PaySauce (PYS) Q1 2025 TU earnings summary

Executive summary

• Achieved 18% year-over-year growth in ARR to $8.2m and 20% growth in recurring revenue to $2.1m for Q1 FY25.

• Completed Proof of Concept for wholesale payroll using the new Gen 2.0 engine, marking a pivotal milestone for future growth.

• Customer base grew 7% year-over-year to 7,611, with targeted sales and marketing efforts in new verticals and regions.

Financial highlights

• Recurring revenue for Q1 FY25 reached $2.1m, up 20% year-over-year.

• Processing fee revenue was $1.5m, up 18% year-over-year.

• Interest revenue from customer funds increased 26% year-over-year to $0.6m.

• ARR stood at $8.2m, up 18% year-over-year.

Outlook and guidance

• Targeting $10 million in ARR as the next growth milestone.

• Plans to accelerate growth by capitalizing on the Gen 2.0 payroll engine and integrating acquired customers into a unified solution.