Record Quarterly Revenues Increased to $17.3 Million – a 399% Increase Over Q4 2020
Toronto, Ontario – March 23, 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 Audited Financial Statements and Management’s Discussion and Analysis (“MD&A”) for the quarter and year ending December 31, 2021. 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.
Q4 and Year Ended 2021 Financial Highlights:
- Increased revenue to $17.3 million for the fourth quarter of 2021, representing a 399% increase over the same period in 2020 and a 36% increase when compared to the third quarter of 2021.
- Increased revenue to $43.8 million in 2021, representing a 225% increase over 2020, primarily due to the national launch and ramp-up of the DoorDash program and growth in the Lyft program.
- Payfare’s 2021 gross profits increased to $1.3 million, representing a 391% increase over 2020 when it had negative gross profits. The Company expects significant improvements going forward as it normalizes one-time onboarding costs of new programs and scales its operations.
- Payfare increased its active user1 count by more than 834% compared to 2020. This represents an increase of 42% compared to Q3 2021.
Strategic Objectives Set by the Company for 2022
- Continue to accelerate growth by targeting revenue of $90 million – $100 million for fiscal 2022 and $21 million – $23 million for Q1 2022.
- Launch “Paid App by Payfare” which is expected to go live in mid Q2 2022.
- Develop new, margin enhancing products to drive revenue growth by expanding financial service offerings to Payfare users, such as micro-credit.
- Establish infrastructure in international markets to facilitate global expansion.
“Last year was truly transformational for Payfare. We went public, while staying singularly focused on our mission — empowering financial health for the gig and contract workers we support,” said Marco Margiotta, Payfare CEO and Founding Partner. “Not only did we end the year with a record milestone of more than half a million active users1, but we also worked hard to integrate new features that made our digital banking solution more impactful than ever for those users. We look forward to continuing this momentum into 2022, as we focus on further extending financial empowerment for workers across the entire gig economy and contract workforce.”
Conference Call
Management will host a conference call on Thursday, March 24, 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.
About Payfare
Payfare (TSX: PAY) is a global financial technology company powering digital banking and instant payment solutions for today’s gig economy. Payfare partners with leading platforms and marketplaces, such as Uber, Lyft and DoorDash, to provide financial security and inclusion 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
For media inquiries:
Lindsey Abshire
(647) 417-4788
1Non-GAAP Measures and Supplementary Financial Measures
This press release contains references to “active user” which is not a measure prescribed by International Financial Reporting Standards (IFRS). This 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-GAAP 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-GAAP or 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-GAAP 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 “active user” as the number of users to our services based on active users. Active users represent users who have loaded earnings on their card in the period. Additional information on this measure and other non-GAAP measures may be found under the heading “Definitions – IFRS, Additional GAAP and Non-GAAP Measures” in the MD&A 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 may contain 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 launch of new programs, new services and platforms, developing new margin enhancing products such as micro-credit, guidance information, the acceleration of growth and the setting of target revenue ranges for 2022, expectations of significant improvement to gross profit margin, the launching of Paid App by Payfare in Q2 2022, the establishment of infrastructure in international markets to facilitate global expansion and continuing momentum and success of Payfare’s programs. 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 in a timely manner, the economic viability of new programs and platforms, the inability to scale Payfare’s operations, the impacts and restrictions caused by the COVID-19 pandemic become prolonged, Payfare’s ability to finance and support new programs and platforms, a general decline in the credit markets or gig economy in North America, the availability of talent and the retention of employees to support Payfare’s plans, and industry competitors who may have superior technology or are quicker to take advantage of certain market opportunities. 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.
