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Expensify (EXFY)
NASDAQ:EXFY
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Expensify
(NASDAQ:EXFY)
59Neutral
Positive Factors
AI and Customer Support
Expensify Travel has garnered excellent adoption, and the use of AI in customer support is expected to help retain customers and reduce churn.
Cost Management
The company removed almost $35M in operational expenses from the business, showcasing effective cost management.
Financial Performance
The company closed out 2024 on a positive note coming in ahead on both revenue and AEBITDA as the legacy subscription business and card revenue both outperformed estimates.
Negative Factors
Customer Growth Concerns
This is partially dampened by the continued decline of paid users and flat customer growth.
End Market Challenges
The company's predominantly small and very small business customer base may remain a tough end market due to elevated rates and sticky inflation.
Subscription Business Challenges
The subscription business is still facing challenges, with no significant recovery expected in 2025, and growth coming only from interchange revenue.
Expensify (EXFY) vs. S&P 500 (SPY)
Market Cap
$284.29M
Dividend YieldN/A
Average Volume (3M)504.62K
Price to Earnings (P/E)―
Beta (1Y)2.24
Revenue Growth-7.60%
EPS Growth77.10%
CountryUS
Employees115
SectorTechnology
Sector Strength44
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.12
Shares Outstanding79,507,190
10 Day Avg. Volume377,314
30 Day Avg. Volume504,623
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.13
Price to Cash Flow (P/CF)10.00
P/FCF Ratio9.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$4.50Price Target Upside44.69% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Expensify Business Overview & Revenue Model
Company DescriptionExpensify, Inc. is a financial technology company that operates in the expense management sector. The company offers a cloud-based platform designed to automate and streamline the process of expense reporting, receipt tracking, and expense approval workflows for businesses of various sizes. Expensify's core product is its expense management software which integrates with various accounting systems to provide seamless processing and reporting capabilities, catering to both individual users and corporate clients.
How the Company Makes MoneyExpensify generates revenue primarily through a subscription-based model where businesses pay for access to its expense management platform. The company offers different pricing tiers based on the size of the organization and the features required, ranging from basic plans for small businesses to more comprehensive packages for large enterprises. Additionally, Expensify earns money through its Expensify Card, a corporate credit card that offers cashback rewards and is integrated with its expense management software. The company may also have partnerships with financial institutions and other technology providers to expand its service offerings and enhance platform capabilities, although specific details on such partnerships are not disclosed.
Expensify Financial Statement Overview
Summary
Expensify shows improved cash flow and reduced debt, indicating stronger financial health. However, declining revenue and consistent net losses highlight ongoing profitability challenges.Income Statement
Expensify's revenue has been volatile, showing a decline from $169.5M in 2022 to $150.7M in 2023, and further down to $139.2M in 2024. The gross profit margin in 2024 was approximately 53.85%, indicating moderate efficiency in cost management. However, the net profit margin remains negative at -7.22%, reflecting ongoing challenges in achieving profitability.55
Neutral
Balance Sheet
The debt-to-equity ratio improved significantly to 0.04 in 2024, indicating a low leverage level and reduced financial risk. The equity ratio has strengthened, with stockholders' equity covering 73.84% of total assets. This suggests a solid capital structure, though past years showed higher debt levels.60
Neutral
Cash Flow
The operating cash flow showed strong growth, increasing to $23.9M in 2024 from $1.6M in 2023. Free cash flow also turned positive, reaching $23.9M, reflecting better cash management. The free cash flow to net income ratio is high due to negative net income, highlighting the need for ongoing profitability improvements.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 139.24M | 150.69M | 169.50M | 142.84M | 88.07M | Gross Profit |
| 75.00M | 83.80M | 106.83M | 89.14M | 55.66M | EBIT |
| -820.00K | -33.15M | -15.23M | -10.25M | 5.67M | EBITDA |
| -820.00K | -27.98M | -9.84M | -5.05M | 7.92M | Net Income Common Stockholders |
| -10.05M | -41.46M | -27.01M | -13.56M | -1.71M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 48.77M | 47.51M | 103.79M | 98.40M | 34.40M | Total Assets |
| 173.68M | 176.78M | 210.24M | 183.21M | 87.73M | Total Debt |
| 5.74M | 29.55M | 67.78M | 69.97M | 51.70M | Net Debt |
| -43.03M | -17.96M | -36.00M | -28.43M | 17.30M | Total Liabilities |
| 45.44M | 76.04M | 113.00M | 106.60M | 118.77M | Stockholders Equity |
| 128.24M | 100.74M | 97.24M | 76.61M | -31.04M |
| Cash Flow | Free Cash Flow | |||
| 23.88M | -5.74M | 30.67M | -2.13M | 3.29M | Operating Cash Flow |
| 23.88M | 1.56M | 32.88M | 5.49M | 7.58M | Investing Cash Flow |
| -7.63M | -7.29M | -2.20M | -7.61M | -4.29M | Financing Cash Flow |
| -22.07M | -45.32M | -8.28M | 80.56M | 8.79M |
Expensify Technical Analysis
Negative
3.11
Price Trends
3.50
Negative
3.36
Negative
2.64
Positive
Market Momentum
-0.07
Positive
40.14
Neutral
20.03
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EXFY, the sentiment is Negative. The current price of 3.11 is below the 20-day moving average (MA) of 3.41, below the 50-day MA of 3.50, and above the 200-day MA of 2.64, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 40.14 is Neutral, neither overbought nor oversold. The STOCH value of 20.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EXFY.
