 March 202421213,659(10,827)3,044
Balance as at 1 April 2022 13113,039(11,502)1,668
Comprehensive loss
Net loss for the period--(557)(557)
Other comprehensive income----
Total comprehensive loss‑‑(557)(557)
Transactions with owners
Share-based payments, net of tax
19
257--257
Share-based payments paid up
6
(146)146--
Issue of ordinary shares
6
-27-27
Total transactions with owners111173‑284
Balance as at 31 March 202324213,212(12,059)1,395
The above statement should be read in conjunction with the accompanying notes.
4445
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
Consolidated Statement
of Cash Flows
For the year ended 31 March 2024
20242023
Notes$000s$000s
Cash flows from operating activities
Receipts from customers5,0824,290
Interest received2,205970
Payments to suppliers and employees(5,803)(4,978)
Taxes refunded / (paid)13(13)
Interest paid on operating leases(22)(5)
Net cash from operating activities before increase in funds
due to customers and IRD
221,475264
Increase in funds due to customers and IRD
22
1,2405,031
Net cash from operating activities182,7155,295
Cash flows used in investing activities
Funds on term deposit(500)(6,475)
Investment in intangible assets(1,066)(791)
Purchases of property, plant and equipment
(113)(118)
Net cash used in investing activities (1,679)(7,384)
Cash flows from / (used in) financing activities
Loan advances
-650
Repayments of principal portion of lease liability
(122)(55)
Interest paid on borrowings
(75)(38)
Net cash (used in) / from financing activities (197)557
Net increase / (decrease) in cash and cash equivalents 839(1,532)
Cash and cash equivalents at beginning of the period
8,67310,205
Cash and cash equivalents at end of the period9,5128,673
The above statement should be read in conjunction with the accompanying notes.
Notes to the Consolidated Financial
Statements
For the year ended 31 March 2024
1. General information
PaySauce Limited (the "Company" or “PaySauce”), is a for-profit limited liability company, domiciled and incorporated in
New Zealand and registered under the Companies Act 1993. The company is an FMC Reporting Entity for the purpose of
the Financial Markets Conduct Act 2013. PaySauce is listed on the New Zealand Stock Exchange (“NZX”) that trades under
the ticker PYS.
PaySauce is a SaaS fintech platform providing solutions for people at work in 14 jurisdictions across the Asia-Pacific
region. The technology enables small employers to digitally onboard, pay and manage employees from any device.
The platform includes rosters, mobile timesheets, payroll calculations, banking integration, automated payments, PAYE
filing, labour costing, automated general ledger entries and digital employment contracts. The PayNow feature enables
customers’ employees to access the pay they’ve earned before payday, providing a free alternative to payday lenders.
The consolidated financial statements for the Company and its subsidiaries (the "Group") for the year ended 31 March
2024 were authorised in accordance with a resolution of the directors for issue on 21 May 2024 and are audited.
2. Summary of material accounting policies
a. Basis of preparation
These consolidated financial statements have been prepared:
• in accordance with New Zealand Generally Accepted Accounting Practice (“NZ GAAP”)
• in accordance with New Zealand equivalents to International Financial Reporting Standards (“NZ IFRS”) and other
applicable Financial Reporting Standards, as appropriate for profit oriented entities
• in accordance with International Financial Reporting Standards (“IFRS”)
• in accordance with the requirements of the Financial Markets Conduct Act 2013;
• on the basis of historical cost;
• in New Zealand dollars (NZD) with all values rounded to the nearest one thousand dollars ($1,000) unless otherwise
stated;
• on the assumption that the Group is a going concern.
There were no new standards, amendments or interpretations issued in the financial period which would materially impact
the financial statements.
b. Basis of consolidation
The Group financial statements incorporate the financial statements of the Company and its subsidiaries as at 31 March
2024. All subsidiaries are wholly owned and controlled by the Company as at 31 March 2024 and have a reporting date of
31 March 2024 (note 21).
All transactions and balances between the Group are eliminated on consolidation. Amounts reported in the financial
statements of subsidiaries have been adjusted where necessary to ensure consistency with the accounting policies
adopted by the Group.
4647
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
c. Foreign currency translation
Functional and presentation currency
Items included in the consolidated financial statements of the Group's entities are measured using the currency of the
primary economic environment in which the entity operates (New Zealand). The consolidated financial statements are
presented in New Zealand dollars ($), which is the Group's functional and presentation currency.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates
of the transactions or valuation where items are re-measured.
d. Goods and Services Tax (GST)
All revenue and expense transactions are recorded exclusive of GST. Assets and liabilities are similarly stated exclusive of
GST, with the exception of receivables and payables, which are stated inclusive of GST.
e. Leases
Payments associated with short-term leases and leases of low-value assets are recognised on a straight line basis as an
expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less. Low-value assets comprise
IT-equipment and small items of office furniture.
Lease liabilities are initially measured at the present value of the remaining lease payments, discounted at the Group’s
incremental borrowing rate. Subsequently, the carrying value of the liability is adjusted to reflect interest and lease
payments made.
PaySauce recognised a right-of-use asset and corresponding lease liability for the property lease entered into during the
period at 85 The Esplanade, Petone.
3. Use of critical accounting estimates and judgements
The preparation of the consolidated financial statements requires PaySauce to make a number of judgements, estimates
and assumptions. Estimates and underlying assumptions are reviewed on an on-going basis.
Information about critical judgements and significant estimates used in applying accounting policies that have the most
significant effect on the amounts recognised in the consolidated financial statements are included below and in the
following notes:
• Intangible Assets (Note 5)
• Tax Expense (Note 13)
Going concern
The consolidated financial statements have been prepared on a going concern basis.
The Group made a net profit before tax of $0.190 million for the year ended 31 March 2024 (2023: loss of $0.578 million),
has equity at 31 March 2024 of $3.044 million (2023: $1.395 million) and net current liabilities of $0.628 million (2023:
$0.193 million). The Group had positive operating cash flows before increase in funds due to customers and IRD of $1.475
million for the year ended 31 March 2024 (2023: $0.264 million). The Group also has additional debt facilities of $0.250
million to draw upon as required.
The Directors consider after making due enquiry and having regard to the circumstances which they consider reasonably
likely to affect the Group for the foreseeable future, which is not less than 12 months from the date these financial
statements are approved for issue, that the going concern assumption is valid.
4. Property, plant and equipment
Right‑of‑use
Asset (Property)
Office
Equipment
Leasehold
Improvements
Computer
Equipment
Total
Year ended 31 March 2024$000s$000s$000s$000s$000s
Opening net book value
22860466358
Additions
10445-67216
Disposals
-(1)-(3)(4)
Depreciation
(129)(18)(2)(50)
(199)
Closing net book value
20386280371
As at 31 March 2024
Cost
3421534242741
Accumulated depreciation
(139)(67)(2)(162)(370)
Net book value
20386280371
Right‑of‑use
Asset (Property)
Office
Equipment
Leasehold
Improvements
Computer
Equipment
Total
Year ended 31 March 2023$000s$000s$000s$000s$000s
Opening net book value
5830742137
Additions
23942472357
Disposals
-(1)-(5)(6)
Depreciation
(69)(11)(7)(43)
(130)
Closing net book value
22860466358
As at 31 March 2023
Cost
44112115224801
Accumulated depreciation
(213)(61)(11)(158)(443)
Net book value
22860466358
Items of computer, office equipment, leasehold improvements are measured at cost less accumulated depreciation and
accumulated impairment losses.
Cost includes expenditure that is directly attributable to the acquisition of the asset. Purchased software that is integral
to the functionality of the related equipment is capitalised as part of that equipment.
Any gain or loss on disposal of an item of property, plant and equipment is recognised in profit or loss within the Statement
of Comprehensive Income.
4849
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
Depreciation is recognised in profit or loss on a straight line basis over the estimated useful lives of each item of
equipment. The depreciation rates for the current and comparative years of significant items of property, plant and
equipment are as follows:
Right-of-use asset 20 - 50%
Office equipment 8.5 - 67%
Leasehold improvements 50%
Computer equipment 40%
Depreciation methods, useful lives and residual values are reviewed at each reporting period and adjusted if appropriate.
The carrying values of property, plant and equipment are reviewed annually for impairment when events or changes in
circumstances indicate the carrying value may not be recoverable.
