Payfare generated unaudited net income of $4.9 million, and Adjusted net income per share1 of $0.15 in Q4 2023. The Company has also provided an update on its Annual Filings. Toronto, April 25, 2024 /CNW/ - Payfare Inc. ("Payfare" or the "Company") (TSX:PAY) (OTCQX:PYFRF), a leading fintech powering instant payout and digital banking solutions for workforces, today announced summarized unaudited results for the fourth quarter and year ending December 31, 2023. Unaudited Q4 2023 Highlights: Increased revenue to a record $50.0 million for the three months ended December 31, 2023, representing an $11.6 million (+30%) increase compared to the same period in 2022. Ended Q4 2023 with 1,400,127 active users1, up 346,255 (+33%) compared to active users1 count as at the end of Q4 2022. Total gross dollar value (Total GDV)1 in Q4 2023 was $3.3 billion, an increase of $0.9 billion (+36%) over Q4 2022. Net income of $4.9 million, or $0.10 per share, for the three months ended December 31, 2023, up $2.0 million (+69%), compared to the same period in 2022. Adjusted net income1 of $7.4 million, or $0.15 per share, for the three months ended December 31, 2023, representing growth of $2.8 million (+60%) over the prior year period. Adjusted EBITDA1 of $7.5 million for the three months ended December 31, 2023, reflecting a $3.9 million increase (+108%) compared to the same period in 2022. Free cash flow1 of $6.5 million for the three months ended December 31, 2023, which equates to growth of $0.5 million (+8%) over the prior year period. Unaudited Full Year 2023 Highlights: Payfare achieved record revenue of $186.0 million, representing a $56.1 million (+43%) increase over 2022 and met its full year 2023 revenue guidance. Total gross dollar value (Total GDV)1 in 2023 was $11.8 billion, an increase of $3.9 billion (+49%) over 2022. Net income of $13.1 million or $0.28 per share, representing an increase of $16.1 million (+547%) compared to 2022. Adjusted net income1 of $23.0 million or $0.48 per share, reflecting an increase of $17.0 million (+283%) compared to 2022. Payfare generated Adjusted EBITDA1 of $21.6 million, representing growth of $17.2 million (+394%) over 2022 and met its full year 2023 Adjusted EBITDA1 guidance. Free cash flow1 of $17.0 million which equates to growth of $9.9 million (+137%) over the prior year period. The amounts disclosed in this press release are unaudited as the Company's auditors, KPMG LLP, have not yet completed their audit procedures on the consolidated financial statements as at, and for the year ended December 31, 2023. Executed Strategic Objectives for Fiscal 2023 Payfare issued 2023 revenue and Adjusted EBITDA1 guidance of $185 million to $195 million and $21 million to $24 million, respectively. Update: Payfare achieved its full year 2023 revenue and Adjusted EBITDA1 guidance based on unaudited financial results for the year ending 2023. The Company is actively working on winning several new significant white label partnerships and establishing infrastructure in international markets including potential expansion with existing partners. Update: Subsequent to year end, the Company launched new programs in Canada including with Uber (the Uber Pro Card powered by Payfare) and a new embedded finance product with an international big box retailer, to provide earnings payouts to the retailer's delivery gig workforce in Canada. Expand into new business verticals including Earned Wage Access ("EWA") for full-time employees. Update: In Q1 2024, the Company signed a commercial agreement with ADP, a leading global provider of Human Capital Management solutions, to offer EWA to the Canadian market. Payfare has made progress with its existing gig platform and banking partners to launch credit or credit-like products for its user base. Update: The Uber Pro Card powered by Payfare includes the Back-up Balance feature, providing qualifying cardholders access to up to $50 when they need it most at no cost and no interest.   