Good morning, ladies and gentlemen. Welcome to Payfare's 2023 Q2 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. Instructions will be provided at the time for you to queue up for questions. If anyone has any difficulties hearing the conference, please press star 430 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. 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 are 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 in the annual MD&A for the year ended December 31st, 2022, which is available on www.sedarplus.ca. 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 is posted on our website, corp.payfare.com/investors last night. I will now turn the call over to Marco Margiotta. Good morning. Thanks, Cihan. Let's start on slide three. I'm once again proud to present another record operating quarter for Payfare. This was our third consecutive IFRS earnings positive quarter, while generating a return on equity of 32%. Our ROE profile in 2023 continues to track well ahead of the largest financial institutions in Canada, while our free cash flow growth is industry-leading in the earned wage access space based on industry data that we track. Profitability is always at the heart of every decision made at Payfare. That includes signing on new partners, entering new markets, and as we review capital deployment opportunities. That being said, we also take a long-term view on enhancing our ROI, and we'll make upfront investments required to build long-term value, as we have done in the first half of 2023. Moving to slide four, I am pleased to announce that Payfare successfully won two RFP processes to deliver instant payouts and digital banking experiences to globally recognized strategic partners. Both of these opportunities were in our own backyard in Canada. In the second quarter, we were heads down, working on setting up and investing or in integrating these new programs. In terms of impacts to Payfare, at scale, the combined opportunity can account for 10%-15% of our active user base over time. We expect to announce further details on these programs with our partners closer to commercial launch, which could be late 2023 or very early in 2024. On new credit offerings, we have made progress with our gig platform and banking partners on an overdraft, which we expect to launch in the second half of the year. Each of our platform partners have expressed their desire for an overdraft feature. We continue to work with our processing and banking partners to deliver on the needs of our customers. Finally, on earned wage access for W-2 or T4 employees, large employers continue knocking on our door, asking us for a solution, given our leading track record in instant pay for the gig economy space. We are actively working to build payroll and time and attendance platform integrations to deliver on this massive market opportunity. Turning to slide five. The first quarter was another record for revenue and GDV, both up 43% and 46% year-over-year, respectively. Our revenue and GDV growth continues to outpace our user growth, which demonstrates that Payfare is winning additional wallet share with our users. Slide six. Slide six highlights our user growth, which was up 34% year-over-year and in line with expectations we communicated on our last conference call of mid-single-digit quarter-over-quarter growth levels. Our second quarter user growth reflects normal seasonality in the gig economy, which has been echoed by each of our current partners in their second quarter earnings releases. Each partner has also reiterated plans for worker expansion in the back half of the year, which we believe is a positive tailwind for Payfare's user growth potential through year-end. The macro backdrop continues to be positive for gig worker supply, and we saw healthy gains across the board in the second quarter. With that, I will turn it over to Charles to review our Q2 financials. Thanks, Marco. Good, good morning, everyone. Turning to slide seven, we generated record revenue of $46.5 million, up 43% year-over-year. This increase was primarily driven by ongoing marketing initiatives and organic growth in each of our programs with DoorDash, Lyft, and Uber. Gross profit in the second quarter was also a record $11.1 million at a 24% margin. Gross profit dollars were up 74% year-over-year and up 19% from the prior quarter. Our gross margin primarily benefited from volume-based pricing improvements with our higher active user base and GDV volumes. We continued to significantly expand adjusted EBITDA, which was $4.8 million in Q2, up $4.2 million year-over-year, and achieved a record margin of 10.2%. As we grew our users and GDV in the quarter, we realized benefits in vendor pricing and scale. This was slightly offset by additional hiring in the quarter to deliver on new contract wins and product enhancements for existing partners this year, which we believe will drive long-term EBITDA and cash flow growth. I'd like to take a moment to highlight free cash flow growth in Q2. Our operating cash flow before non-cash working capital adjustments was a record $4.2 million in the quarter. This was primarily offset by a temporary increase in non-cash