5. Intangible assets
Development in
progress
Computer
Software
Customer
Relationships
Total
Year ended 31 March 2024$000s$000s$000s$000s
Opening net book value
7999862242,009
Additions5226-78
Development costs recognised as an asset988--988
Development in progress recognised as Software(639)639--
Asset impairment(228)--(228)
Amortisation-(377)(71)(448)
Closing net book value9721,2741532,399
As at 31 March 2024
Cost9722,6283543,954
Accumulated amortisation-(1,354)(201)(1,555)
Net book value9721,2741532,399
Development in
progress
Computer
Software
Customer
Relationships
Total
Year ended 31 March 2023$000s$000s$000s$000s
Opening net book value4008912951,586
Additions14339-182
Development costs recognised as an asset57138-609
Development in progress recognised as Software(315)315--
Amortisation-(297)(71)(368)
Closing net book value7999862242,009
As at 31 March 2023
Cost
7992,0763543,229
Accumulated amortisation-(1,090)(130)(1,220)
Net book value7999862242,009
Finite life intangible assets
Acquired computer software licences and costs associated with developing computer software are capitalised on the
basis of the costs incurred to acquire and bring the specific software into use. All intangible assets of PaySauce are finite
life intangible assets.
Development expenditure initially recognised as an expense is not recognised as an asset in subsequent periods.
Costs associated with maintaining computer software programs are recognised as an expense as incurred. Where
development activities result in the replacement of previously capitalised functionality, the associated development
costs are classified as maintenance activity and accordingly expensed.
Developed and acquired software is measured at cost less accumulated amortisation and impairment losses, if any.
Amortisation is recognised in the Statement of Comprehensive Income on a straight-line basis over 5 years.
Key estimates and judgements
Capitalisation of intangible assets
Management considers the time and associated salary cost of development staff to fall under the classification of
development expenditure for assessment purposes in accordance with the principles outlined below. No indirect people
costs, nor weighting of overheads is applied in these calculations.
Development expenditure is capitalised if, and only if the Group can demonstrate all of the following:
• its ability to measure reliably the expenditure attributable to the asset under development;
• the product or process is technically and commercially feasible;
• its future economic benefits are probable;
• its ability to use or sell the developed asset; and
• the availability of adequate technical, financial and other resources to complete the asset under development.
5051
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
Accounting for finite life intangible assets
At each reporting date, the useful lives and residual values of finite life intangible assets are reviewed for indicators of
impairment. As at 31 March 2024, the assets were assessed for indicators of impairment, taking into account the condition
of the assets, expected period of use of the assets by the Group, and expected disposal proceeds from any future sale of
the assets. Management’s assessment concluded that there were no indicators of impairment.
Development in progress has been tested for impairment by reviewing the nature of the events that originally gave rise
to the recognition of the asset, the estimation of future generation of cash flows and any anticipated changes to the
business or product circumstances.
Indicators of impairment were identified for development in progress assets during the year, with some assets in this
category no longer expected to be completed. Upon assessment of the recoverable amount of the Development in
progress assets, it was determined that an impairment loss of $0.228 million be recognised.
6. Share capital
DateDetailsNotesNumber of Shares$000s
1 April 2023Opening Balance139,207,93513,212
Issue of ordinary shares(a)359,84591
Share based payment(b)100,00025
Issue of ordinary shares(c)431,647106
Share based payment(d)43,36510
Issue of ordinary shares(e)284,43565
Issue of ordinary shares(f)230,91366
Issue of ordinary shares(g)324,00684
31 March 2024Closing Balance140,982,14613,659
DateDetailsNotesNumber of Shares$000s
1 April 2022Opening Balance138,583,81913,039
Issue of ordinary shares(h)273,24474
Share based payment(i)98,46027
Issue of ordinary shares( j)252,41272
31 March 2023Closing Balance139,207,93513,212
Fully paid up, ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary
shares are recognised as a deduction from equity, net of any tax effects.
(a) On 31 May 2023: Shares issued (unpaid) as part of the FY23 employee share scheme were paid up as tranche 1 of the
scheme vested for those employees who met the vesting conditions. 359,845 shares were fully paid up via a discretionary
bonus approved by the board. This resulted in an issue of 359,845 ordinary shares at $0.2596 per share, totalling an issue
of $0.094m. Directly attributable costs totalled $0.003m, bringing the net share issue to $0.091m.
(b) On 30 November 2023: Shares were issued to an employee as a sign-on bonus. This resulted in an issue of 100,000
ordinary shares being issued at a price of $0.2492 per share, satisfying remuneration arrangements to the value of
$0.025m expensed in the consolidated statement of comprehensive income.
(c) On 30 November 2023: Shares were issued and paid up for both Q1 and Q2 of the FY24 employee share scheme.
This resulted in an issue of 431,647 ordinary shares at $0.2492 per share, totalling an issue of $0.106m.
(d) On 31 January 2024: PaySauce issued ordinary shares to remunerate a director. There was no vesting period. The
allotment resulted in 43,365 shares being issued at a price of $0.2306 per share, satisfying remuneration arrangements to
the value of $0.010m expensed in the consolidated statement of comprehensive income.
(e) On 31 January 2024: Shares were issued and paid up for Q3 of the FY24 employee share scheme. This resulted in an
issue of 284,435 ordinary shares at $0.2306 per share, totalling an issue of $0.065m.
(f ) On 31 March 2024: Shares issued (unpaid) as part of the FY22 employee share scheme were paid up as tranche
3 of the scheme vested for those employees who met the vesting conditions. 230,913 shares were fully paid up via a
discretionary bonus approved by the board. This resulted in an issue of 230,913 ordinary shares at $0.2842 per share,
totalling an issue of $0.066m.
(g) On 31 March 2024: Shares issued (unpaid) as part of the FY23 employee share scheme were paid up as tranche
2 of the scheme vested for those employees who met the vesting conditions. 324,006 shares were fully paid up via a
discretionary bonus approved by the board. This resulted in an issue of 324,006 ordinary shares at $0.2596 per share,
totalling an issue of $0.084m.
(h) On 31 May 2022: Shares issued (unpaid) as part of the FY22 employee share scheme were paid up as tranche 1 of the
scheme vested for those employees who met the vesting conditions. 273,244 shares were fully paid up via a discretionary
bonus approved by the board. This resulted in an issue of 273,244 ordinary shares at $0.2842 per share, totalling an issue
of $0.078m. Directly attributable costs totalled $0.004m, bringing the net share issue to $0.074m.
(i) On 28 February 2023: PaySauce issued ordinary shares to remunerate and align the interests of a new director with
PaySauce shareholders ahead of their formal appointment to the Board. There was no vesting period, and the shares were
issued subject to the Director continuing to hold office until voted in by shareholders at the Annual Shareholders Meeting.
The allotment on 28 February 2023 resulted in 98,460 shares being issued at a price of $0.2694 per share, satisfying
remuneration arrangements to the value of $0.027m expensed in the consolidated statement of comprehensive income.
( j) On 31 March 2023: Shares issued (unpaid) as part of the FY23 employee share scheme were paid up as tranche
2 of the scheme vested for those employees who met the vesting conditions. 252,412 shares were fully paid up via a
discretionary bonus approved by the board. This resulted in an issue of 252,412 ordinary shares at $0.2842 per share,
totalling an issue of $0.072m.
Dividends
No dividends were declared or paid during the reporting period (2023: None).
Capital Risk Management
The Group considers its capital to comprise its fully paid up, ordinary share capital and accumulated retained earnings.
When managing capital, management's objective is to achieve optimal long term capital returns to shareholders and
benefits for other stakeholders. Management also aims to maintain a capital structure that ensures the lowest cost of
capital available to the Group.
5253
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
7. Earnings per share
20242023
Basic earnings per share
Net profit / (loss) used in calculating earnings per share ($000s)1,232(557)
Weighted average number of ordinary shares for basic earnings per share139,739,655138,434,287
Basic earning / (loss) per share (cents)0.88(0.40)
There are no financial instruments on issue that will dilute the basic earnings per share amounts for the year ended 31
March 2024.
Basic earnings per share is calculated by dividing the profit / (loss) attributable to equity holders of the Company by the
weighted average number of fully paid up ordinary shares on issue during the period.
8. Operating revenue
20242023
$000s$000s
Revenue from contracts with customers
-Processing fees5,3704,592
-Other services revenue6465
Revenue from other sources
-Interest income2,2201,139
-Other revenue6317
Total operating revenue7,7175,813
There are no significant estimates or judgements surrounding recognition of revenue.
Revenue from contracts with customers
Processing fees
Revenue from processing fees includes both fixed and incremental components based on the number of employees and
pays processed for the customer. Revenue is recognised at the point in time the service is provided, which is when the
customer’s payroll has been processed.
Other services revenue
Revenue from sales of digital contracts are recognised when the customer has used the service. Revenue is recognised
at the point in time the service is provided, which is when the customer uses the contract builder application.
Revenue from other sources
Interest income
Interest income is earned on all funds held on behalf of customers, including net wages payable to customers’
employees and PAYE and other deductions payable to the IRD. The interest earned on these customers’ funds is
determined to be operating revenue by the Group. Interest income is accrued using the effective interest rate method.
