Expensify Announces Q2 2024 Results
Expensify (EXFY) reported Q2 2024 results, showing mixed performance. While revenue decreased 14% year-over-year to $33.3 million, the company saw significant improvements in other areas. Interchange from the Expensify Card grew 48% to $4.0 million. Cash from operating activities surged to $9.3 million, with free cash flow reaching $5.7 million.
The company launched several key initiatives, including the new Expensify Card program, with 34% of spend already migrated to new cards. The 'New Expensify' platform went live, expected to generate revenue in Q3. Expensify also introduced its travel management platform and achieved a critical technical milestone with its hybrid app launch.
Despite a 8% decrease in paid members to 684,000, Expensify remains optimistic about future growth, citing its partnership with Apple for product placement in an upcoming major film release in June 2025.
Expensify (EXFY) ha riportato i risultati per il secondo trimestre del 2024, mostrando prestazioni miste. Sebbene le entrate siano diminuite del 14% rispetto all'anno precedente, raggiungendo i 33,3 milioni di dollari, l'azienda ha registrato miglioramenti significativi in altre aree. Le commissioni intercambiabili della Expensify Card sono aumentate del 48% a 4,0 milioni di dollari. Il flusso di cassa dalle attività operative è salito a 9,3 milioni di dollari, con un flusso di cassa libero che ha raggiunto 5,7 milioni di dollari.
L'azienda ha lanciato diverse iniziative chiave, incluso il nuovo programma della Expensify Card, con il 34% delle spese già migrate alle nuove carte. La piattaforma 'New Expensify' è stata attivata, con aspettative di generare entrate nel terzo trimestre. Expensify ha anche introdotto la sua piattaforma di gestione dei viaggi e ha raggiunto un traguardo tecnico critico con il lancio della sua app ibrida.
Nonostante una diminuzione dell'8% nei membri paganti, scesi a 684.000, Expensify rimane ottimista riguardo alla crescita futura, citando la propria partnership con Apple per il posizionamento del prodotto in un prossimo grande film in uscita a giugno 2025.
Expensify (EXFY) reportó los resultados del segundo trimestre de 2024, mostrando un desempeño mixto. Aunque los ingresos disminuyeron un 14% en comparación con el año anterior, alcanzando los 33.3 millones de dólares, la compañía vio mejoras significativas en otras áreas. Las comisiones por el uso de la tarjeta Expensify crecieron un 48% a 4.0 millones de dólares. El flujo de efectivo de las actividades operativas se disparó a 9.3 millones de dólares, con un flujo de caja libre que alcanzó los 5.7 millones de dólares.
La compañía lanzó varias iniciativas clave, incluido el nuevo programa de la tarjeta Expensify, con el 34% del gasto ya migrado a las nuevas tarjetas. La plataforma 'New Expensify' se puso en marcha, y se espera que genere ingresos en el tercer trimestre. Expensify también presentó su plataforma de gestión de viajes y logró un hito técnico crítico con el lanzamiento de su aplicación híbrida.
A pesar de una disminución del 8% en los miembros de pago, que ahora son 684,000, Expensify se mantiene optimista sobre el crecimiento futuro, citando su asociación con Apple para el posicionamiento del producto en una próxima película importante que se estrenará en junio de 2025.
Expensify (EXFY)는 2024년 2분기 실적을 보고하며 혼합된 성과를 보여주었습니다. 수익이 전년 대비 14% 감소하여 3,330만 달러에 도달했지만, 회사는 다른 분야에서 상당한 개선을 보았습니다. Expensify 카드의 교환 수수료는 48% 증가하여 400만 달러에 달했습니다. 운영 활동에서 발생한 현금이 930만 달러로 급증했으며, 자유 현금 흐름은 570만 달러에 도달했습니다.
회사는 새로운 Expensify 카드 프로그램을 포함한 여러 주요 이니셔티브를 출시했으며, 34%의 지출이 이미 새로운 카드로 이전되었습니다. 'New Expensify' 플랫폼이 가동되었으며 3분기에 수익을 창출할 것으로 예상됩니다. Expensify는 또한 여행 관리 플랫폼을 도입하고 하이브리드 앱 출시에 대한 중요한 기술 이정표를 달성했습니다.