working capital consumption of $2.2 million. From time to time, our working capital fluctuates based on the timing of our big platform partners funding their MFA accounts with our banking partner. This will reverse over time, over the balance of the year, and on a full year basis, our free cash flow generation should continue to closely track our adjusted EBITDA after CapEx investments. As a free cash flow positive company, we are not dependent on external financing to operate our business and our current and prospective partners, as they evaluate the financial condition of their vendors, they can rest assured that Payfare will be there for the long term despite a challenging fundraising environment. On slide eight, we summarize our current financial condition. We ended the quarter with $52 million in cash. Our financial condition is strong. We have minimal capital needs to fund our organic growth opportunities as our core business is self-financing. Our balance sheet is well capitalized, and we continue to remain debt-free. We are well positioned to deploy capital to grow our business. I'll now turn it over to Cihan for a capital markets update. Thank you, Charles. Let's, let's flip to slide nine. This is the 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 42% over this period, despite elevated market volatility seen over the last 12 months. Payfare has seen best-in-class share price performance for technology companies that IPO'd in 2021 in both Canada and the U.S.. This outperformance is a direct function of achieving positive adjusted EBITDA generation, positive free cash flow generation, and positive earnings while exceeding guidance. Slide 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. All forward-looking information reflects analyst consensus estimates and our 2023 revenue and adjusted EBITDA guidance. While we can't control market multiples, we have levers to pull to close the valuation gap with our peers. The first lever is expanding on adjusted EBITDA, cash flow and earnings profitability, which we expect to continue in 2023. The second lever is expanding our big platform partnerships. As Marco mentioned, we successfully won 2 RFPs in the second quarter. Third lever is new products. We are well on our way to launch an overdraft product for our current programs, which should maintain our momentum and increasing penetration with our partners. Our share price performance this year has also expanded our opportunity set to deploy capital strategically. 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. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press the star followed by the one on your telephone keypad. You will hear a three tone prompt acknowledging your request. Questions will be taken in the order received. Should you wish to cancel your request, please press the star followed by the two. Once again, that is star and one to ask a question. One moment, please, for your first question. Thank you. Your first question comes from the line of Hal Goetsch from B. Riley Securities. Please go ahead. Let me get a few on what other you can use to see your volume-based discounts on your profit? You showed tremendous in this quarter. Just wanted to get your perspective on how that might continue and what are the gating factors to that? Hal, apologies. You came in a little bit, choppy there. If you could please, repeat, your question. Certainly. wanted to get your perspective on the volume-based discounts, and is there any additional visibility you can share with other volume points you might hit later on in, in the year, in 2024, 2025? Hey, Charles. Sorry. Yep, Hal, I, I can take that. Thanks for your question, Hal. So Hal, in terms of additional kind of volume tiers, we definitely have them with all of our major vendors on the COGS side. In terms of when we will hit them during 2023 and 2024 and beyond, you know, we definitely will hit, you know, some additional tiers later this year. The forecast is for 2024 and beyond that we would hit the upper tiers as well, which where we would benefit from additional savings. You know, one thing to kind of note is that in addition to our existing kind of agreements and our existing terms and levels, we continue to work with our vendors to extract the maximum benefits for us from a COGS perspective as well. Over and above, legal agreements or amendments that have been made, there's always an opportunity for additional savings that we can negotiate as we continue to grow our base and our GDV volumes. Okay, great. If I could ask one, one follow-up, could you just give us a perspective on the work that's going to go into ex- leveraging the Payfare platform and the earned wage access to integrate into, the payroll company, and the employers that want to offer this to their employees? Thanks. Hey, Hal, it's Marco. Thanks for the questions. Yeah, I would say the vast majority of the technology we have today, if that's what you meant from a technology perspective, will be utilized for that. At its core, we have the digital banking app, which for us, you know, we've taken the white label solution, converted that into the Paid App. The Paid App is now going to be used on