Toronto, Ontario – January 10, 2023 – Payfare Inc. (“Payfare”or the “Company”) (TSX: PAY), a leading fintech powering instant payout and digital banking solutions for the gig workforce, today announced Q4 2022 revenue guidance of $39 million, which represents growth of 125% over Q4 2021 and 9% over Q3 2022. On a full year basis this equates to revenue of approximately $133 million in 2022, up 205% year over year, and is at the upper end of Payfare’s previously issued 2022 revenue guidance of $125 to $135 million.
Payfare also announced that it had over 1,050,000 active users1 as of December 31, 2022, an increase of approximately 129,000 users or 14% from September 30, 2022. The Company continues to experience significant active user growth driven by coordinated marketing programs with its gig platform partners including Uber, Lyft, and DoorDash to support their workforces by providing instant or near instant access to earnings, zero-monthly fee neobanking capabilities and robust cash back rewards programs on everyday purchases.
“We are pleased to once again achieve strong revenue growth in Q4 2022 to close off an exceptional year for our business,” said Marco Margiotta, CEO and Founding Partner of Payfare. “With the challenging macroeconomic backdrop, we are seeing more people pursue gig work, which is a very positive tailwind for Payfare’s user growth and highlights the counter cyclical nature of our business. Payfare’s significant user base has even more room to grow with both new and existing gig platform partnerships. We are excited to share new user monetization opportunities, product enhancements, and our outlook for 2023 when we report Q4 2022 financial results.”
Payfare expects to report Q4 2022 financial results on March 22, 2023 after market close.
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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:
Cihan Tuncay, Head of Investor Relations and Corporate Development
1 (888) 850-2713
1Non-IFRS and Supplementary Financial Measures
This press release contains references to “active users” which is not a measure prescribed by International Financial Reporting Standards (IFRS). This supplementary financial measure is 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. Additional information on this measure may be found under the heading “Definitions – IFRS, Additional GAAP and Non-GAAP Measures” in the MD&A for the three months ended September 30, 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 revenue guidance information for Q4 2022, positive tailwind for Payfare’s user growth due to macroeconomic backdrop, Payfare’s user base having more room to grow from new and existing gig platform partnerships, and the expected release of quarter and year ended December 31, 2022 financial results on March 22, 2023. 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 in a timely manner,, the impact of inflation and rising costs of goods and services on Payfare’s business model, intended monetization opportunities do not materialize as anticipated by management, the economic viability of the existing cash-back rewards programs, Payfare’s inability to manage the increased volume of new cardholder sign-ups, active users or transactions, 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. The purpose of guidance contained in this news release is to provide an update to financial results based on management’s latest expectations. Readers are cautioned that such guidance is not appropriate for any other purpose. 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.