유료 회원 수가 8% 감소하여 684,000명에 이르렀음에도 불구하고 Expensify는 향후 성장에 대해 낙관적이며, 2025년 6월에 개봉될 예정인 주요 영화에서 제품 배치를 위해 Apple과의 파트너십을 언급하고 있습니다.
Expensify (EXFY) a publié ses résultats du deuxième trimestre 2024, montrant des performances mitigées. Bien que le chiffre d'affaires ait diminué de 14 % par rapport à l'année précédente pour atteindre 33,3 millions de dollars, l'entreprise a constaté des améliorations significatives dans d'autres domaines. Les recettes interchangeables de la carte Expensify ont augmenté de 48 % pour atteindre 4,0 millions de dollars. La trésorerie provenant des activités opérationnelles a bondi à 9,3 millions de dollars, avec un flux de trésorerie libre atteignant 5,7 millions de dollars.
L'entreprise a lancé plusieurs initiatives clés, y compris le nouveau programme de carte Expensify, avec 34 % des dépenses déjà transférées vers les nouvelles cartes. La plateforme 'New Expensify' a été mise en service, avec des prévisions de génération de revenus au troisième trimestre. Expensify a également lancé sa plateforme de gestion des voyages et a atteint un jalon technique critique avec le lancement de son application hybride.
Malgré une diminution de 8 % des membres payants, qui sont maintenant 684 000, Expensify reste optimiste quant à la croissance future, citant son partenariat avec Apple pour le placement de produit dans un prochain grand film qui sortira en juin 2025.
Expensify (EXFY) hat die Ergebnisse für das zweite Quartal 2024 veröffentlicht, die eine gemischte Leistung zeigen. Während die Einnahmen im Vergleich zum Vorjahr um 14% auf 33,3 Millionen Dollar sanken, verzeichnete das Unternehmen erhebliche Verbesserungen in anderen Bereichen. Die Interchange-Einnahmen von der Expensify-Karte stiegen um 48% auf 4,0 Millionen Dollar. Der Zahlungsmittelzufluss aus den betrieblichen Tätigkeiten sprang auf 9,3 Millionen Dollar, während der freie Cashflow 5,7 Millionen Dollar erreichte.
Das Unternehmen hat mehrere wichtige Initiativen gestartet, darunter das neue Expensify-Kartenprogramm, bei dem bereits 34% der Ausgaben auf neue Karten umgestellt wurden. Die 'New Expensify'-Plattform ging online und soll im dritten Quartal Einnahmen generieren. Expensify stellte auch seine Reiseverwaltungsplattform vor und erreichte einen entscheidenden technischen Meilenstein mit dem Start seiner hybriden App.
Trotz eines Rückgangs von 8% bei den zahlenden Mitgliedern auf 684.000 bleibt Expensify optimistisch hinsichtlich des zukünftigen Wachstums und verweist auf die Partnerschaft mit Apple für die Produktplatzierung in einem bevorstehenden großen Filmstart im Juni 2025.
- Interchange from Expensify Card grew 48% year-over-year to $4.0 million
- Cash from operating activities increased to $9.3 million
- Free cash flow reached $5.7 million
- New Expensify Card program launched with 34% of spend already migrated
- Introduced travel management platform expected to generate new revenue stream in Q3
- Secured partnership with Apple for product placement in major film release in June 2025
- Revenue decreased 14% year-over-year to $33.3 million
- Net loss of $2.8 million reported for the quarter
- Paid members decreased 8% year-over-year to 684,000
Insights
Expensify's Q2 2024 results paint a mixed picture. While revenue declined
However, the 8% decrease in paid members to 684,000 is concerning and may explain the revenue decline. The transition to the new Expensify Card program and the launch of New Expensify could be disruptive in the short term but may drive growth if executed well. The upcoming product placement in Apple's high-budget film could significantly boost brand awareness, potentially leading to user acquisition in 2025.
