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Highlights

  • PaySauce reported a 26.52% YoY increase in revenue, reaching NZD 4.57 million in H1FY25.
  • The company swung to NZD 70,000 profit, a sharp turnaround from an NZD 267,000 loss in H1 FY 2024.
  • Net margin improved to 1.5%, and ROE climbed to 2.2% in H1 FY 2025, though the cash cycle lengthened to 6.2 days, and the current ratio slipped to 0.98x.

PaySauce Limited (NZX:PYS) is a cloud-based FinTech company that provides Software-as-a-Service (SaaS) payroll solutions to SMEs. PYS is a multiple award-winning company and has reported a 26.52% YoY increase in operating revenue in the first half of the fiscal year 2025 H1FY25), reaching NZD 4,565,000, compared to NZD 3,608,000 in H1FY24.

Additionally, PaySauce turned profitable in H1FY255, achieving a total comprehensive profit of NZD 70,000, an improvement from the NZD 267,000 loss recorded in the same period last year. H1FY25 performance was driven by:

  • Increased customer acquisition
  • Rising processing fees
  • Higher average revenue per user (ARPU)
  • Improved customer retention due to easing economic pressures

PaySauce is making steady progress toward its goal of reaching NZD 10 million in Annual Recurring Revenue (ARR).

Strengths and Weaknesses

In H1FY25, PaySauce reported 1.5% increase in net margin, a significant recovery from -7.4% in H1FY24. Additionally, the company’s return on equity (ROE) climbed to 2.2%, rebounding from a 19.7% decline in the previous year. However, the company faced minor setbacks, including a slight dip in the current ratio to 0.98x from 0.99x, and an extended cash cycle of 6.2 days, up from 5.6 days in H1FY24.

Outlook and Future Prospects

The company remains optimistic about its future and is confident in maintaining its growth trajectory. With continuous efforts to enhance customer acquisition and revenue streams, PaySauce aims to achieve its aspirational ARR target of NZD 10 million.

Share performance of PYS

PYS shares closed 3.59% lower at NZD 0.19 per share on 10 March 2025. Over the past year, PYS’ share price has dropped by almost 6% and in the last six months, it has decreased by approximately 16.44%.

52-week high of PYS is NZD 0.28, recorded on 23 August 2024 and 52-week low is NZD 0.185, recorded on 27 March 2024.

Resistance and support summary

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 10 March 2025. The reference data in this report has been partly sourced from EODHD/Others.

Technical Indicators Defined:

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.