Payfare Announces Update to Timing of its Fourth Quarter and Full Year 2023 Results Release and Earnings Conference Call
Payfare reaffirms fourth quarter 2023 revenue and Adjusted EBITDA1 guidance of $50 million and $7 million, respectively
TORONTO, March 18, 2024 /PRNewswire/ - Payfare Inc. ("Payfare'' or the "Company") (TSX: PAY) (OTCQX: PYFRF), a leading fintech powering instant payout and digital banking solutions for workforces, today announced an update to the timing of its fourth quarter and full year 2023 results release and corresponding earnings conference call to April 1, 2024, after market close, from the previously scheduled date of March 21, 2024.
The Company has not yet received a System and Organization Controls ("SOC 1") auditor's report from one of its key service providers related to the operating effectiveness of the service provider's controls. The Company cannot complete the certification of the fiscal 2023 results until this report has been obtained and assessed and for Payfare's external auditors to complete their related audit procedures. The delivery of the SOC 1 auditor's report is the sole responsibility of the key service provider and the key service provider is working closely with its auditor to finalize the SOC 1 report.
Payfare reaffirms its previously issued fourth quarter 2023 revenue and Adjusted EBITDA1 guidance of $50 million and $7 million, respectively, and highlights that the delay in receiving this SOC 1 report from its service provider has no impact on the Company's financial outlook.
Revised Conference Call Details
Management will host a conference call on April 1, 2024, 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 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 1, 2024. To listen to the recording, call 416-764-8692 or 1-877-674-7070 and enter passcode 10007.
About Payfare (TSX:PAY, OTCQX: PYFRF)
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 "Adjusted EBITDA" which is not a measure prescribed by International Financial Reporting Standards (IFRS). This supplementary financial measure is 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.
"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 (loss) to EBITDA and Adjusted EBITDA for the three and nine months ended September 30, 2023 and 2022.
Three Months Ended September 30, | Nine Months Ended September 30, | |||||
In CAD $ | 2023 | 2022 | 2023 | 2022 | ||
Net income (loss) | $ 4,810,360 | $ (823,855) | $ 8,212,761 | $ (5,839,217) | ||
Add: | ||||||
Current tax expense | 20,874 | - | 66,242 | - | ||
Finance income | 795,305 | 303,597 | 1,565,277 | 492,684 | ||
Other income | - | 23,153 | 9,397 | 96,061 | ||
Foreign exchange gain | 445,690 | 63,136 | 20,009 | 34,712 | ||
Amortization of intangible assets | 942,531 | 354,976 | 2,227,776 | 753,295 | ||
Depreciation of building, property and equipment | 17,182 | 36,587 | 87,615 | 106,557 | ||
EBITDA | 4,549,952 | (822,178) | 8,999,711 | (5,602,822) | ||
Adjustments: | ||||||
Restructuring expense/other | 706,185 | 142,274 | 2,009,504 | 142,274 | ||
Share based compensation | 1,040,863 | 2,011,292 | 3,078,369 | 6,224,194 | ||
Adjusted EBITDA | $ 6,297,000 | $ 1,331,388 | $ 14,087,584 | $ 763,646 | ||
Forward-Looking Information
This press release contains forward-looking information within the meaning of applicable securities legislation, which reflects Payfare's current expectations regarding future events as of the date hereof. Such forward-looking information may include but are not limited to statements regarding the pending receipt of the System and Organization Controls auditor's report from one of its key service providers, the timing of the Company's reporting of its fourth quarter and full year 2023 results, and revenue and Adjusted EBITDA guidance for those same periods. 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 the "Risk Factors" section in Payfare's MD&A for the year ended December 31, 2022. Accordingly, readers should not place undue reliance on forward-looking information. The purpose of guidance contained in this news release is solely to outline management's current expectations and outlook for its 2023 financial performance, and not to forecast or project future results. Readers are cautioned that such guidance is not appropriate for any other purpose. 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.
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SOURCE Payfare
