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Payfare Announces Record Third Quarter 2022 Financial Results


Record growth drives significant Adjusted EBITDA expansion to $1.3 million and highest ever Operating Cash Flow generation of $3.9 million in the third quarter

TORONTO, Nov. 9, 2022 /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 ending September 30, 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

Q3 2022 Financial Highlights:

  • Revenue of $35.9 million in Q3 2022, representing a $23.2 million (+183%) increase over Q3 2021 and a $2.3 million (+7%) increase over Q2 2022.
  • Gross profit of $6.9 million in Q3 2022, up $4.9 million (+246%) compared to Q3 2021 and up $0.5 million (+8%) compared to Q2 2022.
  • Net loss improved to ($0.8 million) in Q3 2022 compared to a net loss of ($4.0 million) in Q3 2021 and a net loss of ($2.3 million) in Q2 2022.
  • Record Adjusted EBITDA1 expansion to $1.3 million in Q3 2022, a $3.5 million (+161%) increase over Q3 2021 and a $1.0 million (+357%) increase over Q2 2022.
  • Record Operating Cash Flow generation of $3.9 million in Q3 2022, up $4.9 million over Q3 2021 and up $7.3 million over Q2 2022.
  • Total gross dollar value (Total GDV)1 in Q3 2022 was $2.1 billion, an increase of $1.4 billion (+176%) over Q3 2021 and $0.2 billion (+9%) over Q2 2022.
  • Ended Q3 2022 with 920,682 active users1, an increase of 560,395 (+156%) compared to active users as at September 30, 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 765,100 Common Shares to date at an average cost of $4.62 per share.

Executing on strategic objectives:

  • DasherDirect App by Payfare was ranked # 1 in August 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.
  • 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.

"We are excited to announce record growth in both Adjusted EBITDA and Operating Cash Flow in the third quarter," said Marco Margiotta, CEO and Founding Partner of Payfare. "Fourth quarter user growth in both rideshare and delivery is tracking ahead of third quarter levels. We remain focused on growth and are able to deploy capital opportunistically including funding the launch of new products and other strategic growth opportunities".

Conference Call

Management will host a conference call on Thursday, November 10, 2022, 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 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 December 10, 2022. To listen to the recording, call (416) 764-8692 or 1-877-674-7070 and enter passcode 019715.

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.

1Non-IFRS and Supplementary 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 supplementary financial measures are 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. "Total GDV" is defined as the aggregate dollar amount of active user earnings and direct deposits loaded on their payment card during the period.

"EBITDA" means net income (loss) before amortization and depreciation expenses, foreign exchange loss (gain), amortization of deferred income, finance and interest costs (income) and provision for income taxes.

"Adjusted EBITDA" adjusts EBITDA for stock-based compensation expense, transactional gains or losses on assets, asset impairment charges, loss on extinguishment of debts, interest income, net foreign exchange gains or losses, gains or losses from changes in fair value of derivative financial instruments and contingent consideration liabilities measured at fair value through profit or loss, gains or losses from disposals of equipment, net income or loss from equity accounted investees and income tax expense or recovery, restructuring costs and non-recurring expense items. Non-recurring expense items are transactions or events which management believes will not re-occur within the foreseeable future and includes legal and professional fees related to acquisition and going public transaction. The table below reconciles net loss to EBITDA and Adjusted EBITDA for the three and nine months ended September 30, 2022 and 2021.

Three months ended September 30,

Nine months ended September 30,

In CAD $





Net loss






Finance (income) costs





Other Income





Foreign exchange (gain) loss





Amortization of intangible assets





Depreciation of building, property & equipment











IPO costs (legal, professional, other)





Settlement of legal claim





Restructuring expense





Share based compensation





Adjusted EBITDA





Additional information on these measure may be found under the heading "Definitions – IFRS, Additional GAAP and Non-GAAP Measures" in the MD&A for the three and nine months ended September 30, 2022 and 2021 which is available under Payfare's profile on SEDAR 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 fourth quarter user growth in both rideshare and delivery is tracking ahead of third quarter levels, the ability to deploy capital opportunistically, funding the launch of new products and other strategic growth opportunities. 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 and market its new programs or platforms that are planned in a timely manner, the lack of appropriate opportunities to deploy capital, Payfare's inability to manage the increased volume of new cardholder sign-ups, active users or transactions, the impact of inflation and rising costs of goods and services on Payfare's business model which may impact management's expectations on active user growth in the fourth quarter of 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 the credit markets or gig economy in North America. Accordingly, readers should not place undue reliance on forward-looking information. 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.

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SOURCE Payfare