Record Quarterly Revenues Increased to More Than $5M
TORONTO, May 14, 2021 – Payfare Inc. (“Payfare“) (TSX:PAY), a global financial technology company powering digital banking and instant payout solutions for the gig economy announced the filing of its Financial Statements (“Statements“) and Management’s Discussion and Analysis (“MD&A“) for the Quarter ending March 31, 2021. A comprehensive discussion of Payfare’s financial position and results of operations are provided in the MD&A for the Quarter ending March 31, 2021, which is filed on SEDAR and can be found at www.sedar.com.
Q1 2021 Financial and Business Highlights:
- Revenue increased to $5,053,019 for the quarter compared to revenue of $3,468,388 for Q4 2020. This represents a 46% increase in revenue in Q1 2021 compared to Q4 2020 and an 18% increase when compared to Q1 2020 revenues of $4,294,709. The increase was mainly due to the U.S. national launch of Payfare’s DasherDirect program with DoorDash in March 2021.
- Payfare increased its active user count by 168% in Q1 2021 compared to Q4 2020 and 96% when compared to the same period in 2020. With the reopening of businesses across the U.S., increased demand for rideshare and food delivery and the national launch of the DasherDirect program, the Company continues to experience increases in user sign-ups.
- Gross Dollar Volume (GDV) increased by 59% in Q1 2021 compared to Q4 2020 and 13% compared to the same period in 2020. The amount of funds flowing through users’ Payfare accounts, or GDV, correlates directly to revenue.
- The DasherDirect program is continuing to build momentum, with active users climbing a further 21% in April 2021 from the end of Q1 2021.
- On April 6, 2021, the Company granted an over-allotment option to underwriters, which was exercised in whole and 1,635,000 common shares were issued at a price of $6.00 per common share for total gross cash proceeds of $9,810,000.
“The pandemic accelerated the demand for food delivery and now, the recovery is driving the resurgence of rideshare across the U.S.,” said Marco Margiotta, Payfare CEO and Founding Partner. “The inherent need for workers to have instant access to their earnings, combined with our recent IPO have provided strong catalysts for growth across our business including key new hires, product development and user acquisition.”
No securities regulatory authority has either approved or disapproved of the contents of this news release. This news release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale or any acceptance of an offer to buy these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
This press release may contain forward-looking information within the meaning of applicable securities legislation, which reflects Payfare’s current expectations regarding future events. 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 “Risk Factors” in Payfare’s final prospectus dated March 15, 2021. 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.