Latest news with #ExpensifyInc
National Post
6 days ago
- Business
- National Post
Expensify Announces Q2 2025 Results
Article content Total interchange derived from the Expensify Card grew to $5.3 million, an increase of 31% as compared to the same period last year. Article content PORTLAND, Ore. — Expensify, Inc. (Nasdaq: EXFY), a payments superapp that helps individuals and businesses around the world simplify the way they manage money across expenses, corporate cards and bills, today released a letter to shareholders from Founder and CEO David Barrett alongside results for its quarter ended June 30, 2025. Article content A Message From Our Founder Article content Q2 finished strong, with F1® The Movie putting the Expensify brand on-screen over an estimated 650 times for a total of more than 35 minutes (sometimes over 10 feet tall, if you saw it in IMAX). With a $500 million box office to date, that's easily tens of millions of moviegoers, with potentially many more to go. We believe that's on pace to be seen by more people than saw our 30 second Superbowl ad, but with over 60x more screen time… and our name on the winning team. Article content While ROI on this can be hard to measure, independent brand awareness surveys are already showing 50% gains in our target demographics – and 350% gains in the highly coveted 18-24 demographic, the trendsetters of the future. We couldn't possibly be more pleased with the result of this major bet taken years ago, which we expect to benefit us for years to come. To prepare for this, and in recognition of F1's global appeal, we spent the last quarter strengthening our international offering: Article content Most exciting: the Expensify Card is expected to be available in the UK and most of the EU this month (and Canada is on the way)! This means over 30 million more businesses in 18 new countries have access to the Expensify Card for the first time. Additionally, we added support for third party card feeds from over 10,000 additional banks, including numerous international banks in F1 viewing regions. Card support wouldn't mean much without language support, so we now support 10 total languages, including Spanish, French, German, Italian, Japanese, and more. Finally, to lower the barrier to adoption in this new market, we have added support for EUR billing, adding to our other billing options in USD, GBP, AUD, and NZD, with support for CAD on the way. Article content Beyond F1 and international expansion, the core business continues its rock solid performance. Q2 cash flows from operating activities is down 4% y/y but FCF is up 10% y/y – even despite F1 payments – supporting a $3.0 million buyback of EXFY shares last quarter, and an increase of the midpoint of our full year 2025 FCF guidance by $2.0 million to $19.0 million – $23.0 million. The migration of customers from Classic to New Expensify continues at a brisk pace as New Expensify gains in capabilities, adds support for local reimbursements to most countries worldwide, and gets just a little faster every day (my personal favorite: switching pages is now 235% faster than it was the first week of March – a small detail, but one that I hit a hundred times a day). And last but not least, no message in this day and age would be complete without some mention of AI. This is something I personally spend nearly all my time on, and couldn't be more excited about. I've talked a big game about achieving financial AI supremacy, and Q3 is when we expect to start rolling out features to get us closer to that goal. Stay tuned! Article content -david Article content Founder and CEO of Expensify Article content Second Quarter 2025 Highlights Article content Financial: Article content Revenue was $35.8 million, an increase of 7% compared to the same period last year. Generated $8.9 million of cash from operating activities. Free cash flow was $6.3 million. Net loss was $8.8 million, compared to $2.8 million for the same period last year. Non-GAAP net loss was $1.9 million. Adjusted EBITDA was $(1.4) million. Interchange derived from the Expensify Card grew to $5.3 million, an increase of 31% compared to the same period last year. See Financial Outlook section for Free Cash Flow guidance for fiscal year ending December 31, 2025. Article content Business: Article content Paid members – Paid members were 652,000, a decrease of 5% compared to the same period last year. Expensify Travel – Expensify Travel saw a 44% increase in quarterly travel bookings. Share repurchase – The company repurchased 1,285,336 shares of its Class A common stock, totaling approximately $3.0 million. International expansion – The company added support for 10,000+ banks worldwide and launched Euro-based billing. Article content Financial Outlook Article content 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. Article content Free Cash Flow Article content Expensify estimates Free Cash Flow of $19.0 million to $23.0 million for the fiscal year ending December 31, 2025. Article content 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. Article content Stock Based Compensation Article content 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 four years remaining). Article content Est. stock-based compensation (millions) Article content 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 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. Article content Conference Call Article content 