Will Payfare break even in Q4 or Q1?

  On November 10 Payfare will announce it's Q3 results.Analysts predict that it will show substantial gains in both active user growth and revenues.But when will it break even?

 Payfare is a junior technology company that handles digital payments for the GIG economy.And it has experienced outstanding growth in revenues since 2019 but can revenues grow fast enough to exceed expenses?In other words,will it break even in Q4  of 2022 or Q1 of 2023?Payfare will tell investors on November10 how  close they are to break even in Q3.But before this announcement PAY told investors that it's active user growth has increased by 155% over Q3 of 2021.And it's revenues are $12.7 million in Q3.This is up 286% over Q3 2020 and 45% over Q3 2021.Furthermore it is recording a gross profit margin increase of 5% in Q3.                                                                                                               It is still difficult to get figures or even estimates on net income for the year.A website called Tradingview estimates that there will be a net loss of more than $10 million for 2022 compared to a net loss of $22 million in 2021.This computes to a loss on average of $2.5 million for each quarter.But this blog sees that revenues will  climb every quareter and expenses will be fairly stable.If that is true then PAY will likely only have a small loss in Q4.Payfare may not  be close to breakeven for the year but approaching it for Q4.So with continued improvement it may be at breakeven status (or close to it) for the Q1 of 2023.

     What about it's Share Price?

   Payfare has drifted lower gradually since the first of the year;it was trading at that time in the $8-$9 range.In fact, it drifted down to $3.80 in June.Now it is trading in the $4.50-$5.75 price range.This blog feels that investors are gradually seeing "breakeven" of it's business model.PAY is sketchy on it's net income data but this blog estimates that it will approach breakeven in Q4 and maybe have a small net income or net loss in Q1 of 2023.This however may only keep PAY in the $5-$6 price range.As mentionned in another blog on Wordpress (Blogdaleup) Payfare has done well with it's partner/customer arrangement with Doordash and needs another partner/customer like Grubhub to get to $7.50-$8.00 price.

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