\nExpensify, 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 March 31, 2023.<\/p>\n
A Message From Our Founder<\/span><\/b><\/p>\n When I started Expensify at the bottom of the 2008 recession, it was amongst the crashing of giants, towering redwoods buckling under the weight of their rotten unit economics. Today feels similar, in three ways.<\/i><\/p>\n Don’t get me wrong, this quarter sucked. Yes customers were up, which is great. But the average activity per customer was down, which is not great. Additionally, yes card adoption is up, which is great. But our double-whammy of interchange not being revenue \u2013 and cashback being contra-revenue \u2013 means card growth contra-intuitively harms revenue\u2026 which is not great.<\/i><\/p>\n Thankfully, it kind of doesn’t matter. We have over $100MM in the bank, have strong cash flow, are buying back shares, and plan to pay off debt. We’re shipping code faster than ever, with more engineers than ever, on a more amazing product than ever. When the economy comes back, all those new customers (and the old) will get active, and all will be well. More than well. Amazing. Because we have just started migrating users over to our eponymously named “New Expensify” (new.expensify.com), which is shaping up so much better than even we imagined.<\/i><\/p>\n I know, it’s hard to believe: a single app flexible enough to do everything from expense management to payroll, simple enough for your kid’s summer block party but powerful enough for your multinational public CFO? Built by an open source community of a thousand developers, atop a hyper scalable blockchain database, using a single codebase that works across all platforms, including desktop and mobile, without needing to install anything, and without needing permission from your IT or accounting department? It’s easy to be skeptical.<\/i><\/p>\n But we believe those skeptics are going to be kicking themselves. Google was the 25th<\/sup> search engine after all. That means 24 before it missed the Google-scale vision \u2013 right when everyone thought the market was over, they demonstrated that it had only barely begun. That’s how we see expense management: only a rounding error of global businesses do their expenses on us or any of our competition, after all. If a billion people can chat about photos, we think a billion people can chat about money \u2013 especially since they already do, just pointlessly fragmented across a hundred niche platforms.<\/i><\/p>\n Expensify can never be the first expense management player. The industry was largely defined and unchanged since before we arrived. But that’s fine. We don’t need to be the first. We are trying to be the last. And I’ve never been more excited for our prospects. Stay tuned!<\/i><\/p>\n -david<\/i><\/p>\n Founder and CEO of Expensify<\/i><\/p>\n First Quarter 2023 Highlights<\/span><\/b><\/p>\n Financial:<\/b><\/p>\n Business<\/span><\/b><\/p>\n Financial Outlook<\/span><\/b><\/p>\n \nExpensify’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 \u201cForward-Looking Statements\u201d below. There can be no assurance that the Company will achieve the results expressed by this guidance.<\/p>\n \nWe reaffirm our long term guidance provided in connection with our fourth quarter 2022 results of 25-35% revenue growth over a multi-year period, which assumes an eventual return to normalcy of the world economy.<\/p>\n \nExpensify is also providing an estimate on what stock based compensation is expected to look like for the next four fiscal quarters. Driven primarily by the pre-IPO grant of RSUs issued to all employees (which quarterly vest over 8 years with approximately 7 years remaining), stock based compensation is estimated as seen below:<\/p>\n\n
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