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 A replay of the call will be available on the site for three months. Article content In addition to financial measures prepared in accordance with U.S. generally accepted accounting principles ('GAAP'), we provide certain non-GAAP financial measures, including adjusted EBITDA, non-GAAP net loss, and free cash flow. Article content 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. Article content Adjusted EBITDA. Article content We define adjusted EBITDA as net loss excluding (benefit from) provision for income taxes, other (income) expenses, net, depreciation and amortization, and stock-based compensation expense. Article content Non-GAAP net income. Article content We define non-GAAP net income as net loss excluding stock-based compensation expense. Article content Free cash flow. Article content 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. Article content 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. Article content Forward-Looking Statements Article content 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, which 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 Ukraine and the conflict in Israel, Gaza and surrounding areas; our ability to effectively manage our exposure to fluctuations in foreign currency exchange rates; the size of our addressable markets, market share and market trends; anticipated trends, developments and challenges in our industry, business and the highly competitive markets in which we operate; any adverse impact on our business operations as a result of using artificial intelligence or other machine learning technologies in our services; our expectations regarding our income tax liabilities and the adequacy of our reserves; our ability to effectively manage our growth and expand our infrastructure and maintain our corporate culture; our ability to identify, recruit and retain skilled personnel, including key members of senior management; the safety, affordability and convenience of our platform and our offerings; our ability to successfully defend litigation brought against us; our ability to successfully identify, manage and integrate any existing and potential acquisitions of businesses, talent, technologies or intellectual property; general economic conditions in either domestic or international markets, including geopolitical uncertainty and instability, and their effects on software spending; our ability to protect against security incidents, technical difficulties, or interruptions to our platform; our ability to maintain, protect and enhance our intellectual property; the impact of tariffs and global trade disruptions on us, our customers and our vendors, including the impact on inflation, supply chains and consumer sentiment; and other risks discussed in our filings with the SEC. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements set forth above. We caution you not to place undue reliance on any forward-looking statements, which are made only as of the date of this press release. We do not undertake or assume any obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable law. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements. Article content Expensify a payments superapp that helps individuals and businesses around the world simplify the way they manage money across expenses, corporate cards and bills. More than 15 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. Article content 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, 2025 2024 2025 2024 Revenue $ 35,764 $ 33,288 $ 71,838 $ 66,823 Cost of revenue, net (1) 17,187 14,363 35,019 28,947 Gross margin 18,577 18,925 36,819 37,876 Operating expenses: Research and development (1) 5,158 6,389 10,516 12,318 General and administrative (1) 9,411 9,245 20,240 20,676 Sales and marketing (1) 14,346 3,072 17,888 6,456 Total operating expenses 28,915 18,706 48,644 39,450 (Loss) income from operations (10,338 ) 219 (11,825 ) (1,574 ) Other income (expenses), net 889 (260 ) 1,213 (1,214 ) Loss before income taxes (9,449 ) (41 ) (10,612 ) (2,788 ) Benefit from (provision for) income taxes 661 (2,723 ) (1,345 ) (3,757 ) Net loss $ (8,788 ) $ (2,764 ) $ (11,957 ) $ (6,545 ) Net loss per share: Basic and diluted $ (0.10 ) $ (0.03 ) $ (0.13 ) $ (0.08 ) Weighted average shares of common stock used to compute net loss per share: Article content Three Months Ended June 30, 2025 2024 Net loss $ (8,788 ) $ (2,764 ) Net loss margin (25 )% (8 )% Add: (Benefit from) provision for income taxes (661 ) 2,723 Other (income) expenses, net (889 ) 260 Depreciation and amortization 2,018 1,590 Stock-based compensation expense 6,927 8,381 Adjusted EBITDA $ (1,393 ) $ 10,190 Adjusted EBITDA margin (4 )% 31 % Article content Non-GAAP Net Income and Non-GAAP Net Income Margin Three Months Ended June 30, 2025 2024 Net loss $ (8,788 ) $ (2,764 ) Net loss margin (25 )% (8 )% Add: Stock-based compensation expense 6,927 8,381 Non-GAAP net (loss) income $ (1,861 ) $ 5,617 Non-GAAP net (loss) income margin (5 )% 17 % Article content Article content Article content Article content Article content Contacts Article content Investor Relations Contact Article content Article content Nick Tooker Article content Article content Press Contact Article content Article content Article content
Yahoo
02-04-2025
- Business
- Yahoo
Is Expensify Inc. (EXFY) the Best Technology Penny Stock to Buy Right Now?
