PaySauce Limited — Interim / Quarterly Report 2021

Jan 13, 2021

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Small businesses’ confidence helps drive another quarter of growth for PaySauce

Lower Hutt, New Zealand - 13 January 2020

Online employment solutions provider PaySauce (NZX:PYS) finished the third quarter of FY21 with continued revenue and customer growth.

Total recurring revenue grew 44% to $569K, compared to the third quarter of F20.

The number of New Zealand employees paid through PaySauce software increased by 34% to 17,944 people, while the total number of businesses processing through PaySauce increased proportionately to 3,274. PaySauce welcomed more than 300 new clients this quarter, leading to a 6% increase in the total business customers since the last quarter.

CEO and co-founder, Asantha Wijeyeratne, said the platform’s continued growth reflects the recovery of the small business economy in the wake of COVID-19.

“Over the last quarter we saw both new and established businesses coming on board,” said Mr Wijeyeratne.

“It’s been particularly uplifting to see our nation’s entrepreneurs regaining their balance and confidence over the last quarter”.

“We’ve seen a significant number of customers resume payroll processing after a break, as they’re once again in a position to employ staff. Our customers are a tenacious and resilient bunch, and it’s our pleasure to support them and see them bouncing back after a diabolically challenging year.”

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F21 Q3 Key Metrics (1 of 2)

	F21 Q3	F20 Q3	Change
Results for the quarter	Oct - Dec ‘20	Oct - Dec ‘19	% YoY
Total recurring revenue	$569K	$395K1	44%
# Payslips processed	131,851	98,433	34%
Gross value of payroll	$218M	$160M	36%
processed

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1 F20 Q3 total recurring revenue was reported as $461k in the Market update to December 2019. The reported figure last year included the IRD subsidy which has subsequently been removed and is no longer classified as recurring revenue.

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F21 Q3 Key Metrics (2 of 2)

	F21 Q3	F20 Q3	Change
Position at quarter end	Oct - Dec ‘20	Oct - Dec ‘19	%YoY
# Employees	17,944	13,349	34%
# Payroll customers	3,274	2,434	35%

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KEY YEAR-ON-YEAR PERFORMANCE HIGHLIGHTS FOR THE QUARTER

• Recurring revenue up 44% to $569K

• Total employees paid through PaySauce up 34% to 17,944

• Number of payroll business customers up 35% to 3,274

For more information about the quarter results to 31 December 2020, please contact investor@paysauce.com .

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ABOUT PAYSAUCE

PaySauce is a SaaS platform providing payroll and employment solutions to small and medium businesses. We give business owners the technology to pay and manage employees accurately and efficiently from any device. Our platform includes mobile timesheets, payroll calculations, banking integration, PAYE filing, labour costing, automated general ledger entries and digital employment contracts.

www.paysauce.com