Enjoyed your analysis on JAN and here on PYG. Worth noting that...

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Todd Gunn

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13/02/22

17:01

Post #: 59539816
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Originally posted by Roy2U: ↑

As PYG's FY ends on 31 March, I thought I would share the results of my latest analysis which concentrates entirely on organic growth:

Organic Growth Rates (annual unless otherwise noted):
+36% on ARR to end of FY22 - based on FY22 guidance;
+46% on Payslips & Transactions processed - 3rd Qtr to PCP;
+62.5% on Statutory Revenue to end of FY22 - based on FY22 guidance;
+100% on New Contracts - 3rd Qtr to PCP;
+181% on Monetisation - 3rd Qtr to PCP;
+300% on GPP - year to FY21 (no FY22 guidance - see below for my estimate);
Gross Margin expansion from 50% to 56% over only 6 months to end H1 FY22.

My estimate for GPP growth in FY22 is around 60%. I derive this from PYG's disclosure that GPP now comprises 31% of sales in the 3rd Qtr of FY22. We know that New Contracts are running at an annualised rate of around $20M. As these are 3 year contracts, this amounts to an ARR increase of around $6.7M. 31% of this is approx $2.1M. Hence the $3.5M of GPP in FY21 increases to around $5.6M in FY22 for an annual growth rate of around 60%.

The above analysis makes it very clear to me that PYG's investments in growth (at the expense of earlier and higher profits) are now generating organic growth rates of 36% and above, at increasingly high gross margins. IMO, that will lead to bigger and faster growing profits by FY23 (which starts in 7 weeks), than if they had not invested in this growth.

P.S. If readers do not appreciate the value in my analysis (and therefore do not award any GA's), then I will respect their opinion, but that will mean that I will keep my analysis to myself to inform my investment decisions on PYG, rather than sharing it with other investors.

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Enjoyed your analysis on JAN and here on PYG. Worth noting that when using the APP on your mobile , there is no option to leave a GA
PYG Price at posting: 46.5¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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Enjoyed your analysis on JAN and here on PYG. Worth noting that...

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