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Payfare Announces Strong First Quarter 2023 Financial Results

Continued execution on profitability, generating free cash flow1 of $4.1 million in Q1 2023

Toronto, Ontario – May 10, 2023 – 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 Financial Statements and Management’s Discussion and Analysis (“MD&A”) for the quarter ending March 31, 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.sedar.com.

Q1 2023 Highlights:

  • Increased revenue to a record $42.3 million for the three months ended March 31, 2023, representing a $18.3 million (+76%) 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 Q1 2023 with 1,127,460 active users1, up 431,098 (+62%) compared to active user1 count as at the end of Q1 2022 and up 73,588 (7%) compared to active users1 count as at Q4 2022. 
  • Total gross dollar value (Total GDV)1 in Q1 2023 was $2.7 billion, an increase of $1.2 billion (+86%) over Q1 2022 and $0.3 billion (+11%) over Q4 2022. 
  • Net income of $1.3 million for the three months ended March 31, 2023, up $4 million (+148%), compared to the same period in 2022. 
  • Adjusted net income1 of $3.5 million, or $0.07 per share, for the three months ended March 31, 2023, representing growth of $4.2 million, or $0.09 per share, over the prior year period.
  • Free cash flow of $4.1 million for the three months ended March 31, 2023, which equates to growth of $3.5 million (+561%) over the prior year period. 
  • Adjusted EBITDA1 of $3 million for the three months ended March 31, 2023, reflecting a $3.9 million (+453%) 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.
  • Introduced Avibra’s suite of free and low-cost health and wellness protection and perks access to all DoorDash active cardholders.
  • Launched a new cashback rewards program partnering with Upside to provide personalized price promotion offers at fuel stations, restaurants, convenience and grocery stores to DoorDash Dasher Direct cardholders.
  • Subsequent to quarter-end, Payfare expanded its partnership with NCR Corporation to deliver self service financial tools for US cardholders by providing access to Allpoint+ cash accepting ATMs, enabling cash deposits in addition to cash withdrawals, and NCR Pay360, an API solution that allows cardholders to access cash via Payfare’s digital banking apps.  

“We are pleased to once again demonstrate strong free cash flow generation and earnings profitability in the first quarter of 2023,” said Marco Margiotta, CEO and Founding Partner of Payfare. “We remain extremely optimistic on the underlying fundamentals of our core business model which we expect to supplement with new partnerships and product shelf enhancements over the balance of the year.”  

Conference Call

Management will host a conference call on Thursday May 11, 2023, at 11:30 a.m. ET to discuss these results. A short presentation in connection with the conference