We recently published a list of . In this article, we are going to take a look at where Expensify Inc. (NASDAQ:EXFY) stands against other best technology penny stocks to buy right now. Marta Norton, the chief investment strategist at Empower, appeared on CNBC's 'Squawk Box' on March 26 to express her bullish outlook on small caps and emphasize that the market's short-term trajectory depends on upcoming tariff decisions. The question is whether tariffs are short-term and less disruptive negotiating tools, or a disruptive and longer-lasting precursor to a shift in global trade that could address the trade deficit, and create extra revenue for the federal government. Norton explained that tariffs initially affect earnings and are then followed by the companies' attempts to pass increased costs to consumers. However, this usually doesn't happen due to demand elasticity and the general nature of consumers. Sectors like tech show minimal earnings revisions despite the potential cost and revenue impacts that come from retaliatory measures. Norton advised investors to go for a balanced approach in 2025 and stated that there aren't many areas where you can move in right now, but small caps are an exception to this sentiment. Small-cap stocks have transitioned from relatively cheap to absolutely cheap very recently. While small caps exhibit economic sensitivity, adding positions in them is relatively safer. Later, on March 29, Tony Wang, T. Rowe Price portfolio manager, joined 'Closing Bell Overtime' on CNBC to talk about the volatility in tech, and whether it's a time for heightened caution or not. Wang noted that this volatility is more likely a buying opportunity than not. He observed that growth and momentum in the tech sector have been high in the past few years. The tech sector in particular recently saw two years of strong growth. He thinks that valuations haven't yet reached capitulation levels. We sifted through the Finviz stock screener to compile a list of the top technology penny stocks that were trading under $5 as of March 28. We then selected the 13 technology stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey's database which tracks the moves of over 900 elite money managers. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A tech savvy businessperson working on multiple devices, utilizing the company's cloud-based platform. Share Price as of March 28: $3.31 Number of Hedge Fund Holders: 23 Expensify Inc. (NASDAQ:EXFY) provides a global cloud-based expense management software platform. Its platform offers corporate card management, bill payment, invoice generation, payment collection, and travel booking services, along with track and submitting plans for individuals. It serves individuals and corporations, small and mid-sized businesses, and enterprises. The company is integrating AI into its operations to drive efficiency and reduce costs. It has greatly enhanced its SmartScan functionality. SmartScan has minimized the need for human intervention in receipt processing by using advanced LLMs and Optical Character Recognition (OCR) technology. This enhancement from AI has resulted in accelerated scanning speeds and higher accuracy. The Concierge AI, which is the company's AI-powered virtual assistant, has also been upgraded. It uses LLM technology to enable faster and more natural chat-based interactions with customers. This has lowered the need for human intervention in such interactions by 80%. Expensify Inc. (NASDAQ:EXFY) saw a massive 4,200% increase year-over-year increase in free cash flow in FY24. Overall, EXFY ranks 6th on our list of best technology penny stocks to buy right now. As we acknowledge the growth potential of EXFY, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than EXFY but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at . Sign in to access your portfolio