Expensify's technological advancements are impressive. The launch of the hybrid app is a significant milestone, allowing seamless migration between Classic and New Expensify. This approach minimizes disruption for existing users while enabling the rollout of new features. The introduction of Expensify Travel marks their entry into a new market segment, potentially diversifying revenue streams.
The company's return to conference circuits with New Expensify demos suggests confidence in their product evolution. Integration with major accounting software like QuickBooks Online and Xero on the new platform is important for maintaining and expanding their user base. However, the success of these initiatives will depend on user adoption rates and the stability of the new platform during the transition period.
Expensify's strategic pivot towards a payments superapp model is ambitious but faces challenges. The stabilization of core business metrics is positive, but the revenue decline suggests ongoing market pressures. The company's focus on the Expensify Card as a growth driver is showing promise with the 48% YoY increase in interchange revenue.
The upcoming product placement in Apple's F1 movie could be a game-changer for brand visibility, potentially attracting a broader consumer base. However, the effectiveness of this high-profile marketing strategy remains to be seen. The launch of Expensify Travel indicates a move towards diversification, which could help offset declines in core expense management revenue if successful. Investors should watch closely for user adoption rates of new features and the impact on revenue in coming quarters.
Interchange derived from the Expensify Card grew to
A Message From Our Founder
I'm extremely pleased with how well Q2 has extended Q1's achievements and improved upon them further:
-
Our core business has been stabilize, with increasing cash flow. Revenue and paid users are within
1% of last quarter – with quarterly interchange, operating cash flow, and free cash flow up14% ,168% and10% (48% , 2,247% and399% y/y), respectively. -
The new Expensify Card program is live. Most active Expensify Card customers have already adopted the new program, and
34% of spend has already migrated to the new cards we've mailed out – which earns us20% more interchange, and contributes directly to revenue. We are well on the way to our target of100% adoption by EOY. - New Expensify is live. We have returned to the conference circuit after a multi-year absence, with all messaging and demos focused exclusively on New Expensify. Development is no longer solely core development and now includes pipeline optimizations, and New Expensify is expected to add new revenue in Q3. We continue to make brisk progress on the combined business/consumer superapp experience in anticipation of our extremely visible product placement within Apple TV's biggest budget movie ever, scheduled to be in theaters June 2025.
- Hybrid app is live. This is an incredibly difficult and important technical milestone that allows us to upgrade existing apps deployed on millions of devices worldwide in order to switch interchangeably between New Expensify and Expensify Classic. This is a critical tool for seamlessly migrating existing customers on a selective basis to the new experience, while allowing existing customers with classic functionality that has not yet been updated to remain on their existing experience. The hybrid app is being rolled out globally.
- Expensify Travel is live. We have launched our travel product to new and existing customers, and is expected to generate an entirely new revenue stream of travel bookings in Q3.
This quarter did a fantastic job laying a clear foundation for future growth, and the excitement inside our (virtual) halls is palpable. Hit me up at our booth at Xerocon or SuiteWorld to see the New Expensify pitch in person!
-david
Founder and CEO of Expensify
Second Quarter 2024 Highlights
Financial:
-
Revenue was
, a decrease of$33.3 million 14% compared to the same period last year. -
Generated
cash from operating activities.$9.3 million -
Free cash flow was
.$5.7 million -
Net loss was
, compared to$2.8 million for the same period last year.$11.3 million -
Non-GAAP net income was
.$5.6 million -
Adjusted EBITDA was
.$10.2 million -
Interchange derived from the Expensify Card grew to
, an increase of$4.0 million 48% compared to the same period last year. - See Financial Outlook section for Free Cash Flow guidance for fiscal year ending December 31, 2024.
Business:
-
Paid members - Paid members were 684,000, a decrease of
8% from the same period last year. -
New Expensify Card program - The majority of active Expensify Card customers began transitioning to the new program, with
34% of spend migrated by end of Q2. - New Expensify - The company began supporting businesses on New Expensify that is expected to generate revenue beginning in Q3 2024.
- New Integrations - Expensify launched integrations with QuickBooks Online and Xero on New Expensify, a major milestone to support customers on the new platform.
- Sales and marketing - The company announced a partnership with Apple for lead product placement in Apple's largest feature film investment ever, F1, set to release in June 2025.