both sides, the EWA side as well as the gig side. On the consumer-facing front, the vast majority of the technology is there. It's just when we're talking EWA, there's obviously some time and attendance and, and payroll integrations that we need to accommodate both the view of what they've earned, as well as being able to make sure we get repaid back any advances that go out, so more on the payroll side. I think, yeah, there's not much CapEx there required even to do the latter, in terms of integrations with time and attendance platforms. Each one will probably take, you know, anywhere from three to five weeks, would be our best guess, but we'll do that on a customer by customer basis, depending on where those payroll, platforms reside within that employer or which employer has which payroll platform or time and attendance platform needed. We're talking about a long kind of grind to kind of get there one platform at a time. Like we've mentioned before, our path is still looking at different targets through M&A and finding out or finding some of those EWA players that have all the integrations done for us, where we can ingest that plumbing. All right, terrific. That sounds great. Thank you very much. I look forward to talking to you. Thanks, Hal. Thank you. Your next question comes from the line of Joseph Vafi from Canaccord. Please go ahead. Yeah, good morning. Nice to see the continued good results, so congratulations on that. Maybe just we start on GDV growth here, another nice gain. Maybe you could parse out a little more color here on, you know, how you look at that in, you know, a customer add contribution versus, you know, I guess per user spend or revenue, driving the GDV growth. Then I'll have a quick follow-up. Hey, Joe, it's Charles. Thank you again for your question. In terms of GDV breakdown, Joe, obviously, you know, at NDNA, we don't really break it down by program, but I can provide a little bit of color that might help answer your question. In that, you know, one of the positives that we've kind of noted in 2023 is the growth of our Lyft business as well. Obviously, our Lyft user base was hit pretty hard during COVID time, and we're happy to report that we, we've gone to pre-COVID levels by the end of last year, and we continue to see growth in that program. What's typical or different about Lyft relative to, let's say, a DoorDash, is the typical Lyft driver tends to earn more money and puts more money on their card as a result. That would be kind of a direct driver of kind of GDV growth per user. If you look at it from that perspective, that will ultimately lead to additional revenues as well. To the extent that our Lyft business continues to grow, and, you know, we roll that out in terms of a relaunch of that program, we expect to see a healthy growth in, on the top line on both GDV and the resulting revenue from that as well. Great. Thanks, Charles. Then just maybe one follow-up here. I know, Marco, you mentioned an overdraft product, which makes sense. Could you maybe drill down a little bit more in, in the rollout strategy, on the rollout, how you may market it to the user base, and then, you know, what it may mean for margins and the P&L? Thanks a lot. Thanks, Joe. Yeah, I, you know, the white label side of things where we're offering overdraft, we'll call it the existing gig platform partners, would probably want a product that's not really, you know, offering this as a tool to kind of, you know, meaningful revenue from. It's more to incentivize and, and motivate their, you know, best-performing workers out there. So from that perspective, we think it'll mainly benefit us from increased penetration into adoption of the product, or the DasherDirect app or Lyft Direct app, if you will, as an example. Over and above that, overdraft on the Paid App side would be something we could definitely monetize and probably, you know, have a different, a different view on what the ultimate goal is, in seek of, you know, high margins. We're not looking to, you know, kind of take advantage, if you will, of any other cardholders that are out there. This is something that's meant to be a product where we're trying to innovate and offer something that we think will be super compelling at a very reasonable offering or price point, where they otherwise wouldn't get it through any of our traditional clients or institutions that they might be dealing with. So on the Paid App side, I would say there's a lot more room for margin, where the goal there would be more of a, a loan performance kind of view, as opposed to some of our white label partners that would want, you know, more of a retention and, you know, the loyalty back to their main or top-performing gig workers that are out there. Different view on things, but ultimately, I think it boosts the profile of not only the adoption of the product across the gamut, whether it's white label or through the Paid App, but ultimately the margin expansion will definitely come more from the Paid App side than the white label solution. Sure. That makes sense. Thanks for that color, Marco, and again, nice results. Thanks, Joe. Thank you. Your next question comes from the line of Adir