Good morning, ladies and gentlemen. Welcome to Payfare's 2022 Q1 financial results conference call. At this time, all participants are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session with pre-qualified analysts on the call, and instructions will be provided at that time for you to queue up for questions. If anyone has any difficulties hearing the conference, please press star followed by zero for operator assistance at any time. I would like to remind everyone that this conference call is being recorded. I will now turn the conference over to Mr. Cihan Tuncay, Head of Investor Relations and Corporate Development. Please go ahead. Thank you, operator, and good morning, everyone. Joining me on the call this morning is Marco Margiotta, Payfare's CEO and Founding Partner, and Charles Park, Payfare's CFO. Payfare would like to note that the company's remarks and answers to your questions today may contain forward-looking statements that are based upon management's current expectations. All such statements are made pursuant to the safe harbor provisions of, and they're intended to be forward-looking statements under applicable Canadian securities legislation. When relying on forward-looking statements to make decisions with respect to the Company, you should carefully consider the risks set forth in the Risk Factors section of the annual MD&A for the year ended December 31, 2021. It is available on www.sedar.com. Except as may be required by Canadian securities laws, the Company does not undertake any obligation to update any forward-looking statements as a result of new information. We would also like to remind listeners that Payfare uses certain non-GAAP and supplementary financial measures to arrive at adjusted results to assess its business and to measure overall performance. Payfare believes that these financial measures provide readers with a better understanding of how management views the company's overall performance. Throughout the call, we will also refer to a slide deck, which was posted on our website, last night. That's corp.payfare.com/investors. I will now turn the call over to Marco Margiotta. Thanks, Cihan. Let's start on page three of the slide deck. The Q1 was a record for Payfare on all of our operating and financial metrics. We generated just under $25 million in revenue, which was up 393% over the prior year and 44% over the prior quarter. We also surpassed $1.4 billion in quarterly GDV. I would like to point out that our revenue increased by more than the growth in GDV, which indicates to us that our users are not only earning more but also spending more on our cards. Our strategy to offer our cardholders instant or near instant earnings deposits, combined with a robust suite of everyday rewards programs, is bearing fruit as we continue to capture additional wallet share. Turning to page four, you'll see our user growth. Spending active users were up 374% year-over-year and 36% quarter-over-quarter in Q1. At the end of March, we partnered with Lyft and DoorDash to offer our cardholders cashback on fuel purchases. The program with Lyft was set to run until the end of June, and the program with DoorDash was recently extended to the end of August from April. Since those early announcements, we've seen record activity levels in user sign-ups and point-of-sale spending. We expect Q2 to be another record for active user growth. Importantly, these are new users that now enjoy the benefit of free instant payouts and cashback rewards for the first time that otherwise may not have been aware of our products. Our cardholder retention is quite strong, and we think that the users who signed up for cashback on fuel will continue to bank with us, well beyond the incentive period. On page five, you will see our financial highlights and updates on our strategic objectives for 2022. Since day one, we've been focused on profitability. We are pleased to report record gross profits and gross margin levels for the quarter. Charles will elaborate on our financial outlook shortly, but we expect to begin generating positive EBITDA in Q4 of this year and expect a significant ramp-up in profitability for next year. We recently announced a 26% increase at the midpoint of our annual revenue guidance to CAD 115 million-CAD 125 million. This is a function of higher than previously expected point-of-sale volume and GDV growth. Our launch with Paid App remains on schedule for the second quarter. There's a robust pipeline of new partnerships ahead of us, from late-stage discussions, RFPs, and LOIs to implementing final agreements. The aggregate GDV of our pipeline is in the several billion CAD range, and this is a combination of paid ad partners and white-label solutions. We are evaluating several new gig economy verticals, including the creator economy, rapid grocery delivery, and others. On the product front, we have several products in development pipeline, including a food as a benefit pay card for enterprises. Our new card will allow employers to give their workers a credit for ordering meals, whether they are working from home or in the office. We expect to update the market on this product in the coming