PaySauce FY2021 Annual Report

Lower Hutt, New Zealand - 27 May 2021 Employment solutions fintech PaySauce (NXZ:PYS) is proud to release its FY2021 Annual Report. See attached PDFs for full text and graphics. PaySauce CEO Asantha Wijeyeratne said the FY2021 report presents PaySauce as a more sophisticated and streamlined business. "This year we've taken major steps into the next phase of our growth and identity. The addition of Rosters and the groundbreaking launch of BNZ PayNow are a clear signal that we're ready to become a market-leading fintech, while our numbers clearly demonstrate our improved efficiency." HIGHLIGHTS 106% increase in Total Customer LTV 36% increase in Active Customers 59% increase in Recurring Revenue from Processing Fees 44% increase in Recurring Revenue Launched Rosters and BNZ PayNow Chief Executive Asantha Wijeyeratne reflects on the year: "Internally, we're clearer and more purposeful than ever, while externally we've grown both our product and our presence in the market. Rosters and BNZ PayNow take us well beyond the scope of a traditional payroll provider, earning our place in New Zealand's leading-edge fintech sector. With the introduction of innovations like earned wage access, we're expanding not only our own product, but also the range of options available to New Zealanders. So while we're more efficient and established than ever, we remain bold, ambitious and inventive." FINANCIAL HIGHLIGHTS Total recurring revenue growth remained strong, with increased customer numbers and an increase in the average processing fees per customer more than compensating for the decline in interest income. With funds held on behalf of customers increasing in line with customer growth, the drop in interest income was entirely attributable to the fall in interest rates over the period. Gross margin also increased to 68% for the year ended 31 March 2021, up from 62% for the year ended 31 March 2020. This improvement is a result of increased efficiency gains as we continue to improve our systems and processes, continuing the evolution from start up to scale up. OUTLOOK Wijeyeratne on the year to come: "We're clearly on the right track, and we'll continue to go after our goals. We'll keep working on our transition from payroll app to fintech, and as always, we'll leverage our vital partnerships, both long-standing and new. And of course, we'll be vigorously pursuing opportunities to accelerate our growth in new and existing markets." 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 Annual Report. ENDS ABOUT PAYSAUCE PaySauce is software at work for people, providing employment solutions to small and medium-sized 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, rosters, payroll calculations, banking integration, PAYE filing, labour costing, automated general ledger entries and digital employment contracts. www.paysauce.com CONTACT Please direct any investment queries to investor@paysauce.com. Audited financial statements accompany this announcement. End CA:00372907 For:PYS Type:FLLYR Time:2021-05-27 08:30:33