Q: Could you comment on the gross margin percent on PaaS separately from non-PaaS revenue? A: Tom Russell, Director: For FY25, PaaS margins were around 26-27%. We plan to increase this into the 30s in the short term and aim for 50% over the long term. The non-PaaS revenue supports the same platform and team, contributing to EBITDA.
Q: What is the expected revenue cadence once new PaaS clients go live? A: Tom Russell, Director: For two clients launching new products in the region, we expect a gradual volume increase. The embedded finance client already has live cards, and we anticipate transitioning them to our platform in the latter half of FY26.
Q: How do you balance reinvesting in growth with expanding EBITDA margins? A: Tony Sheehan, CFO: We assess the need for additional sales staff based on pipeline opportunities. Our current team is sufficient, but we will expand if necessary. CapEx has reduced as a percentage of revenue, and we will invest in opportunities that secure deals.
Q: Is there any difference in commercials for debit cards versus credit cards? A: Tony Sheehan, CFO: The main difference is the interchange fee rate, which is typically higher for credit cards. This results in higher margins for credit card programs, depending on client arrangements.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.