months. We continue to have an eye for international expansion. As our gig platform partners grow internationally, we want to be ready to grow with them. Our initial focus will be on Canada, Australia, the UK, and Europe. With that, I will turn it over to Charles to review our Q1 financials. Thanks, Marco. Turning to page six, you will see our summary income statement. In the Q1, we generated revenue of $24.9 million, up 44% from the prior quarter and up 393% from Q1 in 2021. This increase was primarily driven by ongoing marketing initiatives and organic growth in the DoorDash program, a gradual recovery in rideshare activity for both Lyft and Uber. Gross profit for the Q1 was a record $4.3 million versus a negative gross profit of $169 thousand in the prior year. I'd like to highlight that in the Q1, we reclassified inactive card account setup and KYC costs, other cost of services to operating expenses. We did this because our cost of services are now more aligned with revenue generated from active users. Importantly, while this change in presentation contributed to gross margin expansion, our gross margin primarily benefited from volume-based pricing improvements with our higher active user base and GDV volumes. We also realized material cost savings on customer support and card production. On an apples to apples basis, we have presented here comparative gross margin expansion for the quarter, excluding the impact of reclassifying inactive user expenses. On this basis, we generated a gross margin of 13% in Q1, more than double the 5% gross margin generated in Q4 2021. We remain on the path to boost our gross margin to the 25% range over the balance of the year. We continue to hire more personnel and invest in our underlying technology. Despite this investment in growth, we were within touching distance of positive adjusted EBITDA for the quarter. We expect to be adjusted EBITDA positive by Q4 this year as we expect top line growth to outpace G&A now that the development of Paid App is complete. While we have not issued guidance for 2023, I would like to highlight the key drivers of our financial performance for the year ahead. First will be a full year of contribution of users we add for the balance of 2022, plus organic growth with our existing partners. DoorDash continues to expand outside of restaurant delivery, and we look forward to rideshare recovering and growing past pre-pandemic levels. Potential new partnerships, both white label and through Paid App, could also contribute to additional revenue growth in 2023. From an adjusted EBITDA perspective, we believe we have the potential to realize margins of 15%-20%+ in this scenario for 2023. Free cash flow is our guiding star, and with the organic growth opportunities ahead, combined with our efficient cost structure, we expect to generate positive free cash flow and earnings in 2023. On page seven, we summarize our current financial condition. We ended the quarter with almost CAD 42 million in cash. Our financial condition is strong. We have no incremental capital needs to fund our 2022 strategic objectives. Our balance sheet is well capitalized, and we remain debt-free. I will now turn it over to Cihan for capital markets update. Thank you. Thank you, Charles. Let's flip to page eight. This is a familiar chart that compares our share price performance to the ETFMG Prime Mobile Payments ETF since our IPO. We're happy to see that we have outperformed our benchmark by 46% over this period, despite elevated market volatility in recent weeks. Page 10 shows where our stock is trading relative to other high-growth payments companies. I want to point out that all figures in this table are in US dollars, and all forward-looking information reflects analysts' consensus estimates in the midpoint of our revenue guidance for 2022. While we can't control market multiples, we have levers to pull to close the valuation gap with our peers. The first lever is continued top-line growth, which is reflected in our updated revenue guidance for this year. The second is expanding our gig platform partnerships. As Marco mentioned, we are excited about our current sales pipeline. The third lever is profitability. We were pleased to report record gross margin expansion in the Q1, and Charles has outlined his views on potential adjusted EBITDA generation through 2023. We look forward to delivering updates on these initiatives over the coming months. With that, operator, we are now ready to take questions. Thank you. At this time, I would like to remind everyone, in order to ask a question, press star, then the number one on your telephone keypad. We'll pause for just a moment to compile the Q&A roster. Your first question comes from the line of Joseph Vafi from Canaccord Genuity. Your line is open. Hey, guys. Good morning. Nice results. Wondering if we could dig in any more on that, pipeline of customers for the Paid App, and some of the others. If you have a feeling of how quickly those could ramp once Paid App is launched. This is Marco. I'll just take that. Morning, Joe. And thanks for calling in, and thanks for the question. Yeah, I would say since the, you know, real adoption