PR Newswire
TORONTO, May 10, 2023
Continued execution on profitability, generating free cash flow1 of $4.1 million in Q1 2023
TORONTO, May 10, 2023 /PRNewswire/ - 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 ending March 31, 2023. 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.
Q1 2023 Highlights:
"We are pleased to once again demonstrate strong free cash flow generation and earnings profitability in the first quarter of 2023," said Marco Margiotta, CEO and Founding Partner of Payfare. "We remain extremely optimistic on the underlying fundamentals of our core business model which we expect to supplement with new partnerships and product shelf enhancements over the balance of the year."
Conference Call
Management will host a conference call on Thursday May 11, 2023, at 11:30 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 June 11, 2023. To listen to the recording, call (416) 764-8692 or 1-877-674-7070 and enter passcode 202402 #.
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.
1Non-IFRS and Supplementary Financial Measures
This press release contains references to "active users", "Total GDV", "adjusted net income (loss)", "adjusted net income (loss) per share", "Adjusted EBITDA" and "free cash flow", 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 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 loss (gain), amortization of deferred income, finance and interest costs (income)current tax expense and change in fair value of derivative liability.
"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, 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 and going public transaction. The table below reconciles net income (loss) to EBITDA and Adjusted EBITDA for the three months ended March 31, 2023 and 2022.
| Three Months Ended March 31, | ||
In CAD $ | 2023 | | 2022 |
Net income (loss) | $ 1,288,876 | | $ (2,704,538) |
Add: | | | |
Current tax expense | 17,269 | | - |
Finance income | (482,882) | | (65,335) |
Other income | (7,790) | | (39,962) |
Foreign exchange loss | 55,231 | | 1,426 |
Amortization of intangible assets | 571,983 | | 189,281 |
Depreciation of building, property and equipment | 35,516 | | 33,004 |
EBITDA | 1,478,203 | | (2,586,124) |
Adjustments: | | | |
Restructuring expense/other | 614,490 | | - |
Share based compensation | 941,693 | | 1,726,922 |
Adjusted EBITDA | $ 3,034,386 | | $ (859,202) |
"Adjusted net income (loss)" adjusts net income (loss) for share-based compensation expense, amortization and depreciation expenses, 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, 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 and going public transaction. The table below reconciles net income (loss) to Adjusted net income (loss) for the three months ended March 31, 2023 and 2022.
| Three Months Ended March 31, | ||
In CAD $ | 2023 | | 2022 |
Net income (loss) | $ 1,288,876 | | $ (2,704,538) |
Add: | | | |
Amortization of intangible assets | 571,983 | | 189,281 |
Depreciation of building, property and equipment | 35,516 | | 33,004 |
Restructuring expense/other | 614,490 | | - |
Share based compensation | 941,693 | | 1,726,922 |
Adjusted net income (loss) | $ 3,452,558 | | $ (755,331) |
"Adjusted net income (loss)" per share is calculated as Adjusted net income (loss) 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 March 31, 2023 and 2022.
| Three months ended March 31, | ||
In CAD $ | 2023 | | 2022 |
| | | |
Cash from operating activities | $ 5,317,928 | | $ 1,344,966 |
Less: Cash used in investing activities | - | | - |
Purchase of building, property and equipment | (1,283) | | (73,087) |
Additions to intangible assets | (1,192,097) | | (648,182) |
Free cash flow | $ 4,124,548 Werbung Mehr Nachrichten zur Paymentus Holdings Inc Aktie kostenlos abonnieren
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