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.”
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.
1Non IFRS Measures
This press release contains references to “active user” which is not a measure prescribed by International Financial Reporting Standards (IFRS). This 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 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 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 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 “active user” as the number of users to our services based on active users. Active users represent users who have loaded earnings on their card in the period. Additional information on this measure and other non-IFRS measures may be found under the heading “Non IFRS Measures” in the MD&A for the quarter ending September 30, 2021 which is available under Payfare’s profile on SEDAR at www.sedar.com and is incorporated by reference to this press release.
This press release may contain 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 consumer demand for ridesharing and food and grocery delivery, the Plaid integration, new banking features and products under development for launch, and the continued success of Payfare’s programs. 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 final prospectus dated March 15, 2021 which is available under Payfare’s profile on SEDAR at www.sedar.com. Other factors that could cause actual results or events to differ materially include a decline in the growth of workers joining the various partner gig platforms that Payfare supports, the economic viability of Payfare’s new products and services, the impacts and restrictions caused by the COVID-19 pandemic become prolonged, not realizing the success in partnership integrations anticipated by management, and industry competitors who may have superior technology or are quicker to take advantage of the market opportunity. 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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