Expensify, Inc. (EXFY) Bundle
A Brief History of Expensify
Expensify, Inc., founded in 2008, is a cloud-based expense management software platform that has grown to serve millions of users globally. By September 30, 2024, the company had processed approximately 1.7 billion expense transactions and had over 15 million members on its platform.
Financial Performance
For the nine months ended September 30, 2024, Expensify reported a revenue of $102.2 million, down from $115.5 million in the same period of 2023, reflecting an 11% decrease. The revenue for the third quarter of 2024 was $35.4 million, compared to $36.5 million in the third quarter of 2023, a decrease of 3%.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue | $35,409,000 | $36,494,000 | (3%) |
| Net Loss | $(2,198,000) | $(17,003,000) | 88.3% |
| Gross Margin | $18,264,000 | $18,814,000 | (3%) |
For the nine months ended September 30, 2024, the cost of revenue was reported at $46.1 million, down from $50.4 million in the same period of 2023, resulting in a gross margin of $56.1 million (55%) compared to $65.1 million (56%) in 2023.
Operating Expenses
Operating expenses for the nine months ending September 30, 2024 totaled $57.4 million, a significant decrease from $92.3 million in 2023, primarily due to reductions in sales and marketing expenses, which fell by 74% to $9.7 million from $36.8 million. General and administrative expenses also decreased by 22% to $29.8 million from $38.4 million year-over-year.
| Operating Expense Category | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Research and Development | $17,936,000 | $17,119,000 | 5% |
| General and Administrative | $29,760,000 | $38,386,000 | (22%) |
| Sales and Marketing | $9,730,000 | $36,757,000 | (74%) |
Stock Performance and Equity
As of September 30, 2024, Expensify had approximately 88.9 million shares outstanding with an additional paid-in capital of $269.4 million. The company reported an accumulated deficit of $149.5 million.
| Equity Metric | Value |
|---|---|
| Total Shares Outstanding | 88,926,676 |
| Additional Paid-in Capital | $269,441,000 |
| Accumulated Deficit | $(149,516,000) |
Recent Developments
In August 2024, Expensify fully repaid its amortizing term mortgage of $7.6 million, which had been secured against its commercial property in Portland, Oregon. The company’s cash and cash equivalents as of September 30, 2024, stood at $39.2 million, with no outstanding debt.
For the nine months ended September 30, 2024, net cash provided by operating activities was $16.5 million, a substantial increase from $2.1 million in the same period in 2023. Meanwhile, net cash used in investing activities was $6.7 million, primarily for software development costs.
| Cash Flow Activity | 2024 | 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $16,475,000 | $2,102,000 |
| Net Cash Used in Investing Activities | $(6,699,000) | $(4,833,000) |
| Net Cash Used in Financing Activities | $(21,180,000) | $(10,371,000) |
As of September 30, 2024, Expensify's future capital requirements are expected to be supported by existing cash resources, allowing for continued operations and growth strategies.
A Who Owns Expensify, Inc. (EXFY)
Ownership Structure
As of 2024, Expensify, Inc. (EXFY) has a diverse ownership structure comprising institutional investors, individual shareholders, and company executives. The largest shareholders include:
- David Barrett, CEO - approximately 7% ownership
- Vanguard Group - approximately 9% ownership
- BlackRock - approximately 8% ownership
- Other institutional investors - approximately 30% ownership combined
Shareholder Composition
The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage |
|---|---|
| David Barrett | 7% |
| Vanguard Group | 9% |
| BlackRock | 8% |
| Other Institutional Investors | 30% |
| Individual Shareholders | 46% |
Recent Stock Performance
As of September 30, 2024, Expensify's stock price was $2.34 per share, reflecting a stable performance in comparison to previous quarters. The company's market capitalization stands at approximately $208 million.