Partner with new merchants to expand Payfare's compelling suite of cashback and loyalty rewards for cardholders. Update: The Company has partnered with Upside (retail technology platform) to launch a cashback rewards program enabling Dasher Direct cardholders to claim personalized price promotion offers on all major spend categories (fuel, restaurants and grocery). The Company has also partnered with Avibra (financial, insurance and wellness platform) providing free and low-cost access to a suite of health and wellness perks to Dasher Direct Cardholders. Strategic Objectives for 2024: Payfare has issued 2024 revenue and Adjusted EBITDA1 guidance of $235 to $245 million (mid-point 29% over 2023) and $30 to $35 million (mid-point 51% over 2023), respectively. The Company is actively working on extending partnerships with existing gig platform partners. Payfare expects to announce meaningful progress on this initiative over the course of the year. Continue to expand into new business verticals, including developing and offering Payfare's payment platform and technology solutions for EWA for hourly-paid employees. Payfare expects to execute on its recently signed commercial agreement with ADP to offer EWA to the Canadian market by building out its technology platform. The Company will also continue to work on additional payroll platform and employer integrations over 2024. Management will use these strategic objectives to measure the Company's progress and will update and supplement these objectives over the course of 2024. Payfare Provides Update on Annual Filings Payfare today provided an update to its previously disclosed management cease trade order ("MCTO"), in respect of its delayed filing of its audited annual financial statements, management's discussion and analysis, annual information form, and related certifications, all for the year ended December 31, 2023 (collectively, the "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. Based on the updated timing for the delivery of the SOC 1 report confirmed by the Vendor's auditors, Payfare now anticipates that it will complete its Annual Filings by May 22, 2024. The Company will issue a news release announcing completion of filing of the Annual Filings at such time as they are completed and filed. The delay in the Company's Annual Filings is not expected to impact the filing of the Company's quarter ended March 31, 2024 unaudited financial statements and the related management's discussions and analysis for such interim period (the "Q1 Filings"). The Q1 Filings are anticipated to be filed on or about May 8, 2024. Work is already underway by the Company to ensure timely reporting for this period. Until the Company files the Annual Filings, it will comply with the alternative information guidelines set out under National Policy 12-203 – Cease Trade Orders for Continuous Disclosure Defaults, including issuing bi-weekly default status reports by way of news releases such as this one, which will be filed on SEDAR+. Conference Call Management will host a conference call on Monday April 29, 2024, at 8:00 AM ET to discuss the unaudited 2023 financial 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 (289) 514-5100 or 1-800-717-1738. 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 May 29, 2024. To listen to the recording, call 416-764-8692 or 1-877-674-7070 and enter passcode 10007. Summary Unaudited 2023 Financial Results The tables below display a summary of the Company's select unaudited consolidated statements of financial position data as at December 31, 2023 and 2022 and an unaudited summary of consolidated statements of operations and comprehensive income (loss) for the years ended December 31, 2023 and 2022. In CAD $ As at December 31, As at January 1, 2023 Restated 2022 (1) Restated 2022 (1) Cash and cash equivalents (1) $   78,153,324 $   56,177,184 $   51,170,389 Pre-funded deposits (1) 207,585,374 147,444,308 164,830,737 Accounts receivable (1) 5,234,864 4,449,083 2,505,177 Loan receivable from related parties 1,760,564 – 2,631,339 Prepaid and other assets (1) 3,192,291 5,619,625 1,839,681 Building, property and equipment 111,043 161,387 218,044 Intangible assets 5,607,927 3,324,736 1,097,575 Total assets 301,645,387 217,176,323 224,292,942 Accounts payable and accrued liabilities (1) 22,813,915 21,166,525 12,480,795 Pre-funded liability 207,585,374 147,444,308 164,830,737 Deferred income – 9,397 120,645 Lease liability – 35,744 93,970 Total liabilities 230,399,289 168,655,974 177,526,147 Total shareholders' equity (1) $   71,246,098 $   48,520,349 $   46,766,795 (1)  Prior period comparatives have been restated – See "Correction of Prior Period Financial Statements Resulting in an Increase to Prior Period Cash and Cash Equivalents Balance" below. In CAD $ Year ended December 31, 2023 2022 Revenue $    186,044,054 $     129,927,592 Cost of services 140,128,208 104,051,329 Gross profit 45,915,846 25,876,263 Salaries and related costs 12,658,086 10,736,085 Share-based compensation 3,907,086 7,417,547 Other operating expenses 14,301,976 10,909,598 Amortization and depreciation