Mr. Marco Margiotta reports

PAYFARE ANNOUNCES RECORD THIRD QUARTER 2023 FINANCIAL RESULTS

Payfare Inc. today filed its financial statements and management's discussion and analysis (MD&A) for the quarter ending Sept. 30, 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.

Q3 2023 highlights:

• Increased revenue to a record $47.2-million for the three months ended Sept. 30, 2023, representing a $12.3-million (plus-35-per-cent) increase compared with the same period in 2022.
• Ended Q3 2023 with 1,211,275 active users, up 290,593 (plus 32 per cent) compared with active user count as at the end of Q2 2022. As of Oct. 31, 2023, Payfare had 1,254,848 active users, up 43,573 from the quarter ended Sept. 30, 2023, as the company enters the seasonally strong fourth quarter.
• Total gross dollar value (total GDV) in Q3 2023 was $3.0-billion, an increase of $800-million (plus 40 per cent) over Q3 2022.
• Net income of $4.8-million, or 10 cents per share, for the three months ended Sept. 30, 2023, up $5.6-million (plus 684 per cent), compared with the same period in 2022.
• Adjusted net income of $7.5-million, or 16 cents per share, for the three months ended Sept. 30, 2023, representing growth of $5.8-million (plus 337 per cent) over the prior-year period.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $6.3-million for the three months ended Sept. 30, 2023, reflecting a $5.0-million increase (plus 373 per cent) compared with the same period in 2022.
• Free cash flow of $3.6-million for the three months ended Sept 30, 2023, which equates to growth of $800,000 (plus 29 per cent) over the prior-year period.
• The company has issued fourth quarter 2023 revenue and adjusted EBITDA guidance of $50-million and $7-million, respectively, and remains on track to meet its full year guidance.
• In the prior quarter, the company was successfully selected in two request for proposal (RFP) processes to launch new private label and embedded finance programs for globally recognized strategic partners. In the third quarter, Payfare signed a definitive agreement with one of these partners, an international big box retailer, to provide earnings payouts to the retailer's delivery gig work force in Canada. Integration and app development continues with the second partner client, which Payfare expects to execute a definitive agreement with in the fourth quarter of 2023.
• Payfare intends to file with the Toronto Stock Exchange (TSX) a notice of intention to commence a normal course issuer bid (NCIB) for its Class A common shares. Subject to acceptance by the TSX, the company would be permitted under the NCIB to purchase for cancellation, through the facilities of the TSX and all available Canadian markets and alternative trading platforms, up to 5 per cent of the issued and outstanding shares for a period of 12 months after the NCIB commences. The exact amount of shares subject to the NCIB will be determined on the date of acceptance of the notice of intention by the TSX.
• Postquarter-end, Payfare announced that it is expanding its partnership with its card processor i2c Inc., to support growth in new markets including Canada and the United Kingdom.

"We are proud to achieve record levels of profitability in the quarter," said Marco Margiotta, chief executive officer and founding partner of Payfare. "In Q3 we were focused on integration with the two new significant partnerships won in Q2. Looking ahead, our pipeline of new gig and earned wage access clients remains robust as we focus on these growth initiatives heading into 2024."

Conference call

Management will host a conference call on Wednesday, Nov. 8, 2023, at 6:30 p.m. ET to discuss these results. A short presentation in connection with the conference call will be made available on the company's website. 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 to 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 Dec. 8, 2023. To listen to the recording, call 416-764-8692 or 1-877-674-7070 and enter pass code 781255.

About Payfare Inc.

Payfare is a global financial technology company powering digital banking and instant payment solutions for today's gig work force. Payfare partners with leading platforms and marketplaces, such as Uber, Lyft and DoorDash, to provide financial health for their work force.

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