- Corporate travel - The company returned to the travel conference circuit to demo Expensify Travel — its corporate travel management platform built for the midsized and small-cap enterprise market — at GBTA, the world's foremost corporate travel event.
Financial Outlook
Expensify's outlook statements are based on current estimates, expectations and assumptions and are not a guarantee of future performance. The following statements are forward-looking and actual results could differ materially depending on market conditions and the factors set forth under “Forward-Looking Statements” below. There can be no assurance that the Company will achieve the results expressed by this guidance.
Free Cash Flow
Expensify estimates Free Cash Flow of
The Company does not provide a reconciliation for free cash flow estimates on a forward-looking basis because it is unable, without making unreasonable efforts, to provide a meaningful or reasonably accurate calculation or estimation of net cash provided by operating activities and certain reconciling items on a forward-looking basis, which could be significant to the Company's results.
Stock Based Compensation
An estimate of expected stock-based compensation for the next four fiscal quarters is as follows, which is driven primarily by the pre-IPO grant of RSUs issued to all employees (which vest quarterly over eight years with approximately five years remaining).
Est. stock-based compensation (millions) |
|||||||||||||||||||||||
|
Q3 2024 |
Q4 2024 |
Q1 2025 |
Q2 2025 |
|||||||||||||||||||
|
Low |
High |
Low |
High |
Low |
High |
Low |
High |
|||||||||||||||
Cost of revenue, net |
$ |
2.4 |
$ |
3.1 |
$ |
2.3 |
$ |
3.0 |
$ |
2.2 |
$ |
2.9 |
$ |
1.9 |
$ |
2.6 |
|||||||
Research and development |
|
3.2 |
|
4.0 |
|
3.1 |
|
3.9 |
|
2.9 |
|
3.7 |
|
2.5 |
|
3.3 |
|||||||
General and administrative |
|
1.2 |
|
1.5 |
|
1.2 |
|
1.5 |
|
1.1 |
|
1.4 |
|
1.0 |
|
1.3 |
|||||||
Sales and marketing |
|
0.5 |
|
0.7 |
|
0.5 |
|
0.7 |
|
0.4 |
|
0.6 |
|
0.4 |
|
0.6 |
|||||||
Total |
$ |
7.3 |
$ |
9.3 |
$ |
7.1 |
$ |
9.1 |
$ |
6.6 |
$ |
8.6 |
$ |
5.8 |
$ |
7.8 |
|||||||
|
|
|
|
|
|
|
|
|
Availability of Information on Expensify’s Website
Investors and others should note that Expensify routinely announces material information to investors and the marketplace using SEC filings, press releases, public conference calls, webcasts and the Expensify Investor Relations website at https://ir.expensify.com. While not all of the information that the Company posts to its Investor Relations website is of a material nature, some information could be deemed to be material. Accordingly, the Company encourages investors, the media and others interested in Expensify to review the information that it shares on its Investor Relations website.
Conference Call
Expensify will host a video call to discuss the financial results and business highlights at 2:00 p.m. Pacific Time today. An investor presentation and the video call information is available on Expensify’s Investor Relations website at https://ir.expensify.com. A replay of the call will be available on the site for three months.
Non-GAAP Financial Measures
In addition to financial measures prepared in accordance with
We believe our non-GAAP financial measures are useful in evaluating our business, measuring our performance, identifying trends affecting our business, formulating business plans and making strategic decisions. Accordingly, we believe that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating our results of operations in the same manner as our management team. These non-GAAP financial measures are presented for supplemental informational purposes only, should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from similarly titled metrics or measures presented by other companies. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as substitutes for financial information presented under GAAP. There are a number of limitations related to the use of non-GAAP financial measures versus comparable financial measures determined under GAAP. For example, other companies in our industry may calculate these non-GAAP financial measures differently or may use other measures to evaluate their performance. All of these limitations could reduce the usefulness of these non-GAAP financial measures as analytical tools. Investors are encouraged to review the related GAAP financial measures and the reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures and to not rely on any single financial measure to evaluate our business. A reconciliation of each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP is at the end of this press release.