Kapadia from Eight Capital. Please go ahead. Hey, good morning, guys, and let me add my congratulations on the quarter, just solid execution. I wanted to ask on the two RFP wins. I understand the private label partnership. Can you unpack the embedded finance portion of it? I didn't quite understand that. Thanks. Yeah, I, good morning, Adir. Thanks for the question. The way the embedded finance piece, there's, you know, certain customers or potential customers in the pipeline that don't want a separate app to deal with. They'd rather have an integrated solution within their own app or native to their own app. It reduces a lot of friction. It reduces a ton of different flows that, that are likely unnecessary if you had it all embedded within the same app. Ultimately, it's the exposure that they want through their own app. 100% of the user base will see it, whereas if you break that apart and create a separate app, you know, the chances of that diminish. A lot of interest in terms of the RFPs we're seeing and some of the ones that are deeper along in the process in our sales pipeline are, are requesting embedded finance, and it's certainly gaining a lot of traction, and we definitely see the need for it. For us, it's just changing where the user interfaces with us. You know, from what we're seeing, early days, obviously it makes a lot of sense when you can be directly embedded within an app. The exposure and, you know, related penetration gets a lot greater. We need to have both. We need to equip, you know, ourselves with everything in order to make that, those platforms or potential customers, more of a, an easy layup kind of decision when it comes to getting involved and then kind of rolling out these programs. Having that in our arsenal is definitely gonna help us going forward. Understood. Then from, call it, a margin profile, would we kind of see any maybe degradation to the margins as this program ramps outside of, like, you know, marketing costs o r some of the extra personnel you've had to hire, a s the program really starts to ramp? Hey, Adir, it's Charles. I can answer that. What I would say right now, Adir, is from a modeling perspective for the two RFPs that we outlined in our MD&A, you know, we're still working out the details. Obviously, in the coming months, we'll share some more details in terms of how we're forecasting that and their contributions to kind of the bottom line, both on the gross margin side and on the adjusted EBITDA side. I would just say, be patient, and we'll share more details as they come, but we're still working through those details right now. Understood. I'm just gonna sneak one last one in here. You know, we've seen the DoorDash program really start to ramp significantly after you had announced it. Do you guys have a kind of like a timeline to that 10%-15% user penetration number? Would it be similar to the strong ramp we've seen in the past with the DoorDash program, or would it kind of take a little bit longer? Just any color around that would be super helpful. Yeah, I think, you know, for forecasting into the future, we would like all of our ramps, new ramps to mimic what happened with DoorDash as well. That's obviously the model that we are looking to follow and execute on. Yeah, that's our hope. You know, in some cases there, it may take a little bit more time to do the ramp, Adir. You know, we'll kind of wait and see, but all efforts are gonna be, put into kind of executing the same way we did on the DoorDash side of things, and hopefully get similar success as well. Awesome. Thanks a lot, guys. I'll pass the line. Thank you. Once again, should you have a question, please press star then the number one on your telephone keypad. Your next question comes on the line with Josh Siegler from Cantor Fitzgerald. Please go ahead. Hey, team, this is Will Carlson on for Josh Siegler. First question, how have you been effectively deploying marketing spend to lower your customer acquisition costs and higher LTV? How do you see this trending throughout the remainder of the year? Hey, Will, it's Charles. Thanks for your question. In terms of marketing spend, well, what I would say is that it is kind of we work in partnership with our customers or partners to kind of roll out various programs throughout the year. The second half of the year is probably gonna be a busy one for us in that, you know, our partners have said, even in their publicly released results and commentary, that, you know, they're looking to invest more in the second half of the year in terms of customer acquisition and retention. To the extent that we participate to a certain extent in that process, you know, there may be some elevated levels of marketing, but nothing that would be historically off from a% of revenue perspective, is what I would say. If there's a specific opportunity that's presented to us that we feel will have an outsized kind of return, we would definitely make that investment every single time. Great. Thanks for the color. Then second question, could you possibly walk us through the process of being selected for these two RFPs? Do you expect these programs to act as a launch point for future embedded