of the customers we have on board, including over the past year, specifically over the past few months, we continue to receive a number of inbound inquiries from other players in the gig economy looking for similar solutions. That pipeline is building significantly, as each day passes. I mean, at this point, I think what we've done created table stakes in the gig economy. I think instant payments are the way of the future. We've said that all along. When the leaders in the space are doing it, others are soon to follow. We're seeing the exact kind of strategy that we've outlined play out. Now in addition to some of the inbound inquiries, we're looking at building a sales team now that the platform or the Paid App platform specifically is about to roll out, which should happen this quarter, specifically closer to June. In that, you know, we've mentioned before there's billions of GDV sitting there, and the thing that we think, you know, is most exciting about all this is there's gig platforms and partnerships that we would have never imagined existed. The breadth of what's out there in the gig economy is exceptional. Some of the inbound inquiries are actually taking us out to even platforms that are just outside the gig economy. You know, I mentioned food as a benefit. That's something we wouldn't have dreamt up on our own. The opportunity came to us. We're looking at it. We're you know kind of on the cusp of getting more material movement there. We'll be happy to update you when the time is right. Yeah, it's very robust. We're seeing a lot of small to midsize gig platforms reach out, which is exactly where we want to be, but we're also seeing some branded solution opportunities that you know caught the attention and would have names that everyone would recognize. It's humming. I think you know over time, that's just going to build as we build a sales team, and we start getting some outbound calls going. I mean, when you think about what we've done with one salesperson, which is Ryan Deslippe, it's been a phenomenal run. We know this was always the game plan, and we're just getting started, which is the most exciting part. That's great. Just kind of following up on the hiring of the sales force, it feels like your business model does have some leverage to it, as you ramp in terms of not really having to hire or expand expenses that much. Do you have some initiatives this year in R&D, other things to continue to make that organic investment in the business? Thanks, guys. Yeah. Thanks, Joseph Vafi. I can take that as well. I mean, you know, others, Cihan Tuncay and Charles Park, feel free to jump in. You're right. I mean, there's lots of leverage that can grow with what we've built. We've built a phenomenal platform. Now, especially with the launch of Paid App, all those efficiencies of onboarding those clients happen quite quickly. That's where you could ramp and start targeting, you know, the smaller parts of the gig economy just to kind of stack the TAM and address that market. Not only just the gig economy, as we've always said. At the end of the day, we built a platform that's really robust and allows us to pay any large workforce that is looking to pay a large amount of users in a quick fashion, along with the same benefits we've created, which is a free bank account, along with a ton of cash back and loyalty rewards. It's forever expanding the TAM, which could easily be done given the technology we've built. Let's not forget some of the investments we've made, not only just in the Payfare platform, which is now behind us for the most part. There's a slew of things we always pause just to accommodate, you know, the fact that you need the users to get the product out there in a much more efficient manner. Now that the robust platform is built, now we can start. There's a bunch of users that are on board. You know, at the end of the quarter, we had 700, almost 700,000 active users and growing. That doesn't look like it's slowing anytime soon. When you have that captive audience, we can now start layering on new products. We've mentioned this in the past. Things like, you know, lending products would be very key to our users and very profitable and rewarding opportunity for us, given how unique that could be, right? Having visibility of the earnings, history of where they spent money, how they're spending their money and spending habits, and then more importantly, you know, the capability of repayment, in a very risk-effective way. Those are all things we'll continue to invest in, but with the resources we have on board, those can all get captured. You know, take the Payfare platform that's now built, and now we can kind of move that focus over to more products, you know, high margin product opportunities. That's great. Thanks, Marco. No problem. Thank you. Your next question comes from the line of Mike Rizvanovic. Your line is open. Hey, good morning. Marco, I wanted to go back to your comment on international expansion and growing with the gig platforms. I guess it's a two-part question. A, what sort of infrastructure do you have in place outside of Canada, or how expensive is it to get to where you need