Adjusted EBITDA. We define adjusted EBITDA as net loss from operations excluding provision for income taxes, interest and other expenses, net, depreciation and amortization, and stock-based compensation.
Non-GAAP net income. We define non-GAAP net income as net loss from operations excluding stock-based compensation.
Free cash flow. We define Free cash flow as net cash provided by operating activities excluding changes in settlement assets and settlement liabilities, which represent funds held for customers and customer funds in transit, respectively, reduced by the purchases of property and equipment and software development costs.
The tables at the end of the Condensed Consolidated Financial Statements provide reconciliations to the most directly comparable GAAP financial measure to each of these non-GAAP financial measures.
Forward-Looking Statements
Forward-looking statements in this press release, or made during the earnings call, which are not historical facts, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1955. These statements include statements regarding our strategy, future financial condition, future operations, future cash flow, projected costs, prospects, plans, objectives of management and expected market growth, product developments and their potential impact and our stock-based compensation estimates and involve known and unknown risks that are difficult to predict. As a result, our actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “shall,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” “goal,” “ambition,” “objective,” “seeks,” “outlook,” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans, or intentions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: the impact on inflation on us and our members; our borrowing costs have and may continue to increase as a result of increases in interest rates; our expectations regarding our financial performance and future operating performance; our ability to attract and retain members, expand usage of our platform, sell subscriptions to our platform and convert individuals and organizations into paying customers; the timing and success of new features, integrations, capabilities and enhancements by us, or by competitors to their products, or any other changes in the competitive landscape of our market; the amount and timing of operating expenses and capital expenditures that we may incur to maintain and expand our business and operations to remain competitive; the sufficiency of our cash, cash equivalents and investments to meet our liquidity needs; our ability to make required payments under and to comply with the various requirements of our current and future indebtedness; our cash flows, the prevailing stock prices, general economic and market conditions and other considerations that could affect the specific timing, price and size of repurchases under our stock repurchase program or our ability to fund any stock repurchases; geopolitical tensions, including the war in
About Expensify
Expensify is a payments superapp that helps individuals and businesses around the world simplify the way they manage money. More than 12 million people use Expensify's free features, which include corporate cards, expense tracking, next-day reimbursement, invoicing, bill pay, and travel booking in one app. All free. Whether you own a small business, manage a team, or close the books for your clients, Expensify makes it easy so you have more time to focus on what really matters.
