Payfare (PAY) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 revenue of $56.0 million, up 20% year-over-year, with industry-leading profitability and free cash flow growth in the EWA sector.

• Net income was $4.9 million ($0.10 per share), up 132% year-over-year; adjusted net income was $7.5 million ($0.16 per share), up 61% year-over-year.

• Adjusted EBITDA for Q2 was $6.6 million, up 39% year-over-year, driven by higher active user base, lower processor rates, and vendor cost reductions.

• Active users grew 24% year-over-year to 1,468,770, with GDV loaded on cards up 31% year-over-year.

• Announced long-term extension of Lyft Direct Program partnership and formed a Strategic Advisory Board to support international expansion.

Financial highlights

• Q2 2024 revenue reached $56.0 million, up 20% year-over-year, driven by marketing initiatives and organic program growth.

• Gross profit was $13.9 million at a 24.8% margin, up 25% year-over-year, benefiting from volume-based pricing and higher active user base.

• Adjusted EBITDA was $6.6 million (11.8% margin), up 39% year-over-year.

• Free cash flow surged to $9.6 million from $0.2 million in Q2 2023.

• Ended the quarter with $67 million in cash and $28 million in liquid high-yield deposits; remains debt-free.

Outlook and guidance

• Reaffirmed 2024 revenue guidance of $235–$245 million and adjusted EBITDA of $30–$35 million, representing midpoint growth of 29% and 51% over 2023.

• On track to meet full-year revenue and adjusted EBITDA guidance, with stronger quarters expected in the latter half of the year.

• Focus on rapid international expansion and scaling EWA platform, targeting continued profitability and global scale.

• Uber Pro Canada program user base increased over 400% year-over-year and over 100% quarter-over-quarter.

• ADP Canada partnership on track for a Q4 launch beyond testing phase.