Financial Overview
For the nine months ended September 30, 2024, the company reported:
- Revenue: $102,232,000
- Net Loss: $8,743,000
- Gross Margin: 55%
- Adjusted EBITDA: $26,982,000
Stock-Based Compensation
In the nine months ending September 30, 2024, total stock-based compensation expense was $23,535,000, which includes:
| Category | Amount (in thousands) |
|---|---|
| Cost of Revenue | $8,661 |
| Research and Development | $8,424 |
| General and Administrative | $4,965 |
| Sales and Marketing | $1,485 |
Cash Flow and Liquidity
As of September 30, 2024, Expensify reported:
- Cash and Cash Equivalents: $39,200,000
- Net Cash Provided by Operating Activities: $16,475,000
- Net Cash Used in Investing Activities: $(6,699,000)
- Net Cash Used in Financing Activities: $(21,180,000)
Recent Developments
In August 2024, Expensify repurchased shares worth $1.5 million from CEO David Barrett, reflecting ongoing management alignment with shareholder interests.
Future Outlook
Expensify anticipates continued growth through product enhancements and market expansion, with a focus on maintaining a healthy balance sheet and positive cash flow.
Expensify, Inc. (EXFY) Mission Statement
Overview of Mission Statement
Expensify, Inc. aims to simplify the way businesses manage their expenses, enabling users to focus on what they love. The company’s mission is reflected in its commitment to providing an intuitive and efficient expense management platform that enhances productivity and transparency for businesses of all sizes.
Key Principles of the Mission Statement
- Simplicity: The platform is designed to make expense tracking straightforward and accessible.
- Innovation: Continuous improvement and development of new features to meet evolving customer needs.
- Customer Focus: Prioritizing user experience and satisfaction in all services offered.
Recent Financial Performance
As of September 30, 2024, Expensify reported the following financial highlights:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Revenue | $35,409,000 | $36,494,000 | -3% |
| Cost of Revenue, Net | $17,145,000 | $17,680,000 | -3% |
| Gross Margin | $18,264,000 | $18,814,000 | -3% |
| Net Loss | ($2,198,000) | ($17,003,000) | Improvement of 87% |
| Adjusted EBITDA | $9,676,000 | ($3,549,000) | Positive Turnaround |
Membership and Market Presence
As of September 30, 2024, Expensify has achieved:
- Average Paid Members: 684,000
- Average Companies Using the Platform: 46,300
- Presence in Over 200 Countries and Territories
Investments in Development
Research and development expenses for the nine months ended September 30, 2024 were:
| Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Research and Development | $17,936,000 | $17,119,000 | 5% |
| General and Administrative | $29,760,000 | $38,386,000 | -22% |
| Sales and Marketing | $9,730,000 | $36,757,000 | -74% |
Cash Flow and Liquidity
For the nine months ended September 30, 2024, cash flow details are as follows:
| Cash Flow Activity | 2024 | 2023 |
|---|---|---|
| Net cash provided by operating activities | $16,475,000 | $2,102,000 |
| Net cash used in investing activities | ($6,699,000) | ($4,833,000) |
| Net cash used in financing activities | ($21,180,000) | ($10,371,000) |
Conclusion on Strategic Direction
Expensify continues to align its mission with its strategic objectives, focusing on enhancing user experience and financial performance. The company’s commitment to innovation and customer service is reflected in its financial results and market growth.
How Expensify, Inc. (EXFY) Works
Business Model
Expensify, Inc. operates a cloud-based expense management software platform designed to simplify financial management for businesses of all sizes. The platform allows users to scan, track, and reimburse expenses efficiently. As of September 30, 2024, Expensify reported an average of 684,000 paid members across approximately 46,300 companies in over 200 countries.