offerings moving forward? I can take that. Thanks, Will. embedded finance seems to be a big shift where, you know, not only people are recognizing that earned wage access is here to stay, a lot of them are looking at it as a crucial cornerstone anchor of their product offering to the marketplace, whether it's the gig side and even on the payroll side. I think embedded finance is, is gonna be a big part of what's happening over the next, you know, few years. Naturally, the answer would be yes. I can't see it going away. I don't think this is a one-off, you know, we're seeing a lot of activity around a lot of different companies, looking at integrating it directly, given how impactful it is and what they've seen in the marketplace through our wonderful products. As far as these RFP processes, pretty standard. I think a lot of it, you know, I will say comes, you know, It's no surprise to anyone, we have a Salesforce team of two. We get a lot of inbound interest with very little effort, just given who we are and how we're in the payments ecosystem. A lot of the referrals, you know, have them directed towards us, just given the traction and success, and leadership in the space. It usually starts off with a very boring introduction. Then within there, they're obviously gonna do their efforts to kind of bring in some other players just to make sure, they've selected the best vendor possible. In many ways, we have a very good head start going into the process. Certainly once we're involved and they find out more, and they see how innovative and how much success and the volumes we're doing, relative pricing, all those great things that make us who we are, it certainly shines. There's not too many formal RFP processes we go through, but so far, the hit rate has been, you know, exceptional. We have a slew of other RFPs that we're looking at. We also have dozens of inbounds that have requested access to the Paid App, which is also gonna keep us quite busy for the second half of the year. Great. Really appreciate the color, guys, and congrats on the quarter. Thanks, Will. Thank you. Your next question comes from the line of Stephen Boland from Raymond James. Please go ahead. Hey, good morning. First question, Marco, is, you know, the relationship with Marqeta. I'm just wondering if, you know, it's not something that's been, talked about, I think, in a two or three quarters. Maybe you could just, talk about it. Is there any progression with the partnership? You know, has it borne any fruit yet? Is that still to come? Maybe just give a little bit of an update on that. I t's still to come, Steve. Sorry, morning, Steve. It's still to come, but there's still aspects of Marqeta that, that handles certain processing capabilities that, you know, other vendors might not. That's where we see, you know, a fit. It's not to say that we wouldn't partner with them on, you know, things that they would bring to us, or certainly certain items that we need certain capabilities on, or we would go to them. So it's still there. There hasn't been an immediate need to utilize some of their infrastructure just yet. But there's so much opportunity in the pipe that I'm sure at some point that would make sense. Outside of just having another second processor in the mix to make sure that we have every aspect of processing capabilities covered and geography as well, you know, that partnership is still there. It'll be there for quite some time. Okay. And maybe my second question, hopefully this is not too delicate, but certainly we, we get calls from, from, you know, investors about your, your share sales in the market. I know it's a program. You know, I guess, you know, we are getting questions about, you know, is this an ultimate, you know, that you're still committed to the company for a good portion? You know, I don't know how much color you can give, but if you could provide a little bit, that would be great, just to see, you know, what's happening there. No problem at all, Steve. Yeah, happy to talk about that. It 's not a Payfare issue, certainly. I mean, the numbers speak for themselves. We're feeling incredibly bullish on what we see. I've also put, you know, well over $1 million into the stock at higher prices, just a few months ago. The awkwardness is, it's not a Payfare related issue. It's more of a Marco Margiotta personal situation. I have $1.2 million or so to exercise in options before the end of the year, with minimal trading windows from here to there. With minimal, you know, volumes, I don't want to kind of wait till the end, because that might put pressure. I'm slowly trying to build up cash so that by the end of the year, I can exercise those CAD 1.2 million of options. Yeah, it's sticking to me, but it is what it is. I can't frown upon it. We just got to keep executing, and I do believe in the past where, you know, eventually these numbers will pan out and get us the higher share price we're all after. Okay. I appreciate that, Marco. Thanks very much, guys. No problem. Thank you. At this time, please consider question and answer session. Ladies and gentlemen, let us consider conference for today. Thank you for participating. You may all disconnect.