The PayGroup Ltd (ASX: PYG) share price was well into the green in early morning trade, up 2.2%. It's since given up those gains and is currently down 2.2%
PayGroup shares may be getting impacted by the wider Omicron variant led market selloff, which is seeing the All Ordinaries Index (ASX: XAO) down 0.6% at time of writing.
Below, we take a look at the Software as a Service (SaaS) company's half year results for the 6 months ended 30 September (1HFY22).
What half year results were reported?
The PayGroup share price is wobbling despite the company reporting an 83% increase in statutory revenue of $12.8 million.
New contracts signed reached a record $9.6 million, up 78% on the prior corresponding period.
Normalised earnings before interest, taxes, depreciation and amortisation (EBITDA) of $1.5 million, excluding one-off expenses and acquisition costs, slipped from $1.8 million in 1HFY21. PayGroup said that this figure incorporates continued investment in its platform capabilities for future growth.
The company said that it is currently servicing more than 2,500 enterprise customers.
Commenting on the half year results, PayGroup's managing director Mark Samlal said:
Our strong operational performance and continued investment in our platform underpins our ability to scale the payroll business, expand margins and execute on key monetisation opportunities going forward.
We have made significant progress to date and are excited by the organic opportunities in FY22 and beyond. This is reflected in the growth of our current pipeline, which is 6 times larger than 12 months ago. We are highly confident that we have the right foundations in place and remain focused on delivering on key organic opportunities to drive sustainable long-term growth.
Samlal also reaffirmed the company's guidance. "We have affirmed FY22 ARR [annual recurring revenue] guidance of at least $37 million and provided FY22 statutory revenue guidance of $26 million, which represents more than 95% of the exit ARR announced at FY21," he said.
PayGroup share price snapshot
The PayGroup share price has struggled in 2021, down 28%. That compares to 10% year-to-date gain posted by the All Ords.
Over the past month, PayGroup shares are down 16%.
