PaySauce FY2022 Half Year Result and Interim Report

SmoothPay Acquisition Helps Grow PaySauce ARR by 49% YoY Lower Hutt, New Zealand - 24 November 2021 PaySauce (NZX:PYS) shares its FY2022 Interim Report, with CEO Asantha Wijeyeratne noting the solid contribution the SmoothPay acquisition made to annualised recurring revenue. HIGHLIGHTS - Acquisition of SmoothPay for 1% dilution of share capital - Net promoter score (NPS) of 60 - 11:1 LTV:CAC ratio - PayNow delivered over $0.33 million of Earned Wage Access - 49% YoY ARR growth - 69% YoY total customer LTV growth THE ACQUISITION OF SMOOTHPAY DELIVERED - Cash generation through payroll services in NZ and 13 overseas jurisdictions; - Over 1,300 customers with opportunity to increase average revenue per user; - Expansion of the total addressable market to Australia and the Pacific Islands. Wijeyeratne reflects on the progress in this period: "We've kept our foot to the floor on feature based growth, improving the product, building for scale, and continuing to grow our customer base and revenue. We've continued to support our people - our staff, partners, suppliers and shareholders - as COVID continues to create anxiety. We've also saved thousands of kiwi stress from predatory payday lenders, by giving customers' employees access to wages before payday with the help of our partners at BNZ through our PayNow feature." SmoothPay was our first acquisition. We're integrating our product suite and rolling out pricing structure changes with the goal of extracting the untapped potential of this customer base. The acquisition has been an important strategic step as it delivered us our first dollar of overseas revenue and opened the pathway for accelerated growth through international expansion, all from our offices in Wellington. It's also given us experience in acquisition of competitors and merging clients." PaySauce delivered a 43% YoY increase in revenue and reinvested the majority of that increase back into the revenue-driving areas of the business, being: - Improving the product (Research and Development: up 35%) - Supporting existing customers (Cost to Serve: up 47% YoY);and - Acquiring new customers (Customer acquisition costs up 36% YoY); General and administration costs were held flat at just over $1m compared to the same period last year. As well as the accelerated growth from the acquisition of SmoothPay, all of the key underlying customer metrics continue to trend positively. The introduction of three monthly subscriptions, tailored to the needs of customers increased overall processing fees per customer. The increase in processing fees offset the equivalent decline in Interest Income per customer over the period to hold the overall Average Revenue per User (ARPU) flat at $59. OUTLOOK Wijeyeratne on the outlook for the coming six months: "We're seeing a return from the pricing and promotion decisions we made in the first half of the year. By introducing tiered pricing and being clear on the value created, customers can choose what's right for their business and that's helped to drive an increased share of wallet. We've also applied those pricing principles to align the SmoothPay product with PaySauce's lowest tiered monthly subscription called Simple. We're continuing to focus on building for scale. By partnering with industry experts in new markets, we're able to further add value by removing friction for our customers. I'll also look forward to sharing more insights into how much we've saved everyday working kiwis through the PayNow initiative - we may make no money out of it, but it remains the feature I'm most proud of. Plus our customers love it" APPENDICES Appendix 1 - PaySauce FY2022 Results Announcement to the Market (NZX Template) Appendix 2 - PaySauce FY2022 Interim Report 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. Additional charts and tables are included in the attached .pdf file, entitled PaySauce FY2022 - SmoothPay Acquisition Helps Grow ARR by 49% Non-GAAP measures are defined and explained in the Interim Report. ENDS ABOUT PAYSAUCE PaySauce is a SaaS fintech platform providing solutions for people at work. We give employers the technology to digitally onboard, pay and manage employees from any device. Our platform includes rosters, mobile timesheets, payroll calculations, banking integration, automated payments, 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. End CA:00383408 For:PYS Type:HALFYR Time:2021-11-24 08:30:36