Record Quarterly Revenues Increased to $12.7 Million – a 286% Increase Over Q3 2020.
Payfare Inc. (“Payfare” or the “Company”) (TSX: PAY), a leading fintech powering instant payout and digital banking solutions for gig workers, today announced the filing of its Financial Statements and Management’s Discussion and Analysis (“MD&A”) for the quarter ending September 30, 2021. 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.
Q3 2021 Financial and Business Highlights:
- Revenue increased to $12,684,912 for the quarter, compared to revenue of $8,726,615 for Q2 2021. This represents a 45% increase in revenue in Q3 2021 compared to Q2 2021, and a 286% increase when compared to Q3 2020 revenues of $3,283,339. The national launch and ongoing adoption of Payfare’s DasherDirect U.S. program with DoorDash contributed to this growth.
- Payfare increased its active user1 count by 37% compared to Q2 2021. This represents an increase of 679%, when compared to the same period in 2020. With the ongoing reopening of businesses across Payfare’s footprint and increased demand for rideshare and food delivery, the company continues to experience increases in user sign-ups.
- Payfare had positive gross profit margins of $606,067 (5%) in Q3 2021, compared to a negative gross profit margin in the same period in 2020. This was driven by the repayment of Payfare’s operating loan facility in Q1 2021, various cost optimizations and the ongoing streamlining of vendor contracts.
Executing on Strategic Objectives:
- Launched instant pay for DasherDirect users. Through DasherDirect, DoorDash delivery drivers (“Dashers”) gain access to automatic, no-fee payouts after every dash, in direct response to Dasher feedback requesting faster access to their earnings.
- Integrating with Plaid. Payfare is integrating with Plaid to streamline onboarding for Payfare users by allowing them to swiftly and securely connect their account to the apps and services of their choosing. Payfare also plans to leverage its Plaid integration to enable new banking features and products that are currently under development for launch in early 2022.
- Leveraging the RTP network. By connecting to the RTP network, Payfare is adding the ability to support payments to bank accounts immediately with enhanced speed and security, providing more choice for its corporate clients and users.
“Throughout 2021, Payfare focused on making key improvements to our instant payout and digital banking solutions, including the integration of new features and new partnerships that truly deliver on our mission — empowering financial health for the gig and contract workers we support,” said Marco Margiotta, Payfare CEO and Founding Partner. “As consumers continue to engage in more ridesharing, while also holding on to some pandemic-driven behaviors like food and grocery delivery, we expect to see continued success of our programs through the end of 2021 and into next year, as well.”