Continued gross margin expansion to 19.1% in 2Q from 17.2% in 1Q, first quarter of positive adjusted EBITDA generation and first quarter of share repurchases under the share offering program normal course (“NCIB”).
TORONTO, August 10, 2022 /PRNewswire/ – Payfare Inc. (“Payfare” or “the Company”) (TSX: PAY), a leading fintech powering instant payment and digital banking solutions for the gig workforce, today announced the presentation of its financial statements and discussion of Management and Analysis (“MD&A”) for the end of the quarter June 30, 2022. A comprehensive discussion of Payfare’s financial position and results of operations is provided in the MD&A, which is filed on SEDAR under Payfare’s profile and can be found at www.sedar.com.
Financial data for the second quarter of 2022:
Income from 33.6 million dollars in the second quarter of 2022, which represents a 24.8 million dollars (285%) increase compared to the second quarter of 2021 and a 8.7 million dollars (35%) increase compared to the first quarter of 2022. Gross profit of 6.4 million dollars (margin of 19.1%) in the second quarter of 2022, plus 5.3 million dollars compared to the second quarter of 2021 (margin of 13.0%) and more 2.1 million dollars compared to the first quarter of 2022 (margin of 17.2%). Net loss improved to (2.3 million dollars) in the second quarter of 2022 compared to a net loss of (5.0 million dollars) in Q2 2021. First quarter generating positive adjusted EBITDA1 of 0.3 million dollars in the second quarter of 2022, a 3.4 million dollars increase compared to the second quarter of 2021 and 1.2 million dollars increase from the first quarter of 2022. Under the normal course issue offering (NCIB) program, the company has repurchased 257,725 common shares to date at an average cost of $4.53 by action Total gross dollar value (total GDV)1 in the second quarter of 2022 was 2 billion dollarsan increase of 1.4 billion dollars (257%) compared to the second quarter of 2021 and 0.5 billion dollars (36%) over Q1 2022. Ended Q2 2022 with 884,251 active users1, an increase of 621,684 (237%) compared to today’s active users. June 30, 2021 and an increase of 187,889 (27%) compared to active users in the year March 31, 2022.
Execution of strategic objectives:
Payfare raised its annual revenue guidance for 2022 to 125 million dollars – 135 million dollars of its previous guidance issued from 115 million dollars – 125 million dollars, whose midpoint represents year-on-year growth of 197%. Payfare’s payment application successfully launched in Q2 2022 with an initial cohort of new partner customers and a dedicated go-to-market strategy to convert a strong pipeline of new opportunities.
“The second quarter was a significant financial milestone for Payfare as we achieved positive Adjusted EBITDA for the first time,” he said. Marco Margiotta, CEO and founding partner of Payfare. “We remain focused on growth and are able to deploy capital opportunistically, including remaining active in our share repurchases, financing new product launches and other strategic growth opportunities.”
Management will arrange a conference call Thursday, August 11, 2022at 8:30 am ET to discuss these results. A brief presentation in connection with the conference call will be available on the Company’s website at https://corp.payfare.com/investors/. Management will also host a live Q&A session on the conference call with analysts.
To access the conference call, please dial (438) 803-0546 or (888) 440-2009. Please call the conference phone number 10-15 minutes before the start time to be in line for an operator to help you check in and get patched.
An archived recording of the conference will be available until August 19, 2022. To listen to the recording, call 647-362-9199 or 1-800-770-2030 and enter the passcode 2151054.
About Payfare (TSX:PAY)
Payfare is a global financial technology company powering digital banking and instant payment solutions for today’s workforce. Payfare partners with leading platforms and marketplaces, including Uber, Lyft and DoorDash, to provide financial health to your workforce.
1 Non-IFRS and complementary financial measures
This press release contains references to “active users”, “total GDV” and “adjusted EBITDA” which are not measures prescribed by International Financial Reporting Standards (IFRS). These supplemental financial measures are provided as additional information to supplement IFRS measures, providing a more detailed understanding of our results of operations from management’s perspective, to provide investors and security analysts with supplemental measures to evaluate financial performance of the company and highlight the trends of our core center. businesses that are not otherwise apparent when relying solely on IFRS financial measures. Management also uses additional, non-IFRS financial measures to facilitate comparisons of operating performance from period to period, prepare annual operating budgets and strategic business plans, and evaluate and price potential acquisitions. Accordingly, non-IFRS and supplemental financial measures should not be considered in isolation or as a substitute for analysis of our financial information reported under IFRS. These measures do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other corporations. Additional and non-IFRS financial measures are not subject to industry standard definition and our definitions and calculation method 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 of its services based on active users. “Active users” represent users who have loaded earnings onto their card during the period. “Total GDV” is defined as the aggregate dollar amount of users’ active earnings and direct deposits charged to their payment card during the period.
“EBITDA” means net income (loss) before depreciation and amortization expense, exchange loss (gain), amortization of deferred revenue, interest and finance charges (income) and provision for income taxes.
“Adjusted EBITDA” adjusts EBITDA for stock-based compensation expense, asset transaction gains or losses, asset impairment charges, debt extinguishment losses, interest income, net foreign exchange gains or losses, gains or losses due to changes in the fair value of the derivative. financial instruments and liabilities for contingent consideration valued at fair value with changes in losses or gains, gains or losses from the disposal of equipment, net income or losses from equity investments and expense or recovery of profit tax, restructuring costs and non-recurring expenditure items. Non-recurring expense items are transactions or events that management believes will not occur again in the foreseeable future and include legal and professional fees related to the acquisition and the public transaction. The table below reconciles net loss to EBITDA and Adjusted EBITDA for the three and six months ended June 30, 2022 and 2021.
Additional information on these measures can be found under the heading “Definitions – IFRS, Additional GAAP and Non-GAAP Measures” in the MD&A for the three and six months ended. June 30, 2022 and 2021, which is available on Payfare’s profile on SEDAR a www.sedar.com and is incorporated by reference into this press release.
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 is not limited to, statements regarding updated guidance information and target revenue ranges for 2022, the conversion of a strong pipeline of new Payfare payment application opportunities, the launch of new products and other strategic growth opportunities, and Payfare’s core business is self-financing. 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, which could cause actual results and events to differ materially from those expressed or implied. for these prospective information. These risks include the factors discussed in the “Risk Factors” section of Payfare’s MD&A for the year ended. December 31, 2021. Other factors that could cause actual results or events to differ materially include Payfare’s inability to launch and commercialize its new programs or platforms that are planned for 2022 in a timely manner, Payfare’s inability to manage increased volume of new cardholder registrations, active users or transactions, the impact of inflation and rising costs of goods and services on Payfare’s business model which may affect management’s expectations of margin growth during in 2022, 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 credit markets or the gig economy North America. Accordingly, readers should not place undue reliance on forward-looking information. The purpose of the guidance contained in this news release is only to update the guidance previously provided and not to anticipate or project future results. Readers are cautioned that this guide is not suitable for any other purpose. Payfare undertakes no 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.