Other revenue
Other revenue is recognised upon completion of services at a point in time.
9. Employee expenses
20242023
$000s$000s
Employee benefits/entitlements3,7123,251
Employee benefits/entitlements - share based payments582355
Fringe benefit tax2219
Other employee expenses154114
Total employee expenses4,4703,739
Short term employee benefit obligations are measured on an undiscounted basis and are expensed as the related
service is provided.
5455
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
10. Research & Development
20242023
$000s$000s
Research & development costs expensed
(included in note 9 - Employee expenses under Employee benefits/entitlements,
and note 12 - Other expenses under
Infrastructure and security)934991
Total research & development934991
11. Finance Costs
20242023
$000s$000s
Interest paid7557
Finance cost - Interest on lease225
Total finance costs9762
12. Other expenses
20242023
$000s$000s
Advertising, PR and marketing256255
Audit fees7970
Communications and subscriptions302239
Customer and transactional550489
Other overheads538514
Infrastructure and security250429
Travel11196
Total other expenses2,0862,092
The allocation of other expenses has been simplified due to the size and nature of the categories presented. The
disclosure for the year ended 31 March 2023 has also changed from what was presented in the group financial statements
to align the comparative period disclosure with the newly created categories. The change in disclosure does not impact
the reporting results of operations, for the categories presented on the face of the financial statements.
A provision for other overheads of $108k was released to the statement of comprehensive income during the period. The
provision was released as directors no longer believe the cost will be incurred.
13. Tax expense & deferred tax
20242023
(a) Income tax$000s$000s
Net profit / (loss) before tax for the period190(578)
At the New Zealand statutory income tax rate of 28%53(161)
Non-deductible expenditure (permanent differences)4227
Prior period adjustments (temporary differences)18112
Recognition/(utilisation) of tax losses(113)22
Deferred tax adjustments
- Reversal of temporary differences2020
-Recognition of tax losses carried forward as deferred tax asset1,022-
Income tax benefit1,04220
(b) Deferred tax assets / (liabilities)
Opening net deferred tax asset / (liability)(62)(82)
Recognised in profit of loss
- Unused tax losses1,022-
-Intangible assets2020
Closing net deferred tax assets / (liabilities)979(62)
Deferred tax assets1,022‑
Deferred tax liabilities(43)(62)
Tax expense comprises current and deferred tax. Current tax and deferred tax is recognised in profit or loss except to the
extent that it relates to a business combination, or items recognised directly in equity or in other comprehensive income.
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for
financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for:
• temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business
combination and that affects neither accounting nor taxable profit or loss;
• temporary differences related to investments in subsidiaries and jointly controlled entities to the extent that it is
probable that they will not reverse in the foreseeable future; and
• taxable temporary differences arising on the initial recognition of goodwill.
The Group has recognised deferred tax assets in accordance with the key estimates and judgements below.
Key estimates and judgements
The Group holds tax losses of $8.523 million as at 31 March 2024 (2023: $8.926 million) available to carry forward, subject
to shareholder and business continuity being maintained. Deferred tax assets are only recognised to the extent that it is
probable that future taxable profits will be available to use against the asset. These are reviewed at each reporting period
and adjusted if appropriate. Management has assessed that tax losses of $3.651 million be recognised as deferred tax
assets as at 31 March 2024. Tax losses carried forward but not yet recognised as deferred tax assets therefore total
$4.833 million as at 31 March 2024.
5657
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
14. Interest bearing liabilities
The Group entered into a revenue based funding agreement with BNZ for $0.65m on 26 April 2022, which was drawn
down on 20 June 2022. The repayment terms are interest only, starting on 20th July 2022 and continuing until 20 June
2024. Repayment of the principal is also due on 20 June 2024.
The Group is required to maintain an Annual Recurring Revenue growth rate of at least 20% p.a. over the term of the
facility, tested at the end of each financial quarter. The funding is also provided on the basis that no dividend be paid out
during the term of the facility.
The loan is secured over all present and acquired property of the Group.
As at 31 March 2024 the loan carries an interest rate of 11.47% fixed for the period of the loan.
20242023
$000s$000s
BNZ Term Loan650650
Total interest bearing liabilities650650
15. Key management personnel and related parties
Key management personnel compensation
Key management personnel are defined as those persons having authority and responsibility for planning,
directing and controlling the activities of the Group, directly or indirectly and include the Directors, the
Chief Executive Officer and the Executive Leadership Team.
The table below summarises remuneration paid to key management personnel.
20242023
$000s$000s
Directors’ fees191152
Short term employee benefits1,128876
Share-based payments303131
Total key management personnel compensation1,6221,159
Related party transactions and balances
A number of key management personnel, or their related parties, hold positions in other entities that result in them
having control or significant influence over the financial or operating policies of those entities. A number of those entities
subscribe to services provided by the Group. None of the related party transactions are significant to either party.
Outside of these transactions, and the Directors’ fees and short term employee benefits noted above, all other related
party transactions are outlined below:
20242023
Related party transactions during the period$000s$000s
Cloud hosting services supplied by entities controlled by related parties
Catalyst Cloud Limited101113
20242023
Related party balances payable at period end$000s$000s
Directors' Fees3612
Cloud Hosting Services411
20242023
Related party balances receivable at period end$000s$000s
Prepaid Directors’ Fees
-20
PaySauce Limited has a standby debt facility agreement with Director Gavin Thompson. The facility totals $0.25M and
can be drawn on demand, within three years from the date of the agreement (December 2021). The interest rate in the
agreement is linked to the floating interest rate of ASB Bank Limited. As at 31 March 2024, no funds have been drawn.
16. Financial instruments
The Group’s financial assets mainly comprise of Cash and Cash Equivalents and Term Deposits. Cash and Cash
Equivalents is comprised of cash on hand. Term Deposits are measured at amortised cost. Cash and Cash Equivalents
and Term Deposits includes funds collected from customers as a PAYE intermediary (note 22).
Classification and measurement of financial liabilities
The Group’s financial liabilities include trade and other payables, funds due to customers and IRD, other liabilities
(including an overdraft facility used to operate our BNZ PayNow feature), and interest bearing liabilities.
Financial liabilities are initially measured at fair value, and, where applicable, adjusted for transaction costs.
Subsequently, financial liabilities are measured at amortised cost using the effective interest method.
5859
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
Categories of Financial Assets & Liabilities
The carrying amounts presented in the statement of financial position relate to the following categories of assets and
liabilities.
20242023
Financial assets$000s$000s
Financial assets at amortised cost
Cash and cash equivalents603504
Cash and cash equivalents - customer funds8,9098,169
Term deposits24,70024,200
Trade and other receivables173124
Total financial assets34,38532,997
20242023
Financial liabilities$000s$000s
Financial liabilities at amortised cost
Funds due to customers and IRD33,60932,369
Trade and other payables321574
Other liabilities390346
Interest bearing liabilities650650
Total financial liabilities34,97033,939
The Group is exposed to a variety of financial risks. The financial risks arise from the business activities of the Group. The
specific financial risks that the Group is exposed to are discussed below.
1. Credit risk
As a SaaS business with minimal credit exposure, credit risk is relatively low relating to revenue received from customers
and any associated trade receivables. For other financial assets (including cash and bank balances), the Group minimises
credit risk by dealing exclusively with high credit rating counterparties.
(i) Credit risk concentration profile
The Group manages credit risk by placing its cash and short term investments with high quality financial institutions. The
majority of the Cash and Cash Equivalents are held with ASB Bank, BNZ and Kiwibank, which hold the following credit
ratings:
Credit Ratings Standard &
Poors Rating
Fitch
Rating
Moody's
Rating
ASB BankAA-A+A1
BNZAA-A+A1
KiwibankNot ratedAAA1
(ii) Exposure to credit risk
As the Group does not hold any collateral, the maximum exposure to credit risk is represented by the carrying amount of
the financial assets as at the end of the reporting period.
2. Liquidity risk
Liquidity risk arises mainly from business activities. The Group manages liquidity risk by ensuring cash flow is planned
ahead of time, and funding is planned and organised when required, to ensure the Group will be able to meet its financial
obligations. The following table sets out the maturity profile of the financial liabilities as at the end of the reporting period
based on contractual undiscounted cash flows (including interest payment computed using contractual rates or, if
floating, based on the rate at the end of the reporting period):
Carrying
amount
Total0‑6
months
7‑12
months
1‑ 2
years
2‑5
years
Year ended 31 March 2024$000s$000s$000s$000s$000s$000s
Funds due to customers and IRD33,60933,60933,609---
Trade and other payables321321321---
Other liabilities390390390---
Lease liabilities21221270634237
Interest bearing liabilities650662662---
Total35,18235,19435,052634237
Carrying
amount
Total0‑6
months
7‑12
months
1‑2
years
2‑5
years
Year ended 31 March 2023$000s$000s$000s$000s$000s$000s
Funds due to customers and IRD32,36932,36932,369---
Trade and other payables574574574---
Other liabilities346346346---
Lease liabilities2302536666121-
Interest bearing liabilities6507363737662-
Total34,16934,27833,392103783‑
6061
FINANCIAL STATEMENTSFINANCIAL STATEMENTSFINANCIAL STATEMENTS
3. Interest rate risk
PaySauce’s interest rate risk arises from the interest that it earns from its cash and cash equivalents. These funds are
subject to variable interest rates that expose PaySauce to cash flow interest risk rate. PaySauce does not currently use
any derivative products to manage interest rate risk.
