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 increase in non-cash working capital consumption and an increase in cash used in investing activities. 
  • The Company was successfully selected in two Request for Proposal (RFP) processes to launch new private label and embedded finance programs for globally recognized strategic partners on its platform. In the quarter Payfare continued to make significant progress building integrations with these new strategic partners. The Company expects to announce the details of these programs with its partners prior to commercial launch. 
  • Subsequent to quarter-end, as of July 28, 2023, the Company’s Common Shares qualified for trading in the United States on the OTCQX Best Market, having been upgraded from the OTC Pink Market. The shares trade under the symbol “PYFRF” and will facilitate trading by interested Payfare inve