Payroll software provider PaySauce says its recurring revenue in the December quarter was 109 percent ahead of the same quarter of 2017.

Co-founder and chief executive Asantha Wijeyeratne says the company is “extremely pleased” with its growth trajectory.

“We had a very strong 2018 and were proud to make our debut on the NZX just before we closed out our most recent quarter on Dec. 31,” Wijeyeratne said in a statement.

Revenue for the three months ended December was $237,000, up from $113,000 in the same period a year earlier.

PaySauce listed on NZX on Dec. 21 via a backdoor listing through the shell of Energy Mad. Its market capitalisation then was $128.6 million, based on the last trade in Energy Mad shares at 2.2 cents.

PaySauce shares last traded yesterday at 1.1 cents, valuing the company at $64.3 million.

“Having marked a number of significant milestones, including becoming the first payroll intermediary to have their entire client base on payday filing, we are concentrating this quarter and through the next year on adding value to the shareholders who are backing our business and on expanding our services to the primary sector,” Wijeyeratne says.

Chair Andrew Barnes says management’s primary focus “has been the establishment of a network of partnerships to drive PaySauce’s business development and shore up its strong market share.”

PaySauce, which provides cloud-based software-as-a-service, has specialised in providing services to the farming and other primary industries and formed a partnership in December with the 10,000-member Dairy Women’s Network to deliver payroll and compliance services.

Among its services, it provides payday advances that cost employers nothing but allow workers to bypass payday lenders by drawing down their own salary.

The company says the number of people receiving their pay through its software rose to 6,227 in the December quarter, up 80 percent from a year earlier. The gross value of payroll processed rose 88 percent to $73 million.

PaySauce’s unaudited accounts showed $511,680 in revenue for the year ended March 2018, up from $130,383 the previous year. It reported a loss before interest, tax, depreciation and amortisation of $711,803 and a net loss of $856,793.

Its listing profile didn’t provide any financial forecasts with directors saying such information “may be misleading for potential investors.”

The directors said that’s because PaySauce’s growth has been “extremely rapid”. Although there is no reason that growth may not continue at similar rates, or possibly even accelerate, “it would be imprudent to forecast growth continuing at historic rates”.

“Equally, given there is no evidence of PaySauce’s growth slowing, it may be misleading to produce a forecast which assumed growth at anything less than historic levels,” they said.

Directors also touted significant growth opportunities including new markets, products and new clients within existing markets which “have the potential to materially positively affect the growth, profitability and prospects for PaySauce” but which remain so uncertain that they cannot be accurately forecast.

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