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Payfare Announces Record Second Quarter 2023 Financial Results

Continued execution on profitability, generating net income of $2.1 million,
Adjusted net income per share1 of $0.10, and Adjusted EBITDA1 of $4.8 million in Q2
2023

Toronto, Ontario – August 9, 2023 – Payfare Inc. (“Payfare” or the “Company”) (TSX: PAY, OTCQX: PYFRF),a leading fintech powering instant payout and digital banking solutions for workforces, today announced the filing of its Financial Statements and Management’s Discussion and Analysis (“MD&A”) for the quarter ending June 30, 2023. 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.sedarplus.ca.

Q2 2023 Highlights:

  • Increased revenue to a record $46.5 million for the three months ended June 30, 2023, representing a $13.9 million (+43%) increase compared to the same period in 2022. Payfare remains on track to meet its full year 2023 revenue guidance of $185 million to $195 million.
  • Ended Q2 2023 with 1,188,325 active users1, up 304,074 (+34%) compared to active user1 count as at the end of Q2 2022 and up 60,865 (+5%) compared to active users1 count as at the end of Q1 2023. 
  • Total gross dollar value (Total GDV)1 in Q2 2023 was $2.9 billion, an increase of $0.9 billion (+46%) over Q2 2022 and $0.2 billion (+7%) over Q1 2023. 
  • Net income of $2.1 million, or $0.04 per share, for the three months ended June 30, 2023, up $4.4 million (+191%), compared to the same period in 2022. 
  • Adjusted net income1 of $4.6 million, or $0.10 per share, for the three months ended June 30, 2023, representing growth of $4.2 million over the prior year period.
  • Adjusted EBITDA1 of $4.8 million for the three months ended June 30, 2023, reflecting a $4.5 million increase compared to the same period in 2022. Payfare remains on track to achieve its full year 2023 Adjusted EBITDA1 guidance of $21 million to $24 million.
  • Free cash flow1 of $0.6 million for the three months ended June 30, 2023, which equates to growth of $5.1 million (+113%) over the prior year period. Free cash flow growth in the quarter was impacted by the significant increase in cash generated from operating activities, which was partially offset by a temporary incre