to be to grow, assuming gig platforms do look to do some sort of, you know, large scale expansion outside of their footprints and how they currently look? And the second part of that is, do you have a sense of the scale of that opportunity with DoorDash or Lyft? I'm not sure if in your discussions you could give us some color on that. Just trying to get a ballpark, if you can provide it, on, you know, how big of an opportunity that could potentially be over the longer term. Yeah. Thanks, Mike. Good morning. For the first part, it's actually a good segue from the previous question that Joe had asked in terms of from, you know, how scalable the platform is. You know, global expansion is no exception to that. The one thing I'll highlight, a lot of the vendors we picked from day one have global scale. When you think about processors like i2c and Marqeta, we have that capability already integrated. Even some of the onboarding capacities, KYC, AML, call center capability and support, all that is already ready to go, and it would give us global capability, you know, in the markets we want to be in for the foreseeable future. Really what we're talking about is, you know, CapEx around integration to local issuers, and more specifically for those that are not familiar with it's just local bank sponsorships that we would want to not only partner with, but also do the integration with, which would give us the capability of issuing, you know, a Visa or Mastercard product and getting on those rails. Even that investment is very minute and small compared to the opportunities that they represent. That's really the only CapEx that kind of goes with it directly from a, you know, a software development perspective. Outside of that, you know, building teams locally would mainly be a sales effort, if anything. We're talking about, you know, the bulk and vast majority of the platform we built is now at a very scalable roadway or path. That's, you know, what should drive a lot of activity in a very quick fashion because all those developments have already occurred and the CapEx is now behind us. You know, one of the other things not to forget, there is local compliance issues, and so a local compliance team would be another aspect of it, obviously language, and all the implications that would have. For the most part, you know, it's just white labeling and repurposing a lot of the stuff that we've already built, and utilizing a lot of the integrations we've already integrated with in terms of different vendors that support us to offer the platform we do. Outside of that, in terms of the clients that we have at the table in global expansion, you know, to highlight DoorDash, they just recently acquired Wolt, and I think it takes them into, you know, 23 or 27 different markets. We see them expanding in a very big way. Similar to us, they have a platform that they could bolt on to different geographical expansions, and so it plays into what we've created. We've always had that in mind, so it's not difficult for us to pivot and kind of join along that line. When you do it for the client in a very big way, and you handle the biggest and best markets, and you've shown that in other markets, you can also do the same already, it gives them a lot of comfort knowing that you can grow with them and alongside them. We look forward to some of those discussions continuing on. We've said from day one that those discussions are always in the mix, and some of them contractually have some language in there to reflect that as well. There's already segues and pathways to kind of further that relationship to beyond the borders where we're viewing it now. Okay. Thanks for the color. Just in terms of expanding outside of the gig economy, and I know it's something that is clearly on the agenda, but if you could point to sort of the dynamics around getting to that, to the point where you're sort of, you know, selling your offering into these non-gig areas, is it a major headwind to get that done? What I mean is it's not maybe as obvious as it would be to a gig driver that has to pay, you know, high costs on fuel and needs the money up front. It does seem like it's a pretty good value proposition for a lot of different potential industries. Is it difficult to break into that? You're sort of introducing a new concept that doesn't currently exist for a lot of these target areas that you're talking about. Just some of the dynamics on that would be helpful. Yeah, for sure, Mike. You know, I say it all the time. When you simplify the platform, really, you know, we're onboarding a mass amount of users in a very, you know, efficient manner, right? All automated, you know, beyond belief, where, you know, AML, KYC is not lost. In fact, it's very robust even though it's automated. There's also scrubs that happen once you go beyond that. That's just an example of, you know, that plus the fact that, you know, we can hand out those cards in a massive distribution channel, which we do now. You know, any cardholder from any part in the US, almost to any ZIP code can receive a card within days, is another example. The fact is we built a platform so that we can handle cradle