As at balance date, none of the funds held in term deposits were subject to interest periods of greater than 12 months.
An analysis of the sensitivity of the Group’s earnings due to movements in interest rates is shown below:
20242023
Effect on net profit before tax$000s$000s
Cash and cash equivalents and term deposits
Each 100 basis point increase in interest rate335304
Each 100 basis point decrease in interest rate(335)(304)
The above information is calculated by applying the effective movement to the average balance of cash and cash
equivalents, term deposits, and interest bearing liabilities. Cash and cash equivalents and Term Deposits totalled $34.21
million as at 31 March 2024 (2023: $32.87 million). Interest bearing liabilities totalled $0.65 million as at 31 March 2024
(2023: $0.65 million) are not sensitive to interest rate changes as the interest rate is fixed.
17. Fair values of financial assets and liabilities
The carrying values of short term financial assets and liabilities approximate their fair values. Short term financial assets
include cash, trade and other receivables and related party receivables.
18. Reconciliation of net profit after tax to net cash flows from operations
20242023
$000s$000s
Net profit / (loss) after taxation1,232(557)
Add back non‑cash & non‑operating items:
Depreciation & amortisation646498
Asset impairments & loss on disposal of fixed assets2325
Share based payment expense418283
Other non-cash & non-operating items(948)19
1,580248
Movement in working capital:
Increase in Trade and other receivables(49)(42)
(Increase)/decrease in Other assets182(246)
Increase in Funds due to customers and IRD1,2405,031
Increase/(decrease) in Trade and other payables(229)172
Increase/(decrease) in Employee benefits (54)78
Increase in Other liabilities4554
Net cash inflow from operating activities2,7155,295
19. Employee Share Scheme
FY22 & FY23 Schemes
The Employee Share Schemes for FY22 and FY23 each consisted of 3 tranches, which vested over three years. The third
tranche of the FY22 scheme and the second tranche of the FY23 scheme vested on 31 March 2024. The shares were
originally issued unpaid to members of staff (ESS shares), In March 2024, a discretionary bonus was paid to all staff
remaining in those schemes for the value of vested shares, with deductions including PAYE deducted and paid to the
IRD on behalf of the staff. The net wages were then used to pay up the ESS shares, thereby converting them to fully paid
up ordinary shares. The remaining ESS shares (being the value of the deductions) remain vested, but not paid up. For
accounting purposes, the pool of ESS shares which have vested, but remain unpaid are accounted for in the same way as
options since the employee has the option to pay up the remaining unpaid ESS shares at the strike price. The fair value of
these unpaid ESS shares is not material. The scheme is expensed over the period that the employee receives the benefit,
with the equity settled transactions measured at fair value on the date they were issued.
FY 24 Scheme
The Group also entered into an employee share scheme for the year ended 31 March 2024. The new FY24 scheme differs
from the FY22 and FY23 schemes outlined above, as follows:
An ESS agreement is entered into between each eligible employee and the Company stipulating the value of fully paid
up ordinary shares granted. Shares are issued quarterly, at the end of each quarter, and the number of shares granted is
determined by the volume weighted average share price on each issue date.
6263
FINANCIAL STATEMENTSFINANCIAL STATEMENTSFINANCIAL STATEMENTS
New ESS agreements may be entered into throughout the course of the financial year for new employees as they
become eligible, with the benefit pro-rated for the proportion of the year those employees are eligible from. Equally,
employees who leave or become ineligible for the scheme will forfeit their right to be issued shares as part of the ESS
agreement.
Shares are performance based on the achievement of the employees personal KPI objectives.
This equity settled remuneration attracts income tax on the employees. The income tax and other deductibles are
deducted and the net amount of ordinary shares are issued to employees.
Employee share scheme expenses for the year ended 31 March 2024 are as follows:
Employee share scheme expenses
March 2024
Employee
Share Scheme
March 2023
Employee
Share Scheme
March 2022
Employee
Share Scheme
Total
For the period ended 31 March 2024$000s$000s$000s$000s
Share based payment expense, net of tax2867021377
Tax on share based payment expense1563712205
Total share based payment expense44210733582
March 2024
Employee
Share Scheme
March 2023
Employee
Share Scheme
March 2022
Employee
Share Scheme
Total
For the period ended 31 March 2023$000s$000s$000s$000s
Share based payment expense, net of tax-17860238
Tax on share based payment expense-8532117
Total share based payment expense‑26392355
The share based payment reserve is used to record the accumulated value of unvested shares and share options that
remain exercisable.
Share‑based payment reserve$000s
Balance at 1 April 2023242
Employee Share Scheme (F22) - Share based payment expense, net of tax 21
Employee Share Scheme (F23) - Shares vested and fully paid up(66)
Employee Share Scheme (F23) - Share based payment expense, net of tax70
Employee Share Scheme (F23) - Shares vested and fully paid up(178)
Employee Share Scheme (F24) - Share based payment expense, net of tax 286
Employee Share Scheme (F24) - Shares vested and fully paid up(173)
Other share based payment expenses, net of tax10
Balance at 31 March 2024212
Share based payment reserve$000s
Balance at 1 April 2022131
Employee Share Scheme (F22) - Share based payment expense, net of tax 67
Employee Share Scheme (F22) - Shares vested and fully paid up(134)
Employee Share Scheme (F23) - Share based payment expense, net of tax 178
Balance at 31 March 2023242
There is a liability associated with share based payments that have vested or been earned by employees, for the income
tax and other deductibles that are deducted by PaySauce on each employee’s behalf when shares are paid up. These
liabilities are accrued based on an estimate of the value of the future income tax and other deductibles for the individuals
based on their current marginal tax rates. The accrued liability at balance date was as follows:
20242023
Share‑based payment liabilities$000s$000s
Current9194
Non-current-13
Total share‑based payment liabilities91107
The employee liabilities in the consolidated statement of financial position also include other employee entitlements
such as accrued leave.
20. Segment reporting
The Group is organised into one reportable operating segment only, being SaaS based employment and payment
solutions for people at work in 14 jurisdictions across the Asia-Pacific region, primarily within New Zealand. Providing
employers the technology to digitally onboard, pay and manage employees from any device. The PaySauce platform
includes rosters, mobile timesheets, payroll calculations, banking integration, automated payments, PAYE filing, labour
costing, automated general ledger entries and digital employment contracts. The chief operating decision maker has
been identified as the Board of Directors, as it makes all key strategic resource allocation decisions (such as those
concerning acquisition, divestment and significant capital expenditure).
Overseas revenue earned is not material and no separate geographical segment has been reported.
6465
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
21. Investments in subsidiary
The Company had the following subsidiaries at 31 March 2024:
Entity NameDate of
incorporation
Nature of
business
Equity
held (%)
Value
held ($)
Country of
incorporation
Balance
date
PaySauce Operations
Limited
07/01/2015SaaS
Employment
Solutions
100309,278New Zealand31 March
Right Remuneration
Limited
22/01/2015PAYE
Intermediary
100-New Zealand31 March
Payroll.Kiwi Limited01/08/2017Employee
Share Scheme
Bare Trustee
100-New Zealand31 March
PaySauce Pty Limited08/02/2023SaaS
Employment
Solutions
100-Australia31 March
Only PaySauce Operations Limited, Right Remuneration Limited and PaySauce Pty Limited are consolidated in these
consolidated financial statements, as Payroll.Kiwi Limited is a non-trading company.
22. Funds due to customers and IRD
As a PAYE intermediary, PaySauce collects funds from clients which are payable to both clients’ employees (as the
employees’ net wages and salaries) and the IRD (as the applicable PAYE, student loan and other IRD liabilities). These
funds are included in PaySauce’s cash and term deposit balances and in accordance with section RP6 of the Income Tax
Act 2007, PaySauce can earn interest on these funds, but the funds must only be used as follows:
• Payment of net salary or wages to employees of PaySauce’s clients.
• Payment of IRD obligations resulting from pays run on PaySauce software to the IRD, including PAYE deductions,
student loan deductions, superannuation contributions and any other amount of tax withheld from a payment of
salary or wages to IRD.