Expensify, Inc. |
|||||||
Condensed Consolidated Balance Sheets |
|||||||
(unaudited, in thousands, except share data) |
|||||||
|
|||||||
|
As of June 30, |
As of December 31, |
|||||
|
2024 |
2023 |
|||||
Assets |
|
|
|||||
Cash and cash equivalents |
$ |
53,234 |
|
$ |
47,510 |
|
|
Accounts receivable, net |
|
13,420 |
|
|
13,834 |
|
|
Settlement assets, net |
|
48,301 |
|
|
39,261 |
|
|
Prepaid expenses |
|
8,768 |
|
|
5,649 |
|
|
Other current assets |
|
32,044 |
|
|
30,978 |
|
|
Total current assets |
|
155,767 |
|
|
137,232 |
|
|
Capitalized software, net |
|
16,006 |
|
|
12,494 |
|
|
Property and equipment, net |
|
13,905 |
|
|
14,372 |
|
|
Lease right-of-use assets |
|
5,783 |
|
|
6,435 |
|
|
Deferred tax assets, net |
|
487 |
|
|
457 |
|
|
Other assets |
|
924 |
|
|
5,794 |
|
|
Total assets |
$ |
192,872 |
|
$ |
176,784 |
|
|
Liabilities and stockholders' equity |
|
|
|||||
Accounts payable |
$ |
1,022 |
|
$ |
1,425 |
|
|
Accrued expenses and other liabilities |
|
7,853 |
|
|
9,390 |
|
|
Borrowings under line of credit |
|
15,000 |
|
|
15,000 |
|
|
Current portion of long-term debt, net of original issue discount and debt issuance costs |
|
7,592 |
|
|
7,655 |
|
|
Lease liabilities, current |
|
461 |
|
|
432 |
|
|
Settlement liabilities |
|
38,877 |
|
|
33,990 |
|
|
Total current liabilities |
|
70,805 |
|
|
67,892 |
|
|
Lease liabilities, non-current |
|
6,118 |
|
|
6,467 |
|
|
Other liabilities |
|
1,949 |
|
|
1,681 |
|
|
Total liabilities |
|
78,872 |
|
|
76,040 |
|
|
Commitments and contingencies |
|
|
|||||
Stockholders' equity: |
|
|
|||||
Preferred stock, par value |
|
— |
|
|
— |
|
|
Common stock, par value |
|
9 |
|
|
8 |
|
|
Additional paid-in capital |
|
261,309 |
|
|
241,509 |
|
|
Accumulated deficit |
|
(147,318 |
) |
|
(140,773 |
) |
|
Total stockholders' equity |
|
114,000 |
|
|
100,744 |
|
|
Total liabilities and stockholders' equity |
$ |
192,872 |
|
$ |
176,784 |
|
Expensify, Inc. |
|||||||||||||||
Condensed Consolidated Statements of Operations |
|||||||||||||||
(unaudited, in thousands, except share and per share data) |
|||||||||||||||
|
|||||||||||||||
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||||||
|
2024 |
2023 |
2024 |
2023 |
|||||||||||
Revenue |
$ |
33,288 |
|
$ |
38,884 |
|
$ |
66,823 |
|
$ |
78,985 |
|
|||
Cost of revenue, net (1) |
|
14,363 |
|
|
16,925 |
|
|
28,947 |
|
|
32,700 |
|
|||
Gross margin |
|
18,925 |
|
|
21,959 |
|
|
37,876 |
|
|
46,285 |
|
|||
Operating expenses: |
|
|
|
|
|||||||||||
Research and development (1) |
|
6,389 |
|
|
5,094 |
|
|
12,318 |
|
|
10,512 |
|
|||
General and administrative (1) |
|
9,245 |
|
|
11,712 |
|
|
20,676 |
|
|
24,141 |
|
|||
Sales and marketing (1) |
|
3,072 |
|
|
14,714 |
|
|
6,456 |
|
|
23,897 |
|
|||
Total operating expenses |
|
18,706 |
|
|
31,520 |
|
|
39,450 |
|
|
58,550 |
|
|||
Income (loss) from operations |
|
219 |
|
|
(9,561 |
) |
|
(1,574 |
) |
|
(12,265 |
) |
|||
Interest and other expenses, net |
|
(260 |
) |
|
(1,367 |
) |
|
(1,214 |
) |
|
(2,783 |
) |
|||
Loss before income taxes |
|
(41 |
) |
|
(10,928 |
) |
|
(2,788 |
) |
|
(15,048 |
) |
|||
Provision for income taxes |
|
(2,723 |
) |
|
(376 |
) |
|
(3,757 |
) |
|
(2,201 |
) |
|||
Net loss |
$ |
(2,764 |
) |
$ |
(11,304 |
) |
$ |
(6,545 |
) |
$ |
(17,249 |
) |
|||
