FY2020 Annual Results

Lower Hutt, New Zealand - 29 May 2020 Employment solutions provider PaySauce (NXZ: PYS) is proud to release its 2020 annual report. See attached PDFs for full text, graphics and footnotes. PaySauce CEO Asantha Wijeyeratne said the report summarised "an eventful and exciting year. We're extremely grateful to our shareholders for helping us realise our ambitions and continue to aim higher, even in these unprecedented times." HIGHLIGHTS $5.8M Rights Issue completed 122% ARR growth 80% customer growth 2x Finalist HiTech Awards 2020 Chief Executive Asantha Wijeyeratne reflects on the year: "From a financial perspective, we've seen incredible results. Our Rights Issue was a resounding success, even as the market was beginning to see the effects of a global pandemic. We've welcomed approximately 180 new shareholders on board, plus our first institutional investor in Pathfinder CareSaver. For me, the biggest highlight has been the positive impact we've had on our community, both at a local and national scale. I couldn't be prouder of the work we've done to develop and deliver our payroll giving feature, Donations, and PaySimple, our free solution for businesses impacted by COVID-19." FINANCIAL HIGHLIGHTS Recurring Revenue continues to grow at an impressive rate, driven by an increase in both customer numbers and ARPU. Having changed the pricing structure to be subscription based, the new pricing better reflects the SaaS model. Gross margin also improved to 62% for the year ended 31 March 2020, up from 51% for the year ended 31 March 2019. This growth is a result of the increase in APRU referred to above, as well as efficiency gains in our systems and processes as we build for scale. OUTLOOK Wijeyeratne on the year to come: "Looking ahead, we'll remain focused on our core partnerships and maintaining our strong financial position through savvy decision making and careful strategic planning. We'll continue to keep a close eye on the long-term ramifications of Covid-19 for small business, both to safeguard our own financial future and to offer support to others. We'll also reassess the opportunities available in the Irish market as the "new normal" emerges across the globe." NON-GAAP FINANCIAL INFORMATION Non-GAAP (Generally Accepted Accounting Principles) financial information does not have a standardised meaning prescribed by GAAP and therefore may not be comparable to similar financial information presented by other entities. Non-GAAP information has not been audited, and is not prepared in accordance with NZ IFRS. The measures reported by PaySauce are used by management to monitor the performance of the company and are useful to investors to assess performance. Non-GAAP measures are defined and explained in the footnotes to this release, and in the Annual Report. ENDS ABOUT PAYSAUCE PaySauce is software for people at work , providing employment solutions to Kiwi businesses. PaySauce enables employers to pay and manage their teams accurately and efficiently using the web, iOS, and Android applications. The PaySauce platform includes mobile timesheets, payroll calculations, banking integration, PAYE filing, labour costing, automated general ledger entries and digital employment contracts. www.paysauce.com Please direct any investment queries to investor@paysauce.com. Audited financial statements accompany this announcement. End CA:00353888 For:PYS Type:FLLYR Time:2020-05-29 08:30:27