Under the financial reporting standards movements in these funds do not meet the definition of either investing or
financing activities and so must be classified as operating cash flows. However as stated above the use of these funds is
restricted and they cannot be used to cover other PaySauce expenses, the company has therefore presented operating
cash flows in the Cash Flow Statement as both before and after this movement in funds. The value of restricted funds at
reporting date is represented by funds due to customers and IRD as disclosed in the Statement of Financial Position.
23. Contingencies
As at 31 March 2024 the Group had no contingent liabilities or assets (2023: $nil)
24. Events occurring after the reporting period
No adjusting or significant non-adjusting events have occurred between the reporting date and the date of authorisation.
6667
CORPORATE GOVERNANCECORPORATE GOVERNANCE
Corporate
Governance
Strong corporate governance protects the Company and as a
result our shareholders, customers, staff, and stakeholders. Our
approach to the recommendations outlined in the NZX Corporate
Governance Code (the Code) are set out below.
This section is structured around the principles detailed in the Code, and explains how PaySauce is
applying the Code’s recommendations. PaySauce documents referred to in this section are also
available online at https://www.paysauce.com/investor/
The Board considers that, as at 21 May 2024, the Company complied with the recommendations
set by the NZX Corporate Governance Code dated 1 April 2023, unless stated in the sections
outlined below, or in PaySauce’s Corporate Governance Code.
Principle 1 – Code of ethical behaviour
“Directors should set high standards of ethical behaviour, model this behaviour
and hold management accountable for these standards being followed
throughout the organisation.”
Code of ethics
Our code of ethics exists to help our directors, senior management, and employees with not just doing well, but doing
good.
This sets the standard of conduct for all our people. It's intended to support decision-making that aligns with PaySauce's
values, business goals, and legal and policy obligations. The board approves the code of ethics, which covers:
• conflicts of interest
• accepting gifts or benefits
• protecting company assets
• complying with laws and policies
• maintaining confidentiality
• valuing personnel
• transparency
All new directors and employees receive a copy of the code of ethics.
Securities trading policy
PaySauce respects the integrity of New Zealand’s financial markets and insider trading laws. Our securities trading policy
outlines how those laws apply, and the rules we've put in place to help ensure our people follow the law.
Directors, certain employees, and related parties need approval from PaySauce to trade in the company’s shares. Trading
is limited to defined “trading windows”.
The directors’ shareholdings and trading of shares during the year by the directors is published under Directors’
disclosures. A director or senior manager must advise the NZX promptly if they trade in the company’s shares.
Principle 2 – Board composition and performance
“To ensure an effective board, there should be a balance of independence, skills,
knowledge, experience”
The board of directors
The directors are responsible for the corporate governance practices of the company. The board's practices are detailed
in the Company’s corporate governance code, which lays out protocols for board operations.
This code complies with the relevant recommendations in the NZX Corporate Governance Code, and is reviewed
annually.
The board’s primary role is to represent and promote the interests of shareholders, ultimately adding long-term value to
the company’s shares.
6869
CORPORATE GOVERNANCECORPORATE GOVERNANCE
The board carries out its responsibilities according to the following mandate.
• the Board shall have a minimum number of three directors and a maximum of 10;
• the Board shall have at least two directors ordinarily resident in New Zealand;
• the Board shall maintain at least two Independent Directors (as defined in the NZX Main Board Listing Rules). Where
there are eight or more directors, the board will maintain three or one-third (rounded down to the nearest whole
number) of the total number of directors, whichever is the greater;
• a majority of the directors should not be executives of the Company;
• a director should not have any significant conflict of interest that is potentially detrimental to the Company, other
than and to the extent dealt with in the Corporate Governance Code of the Company;
• the Board seeks diversity in the skills, attributes and experience of its members across a broad range of criteria, to
represent the diversity of shareholders, business types and regions in which the Company operates; and
• the Board elects a Chair, and can replace them at any time.
• Management must provide the board with accurate information within the timeframe required for the board to
effectively discharge its duties.
• The effectiveness and performance of the board and its individual members should be re-evaluated annually.
As at 31 March 2024 the Board comprised of six Directors:
• Asantha Wijeyeratne – Executive Director and CEO
• Gavin Thompson – Non-Executive Director
• Michael O’Donnell – Independent Director
• Shelley Ruha – Independent Director (Chair of Board)
• Mark Samlal – Independent Director
• Jim Sybertsma – Independent Director (Chair of Audit & Risk Committee)
Independence of directors is determined by assessing the directors against the following factors:
• Not currently, or historically (within 3 years) employed in an executive role with PaySauce;
• Not currently holding a senior role in a provider of material professional services to PaySauce;
• No current material business relationship (i.e. as a supplier or customer) to PaySauce;
• Not currently a substantial product holder of PaySauce or a senior manager of a product holder of PaySauce;
• No current material contractual relationship with PaySauce, other than as a director;
• No close family ties with anyone who would fall into the above categories;
• Has not been a director of PaySauce for a length of time that may compromise independence.
Jacqueline Cheyne resigned as an Independent Director and Chair of the Audit & Risk Committee, effective 30
September 2023.
Jim Sybertsma joined the Board as an Independent Director and Chair of the Audit & Risk Committee, subject to
shareholder approval at the next Annual Shareholder Meeting, effective 1 October 2023.
More information on the directors, including their relevant interests, and shareholdings, is provided in the Directors’
disclosures section of this report and is on the company’s website.
Day-to-day management of PaySauce is delegated to the Chief Executive and the Executive team.
The board’s responsibilities
The primary responsibilities of the board are to:
• provide overall governance and strategic leadership;
• oversee management’s implementation of the Company’s strategic objectives and performance;
• oversee the development, adoption and communication of a clear strategy for the Company;
• oversee accounting and reporting systems and ensure the quality and independence of the Company’s external
audit process;
• adopt and regularly review the risk management framework;
• appoint a Chair of the Board and the CEO;
• review and approve the Company’s operating budgets and major capital expenditure;
• adopt and review the Company’s remuneration policy and other corporate governance documents;
• ensure compliance with the Company’s constitution, continuous disclosure obligations, and the relevant laws, listing
rules and regulations and auditing and accounting principles;
• implement and periodically review the Company’s Code of Ethics, foster high standards of ethical conduct and
personal behaviour and hold accountable those who engage in unethical behaviours;
• periodically assess its own effectiveness in carrying out these functions and the other responsibilities of the Board.
On appointment to the board by the shareholders, new directors sign a written agreement that covers the terms of their
appointment.
Every year, the board and sub-committees critically evaluate their own performance and processes. This will identify any
training opportunities for individual directors to maintain relevant and up-to-date skills for their role.
Independent professional advice
With the prior approval of the Chair, each director may seek independent legal and professional advice, at the company’s
expense, about any aspect of PaySauce's operations to assist in fulfilling their duties as a director.
Diversity
The PaySauce board and management are determined that all staff and all eligible candidates for vacant positions should
have equal opportunity to demonstrate their skills and experience. This forms the basis of our diversity policy.
PaySauce embraces uniqueness in our people and welcomes diversity. We believe that difference builds resilience and
innovation. We encourage our employees to be curious and open-minded, embracing wide-ranging perspectives and
working to meet the needs of individuals.
Our approach to diversity is to continually develop a work environment that supports equality, exchange and inclusion.
We believe in accommodating, rather than minimising, the different needs of our people.
The Board has considered the need for measurable objectives for diversity and determined that it is not yet appropriate
to set measurable objectives due to market conditions and the stage of the company's development. That decision will
be reconsidered annually. When appropriate the Board, or a committee appointed by the Board, will set measurable
objectives for achieving diversity (which, at a minimum, will address gender diversity). The Board will annually review those
objectives and the Company’s progress in achieving them. Despite being a small team, there is diversity across age,
gender identity, race, first language, religion and mobility.
7071
CORPORATE GOVERNANCECORPORATE GOVERNANCE
We held the following gender diversity as at 31 March 2024:
As at 31 March 2024
DirectorsExecutive TeamEmployees
Male
5
4
18
Female
1223
Total
6641
As at 31 March 2023
DirectorsExecutive TeamEmployees
Male
4
3
14
Female
2223
Total
6537
Principle 3 – Board committees
“The board should use committees where this will enhance its effectiveness in key
areas, while still retaining board responsibility.”
Audit and Risk Committee
The Audit and Risk Committee (“ARC”) assists the board in financial reporting, and risk and financial/secretarial
compliance.
The ARC makes recommendations to the board on appointing external auditors to ensure their independence. The ARC
also monitors 5-yearly rotation of the lead audit partner.
The ARC facilitates communication between the board and external auditors. The committee’s responsibilities include:
• reviewing the appointment of the external auditor, the annual audit plan, and addressing auditor recommendations
• reviewing publicly released dividend proposals and financial information
• ensuring that appropriate financial systems and internal controls are in place.
