Payfare Announces Second Quarter 2021 Financial Results

Record Quarterly Revenues Increased to More Than $8.7 Million -- a 263% Increase Over Q2 2020

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Aug 16, 2021, 07:00 ET

TORONTO, Aug. 16, 2021 /PRNewswire/ -- Payfare Inc. ("Payfare") (TSX: PAY), a leading fintech powering instant payout and digital banking solutions for contract workers, today announced the filing of its Financial Statements ("Statements") and Management's Discussion and Analysis ("MD&A") for the Quarter ending June 30, 2021. A comprehensive discussion of Payfare's financial position and results of operations are provided in the MD&A for the Quarter ending June 30, 2021, which is filed on SEDAR and can be found at www.sedar.com.

Q2 2021 Financial and Business Highlights:

Revenue increased to $8,726,615 for the quarter compared to revenue of $5,053,019 for Q1 2021. This represents a 73% increase in revenue in Q2 2021 compared to Q1 2021, and a 263% increase when compared to Q2 2020 revenues of $2,403,076. The national launch of Payfare's DasherDirect U.S. program with DoorDash in Q1 2021 contributed to this growth.
Payfare increased its active user count to 262,567, an increase of 79% compared to Q1 2021 (146,842 active users) and an increase of 618% when compared to the same period in 2020 (36,555 active users). With the staggered 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 of $288,034 (3%) in Q2 2021, compared to negative gross profit in Q1 2021 and 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 streamlining of vendor contracts.
The DasherDirect U.S. program is continuing to build momentum, with active program users climbing a further 15% in July 2021 since the end of Q2 2021.

"As the workforce looks to move beyond the COVID-19 pandemic, workers are joining the gig economy seeking flexibility in how, when and where they work. They're also seeking flexibility in how they're paid, and we're continuing to see high demand for instant and automatic pay solutions," said Marco Margiotta, Payfare CEO and Founding Partner. "Further, within the past quarter, Payfare has activated a number of key partnerships that are opening up new revenue streams while increasing our global reach. Together, all these factors have provided a foundation for tremendous second quarter growth, and we are well-positioned to continue that expansion into the second half of 2021."

About Payfare
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 or contact:
Lindsey Abshire
(647) 417-4788 
[email protected] 

Su Chun
Chief Compliance & Legal Officer
1 (888) 850-2713
[email protected]

No securities regulatory authority has either approved or disapproved of the contents of this news release. This news release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale or any acceptance of an offer to buy these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Forward-Looking Information
This press release may contain forward-looking information within the meaning of applicable securities legislation, which reflects Payfare's current expectations regarding future events. 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 "Risk Factors" in Payfare's final prospectus dated March 15, 2021. 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.

SOURCE Payfare