to grave, an efficient way of paying out any large workforce, and it doesn't have to be just a workforce. To date, we've stayed laser-focused on the gig economy, but you've seen, you know, or heard just now through the introduction of this corporate spend card type of product for the food as a benefit kind of industry, which is really growing at paces we didn't think even existed. I think that's in large part to the pandemic and what that's created in the work from home environment. These are solutions that weren't necessarily needed before but now are coming front and center. With the robustness of the platform, it really boils down to paying any large group of users in a very efficient manner because of all the automation and integrations we've done and the partnerships we have in place that really utilize the efficiencies of technology and what is out there today. That'll forever expand. We talked about, or you mentioned how we address the gig platforms and gig users and the need for, you know, addressing the pain point, which today was fuel. That doesn't stop there. At the end of the day, with this platform and the issuing platform we've built, I've always spoken about this almost from day one. At the end of the day, when you have a large cardholder base and that cardholder base grows, maybe, you know, even outside the gig economy, all the efficiencies you pick up along the way and purchasing power. You know, think about the other reward discounts we can offer directly at some point where we can walk into any large retailer and say, "Hey, we have X amount of users that spend X amount at your stores. How would you like to introduce them to, you know, another concept or product offering that you might have in a very quick way?" Without any integration, we could just feed you back, you know, all the spend from our side, so they won't have a poor user experience where they have to scan a barcode or redeem some redemption, which might be inefficient. It's just to have them spend in the store. Those are very margin-enhancing products that we can offer, and that also helps. You know, it's a win-win-win. It helps the employer or gig platform, you know, help user retention and all the metrics we speak about often. It also helps the cardholder base, you know, get access to things they otherwise wouldn't get on their own, such as big, deep discounted offerings. Clearly helps us in terms of, you know, very margin-heavy, product offerings that we could do on the flip of a switch. All right. Thank you. Thank you for the great insight. Thanks, Mike. Your next question comes from Adhir Kadve. Your line is open. Good morning, guys. Thanks. Congrats on the quarter here. Marco, I wanted to touch on a comment that you made on the engagement of the users who are signing up with the cash incentive programs. You know, these programs have been online for a couple of weeks now. Can you maybe tell us, you know, what's driving your confidence? Is it maybe their spending behavior of that cohort? You know, are they only using the card for cashback, or are you seeing them kind of, you know, using it, you know, I'm just, I'm spitballing here, but like a Panera Bread or are they using it for food and other areas, or is it kind of simply in just the fuel area? Good morning, Adhir, and thanks for joining. Good question. What's bringing the confidence? You know, think about it inherently in what we've built. I guess some of the questions and the feedback I used to get early days from some of the investors. Well, you know, you're giving a free product. They're getting a free bank account tied to instant access to their earnings for free after each and every task. Plus, they're getting some cashback and loyalty rewards they otherwise wouldn't get. Inherently, you would expect that not many people would not want to take that product on. Now in you know an inflationary environment where the bulk of the spend or the cost of goods sold they have to operate their mini business or a gig worker you know if you think of them as a small business or a micro small business. If you can help alleviate some of the pricing pressure they're feeling and throw in a fuel discount, well now the most difficult part of getting someone over is usually the fact that you're switching out a bank account. For gig workers that take this work as their primary source of income as an example, they really revere the fact that it's a segregated bank account because it segregates all their personal activity from their business activity. Now they have one clean look at what's going on. If that didn't incline you earlier, the fact that you would get a 10% discount might push you to kind of make that move. The reality is, once you make that move and now you have a bank account that's giving you instant access to your earnings after each and every trip, it's pretty difficult to move away from that cash cycle. Because if you're getting paid instantly after every task, you're probably not going to wait around anymore to get paid, you know, once a week or pay, you know, $2 to get access to the funds you've earned earlier. Now, you layer on all the other cash back and loyalty rewards