The ARC must include at least three directors, and consist of only non-executive directors and have a majority of
independent directors. At least one member must be a director with an accounting or financial background.
The Chair of the Board cannot also be the Chair of the ARC. The current members are Jim Sybertsma (Chair), Michael
O’Donnell, and Gavin Thompson, of which Jim, and Michael are independent directors.
The committee usually invites the Executive Team, and at least twice a year invites the external auditors to attend ARC
meetings.
Principle 4 – Reporting and disclosure
“The board should demand integrity in financial and non-financial reporting, and in
the timeliness and balance of corporate disclosures.”
Reporting and disclosure
The board is committed to providing accurate, thorough, and timely information to existing shareholders and to the
market. This means all investors can make informed decisions about PaySauce.
As an NZX listed company, PaySauce must comply with disclosure requirements under the NZX Main Board Listing Rules.
PaySauce recognises the importance of these requirements in providing equal access for all investors, or potential
investors, to price-sensitive information.
The disclosure and communications policy outlines PaySauce's obligations to meet disclosure requirements. It also
covers related issues, including external communications.
PaySauce has not provided detailed reporting on environmental, economic and social sustainability risks. Whilst
PaySauce is not yet captured by the mandatory climate risk disclosure reporting regime, management does not consider
the business has material exposure to climate risk given the nature of our business and the increasing diversification of our
customer base.
PaySauce publishes key governance and other relevant documents in the investor centre of our website:
https://www.paysauce.com/investor/
Announcements made to the NZX and reports are also posted on the company’s website.
Principle 5 – Remuneration
“The remuneration of directors and executives should be transparent, fair and
reasonable.”
The board is responsible for setting individual directors’ fees, and monitoring the remuneration of the Chief Executive and
Executive Team.
PaySauce has in place a remuneration policy, outlining the key principles that influence remuneration practices. This can
be found in the Company’s Corporate Governance Code, located on the Company’s website (at the date of this report,
located in section 15 of the Company’s Corporate Governance Code at
https://www.paysauce.com/investor/).
Further details and disclosures are outlined in the disclosures section of this document.
Principle 6 – Risk management
“Directors should have a sound understanding of the material risks faced by
the issuer and how to manage them. The board should regularly verify that the
Company has appropriate processes that identify and manage potential and
material risks.”
The board is responsible for overseeing internal controls to manage key risks, and has overall responsibility for managing risk.
The company maintains a risk register to identify and manage risk. The Executive Team is responsible for maintaining this
register, and reporting to the board on a regular basis.
Through the ARC, the board considers the recommendations of external auditors. The board sees that those
recommendations are investigated and appropriate action is taken, where necessary.
7273
CORPORATE GOVERNANCECORPORATE GOVERNANCE
Principle 7 – Auditors
“The board should ensure the quality and independence of the external audit
process.”
The Audit and Risk Committee (“ARC”) makes recommendations to the board to appoint an external auditor. The
committee also monitors the independence and effectiveness of the external auditor, and reviews and approves any
non-audit services they perform.
The committee meets with the external auditor at least twice a year to approve the terms of engagement, audit partner
rotation (at least every 5 years) and audit fee, and to review and provide feedback on the annual audit plan.
The committee routinely meets with PaySauce’s external auditor, Grant Thornton, without management present. Grant
Thornton also attends PaySauce's ASM.
The company continually monitors its internal control environment.
Principle 8 – Shareholder rights and relations
“The board should respect the rights of shareholders and foster constructive
relationships with shareholders that encourage them to engage with the issuer.”
Information for shareholders
The company seeks to help investors understand its activities, by communicating effectively and providing clear and
balanced information. In addition to interim and annual reporting, the company also chooses to release quarterly trading
updates to the market.
The company website (www.paysauce.com) provides an overview of the business and information about its activities.
This includes details of the company’s services, latest news, investor information, key corporate governance information,
and copies of significant NZX announcements. The website also provides profiles of the directors and the Executive Team.
Shareholders have the right to vote on PaySauce's major decisions, in line with the requirements of the Companies Act
1993 and the NZX Main Board Listing Rules.
Communicating with shareholders
PaySauce works to keep investors well informed, and regularly provides information about current operations and future
plans. This is achieved through our NZX market announcements and presentations to retail investors.
PaySauce sends notice of the ASM to shareholders, and publishes it on the company website at least 28 days before the
meeting each year.
Disclosures
Employee remuneration
The table below sets out the number of PaySauce Group employees and former employees who received remuneration
and other benefits, including non-cash benefits and share-based remuneration in excess of $100,000 per annum.
Director remuneration is not included in the table below, and instead set out in a separate section below.
Remuneration rangeEmployees ‑ 2024Employees ‑ 2023
$100,000 - $109,99923
$110,000 - $119,9992-
$120,000 - $129,99923
$130,000 - $139,99912
$160,000 - $169,9993-
$180,000 - $189,9991-
$190,000 - $199,9991-
$200,000 - $209,999-1
$240,000 - $249,999-2
$250,000 - $259,99911
$300,000 - $309,9991-
$310,000 - $319,9991-
$350,000 - $359,9991-
Donations
No cash donations were made by the Group during the year ended 31 March 2024 (2023: $Nil). Donations in kind of
$175,000 were given to 102 charities and non-profit organisations during the period (2023: $130,000, and 100).
7475
CORPORATE GOVERNANCECORPORATE GOVERNANCE
Board meeting attendance
Board meetings are held in person and/or by teleconference. The Directors attended the following board meetings
during the year ended 31 March 2024:
DirectorBoard Meetings AttendedARC Meetings Attended
Asantha Wijeyeratne11 of 11-
Gavin Thompson11 of 113 of 3
Jacqueline Cheyne*6 of 61 of 1
Michael O'Donnell11 of 112 of 3
Shelley Ruha11 of 11-
Mark Samlal11 of 11-
Jim Sybertsma**3 of 52 of 2
Note - If a director was not a member of a particular committee at the time of the relevant meetings ‘-‘ has been
recorded.
*Jacqueline Cheyne resigned as an Independent Director and Chair of the Audit & Risk Committee, effective 30
September 2023.
**Jim Sybertsma joined the Board as an Independent Director and Chair of the Audit & Risk Committee, subject to
shareholder approval at the next Annual Shareholder Meeting, effective 1 October 2023.
Directors’ share transactions
Directors disclosed, pursuant to section 148 of the Companies Act 1993 and Part 5 of the Financial Markets Conduct Act
2013, the following acquisitions and disposals of relevant interest in PaySauce ordinary shares during the year ended 31
March 2024:
DirectorRegistered holder /
associated entity
Number
of shares
acquired /
(disposed)
ConsiderationDate
Asantha WijeyeratnePayroll.Kiwi Limited79,806$21,655Mar-24Discretionary
bonus paid
and applied to
paying up unpaid
Employee Share
Scheme Shares
Asantha WijeyeratnePayroll.Kiwi Limited(40,000)$NilFeb-24Off-market sale of
shares - gifted for
no consideration
Mark SamlalMark Samlal43,365$10,000Jan-24Issued shares in
lieu of director
remuneration
Asantha WijeyeratneCloud Investments Limited(2,770,369)$720,296Jan-24Off-market sale of
shares
Asantha WijeyeratnePayroll.Kiwi Limited(74,650)$20,000Jan-24Off-market sale of
shares
Jim SybertsmaJim Sybertsma74,650$20,000Jan-24Off-market
purchase of shares
Asantha WijeyeratnePayroll.Kiwi Limited41,708$10,828May-23Discretionary
bonus paid
and applied to
paying up unpaid
Employee Share
Scheme Shares
Directors’ remuneration
The total Directors’ fees and other remuneration received by the Directors for the period ended 31 March 2024 is outlined
below:
31‑Mar‑2431‑Mar‑23
DirectorDirector feesOther
remuneration
TotalDirector feesOther
remuneration
Total
Asantha
Wijeyeratne
Nil$358,826$358,826Nil$249,206$249,206
Gavin Thompson$40,000Nil$40,000$40,000Nil$40,000
Jacqueline
Cheyne*
$24,375Nil$24,375$45,000Nil$45,000
Michael
O'Donnell
$40,000Nil$40,000$40,000Nil$40,000
Shelley Ruha$65,000Nil$65,000$27,038Nil$27,038
Mark Samlal$10,000Nil$10,000$40,250Nil$40,250
Jim Sybertsma**$11,250Nil$11,250NilNilNil
*Jacqueline Cheyne resigned as an Independent Director and Chair of the Audit & Risk Committee, effective 30
September 2023.
**Jim Sybertsma joined the Board as an Independent Director and Chair of the Audit & Risk Committee, subject to
shareholder approval at the next Annual Shareholder Meeting, effective 1 October 2023.
