Record quarterly gross profit of $4.3 million (17.2% margin), up $4.4 million from the prior year (-3.3% margin) 

Toronto, Ontario – May 11, 2022 – Payfare Inc. (“Payfare” or the “Company”) (TSX: PAY), a leading fintech powering instant payout and digital banking solutions for the gig workforce, today announced the filing of its Financial Statements and Management’s Discussion and Analysis (“MD&A”) for the quarter ending March 31, 2022. A comprehensive discussion of Payfare’s financial position and results of operations are provided in the MD&A, which is filed on SEDAR under Payfare’s profile and can be found at www.sedar.com.

Q1 2022 Financial Highlights:

• Revenue of $24.9 million, representing a $19.8 million (393%) increase over Q1 2021. 

• Gross profit of $4.3 million (17.2% margin) in Q1 2022, up $4.4 million compared to Q1 2021 (-3.3% margin). 

• Ended Q1 2022 with 696,362 active users1, an increase of 184,590 (36%) compared to active users as at December 31, 2021 and an increase of 549,520 (374%) compared to active users as at March 31, 2021. 

• Total gross dollar value (Total GDV)1 in Q1 2022 was $1.4 billion, an increase of $0.4 billion (41%) over Q4 2021 and $1.1 billion (321%) over Q1 2021. 

“The first quarter was a significant financial milestone for Payfare as we achieved record growth in gross profit dollars and margin,” said Marco Margiotta, CEO and Founding Partner of Payfare. “This demonstrates the strength of our business model and charts a path to further margin expansion over the balance of the year.” 

Conference Call

Management will host a conference call on Thursday, May 12, 2022, at 8:30 a.m. ET to discuss these results. A short presentation in connection with the conference call will be made available on the Company’s website at https://corp.payfare.com/investors/. Management will also host a live question and answer session on the conference call with analysts. 

To access the conference call, please dial (438) 803-0546 or (888) 440-2009. Please call the conference telephone number 10-15 minutes prior to the start time so that you are in the queue for an operator to assist in registering and patching you through.

An archived recording of the conference call will be available until May 20, 2022. To listen to the recording, call 647-362-9199 or 1-800-770-2030 and enter passcode 2151054.

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About Payfare (TSX:PAY)

Payfare is a global financial technology company powering digital banking and instant payment solutions for today’s gig workforce. Payfare partners with leading platforms and marketplaces, such as Uber, Lyft and DoorDash, to provide financial health for their workforce. 

For further information please visit www.payfare.com or contact:

Media Inquiries:

Sonya Verheyden

(226) 747-4600

[email protected]  

Investor Inquiries: 

Cihan Tuncay, Head of Investor Relations and Corporate Development

1 (888) 850-2713

[email protected] 

1Non-IFRS and Supplementary Financial Measures

This press release contains references to “active users” and “Total GDV” which are not measures prescribed by International Financial Reporting Standards (IFRS). These supplementary financial measures are provided as additional information to complement IFRS measures by providing a further understanding of our results of operations from management’s perspective, to provide investors and security analysts with supplemental measures to evaluate the financial performance of the Company and highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS financial measures. Management also uses non-IFRS and supplementary financial measures to facilitate operating performance comparisons from period to period, prepare annual operating budgets and strategic business plans and to evaluate and price potential acquisitions. Accordingly, non-IFRS and supplementary financial measures should not be considered in isolation or as a substitute for analysis of our financial information reported under IFRS. Such measures do not have any standardized meaning prescribed by IFRS and, therefore, may not be comparable to similar measures presented by other corporations. The non-IFRS and supplementary financial measures are not subject to standard industry definition and our definitions and method of calculation may differ from other issuers and therefore may not be comparable to similar measures presented by other issuers.

The Company determines the number of users to its services based on active users. “Active users” represent users who have loaded earnings on their card in the period. “Total GDV” is defined as the aggregate dollar amount of active user earnings and direct deposits loaded on their payment card during the period. Additional information on these measure may be found under the heading “Definitions – IFRS, Additional GAAP and Non-GAAP Measures” in the MD&A for the three months ended March 31, 2022 and 2021 which is available under Payfare’s profile on SEDAR at www.sedar.com and is incorporated by reference to this press release.

Forward-Looking Information

This press release contains forward-looking information within the meaning of applicable securities legislation, which reflects Payfare’s current expectations regarding future events as of the date hereof. Such forward-looking information may include but are not limited to statements regarding the strength of the Company’s business model and further margin expansion over the balance of the year. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Payfare’s control, that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks include the factors discussed under the “Risk Factors” section in Payfare’s MD&A for the year ended December 31, 2021. Other factors that could cause actual results or events to differ materially include the inability of Payfare to launch its new programs or platforms that are planned for 2022 in a timely manner, Payfare’s inability to manage the increased volume of new cardholder sign-ups, active users or transactions, the impact of inflation on Payfare’s revenue model which may impact management’s expectations on margin growth during 2022, the imposition of new restrictions related to the COVID-19 pandemic, Payfare’s ability to finance and support new programs and platforms, and a general decline in the credit markets or gig economy in North America. Accordingly, readers should not place undue reliance on forward-looking information. Payfare does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.