In This Article:
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Revenue: $35.4 million in Q3, a 6.3% increase quarter-over-quarter, but a 3% decrease year-over-year.
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Average Paid Members: 684,000, flat quarter-over-quarter, a 5% decrease year-over-year.
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Interchange Revenue from Expensify Card: $4.6 million, a 48% increase year-over-year.
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Free Cash Flow: $6.7 million in Q3.
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Operating Cash Flow: $3.7 million in Q3.
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Net Loss: $2.2 million in Q3.
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Non-GAAP Net Income: $5.4 million in Q3.
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Adjusted EBITDA: $9.7 million in Q3.
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Free Cash Flow Guidance: Increased to $19 million to $20 million for the year.
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October Paid Active Users: 693,000, a 1% improvement from Q3.
Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Expensify Inc (NASDAQ:EXFY) reported a 6.3% increase in revenue quarter-over-quarter, surpassing street consensus forecasts.
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Interchange revenue from the Expensify Card saw a significant 48% increase year-over-year.
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Free cash flow performance was strong at $6.7 million, with an increase in annual guidance to $19 million to $20 million.
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The new Expensify Card program has been well-received, with 94% of existing card spend migrated to the new program.
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The company is optimistic about future growth, with a 1% increase in paid active users in October compared to Q3.
Negative Points
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Total revenue experienced a 3% decrease year-over-year, indicating lingering challenges.
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Average paid members remained flat quarter-over-quarter and decreased by 5% compared to the same period last year.
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The company reported a net loss of $2.2 million in Q3.
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The transition to the new Expensify platform is still in early stages, requiring further efforts to improve conversion rates.
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The impact of Expensify Travel on revenue is still uncertain, with no specific figures shared.
Q & A Highlights
Q: For Expensify Travel, what is the current revenue contribution, and how significant could it become over time? A: David Barrett, CEO, mentioned that Expensify Travel has the potential to become a significant part of the business as travel and expense management are integral to the category. While they are seeing great early traction, specific revenue contributions are not yet ready to be shared.
Q: How does Expensify plan to manage stock buybacks between private transactions and public market purchases? A: David Barrett, CEO, stated that the company is opportunistic with its cash reserves and flexible in its approach. Anu Muralidharan, COO, added that they are bullish on the company and, with strong fundamentals, may be more aggressive with buybacks in future quarters, though no concrete plans are currently available.