TORONTO, June 7, 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 that it had over 858,000 active users1 as of May 31, 2022, an increase of approximately 162,000 active users or 23% since March 31, 2022. The Company continues to experience significant active user growth driven by coordinated marketing programs with its gig platform partners to support engagement with their workforces by providing instant or near instant earnings deposits after every task, zero-cost neobanking capabilities and robust cash back rewards programs on everyday purchases including fuel.
“We are proud to accelerate penetration with our gig platform partners. This demonstrates the value proposition we provide to both gig platforms and gig workers,” said Marco Margiotta, CEO and Founding Partner of Payfare. “Although we are experiencing elevated revenue and active user growth, we have never lost sight of underlying business fundamentals and profitability. Our low customer acquisition costs that are achieved by partnering directly with gig platforms is a key part of our business model that differentiates us from other neobanks with respect to profitability. We look forward to sharing more on our profit outlook when we report Q2 2022 financial results.”
Payfare expects to report Q2 2022 financial results on August 10, 2022 after market close.
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, Vice President, Marketing
(226) 747-4600
Investor inquiries:
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 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 increase in active users, accelerating the penetration with gig platform partners, sharing profitability outlook when reporting Q2 2022 financial results and the expected release of quarterly financial results on August 10, 2022. 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, enhanced cash-back for fuel purchase campaigns are discontinued ahead of schedule by the respective gig platform clients or do not have the intended impact that the Company has expected or forecasted, the economic viability of the existing cash-back campaigns, 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, 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 solely to update previously provided guidance and not to forecast or project future results. 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.