Net loss per share: |
|
|
|
|
|||||||||||
Basic and diluted |
$ |
(0.03 |
) |
$ |
(0.14 |
) |
$ |
(0.08 |
) |
$ |
(0.21 |
) |
|||
Weighted average shares of common stock used to compute net loss per share: |
|
|
|
|
|||||||||||
Basic and diluted |
|
86,593,955 |
|
|
82,011,477 |
|
|
85,867,683 |
|
|
81,890,624 |
|
|||
|
|
|
|
|
(1) Includes stock-based compensation expense as follows: |
|||||||||||
|
Three Months Ended June 30, |
Six months ended June 30, |
|||||||||
|
2024 |
2023 |
2024 |
2023 |
|||||||
Cost of revenue, net |
$ |
2,886 |
$ |
3,600 |
$ |
5,818 |
$ |
6,906 |
|||
Research and development |
|
3,144 |
|
2,455 |
|
5,894 |
|
4,661 |
|||
General and administrative |
|
1,703 |
|
2,376 |
|
3,405 |
|
5,020 |
|||
Sales and marketing |
|
648 |
|
1,910 |
|
788 |
|
3,758 |
|||
Total stock-based compensation expense |
$ |
8,381 |
$ |
10,341 |
$ |
15,905 |
$ |
20,345 |
|||
|
|
|
|
|
Expensify, Inc. |
|||||||
Condensed Consolidated Statements of Cash Flows |
|||||||
(unaudited, in thousands) |
|||||||
|
|||||||
|
Six Months Ended June 30, |
||||||
|
2024 |
2023 |
|||||
Cash flows from operating activities: |
|
|
|||||
Net loss |
$ |
(6,545 |
) |
$ |
(17,249 |
) |
|
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|||||
Depreciation and amortization |
|
3,053 |
|
|
2,789 |
|
|
Reduction of operating lease right-of-use assets |
|
273 |
|
|
334 |
|
|
Loss on impairment, receivables and sale or disposal of equipment |
|
537 |
|
|
402 |
|
|
Stock-based compensation expense |
|
15,905 |
|
|
20,345 |
|
|
Amortization of original issue discount and debt issuance costs |
|
28 |
|
|
49 |
|
|
Deferred tax assets |
|
(30 |
) |
|
(65 |
) |
|
Changes in assets and liabilities: |
|
|
|||||
Accounts receivable, net |
|
175 |
|
|
1,358 |
|
|
Settlement assets, net |
|
(7,876 |
) |
|
(5,244 |
) |
|
Prepaid expenses |
|
1,831 |
|
|
3,775 |
|
|
Other current assets |
|
1,838 |
|
|
(952 |
) |
|
Other assets |
|
(80 |
) |
|
(88 |
) |
|
Accounts payable |
|
(425 |
) |
|
632 |
|
|
Accrued expenses and other liabilities |
|
(1,105 |
) |
|
2,670 |
|
|
Operating lease liabilities |
|
54 |
|
|
(294 |
) |
|
Settlement liabilities |
|
4,887 |
|
|
(1,382 |
) |
|
Other liabilities |
|
268 |
|
|
128 |
|
|
Net cash provided by operating activities |
|
12,788 |
|
|
7,208 |
|
|
Cash flows from investing activities: |
|
|
|||||
Purchases of property and equipment |
|
— |
|
|
(479 |
) |
|
Software development costs |
|
(4,867 |
) |
|
(2,043 |
) |
|
Net cash used in investing activities |
|
(4,867 |
) |
|
(2,522 |
) |
|
Cash flows from financing activities: |
|
|
|||||
Principal payments of finance leases |
|
(63 |
) |
|
(404 |
) |
|
Principal payments of outstanding debt |
|
(75 |
) |
|
(8,300 |
) |
|
Payments for debt issuance costs |
|
(71 |
) |
|
— |
|
|
Repurchases of early exercised stock options |
|
(32 |
) |
|
(13 |
) |
|
Proceeds from common stock purchased under Matching Plan |
|
2,004 |
|
|
2,076 |
|
|
Proceeds from issuance of common stock on exercise of stock options |
|
53 |
|
|
125 |
|
|
Payments for employee taxes withheld from stock-based awards |
|
— |
|
|
(1,524 |
) |
|
Repurchase and retirement of common stock |
|
— |
|
|
(3,000 |
) |
|
Net cash provided by (used in) financing activities |
|
1,816 |
|
|
(11,040 |
) |
|
Net increase (decrease) in cash and cash equivalents and restricted cash |
|
9,737 |
|
|
(6,354 |
) |
|
Cash and cash equivalents and restricted cash, beginning of period |
