Q1 2024 Highlights:
- Increased revenue to a record
$51.9 million for the three months endedMarch 31, 2024 , representing a$9.6 million (+23%) increase compared to the same period in 2023. - Ended Q1 2024 with 1,423,502 active users1, up by 296,042 (+26%) compared to active users1 count as at the end of Q1 2023.
- Total gross dollar value (Total GDV)1 in Q1 2024 was
$3.5 billion , up by$0.9 billion (+33%) over Q1 2023. - Gross Profit of
$12.8 million in Q1 2024, up by$3.4 million (+36%) over the prior year period. - Net income of
$5.1 million , or$0.11 per share, for the three months endedMarch 31, 2024 , up$3.8 million (+296%), compared to the same period in 2023. - Adjusted net income1 of
$7.5 million , or$0.15 per share, for the three months endedMarch 31, 2024 , representing growth of$4.0 million (+116%) over the prior year period. - Adjusted EBITDA1 of
$6.0 million for the three months endedMarch 31, 2024 , reflecting a$3.0 million increase (+98%) compared to the same period in 2023. - Free cash flow1 of
$5.8 million for the three months endedMarch 31, 2024 , versus$6.5 million in the prior year period. The year-over-year change in free cash flow was a function of investing in new growth programs and enhancing existing programs. - On
March 5, 2024 , the Company announced the launch of the Uber Pro Card, a significant new program with Uber providing free instant payouts after every trip or delivery, enhanced loyalty features for drivers and delivery people, and backup balance for qualifying users on the Uber platform inCanada , powered byPayfare's leading digital banking app. Payfare launched a new embedded finance product with an international big box retailer, to provide earnings payouts to the retailer's delivery gig workforce inCanada . The Company expects to announce additional details of this program as it completes the enrollment phase.- In Q1 2024, the Company signed a commercial agreement with Automatic Data Processing Inc. ("ADP") to offer Earned Wage Access (EWA) to the Canadian market.
Payfare Provides Update on Annual Filings
The delay in the Annual Filings is due solely to the delay in receiving the System and Organization Controls ("SOC 1") auditor's report from its material vendor (the "Vendor") which is required in order for the Company's auditors to complete their required audit procedures to issue their opinion.
There have been no changes to the expected timing of the delivery of the SOC 1 report from the Vendor disclosed within the press release dated
Until the Company files the Annual Filings, it will comply with the alternative information guidelines set out under National Policy 12-203 – Cease
No Conference Call Scheduled
Management recently hosted a conference call on
About
1Non-IFRS and Supplementary Financial Measures
This press release contains references to "active users", "Total GDV", "adjusted net income", "adjusted net income per share", "EBITDA", "Adjusted EBITDA" and "free cash flow", which are not measures prescribed by IFRS Accounting 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 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 and direct deposits 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 gain (loss), amortization of deferred income, finance and interest income/ costs, current tax expense and change in fair value of derivative liability.
"Adjusted EBITDA" adjusts EBITDA for stock-based compensation expense, 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 claim settlements, acquisition, divestiture, asset impairment charges and going public transaction.
The table below reconciles net income to EBITDA and Adjusted EBITDA for the three months ended
Three Months Ended | |||
In CAD $ | 2024 | 2023 | |
Net income | $ 5,108,563 | $ 1,288,876 | |
Add: | |||
Current tax expense | 41,517 | 17,269 | |
Finance income | (871,181) | (482,882) | |
Other income | - | (7,790) | |
Foreign exchange (gain) loss | (626,729) | 55,231 | |
Amortization of intangible assets | 1,220,356 | 571,983 | |
Depreciation of building, property and equipment | 25,624 | 35,516 | |
EBITDA1 | 4,898,150 | 1,478,203 | |
Adjustments: | |||
Restructuring expense/other | 500,987 | 614,490 | |
Share based compensation | 601,586 | 941,693 | |
Adjusted EBITDA1 | $ 6,000,723 | $ 3,034,386 |
"Adjusted net income" adjusts net income for share-based compensation expense, 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 claim settlements, acquisition, divestiture, asset impairment charges and going public transaction.
The table below reconciles net income to Adjusted net income for the three months ended
Three Months Ended March 31, | |||
In CAD $ | 2024 | 2023 | |
Net income | $ 5,108,563 | $ 1,288,876 | |
Add: | |||
Amortization of intangible assets | 1,220,356 | 571,983 | |
Depreciation of building, property and equipment | 25,624 | 35,516 | |
Restructuring expense/other | 500,987 | 614,490 | |
Share based compensation | 601,586 | 941,693 | |
Adjusted net income1 | $ 7,457,116 | $ 3,452,558 |
"Adjusted net income " per share is calculated as Adjusted net income divided by the basic weighted average number of shares outstanding during the period.
The Company defines its free cash flow as cash from operating activities less cash used in investing activities (including additions to intangible assets and purchase of building, property and equipment). The table below reconciles cash from operating activities to free cash flow for the three months ended
Three Months Ended | |||
In CAD $ | 2024 | 2023 | |
Cash from operating activities | $ 7,546,074 | $ 7,701,845 | |
Less: Cash used in investing activities: | |||
Purchase of building, property and equipment | (30,742) | (1,283) | |
Additions to intangible assets | (1,697,853) | (1,192,097) | |
Free cash flow1 | $ 5,817,479 | $ 6,508,465 |
Additional information on these measure may be found under the heading "Definitions – IFRS, Additional GAAP and Non-GAAP Measures" in the interim MD&A for the three months ended
Cautionary Statement Regarding Unaudited and Unreviewed Financial Information and Forward-Looking Information
This press release contains unaudited and unreviewed financial information which has not been audited or reviewed by the Company's auditors, nor have the auditors expressed an opinion regarding such unaudited and unreviewed financial information. Security holders, potential security holders and other prospective investors are cautioned not to place undue reliance on unaudited and unreviewed financial information.
This press release also contains forward-looking information within the meaning of applicable securities legislation, which reflects
View original content:https://www.prnewswire.com/news-releases/payfare-announces-first-quarter-2024-financial-results-302140335.html
SOURCE
© Canada Newswire, source