7677
CORPORATE GOVERNANCECORPORATE GOVERNANCE
Executive Director remuneration
Asantha Wijeyeratne is the Chief Executive Officer, and held this position as at 31 March 2023. He did not receive any
remuneration in his capacity as a Director, but was remunerated as Chief Executive Officer as follows:
31‑Mar‑2431‑Mar‑23
CEO RemunerationSalaryEmployee
Share Scheme
TotalSalaryEmployee
Share Scheme
Total
Asantha Wijeyeratne$305,576$53,250$358,826$213,706$35,500$249,206
Insurance of Directors and Officers
PaySauce has a Directors’ and officers’ liability insurance policy in place. This provides insurance for the liabilities of the
Directors and officers for acts or omissions in their capacity as Directors or employees. The insurance policies do not
cover dishonest, fraudulent, malicious, or wilful acts or omissions.
General Disclosures of Interest
Director/ExecCompanyNature of Interest
Asantha WijeyeratneBuzz Hospitality LimitedDirector
Catalyst IT LimitedShareholder
Cloud Investments LimitedDirector & Shareholder
Manuka Café LimitedDirector
Payroll.Kiwi LimitedDirector
PaySauce LimitedDirector & Shareholder
PaySauce Operations LimitedDirector
Right Remuneration LimitedDirector
Wijeyeratne & Co LimitedDirector & Shareholder
Gavin ThompsonCatalyst Cloud LimitedDirector
Catalyst IT LimitedDirector & Shareholder
Catalyst.Net LimitedDirector
Catalyst IT Australia Pty LtdDirector
Catalyst IT Europe LtdDirector
PaySauce LimitedDirector & Shareholder
PaySauce Operations LimitedDirector
Truenet LimitedDirector
Michael O'DonnellPaySauce LimitedShareholder, Independent Director
Realestate.co.nz LimitedDirector
Brewwell LimitedChair
Radio New Zealand LimitedDirector
NZ Trade + Enterprise / G2GChair
Serato Audio Research LimitedDeputy Chair
Stuff MediaNational Columnist
High Tech New ZealandTrustee
Sandfield SoftwareDirector
Shelley RuhaAnaley Holdings LimitedDirector and Shareholder
IT & Business Consulting LimitedDirector
Analey Investments LimitedDirector and Shareholder
Heartland Bank LimitedIndependent Director
Partners Group Holdings LimitedIndependent Director
Partners Life LimitedDirector
PaySauce LimitedShareholder, Independent Chair
New Zealand Rural Land Management GP
Limited
Director
Allied Farmers LimitedIndependent Chair
Allied Farmers Rural LimitedDirector
LONZ 2008 Holdings LimitedDirector
Allied Farmers Property Holdings LimitedDirector
Rural Funding Solutionz LimitedDirector
QWF Holdings LimitedDirector
Allied Farmers (New Zealand) LimitedDirector
Clearwater Hotel 2004 LimitedDirector
LONZ 2008 LimitedDirector
UFL Lakeview LimitedDirector
7879
CORPORATE GOVERNANCECORPORATE GOVERNANCE
Lifestyles of New Zealand Queenstown
Limited
Director
5M No.2 LimitedDirector
ALF Nominees LimitedDirector
New Farmers Livestock Finance LimitedDirector
9 Spokes International LimitedIndependent Director
9 Spokes Trustee LimitedDirector
9 Spokes Knowledge LimitedDirector
9 Spokes US Holdings LimitedDirector
9 Spokes UK LimitedDirector
9 Spokes Canada LimitedDirector
9 Spokes Australia LimitedDirector
9 Spokes US LimitedDirector
Mark SamlalPaySauce LimitedShareholder, Independent Director
MS&MS Pty LtdDirector
Pay AsiaManaging Director
PYG NXT 1 Inc - Investment companyDirector
Astute Corporation Pty LtdDirector
Managed Payroll Services Pty LtdDirector
INTEGRATED WORKFORCE SOLUTIONS PTY
LT D
Director
IWS BOOKKEEPING AUSTRALIA PTY. LTD.Director
Payroll HQ Pty LtdDirector
Pay Asia Australia Pty LtdDirector
Pay Asia Pty LtdDirector
PayMY Outsourcing Sdn BhdDirector
Pay Asia LimitedDirector
Pay Asia HR Services Limited IncDirector
CONG TY TNH H PAY ASIA VIETNAMDirector
Pay Asia (Thailand) LimitedDirector
PT Payasia Konsultansi IndonesiaDirector
Payasia Company LimitedDirector
Pay Asia Management Private LimitedDirector
Payasia BPO Payroll India Private LimitedDirector
PAYGROUP NZ LIMITEDDirector
PayGroup (Shanghai) Human Resource Co.,
Ltd.
Director
PayGroupEmployee - Founder and CEO
Jim SybertsmaPaySauce LimitedShareholder, Independent Director
Provident Insurance Corporation LimitedDirector
Autodrive Holdings LimitedDirector
RIMANUI FARMS LIMITEDAdvisory Board Member
Hawkesby Management LimitedChief Financial Officer
Note - In some cases, shareholding indicated above may not be held directly. Furthermore, there may be subsidiaries of
the above entities in which the Directors are also interested, without necessarily being a Director, Shareholder, or Officer
of that entity.
Director interests in shares
Directors held the following relevant interests in PaySauce ordinary shares at 31 March 2024:
DirectorSecurities held by Director or associated entity*
Asantha Wijeyeratne36,278,092
Gavin Thompson2,276,978
Michael O'Donnell87,835
Shelley Ruha241,377
Mark Samlal341,825
Jim Sybertsma**74,650
*Whilst directors are not required to own shares as part of their directorships, all have chosen to own shares.
**Jim Sybertsma joined the Board as an Independent Director and Chair of the Audit & Risk Committee, subject to
shareholder approval at the next Annual Shareholder Meeting, effective 1 October 2023.
8081
CORPORATE GOVERNANCECORPORATE GOVERNANCE
Substantial product holders
The substantial product holders in PaySauce ordinary shares as at 31 March 2024 were as follows:
Substantial product holderShares held% of issued shares
Wijeyeratne & Co Limited27,750,43319.93%
Perpetual Trust Limited21,466,66715.23%
Gondolin Trust16,218,12011.50%
New Zealand Central Securities11,770,3208.35%
Cloud Investments Limited8,527,6596.05%
Twenty largest equity security holders
The 20 largest holders of PaySauce ordinary shares as at 31 March 2024 were as follows:
RankShareholders/InvestorsShares held% of issued shares
1Wijeyeratne & Co Limited27,750,43319.68%
2Perpetual Trust Limited21,466,66715.23%
3Gondolin Trust16,218,12011.50%
4New Zealand Central Securities11,770,3208.35%
5Cloud Investments Limited8,527,6596.05%
6Charlotte Anne Lockhart3,211,1832.28%
7New Zealand Depository Nominee3,023,1742.14%
8David Russell Stewart & Adrienne Ruth Stewart2,851,9202.02%
9Ian Stewart Frame & Pamela Anne Frame2,652,7651.88%
10Gavin Thompson2,276,9781.62%
11Woodward Family2,120,0001.50%
12Krishnakumar Guda1,870,0001.33%
13Bhagwanji Bhula Rama1,645,0001.17%
14Malcolm William Campbell1,506,0001.07%
15Hugh Anthony Pradeep Fernando1,471,1021.04%
16Cloud Investments Two Limited1,457,5571.03%
17Geoffrey Wiliam Bennett1,315,8540.93%
18Victoria Ann Taylor1,243,2460.88%
19Amanda Higgins & Patrick Higgins & Paul Philipson1,017,9210.72%
20Matthew Gardner926,1640.66%
Spread of security holders
The spread of holders of PaySauce ordinary shares as at 31 March 2024 are listed below:
ShareholdersShares
Size of holding (shares)Number%Number%
1 - 10,00091473.18%1,713,1871.22%
10,001 - 50,00021116.89%5,049,1103.58%
50,001 - 100,000463.68%3,257,3492.31%
100,001 - 500,000473.76%9,158,9996.50%
500,001 - 1,000,000120.96%8,407,6025.96%
1,000,001 and over191.52%113,395,89980.43%
Totals1249100.00%140,982,146100.00%
NZX waivers from listing rules
No waivers were granted to PaySauce by NZX during the year ended 31 March 2024, and there were no waivers that
PaySauce relied upon during this period.
