TORONTO, Jan. 10,
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 Q4 2022 revenue
guidance of $39 million, which
represents growth of 125% over Q4 2021 and 9% over Q3 2022. On a
full year basis this equates to revenue of approximately
$133 million in 2022, up 205% year
over year, and is at the upper end of Payfare's previously issued
2022 revenue guidance of $125 to
$135 million.
Payfare also announced that it had over 1,050,000 active
users1 as of December 31,
2022, an increase of approximately 129,000 users or 14% from
September 30, 2022. The Company
continues to experience significant active user growth driven by
coordinated marketing programs with its gig platform partners
including Uber, Lyft, and DoorDash to support their workforces by
providing instant or near instant access to earnings, zero-monthly
fee neobanking capabilities and robust cash back rewards programs
on everyday purchases.
"We are pleased to once again achieve strong revenue growth in
Q4 2022 to close off an exceptional year for our business," said
Marco Margiotta, CEO and Founding
Partner of Payfare. "With the challenging macroeconomic backdrop,
we are seeing more people pursue gig work, which is a very positive
tailwind for Payfare's user growth and highlights the counter
cyclical nature of our business. Payfare's significant user base
has even more room to grow with both new and existing gig platform
partnerships. We are excited to share new user monetization
opportunities, product enhancements, and our outlook for 2023 when
we report Q4 2022 financial results."
Payfare expects to report Q4 2022 financial results on
March 22, 2023 after market
close.
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.
For further information please visit www.payfare.com
1Non-IFRS and
Supplementary Financial Measures
This press release contains references to "active users" which
is not a measure prescribed by International Financial Reporting
Standards (IFRS). This supplementary financial 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 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. Additional information on
this measure may be found under the heading "Definitions – IFRS,
Additional GAAP and Non-GAAP Measures" in the MD&A for the
three months ended September 30, 2022
and 2021 which is available under Payfare's profile on SEDAR
at www.sedar.com 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 revenue guidance information
for Q4 2022, positive tailwind for Payfare's user growth due to
macroeconomic backdrop, Payfare's user base having more room to
grow from new and existing gig platform partnerships, and the
expected release of quarter and year ended December 31, 2022 financial results on
March 22, 2023. 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 its new
programs or platforms that are planned in a timely manner,, the
impact of inflation and rising costs of goods and services on
Payfare's business model, intended monetization opportunities do
not materialize as anticipated by management, the economic
viability of the existing cash-back rewards programs, Payfare's
inability to manage the increased volume of new cardholder
sign-ups, active users or transactions, 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. The purpose of
guidance contained in this news release is to provide an update to
financial results based on management's latest expectations.
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.
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SOURCE Payfare