and, you know, you've captured that user in a very meaningful way. It's just making that shift over. Once that shift is made, it's very unlikely that they would kind of migrate away from that for the reasons I mentioned. I think over and above that, you know, in terms of what they're spending, typically, you know, the gig workers that we're seeing specifically, you know, it's fuel and fast food is where they're spending the bulk of the money. Once they're on our card, you know, to re-highlight this, we do capture 100% of their earnings. Naturally, you know, it's not going to be just on the fuel just to get that discount. They're spending it across the board, because it doesn't stop them from, you know, taking the funds they've earned that are now going to that card, and spending it somewhere else. I think we highlighted that. You know, I know we highlighted that in some of the commentaries I made to open up. We're not only seeing, you know, increased user count, we're seeing increased GDV and increased spend. That's all because once that migration happens to our cards, we're seeing the, you know, all the spend come off the card, not just to get access to a fuel discount. Great. Thanks. Maybe just one more. You guys kind of highlighted a path to profitability here, ending this year being EBITDA profitable. Is that mainly because of the GDV that you're seeing? If we kind of just run rate this quarter's GDV, you're looking at about $6 billion in GDV plus throughout the next twelve months, let's say. Are you seeing those big scale discounts, and is that really what's driving the profitability moving forward? I'll throw it over to Charles. Charles, you want to take that one? Yes, sure, Marco. Here, i n terms of the path to profitability, what I would say here is, you know, our gross margin expansion that we expect for the latter half of 2022 is really drawing off the fact that we've focused on reducing costs for our major cost of service line items, whether that's processing, whether that's card purchasing, and whether that's customer service costs. Whether it's, you know, renegotiating with new vendors or going back to our old vendors and asking for more volume-based discounts, all of that we should see the benefits of all that hard work come through in 2022 and obviously well into 2023 as well. It really starts at the gross margin line where we see further expansion kind of to the 25% levels that I kind of mentioned earlier. Also from an OpEx perspective, you know, we really do have a lot of leverage where, you know, we're not trying to double our headcount anytime soon, and we can do the same amount of work with very little increase to our headcounts. A lot of the extra margin that we're bringing to the table with the increased growth is really going to just translate to the bottom line to EBITDA and net income. Awesome. Thanks, guys. I'll pass the line. Your next question comes from the line of Stephen Boland. Your line is open. Morning, everyone. Maybe just a couple of numbers questions. First, I mean, I assume you don't publish the ARPU number, and you switch to GDV. What was the rationale there? I'm just curious, like, did you just find it not to be a you know a useful number in terms of disclosure? Marco, I can take that one if. Yeah, go ahead, Charles. Go ahead, please. Yeah. We've mentioned this in our previous calls, but, you know, the reason we've stopped disclosing ARPU is what we found in 2021 was especially in periods of rapid growth and where you have varying different programs with different economics, you know, the movement in ARPU was unnecessarily kind of confusing to investor base in terms of the ultimate direction the company was taking in terms of strides and growth in the overall business. What we thought was a better measure and more correlated to revenue growth was just speaking about total GDV, which is the ultimate driver of our revenue. Rather than speaking about ARPU in different programs and, you know, it being somewhat not normalized because we had a high net additions during a particular quarter or month, GDV kind of across all programs is kind of a very simple way to kind of understand growth and not being kind of bogged down by kind of an ARPU number that is perhaps too generic when this applies to multiple programs. We're going to get to a point down the road where as we diversify our base, however, we're introducing ARPU maybe more sense if we aggregate these programs into various groups. But to the extent that it was a blended number, we felt that total GDV was a much better measure of our current and future success. Okay, that makes sense. Maybe a second one for you, Charles. Can you the inactive user expenses, or, I mean, I guess if they're inactive, what expenses were they incurring? And how material was that to just your overall expenses? Was it a minor amount? I'm just curious how material it was. Yeah, sure. I can answer that. From an expense perspective, the biggest cost is really the cards. If a user signs up for a program but ultimately doesn't end up, you know, loading any earnings onto their card, there is a cost of the plastic we do incur. There's this minor set