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Payfare Announces Record Fourth Quarter and Full Year 2022 Financial ResultsFirst quarter reporting positive net profit of $2.9MM or $0.06 per share in Q4 2022 with record Adj. EBITDA1 of $3.6MM and Operating Cash Flow of $6.4MM TORONTO, March 22, 2023 /CNW/ - 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:
Full Year 2022 Highlights:
2023 Strategic Objectives:
"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 #. About Payfare (TSX:PAY) 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, 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 years ended December 31, 2022 and 2021.
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 growth opportunities ahead in 2023 including international expansion, guidance information for 2023, the ability to deploy capital opportunistically, funding the launch of new products and other strategic growth opportunities, actively working on winning new white label partnerships, credit product development, and possible expansion into new business verticals which include Earned Wage Access for full time employees. 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, 2022. 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 experience or resources to enter into Earned Wage Access vertical, Payfare's inability to manage the increased volume of new cardholder sign-ups, active users or transactions, the decline in third party ranking of Payfare's mobile apps, 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 year 2023 and beyond, 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, gig economy or confidence in the banking sector 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 outline management's current expectations and outlook for its 2023 financial performance, 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. View original content:https://www.prnewswire.com/news-releases/payfare-announces-record-fourth-quarter-and-full-year-2022-financial-results-301779264.html SOURCE Payfare |