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