Financial technology (fintech) companies draw a lot of attention over the course of the 2010s. Top banks in North America and around the world had drawn the ire of the public in the aftermath of the 2007-2008 financial crisis. Fintech companies also offered better tech for mobile users in a time of transition. However, top banks quickly made huge ground in this area and dedicated huge resources to upgrading their mobile applications.
Payfare (TSX:PAY) is a Toronto-based fintech company that provides instant payout and digital banking solutions to gig economy workers in Canada, the United States, and Mexico. Shares of this fintech stock have surged 60% in 2023 as of close on April 13. The stock is still down marginally in the year-over-year period.
This company released its fourth quarter and full year fiscal 2022 earnings on March 22. In Q4 2022, revenue soared 131% year-over-year to $38.4 million. Meanwhile, gross profit surged 230% to $8.3 million. Adjusted EBITDA also climbed 248% to $3.6 million. Its DasherDirect App has received very strong reviews in the United States.
For the full year, Payfare posted total revenue growth of 210% to $129 million. Meanwhile, gross profit soared 372% to $25.9 million. Moreover, it achieved record adjusted EBITDA of $4.4 million – up 144% from fiscal 2021.
Payfare currently possesses an immaculate balance sheet. It has surged into profitability after record breaking results in fiscal 2022. This is a fintech stock that is worth your attention going forward.
