Bullboard - Stock Discussion Forum Payfare Inc T.PAY

Alternate Symbol(s): PYFRF

Payfare Inc. is a Canada-based international Earned Wage Access company powering instant access to earnings through a digital banking platform for the workforce. It partners with e-commerce marketplaces, payroll platforms and employers to provide financial security and inclusion for all workers. It partners with platforms and marketplaces, such as Uber, Lyft and DoorDash. It provides services... see more

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Payfare Inc > Record Fourth Quarter

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Post by divime1 on Mar 22, 2023 6:37pm

Record Fourth Quarter

Payfare Announces Record Fourth Quarter and Full Year 2022 Financial Results

2023-03-22 18:25 ET - News Release

TORONTO, March 22, 2023 /PRNewswire/ - 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 and year ending December 31, 2022. 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.

Q4 2022 Highlights:

Revenue of $38.4 million in Q4 2022, representing a $21.8 million (+131%) increase over Q4 2021 and a $3.5 million (+10%) increase over Q3 2022.
Gross profit of $8.3 million in Q4 2022, up $5.8 million (+230%) compared to Q4 2021 and up $1.4 million (+20%) compared to Q3 2022.
First quarter reporting positive net profit of $2.9 million or $0.06 per share in Q4 2022 compared to a net loss of ($4.6 million or $0.10 per share) in Q4 2021 and a net loss of ($0.8 million or $0.02 per share) in Q3 2022.
Record Adjusted EBITDA¹ expansion to $3.6 million in Q4 2022, a $6.0 million (+248%) increase over Q4 2021 and a $2.3 million (+171%) increase over Q3 2022.
Record Operating Cash Flow generation of $6.4 million in Q4 2022, up $10.6 million over Q4 2021 and up $2.6 million over Q3 2022.
Total gross dollar value (Total GDV)¹ in Q4 2022 was $2.4 billion, an increase of $1.4 billion (+137%) over Q4 2021 and $0.3 billion (+13%) over Q3 2022.
Ended Q4 2022 with 1,053,872 active users¹, an increase of 542,100 (+106%) compared to active users as at December 31, 2021. This was primarily due to the significant growth of the DoorDash program and steady gains in the Lyft & Uber ride-sharing programs.
DasherDirect App by Payfare was once again ranked # 1 in December 2022 amongst all US Finance Apps by UnitQ, a product quality monitoring platform which conducts rankings based on user feedback data from app store reviews and social media.

Full Year 2022 Highlights:

Revenue of $129.9 million in 2022, representing a $88 million (+210%) increase over 2021.
Gross profit of $25.9 million in 2022, up $20.4 million (+372%) compared to 2021.
Net loss of ($2.9 million or $0.06 per share) in 2022 was a significant improvement compared to a net loss of ($21.4 million or $0.49 per share) in 2021.
Record Adjusted EBITDA¹ expansion to $4.4 million in 2022, a $14.4 million (+144%) increase over 2021.
Record Operating Cash Flow generation of $7.9 million in 2022, up $22.6 million over 2021.
Total gross dollar value (Total GDV)¹ in 2022 was $7.9 billion, an increase of $5.2 billion (+196%) over 2021.
Payfare believes the market price of Common Shares may not, from time to time, fully reflect their value and that repurchasing shares under the Normal Course Issuer Bid (NCIB) program can be an attractive use of capital. The Company has repurchased 1,194,800 Common Shares to date at an average cost of $4.54 per share.
Payfare launched "Paid App by Payfare" in 2022 to an initial cohort of new partners and is continuing to execute on a dedicated go-to-market strategy to convert a strong pipeline of new opportunities, with the goal of generating material revenue in 2023.
Announced the launch of merchant funded cash back rewards program with Cardlytics and the enhancement of Payfare's digital banking solution with the addition of early direct deposit for cardholders who elect to add their banking account associated with their Payfare-powered card as a payout option for other gig platforms and earnings.
Launched new, enhanced cash back rewards on gas purchases for U.S. Lyft drivers using a Lyft Direct debit card powered by Payfare. As of September 28, 2022 Lyft drivers can earn up to 8% cash back on every gas purchase in accordance with their driver tier, which has since driven meaningful growth in Lyft Direct users.
Subsequent to year-end, Payfare announced a partnership with Upside, a retail technology company, to integrate Upside promotions directly in the DasherDirect app powered by Payfare. DasherDirect cardholders in the U.S. can now take advantage of Upside promotions at 50,000 gas and food retailers nationwide.

2023 Strategic Objectives:

Payfare has issued 2023 revenue and Adjusted EBITDA¹ guidance of $185 million - $195 million (mid-point +46% over 2022) and $21 million - $24 million (mid-point +415% over 2022), respectively.
The Company is actively working on winning several new significant white label partnerships, including potential international expansion with existing partners. In addition, the roll out of Paid App by Payfare continues to present meaningful growth opportunities.
Payfare has made progress with its existing gig platform and banking partners to launch credit products for its user base, such initiatives to be announced over the course of 2023.
Partner with new merchants to expand Payfare's compelling suite of cashback and loyalty rewards for cardholders.
Expand into new business verticals, including Earned Wage Access for full time employees.

"We are extremely proud to announce our first positive earnings quarter along with record growth in Adjusted EBITDA and Operating Cash Flow in the fourth quarter," said Marco Margiotta, CEO and Founding Partner of Payfare. "Looking forward to 2023 we couldn't be more excited about the growth opportunities ahead. We have a significant user base of over 1 million active cardholders, a monumental achievement in its own right, that presents material new monetization opportunities to supplement our existing product shelf."

Conference Call

Management will host a conference call on Thursday March 23, 2023, at 8:30 a.m. ET to discuss these results. A short presentation in connection with the conference call will be made available on the Company's website at https://corp.payfare.com/investors/. Management will also host a live question and answer session on the conference call with analysts.

To access the conference call, please dial (416) 764-8658 or 1-888-886-7786. Please call the conference telephone number 10-15 minutes prior to the start time so that you are in the queue for an operator to assist in registering and patching you through.

An archived recording of the conference call will be available until April 23, 2024. To listen to the recording, call (416) 764-8692 or 1-877-674-7070 and enter passcode 719995 #.

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