Expensify, Inc. (NASDAQ:EXFY) Q1 2024 Earnings Call Transcript

Expensify, Inc. (NASDAQ:EXFY) Q1 2024 Earnings Call Transcript May 11, 2024

Expensify, Inc. isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).

Ryan Schaffer: Hello, everyone. Welcome to the Q1 2024 Expensify Earnings. I'm Expensify CFO, Ryan Schaffer. I'm joined by Expensify CEO and Founder, David Barrett. Later, we have our COO, Anuradha Muralidharan, joining for the Q&A. But first, let's get started with the disclaimer. Nikki, take it away.

Unidentified Company Representative: Before we begin, please note that all the information presented on today's call is unaudited. And during the course of this call, management may make forward-looking statements within the meaning of the federal securities laws. These statements are based on management's current expectations and beliefs and involve risks and uncertainties that could cause actual results to differ materially from those described in these forward-looking statements. Forward-looking statements in the earnings release that we issued today, along with the comments on this call, are made only as of today and will not be updated as actual events unfold. Please refer to today's press release and our filings with the SEC for a detailed discussion of the risks that could cause actual results to differ materially from those expressed or implied in any forward-looking statements made today.

Please also note that on today's call, management will refer to certain non-GAAP financial measures. While we believe these non-GAAP financial measures provide useful information for investors, the presentation of this information is not intended to be considered in isolation or as a substitute for the financial information presented in accordance with GAAP. Please refer to today's press release or the investor presentation for a reconciliation of these non-GAAP financial measures to their most comparable GAAP measures.

Ryan Schaffer: All right. Now let's talk about the Q1 2024 financials. Our revenue was $33.5 million. Our average paid members were $688,000. Our net interchange was $3.5 million. Our operating cash flow was $3.5 million. Our free cash flow was $5.2 million, which is a significant increase quarter-over-quarter. Our GAAP net loss was $3.8 million and our non-GAAP net income was $3.7 million. The difference between our net loss and our non-GAAP net income and stock-based compensation. And our adjusted EBITDA was $7.1 million. I mentioned free cash flow. I want to talk about that a little bit more. So in Q4, we initiated a full year free cash flow guidance. We did that to provide the market with our view on how cash flow is going to go for this year, and we're actually increasing that guidance to $11 million to $13 million for fiscal year 2024.

And like I mentioned earlier, our free cash flow was $5.2 million. That's a 242% increase from the previous quarter, something we're very proud of and that is the impact of the cost cutting that we have discussed in the past. I also want to talk about the Expensify card. We've seen strong growth, 57% year-on-year growth to $3.5 million. We actually have seen 13% in just the last month alone. So the card is growing at a great clip. Also, everyone's favorite topic is the accounting treatment change that we're going through. We're changing program managers and the impact of that is our interchange from the card will no longer be a contract expense and cost of revenue. It will be moving to revenue and that we expect that transition to be finished by end of the year.

See also

30 Richest People in Asia in 2024 and

10 Dividend Growth Stocks with Over 3% Yield.

To continue reading the Q&A session, please click here.