Toronto, Ontario – April 28, 2022 – Payfare Inc. (“Payfare” or the “Company”) (TSX: PAY), a leading fintech powering instant payout and digital banking solutions for the gig workforce, today announced that it has raised its 2022 revenue guidance to $115 million – $125 million, an increase of 26% from the mid-point of its previously issued guidance of $90 million – $100 million that was provided on March 23, 2022. The Company is also updating its Q1 2022 revenue guidance to $24.5 million – $25.0 million from $21 million – $23 million that was also previously issued.
The updated revenue guidance reflects the continued adoption of the Payfare solution by our gig platform partners as well as the positive impact from the recently announced cash-back campaigns on fuel purchases with each of Lyft and DoorDash. The Company ended Q1 2022 with over 690,000 active users1 which represents an increase of more than 35% over Q4 2021. Payfare has experienced record levels of active user growth since the campaigns were launched in late March of 2022.
“At Payfare, we continue to take pride in our ability to provide innovative solutions to our partners. With the challenges some of our clients are facing with high gas prices on their business, they have turned to Payfare to assist with alleviating the pressures their gig drivers are facing with an enhanced rewards program that is both timely and impactful. I am very proud of how quickly our team has been able to respond by providing creative solutions and ensuring that our platform handles the increased volume of onboarding new cardholders and the transaction volumes that follow,” said Marco Margiotta, CEO and Founding Partner of Payfare. “The introduction of these campaigns has driven active user adoption and spend volume, both catalysts for revenue growth, and we are therefore updating our guidance for the remainder of the year to reflect these developments and the positive impact they will have on the Company’s growth plans.”
The Company looks forward to releasing its financial results for the quarter ending March 31, 2022, which are expected to be released after market close on Wednesday May 11, 2022.
About Payfare (TSX:PAY)
Payfare is a global financial technology company powering digital banking and instant payment solutions for today’s gig workforce. Payfare partners with leading platforms and marketplaces, such as Uber, Lyft and DoorDash, to provide financial health for their workforce.
For further information please visit www.payfare.com or contact:
Cihan Tuncay, Head of Investor Relations and Corporate Development
1 (888) 850-2713
1Non-IFRS and Supplementary Financial Measures
This press release contains references to “active users” which is not a measure prescribed by International Financial Reporting Standards (IFRS). This supplementary financial measure is provided as additional information to complement IFRS measures by providing a further understanding of our results of operations from management’s perspective, to provide investors and security analysts with supplemental measures to evaluate the financial performance of the Company and highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS financial measures. Management also uses non-IFRS and supplementary financial measures to facilitate operating performance comparisons from period to period, prepare annual operating budgets and strategic business plans and to evaluate and price potential acquisitions. Accordingly, non-IFRS and supplementary financial measures should not be considered in isolation or as a substitute for analysis of our financial information reported under IFRS. Such measures do not have any standardized meaning prescribed by IFRS and, therefore, may not be comparable to similar measures presented by other corporations. The non-IFRS and supplementary financial measures are not subject to standard industry definition and our definitions and method of calculation may differ from other issuers and therefore may not be comparable to similar measures presented by other issuers.
The Company determines the number of users to its services based on active users. “Active users” represent users who have loaded earnings on their card in the period. Additional information on this measure may be found under the heading “Definitions – IFRS, Additional GAAP and Non-GAAP Measures” in the MD&A for the year ended December 31, 2021 which is available under Payfare’s profile on SEDAR at www.sedar.com and is incorporated by reference to this press release.
Forward-Looking Information
This press release contains forward-looking information within the meaning of applicable securities legislation, which reflects Payfare’s current expectations regarding future events as of the date hereof. Such forward-looking information may include but are not limited to statements regarding updated guidance information for 2022, increase in active users and spend volume being catalysts for revenue growth, the update to the Company’s growth plans for the year and the expected release of quarterly financial results on May 11, 2022. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Payfare’s control, that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks include the factors discussed under the “Risk Factors” section in Payfare’s MD&A for the year ended December 31, 2021. Other factors that could cause actual results or events to differ materially include the inability of Payfare to launch its new programs or platforms that are planned for 2022 in a timely manner, the enhanced cash-back for fuel purchase campaigns are discontinued ahead of schedule by the respective gig platform clients or do not have the intended impact that the Company has expected or forecasted, the economic viability of the existing cash-back campaigns, Payfare’s inability to manage the increased volume of new cardholder sign-ups, active users or transactions, the impact of inflation on Payfare’s revenue model, the imposition of new restrictions related to the COVID-19 pandemic, Payfare’s ability to finance and support new programs and platforms, and a general decline in the credit markets or gig economy in North America. Accordingly, readers should not place undue reliance on forward-looking information. The purpose of guidance contained in this news release is solely to update previously provided guidance and not to forecast or project future results. Readers are cautioned that such guidance is not appropriate for any other purpose. Payfare does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