up cost associated with creating the account. You know, the whole point of incurring these costs is really to make it super simple and easy for drivers to convert over. To the extent that they don't convert over, you know, it's somewhat confusing to readers of the financials if those particular costs are buried in the main cost item with no offsetting revenue. That's kind of the main drivers in terms of the call. In terms of what that amount was, for comparative purposes, we've included note disclosures both in our MD&A and supporting notes that kind of highlight what the quarter-over-quarter impact was. For Q1 in particular for this year, and I kind of highlighted this earlier on, if we were to kind of go off of the old accounting and having those costs included in the cost line item, we would have ended Q1 at 13% gross margin as opposed to just over 17%. With that said, the margin expansion that I spoke about later in 2022, you know, the whole reclassing of the cost becomes less and less a relevant number. It becomes a smaller number because of some changes that we've recently made with agreements we've made with our vendors to eliminate a lot of those costs going forward. Okay. One for you, Marco. In your earlier comments, you said, you know, there's several billion GDV available. You know, when you're doing 1.4 this quarter with, you know, 700,000 users, you know, is that kind of what, you know, the average? You know what I mean? Like, basically, you're saying like, do you expect to go from 700,000 users with these new platforms and expansion to, you know, 1.5 million-2 million, like we use the same sort of proportion? I'm just trying to get a gauge on, you know, where several billion dollars of GDVs coming from. Yeah. Thanks, Stephen. Good morning. Sorry I didn't mention the salutation earlier. Good morning. Yeah. I would say kind of a point I wanted to add when you were asking about the ARPU metric going away as well. The one thing I really want to highlight, just to put it in very simple terms, as we aggregate more and more users from different platforms, that ARPU number, as we left it, would bounce around like crazy. And so it's nothing more than the impact of the users that we're onboarding now making substantially different amounts of income. If we're talking about a handyman service platform that has a lot of skilled labor, you might see ARPUs, you know, skyrocket because the average income they make would be substantially higher than a part-time gig worker, right? You might have 80,000 of GDV being loaded versus a gig platform worker, you know, generically making $1,000 a month. That's where that number would bounce around in a very substantial way. For now, it doesn't make any sense. A better proxy is just overall GDV. I guess that segues right into your question. When we say this billions of GDV, it's mainly because the breadth of who we're looking at in our sales pipeline is very robust. The average earnings stream of that workforce or different workforces we're dealing with in the sales pipeline is significantly different than the typical gig worker. It's mainly a driver of how much they're earning, which drives GDV, and then GDV ultimately drives, you know, revenue streams for us, most importantly, interchange. ARPU would make sense to go and deviate, and we can move away just from the core offering as we layer on products and have greater control over the underlying behavior outside of just the GDV lending products, as example, and we want to measure how well those loans are getting out there and how well the adoption is and profitability around that specific product. ARPU might come back or will come back, I should say, not might. But for now, I mean, as we're onboarding more and more of these platforms, we'll start to see the ARPU kind of flop around. So it just wasn't a relevant metric for us. But yeah. You know, it highlights how impactful this could be based on which workforces we're talking to. Maybe that's kind of motivated which areas of focus, what we're targeting. Obviously, the higher income earners are the preferred ones. But for the most part, you know, the contradiction to that is most of those workers are typically very well banked. That's the trade-off. It's finding that happy medium where we're addressing the specific needs of gig workers that they wouldn't otherwise find through traditional bankers or bank accounts. Okay. That's great. That's a great call. Thanks, guys. Your next question comes from the line of Keeler Patton. Your line is open. Hi, guys. This is Keeler on for Josh at Cantor. We're really interested in the improvement in gross margin this quarter, even accounting for the accounting change you made. To get to the 25% gross margin target that you pointed out before, will that further improvement come from more volume discounts as you scale, or are there other efficiencies you're looking at there on the gross margin line? Thanks. It's Marco. Charles, I'll throw it over to you, but just maybe clarify around the accounting classification as opposed to an accounting change. That's right. Keeler, thanks for your question. As Marco mentioned, it's more of a