Ann: Quarterly business update, page-7

Thank you for sharing your very helpful thoughts, @madamswer. To add to your comments that the business is expanding at a rapid clip:

1. As Paygroup included the IWS acquisition in the FY21 ARR, the guided increase in FY22 of $9.8M is entirely organic (I have ignored the very small acquisition of FFP Partners on 1 June 2021 as they only contributed around $0.1M). That means that organic growth in ARR is guided to be 36%. This is a vast turn-around from the previous acquisition-driven growth in ARR.
2. The monetisation revenue to which you refer is very high margin at around 95% and is growing very fast. At the current $2.25M annualised, it is contributing around $2.14M to Gross Profit. Paygroup only launched its Treasury Services offering in Q2 FY20.
3. The Global Partner Program is going brilliantly. It contributed ARR of $3.5M in FY21, up > 300%. In the latest quarterly, Paygroup announced that GPP is winning 31% of new sales. GPP involves very little cost in winning these new customers.
4. Customer upsells contributed $2.1M in only one quarter, accounting for 38% of the new contracts signed. This also involves very little cost as Paygroup is simply selling additional platform services to existing customers.
5. Over the last 4 quarters, Paygroup has won $20M of new contracts signed. As they are 3 year contracts, that is equivalent to $6.7M new sales in one year. Compare this with total cash receipts of $18.7M in FY21 from all sources (new contracts, upsells, monetisation).

So, the increased investments and cash opex referred to by @madamswer are clearly paying off. I support this strategy as I believe the returns will be substantial and will start to be seen in FY23 (if not in FY22). FY23 starts in just over 2 months.