|
96,658 |
|
|
147,710 |
|
|
Cash and cash equivalents and restricted cash, end of period |
$ |
106,395 |
|
$ |
141,356 |
|
|
Supplemental disclosure of cash flow information: |
|
|
|||||
Cash paid for interest |
$ |
903 |
|
$ |
2,912 |
|
|
Cash paid for income taxes |
$ |
2,439 |
|
$ |
2,251 |
|
|
Noncash investing and financing items: |
|
|
|||||
Stock-based compensation capitalized as software development costs |
$ |
1,561 |
|
$ |
1,399 |
|
|
Purchases of property and equipment and capitalized software in accounts payable and accrued expenses |
$ |
290 |
|
$ |
373 |
|
|
Right-of-use assets acquired through operating leases |
$ |
— |
|
$ |
6,402 |
|
|
Reconciliation of cash and cash equivalents and restricted cash to the Condensed Consolidated Balance Sheets |
|
|
|||||
Cash and cash equivalents |
$ |
53,234 |
|
$ |
97,795 |
|
|
Restricted cash included in other current assets |
|
30,591 |
|
|
20,986 |
|
|
Restricted cash included in settlement assets, net |
|
22,570 |
|
|
22,575 |
|
|
Total cash, cash equivalents and restricted cash |
$ |
106,395 |
|
$ |
141,356 |
|
|
|
|
|
Expensify, Inc. |
|||||||
Reconciliation of GAAP to Non-GAAP Financial Measures |
|||||||
(unaudited, in thousands, except percentages) |
|||||||
|
|||||||
Adjusted EBITDA and Adjusted EBITDA Margin |
|||||||
|
Three Months Ended June 30, |
||||||
|
2024 |
2023 |
|||||
Net loss |
$ |
(2,764 |
) |
$ |
(11,304 |
) |
|
Net loss margin |
|
(8 |
)% |
|
(29 |
)% |
|
Add: |
|
|
|||||
Provision for income taxes |
|
2,723 |
|
|
376 |
|
|
Interest and other expenses, net |
|
260 |
|
|
1,367 |
|
|
Depreciation and amortization |
|
1,590 |
|
|
1,376 |
|
|
Stock-based compensation |
|
8,381 |
|
|
10,341 |
|
|
Adjusted EBITDA |
$ |
10,190 |
|
$ |
2,156 |
|
|
Adjusted EBITDA margin |
|
31 |
% |
|
6 |
% |
|
|
|
|
Non-GAAP Net Income and Non-GAAP Net Income Margin |
|||||||
|
Three Months Ended June 30, |
||||||
|
2024 |
2023 |
|||||
Net loss |
$ |
(2,764 |
) |
$ |
(11,304 |
) |
|
Net loss margin |
|
(8 |
)% |
|
(29 |
)% |
|
Add: |
|
|
|||||
Stock-based compensation |
|
8,381 |
|
|
10,341 |
|
|
Non-GAAP net income (loss) |
$ |
5,617 |
|
$ |
(963 |
) |
|
Non-GAAP net income (loss) margin |
|
17 |
% |
|
(2 |
)% |
|
|
|
|
Adjusted Operating Cash Flow and Free Cash Flow |
|||||||||||
|
Three Months Ended June 30, |
Three Months Ended March 31, |
|||||||||
|
2024 |
2023 |
2024 |
||||||||
Net cash provided by (used in) operating activities |
$ |
9,317 |
|
$ |
(434 |
) |
$ |
3,471 |
|
||
Operating cash flow margin |
|
28 |
% |
|
(1 |
)% |
|
10 |
% |
||
(Increase) decrease in changes in assets and liabilities: |
|
|
|
||||||||
Settlement assets |
|
1,756 |
|
|
2,561 |
|
|
6,120 |
|
||
Settlement liabilities |
|
(3,317 |
) |
|
644 |
|
|
(1,570 |
) |
||
Adjusted operating cash flow |
|
7,756 |
|
|
2,771 |
|
|
8,021 |
|
||
Less: |
|
|
|
||||||||
Purchases of property and equipment |
|
— |
|
|
(451 |
) |
|
— |
|
||
Software development costs |
|
(2,038 |
) |
|
(1,173 |
) |
|
(2,829 |
) |
||
Free cash flow |
$ |
5,718 |
|
$ |
1,147 |
|
$ |
5,192 |
|
||
Free cash flow margin |
|
17 |
% |
|
3 |
% |
|
15 |
% |
||
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240808698155/en/
Investor Relations Contact
Nick Tooker
investors@expensify.com
Press Contact
James Dean
press@expensify.com
Source: Expensify, Inc.
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