Financial Performance
For the nine months ended September 30, 2024, Expensify reported the following financial metrics:
| Metric | 2024 (in thousands) | 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Revenue | 102,232 | 115,479 | (13,247) | (11)% |
| Cost of Revenue, Net | 46,091 | 50,380 | (4,289) | (9)% |
| Gross Margin | 56,141 | 65,099 | (8,958) | (14)% |
| Net Loss | (8,743) | (34,252) | 25,509 | 74% |
Operating Expenses
Operating expenses for the nine months ended September 30, 2024 were categorized as follows:
| Expense Type | 2024 (in thousands) | 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Research and Development | 17,936 | 17,119 | 817 | 5% |
| General and Administrative | 29,760 | 38,386 | (8,626) | (22)% |
| Sales and Marketing | 9,730 | 36,757 | (27,027) | (74)% |
Cash Flows
Net cash flows from operating activities for the nine months ended September 30, 2024, were:
| Cash Flow Type | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Net Cash Provided by Operating Activities | 16,475 | 2,102 |
| Net Cash Used in Investing Activities | (6,699) | (4,833) |
| Net Cash Used in Financing Activities | (21,180) | (10,371) |
Stock-Based Compensation
For the nine months ended September 30, 2024, the stock-based compensation expenses were as follows:
| Type | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Stock-Based Compensation Expense | 23,535 | 30,612 |
Key Metrics and Non-GAAP Financial Measures
Adjusted EBITDA for the nine months ended September 30, 2024, was:
| Metric | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Adjusted EBITDA | 26,982 | 7,320 |
Non-GAAP net income for the same period was:
| Metric | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Non-GAAP Net Income | 14,792 | (3,640) |
Tax Provision
For the nine months ended September 30, 2024, Expensify reported a provision for income taxes of:
| Metric | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Provision for Income Taxes | (6,425) | (1,931) |
The effective tax rates were (277.2)% for 2024 and (6.0)% for 2023.
How Expensify, Inc. (EXFY) Makes Money
Revenue Streams
Expensify, Inc. generates revenue primarily through its expense management platform and associated services. The key components of its revenue model include:
- Subscription Revenue: The company offers Software as a Service (SaaS) for expense management, charging clients based on active members. For the nine months ended September 30, 2024, total revenue was $102,232,000, down from $115,479,000 in the same period of 2023, reflecting an 11% decrease.
- Interchange Revenue: Revenue from the authorization and settlement of Expensify Card transactions amounted to $3.7 million for the three months ended September 30, 2024.
- Cashback Rewards Program: Cashback rewards offered to customers are recorded as contra revenue. For the nine months ended September 30, 2024, cashback rewards totaled $6.4 million, compared to $4.8 million in the same period of 2023.
Financial Performance
The financial performance of Expensify shows that the company had a net loss of $8,743,000 for the nine months ended September 30, 2024, compared to a net loss of $34,252,000 in the same period of 2023. The following table summarizes key financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Revenue | $35,409,000 | $36,494,000 | $(1,085,000) (-3%) |
| Net Loss | $(2,198,000) | $(17,003,000) | $(14,805,000) (87%) |
| Gross Margin | 52% | 52% | No Change |
| Cash and Cash Equivalents | $39,172,000 | $89,118,000 | Decrease |
| Interchange Revenue | $3,700,000 | $4,200,000 | $(500,000) (-12%) |
Cost Structure
Expensify's cost structure includes several key components impacting its profitability:
- Cost of Revenue: For the nine months ended September 30, 2024, the cost of revenue was $46,091,000, a decrease from $50,380,000 in 2023.
- Operating Expenses: Total operating expenses decreased significantly to $57,426,000 for the nine months ended September 30, 2024, from $92,262,000 in the same period of 2023.
Cash Flow Analysis
Cash flows from operating activities showed an increase, with net cash provided by operating activities amounting to $16,475,000 for the nine months ended September 30, 2024, compared to $2,102,000 in 2023. The following table illustrates cash flow dynamics:
| Cash Flow Activity | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Net Cash Provided by Operating Activities | $16,475,000 | $2,102,000 |
| Net Cash Used in Investing Activities | $(6,699,000) | $(4,833,000) |
| Net Cash Used in Financing Activities | $(21,180,000) | $(10,371,000) |
| Net Decrease in Cash and Cash Equivalents | $(11,404,000) | $(13,102,000) |
Market Position and Competitive Dynamics
Expensify operates in a competitive landscape, facing challenges from other expense management platforms. The company focuses on enhancing its product offerings to retain and attract customers.
Conclusion on Revenue Generation
Expensify's business model is largely based on a combination of subscription fees, interchange fees from card transactions, and cashback programs, which are integral to its revenue generation strategy.
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Resources:
- Expensify, Inc. (EXFY) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Expensify, Inc. (EXFY)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Expensify, Inc. (EXFY)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.