presentation change as opposed to a change in accounting policy. But to answer your question, it's a combination really of all the things that we talked about. Processor charges represent, you know, the lion's share of our cost base. The volume rebates that we get as we switch to higher deals, think of our GDV and POS volumes, we're going to benefit from that throughout 2022 as we grow kind of the volumes that we put through our system. Then above that, I'd mentioned that, you know, we struck up new deals with our card purchase vendors and customer service cost vendors, where, you know, they still represent a significant portion of our costs. To the extent that we extract additional savings from there, we hope the benefits of that throughout 2022, and that's how we get to the top to 25% by the end of the year. Okay. Thank you. That's very helpful. Just a quick follow-up. As economic forecasts have been reined in recently, how are you guys viewing how Payfare might perform in a potentially recessionary environment, given the kind of cyclical nature of the gig work that we've seen over the last couple of years? Thanks for the question. I could take that, and if you guys want to chime in, feel free. A few things. You know, we've mentioned this in the last call as well. You see how inflationary pressures actually benefiting us in terms of the fuel discount and the impact of it. A couple of things. One is the gig worker now is spending way more money on fuel than they ever have, and so introducing that discount was obviously a huge benefit. Secondly, you know, if inflationary pressures are causing shortage of cash, that leads to more workers migrating here and trying to supplement their income, leading to more user growth. You know, people typically are not looking at that workforce as a way of making ends meet, which is beneficial to us as well. Underneath all that, keep in mind the bulk of our revenue is generated off interchange. As more inflationary pressures cause things to go up in price, more of that spend is happening off our cards. Net-net, it's a very beneficial environment. But that is all pending the underlying activity of those platforms. We'll see how discretionary spend impacts travel and rideshare. We'll also see how it impacts restaurant goods. One of the things I want to highlight, most of the platforms we're dealing with now are migrating to last mile delivery, which kind of moves away from just the restaurant delivery component. Naturally we're getting some diversification along the way. You know, there's a number of factors that play in. Most of the ones immediately are positive. If this environment continues, I mean, we could see some downward pressure on the underlying activity of our gig platforms. Meaning, you know, everything else that we would do with them, along with them, would also feel some pressure as well. Charles, I think you had some comments you want to add as well. Or Cihan. Yeah, I think Cihan has some points to mention. Yeah. Hey, good morning, everyone. Thanks for the question, Keeler. It's Cihan here. It's a really good one, and it's something that we track, you know, really closely and think about how it's going to impact the business. Just, you know, maybe to add a couple of things to Marco's points on inflation. If we think, you know, a little bit further, we're talking about recessionary environment, if there's an uptick in unemployment, for example, we actually think that benefits the gig economy workforce and the proliferation of gig economy work is becoming very important for people that are in, you know, transitionary employment situations. The one statistic I can tell you that DoorDash published somewhat recently is that around 75% of their dashers sign up because they have either reduced hours at their primary job or if they've lost their job. The gig economy actually becomes what we see it as a safety net in case, you know, traditional unemployment levels get higher. Like, what else can you do if you've lost your job? You know, what can you do right now to go make money to put food on the table, pay your bills, et cetera? In addition to that, just the concept of gig work and how that helps, and it really speaks to our product offering too. There's nothing else that you can really do. Not only can you sign up to be a gig worker right away, but there's nothing else you can do to get paid immediately, instantly after every task. We think from a recessionary perspective, it'll be positive for user growth and overall gig worker growth as well. That's kind of how we think about that. Okay, great. Thank you. That makes a lot of sense. Well, thank you for taking my questions, and congrats again on the great growth this quarter. Thank you. Again, if you'd like to ask a question, press star then the number one on your telephone keypad. There are no further questions at this time. Marco Margiotta, I turn the call back over to you. Thank you very much, operator, and thank you everyone for joining. Really looking forward to, you know, the next quarter and really appreciate your time this morning. Thank you very much. This concludes today's conference call. You may now disconnect.