8283
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
Company Directory
Directors:
Asantha Wijeyeratne
Gavin Thompson
Jim Sybertsma
Mark Samlal
Michael O’Donnell
Shelley Ruha
Registered Office:
85 The Esplanade
Petone, 5012
New Zealand
Website:
www.paysauce.com
Auditor:
Grant Thornton New Zealand Audit Limited
Stock Exchange:
NZX
Share Registrar:
Link Market Services Limited
80 Queen Street
Auckland, 1010
New Zealand
NZ Company Number:
1719868
NZBN:
9429034458099
Investor Calendar
Annual Shareholders Meeting
September 2024
FY25 Half year
30 September 2024
FY25 Interim result announcement
November 2024
FY25 Year end
31 March 2025
34
FINANCIAL STATEMENTS
---
2024
2023
Results presentation
YEAR ENDED 31 MARCH 2024
Maiden Net Profit
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 Annual 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, CEO
4
PaySauce
Highlights
Maiden net profit; advancing growth strategy
Free Cashflow
Positive f ree cash flow
2
$0.94m year on year
improvement
$
0.29
m
46
Rule of 40
Self sufficient,
Surpassing Rule
of 40
NPAT
Maiden NPAT
1
.
Underlying NPAT of
$0.19m before deferred
tax asset recognised
$
1.23
m
ARR
Annualised recurring
revenue (ARR) grew 19%
year on year
$
8.00
m
1. Net profit after Tax. 2. Before funds due to customers and IRD.
Maiden net profit
Proof of concept for embedded payroll
nearing completion
Gen 2.0 payroll engine piloted successfully
Self sufficient cash generation re-investing
for scalable growth
Continued to outperform “Rule of 40”
benchmark
Up $1.79m
YoY
Up 19%
YoY
Up $0.94m
YoY
2
Above industry
benchmark
Maiden
Profit
5
PaySauce
We are in transition to our
platform for the future
Gen 1.0 goPayroll +
SmoothPay (acquisition)
Serving over 1,400
customers in NZ,
AU and Pacific Islands
Gen 1.0
Existing code base
serving over 5,900
customers in NZ
Gen 2.0
Wholesale 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
Wholesale
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
Wholesale
Payroll
Micro-business
App
A
P
I
PaySauce
Gen 2.0
Engine
A
P
I
Wholesale 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
Wholesale
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
6
Gen 2.0 payroll engine affords
us commercial optionality
Wholesale 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
Wholesale
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
Wholesale
Payroll
Micro-business
App
A
P
I
PaySauce
Gen 2.0
Engine
A
P
I
Wholesale 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
Wholesale
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
7
PaySauce
FY25 strategy
Partnerships
Powering our go-forward strategy
PeopleProduct
Supercharge growth
We’ll deliver growth through
two distinct paths: continuing
our work directly with the SME
market as well as opening a
whole new opportunity with
wholesale.
To get to $10m ARR, we will:
• Improve brand awareness and
opportunities with targeted
sales and marketing strategies
• Deliver new interface for both
web and mobile
• Identify new wholesale
opportunities, including new
jurisdictions
Loving our customers
Our relationship with our
customers is mutually
beneficial: they get peace
of mind and time through a
great product, and we get
a dedicated fanbase as our
best source of growth.
To make this happen, we will:
• Delight our users with features
and functionality they need and
want
• Provide customers with the
knowledge and guidance they
need to be successful
• Improve product and service
experiences with in-app support
and guidance
Scalability
To ensure we can retain
very high service levels at
scale, we’re focusing on
the improvements to how
we operate. Removing pain
points for ourselves and our
customers means we have
more time to focus on the
growth activities.
To operate more efficiently
and safely, we will:
• Create a smoother journey for
new and existing customers
• Implement AI and other new
technologies to build scalable
processes
• Optimise our tech stack for
speed, security and scale
8
PaySauce
Financial Results
Jaime Monaghan, CFO
9
PaySauce
Financial results
• Maiden positive NPAT result
of $1,232k.
• Positive net operating
cashflow* of $1,475k.
• PaySauce grew total
recurring revenue 32% year
on year due to increased
interest income, additional
customers and increased
ARPU.
• Gross margin grew 40% year
on year from higher revenue
and greater efficiency.
MAR 24 ($000s)MAR 23 ($000s)Change
Net profit / (loss) after tax (NPAT) $1.23m ($0.56m) $1.79m
Earnings / (Loss) before tax, impairment,
depreciation & amortisation (EBTDA)
$1.06m($0.08m)$1.14m
Free cash flow*$0.30m($0.64m)$0.94m
Cash and cash equivalents* $0.60m$0.50m$0.10m
Total recurring revenue$7.57m$5.72m 32%
Gross margin$5.82m$4.15m40%
Gross margin percentage77%73%4pp
*Excludes funds due to customers and the IRD, collected in performing our role as a PAYE intermediary.
10
PaySauce
Revenue growth
• Recurring Revenue grew 32% to $7.6m for
the year ended 31 March 2024.
• Interest income up 96% year on year.
• Processing fees growth lower at 17% year on
year as PaySauce continues entry into new
verticals, starting with plumbers, gasfitters
and builders.
• Growth in processing fees came from
7% increase in customer count, and a 6%
increase in ARPU.
32
%
$
7.6
m
Recurring
revenue
Recurring Revenue
Mar 21Mar 22Mar 23Mar 24
$0 M
$2 M
$4 M
$6 M
$8 M
11
PaySauce
Results summary
• PaySauce inverted the gap between
Revenue and Expenditure in FY24,
increasing revenue 33% year on year
whilst curbing expenditure growth to 18%.
• After adjusting for the impact of deferred
tax on revenue* - PaySauce delivered an
improvement of $0.7m in the bottom line
with an underlying net profit of $0.2m for
the year.
• Free cashflow (excluding movement
of funds held on behalf of customers)
increased by $0.9m year on year for
March 2024.
*Revenue excludes deferred tax income arising from the recognition of deferred tax from losses carried forward.
Profitability
$8 M
$6 M
$4 M
$2 M
Mar 21Mar 22Mar 23Mar 24
RevenueExpenses
Profitability
Revenue* Expenses
$0.00 M
$0.50 M
-$0.50 M
-$1.00 M
-$1.50 M
-$2.00 M
Mar 21Mar 22Mar 23Mar 24
Free cash flow (excluding funds held on behalf of customers)
Free cash flow
(excluding funds held on behalf of customers)
12
PaySauce
Reinvest for long term growth
• PaySauce increased investment into research
& development by 12% year on year to $2m.
• Investment included additional headcount
- growing 50% year on year and included
several key hires that have led to
improvements both with the structure of the
team, and the security of the product.
• PaySauce migrated to Amazon Web Services
(AWS), enhancing scalability options and
greater flexibility to optimise development
release cycles.
R&D Capitalisation
Mar 21Mar 22Mar 23Mar 24
$2.00 M
$1.50 M
$1.00 M
$0.50 M
$0.00 M
R&D investment
13
PaySauce
Customer metrics
• Fewer customers acquired, and cost to
acquire increased.
• Higher average revenue per customer due to
price increases and higher interest rates.
• Cost to serve each customer increased
slightly - mostly inflationary.
• Customer churn increased slightly to 1.18%
per month, reducing the implied customer
lifetime.
• Increase in customers to 7,368 and customer
lifetime value to $5,890 per customer resulted
in a 23% increase in total customer lifetime
value to $43.4m
*PaySauce changed the methodology in how it recognises customer activity during the period. Refer to
the annual report for full details on the impacts on comparative customer metrics.
CAC
$
510
24%
YOY
New customer joins
PaySauce
Customer acquisition
(CAC)
$510 per customer
ARPU
$
91
Customer pays
a monthly
subscription
Recurring revenue
(Monthly): $91per
customer
11% YOY
Customer receives
support
Cost to serve (CTS)
(Monthly): $21 per customer
Customer stays
with PaySauce
Customer lifetime
Average monthly churn
of 1.18%
CTS
$
21
6% YOY
Customer
Lifetime
7
yrs
3% YOY
At 31 March 2024
Total customer
lifetime value
$
43.4m
23
% YOY
Customer
lifetime value
(CLTV)
$5,890 per
customer
CLTV
$
5,890
CLTV : CAC
12:1
Flat YOY
15% YOY
14
PaySauce
Questions
“I am proud of the advances we’ve made in
our technology and the future opportunities
on offer as a result, particularly in relation to
our wholesale payroll solution. We now have
all the building blocks for an acceleration of
growth.
I look forward to sharing our progress next
quarter and at the Annual Shareholders
Meeting in September.”
Asantha Wijeyeratne
CEO, Co-founder
25.98% shareholder
PaySauce
15
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 (only interest earned on funds
held on behalf of customers is included
in recurring revenue).
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.
LTV: 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).
Free cash flow: Cash flows generated
from operating activities less cash flows
used for investing activities (excluding
funds held on behalf of customers).
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.
16
PaySauce
85 The Esplanade, Petone,
Lower Hutt 5012, New Zealand
www.paysauce.com/investor
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