Expensify Risk Analysis
Expensify disclosed 72 risk factors in its most recent earnings report. Expensify reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Expensify Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $167.44B | 55.97 | 17.43% | 0.65% | 13.73% | 9.93% | |
78 Outperform | $12.53B | 24.53 | 34.88% | 0.69% | 11.19% | 51.03% | |
76 Outperform | $122.40B | 31.38 | 83.72% | 1.91% | 7.09% | 11.51% | |
72 Outperform | $311.97B | 92.47 | 7.12% | 0.65% | 9.55% | -2.28% | |
65 Neutral | $4.72B | 493.60 | 2.11% | ― | 16.42% | ― | |
59 Neutral | $284.29M | ― | -8.78% | ― | -7.60% | 77.10% | |
58 Neutral | $21.03B | 10.58 | -16.29% | 2.47% | 4.38% | -23.63% |
* Technology Sector Average
Performance Comparison
EXFY
Expensify
3.11
1.43
85.12%
ADP
Automatic Data Processing
300.83
60.68
25.27%
INTU
Intuit
598.92
-37.02
-5.82%
SAP
SAP AG
268.00
73.73
37.95%
PAYC
Paycom
218.75
22.02
11.19%
BILL
Bill.com Holdings
46.25
-18.25
-28.29%
Expensify Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -3.42% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant revenue and free cash flow growth, successful debt elimination, and advances in AI and product offerings such as the Expensify Card. Despite reporting a net loss and anticipating macroeconomic challenges, the company's financial and strategic progress reflects an overall positive trajectory.Highlights
Revenue Growth
Revenue was $37 million for Q4 2024, marking a 5% increase both quarter-over-quarter and year-over-year. Fiscal year 2024 revenue was $139.2 million.
Interchange Growth
Interchange revenue was $5.1 million in Q4 2024, a 62% increase year-over-year. Fiscal year 2024 interchange was $17.2 million, with a 54% year-on-year growth.
Free Cash Flow Surge
Q4 2024 free cash flow was $6.3 million, a 272% increase year-on-year. Fiscal year 2024 free cash flow was $23.9 million, a 4,200% increase year-on-year.
Debt Elimination
The company paid down $22.7 million of debt and is now debt-free.
Expensify Card and AI Innovations
Expensify Card grew 11% quarter on quarter. AI innovations improved operational efficiency, notably reducing SmartScan costs and enhancing customer support via concierge.
Lowlights
Net Loss
The company reported a net loss of $1.3 million for Q4 2024 and $10.1 million for fiscal year 2024.
Seasonal Decline in Paid Members
Paid members in January were 665,000, lower than Q4 2024, attributed to expected seasonal trends.
Challenging Macroeconomic Environment
Guidance for 2025 includes conservatism due to uncertainties in the macroeconomic environment affecting customers.
Company Guidance
In the Q4 2024 earnings call, Expensify provided guidance for 2025, projecting initial free cash flow of $16 million to $20 million, which marks a significant increase from the previous year's guidance of $10 million to $12 million. The company attributed this growth to better overall performance in 2024, along with efficiency improvements driven by AI. Expensify also highlighted the successful migration of its card program, noting an 11% quarter-over-quarter increase in Expensify card growth to $5.1 million and a 54% year-over-year increase in interchange to $17.2 million. Despite a net loss of $1.3 million in Q4, the non-GAAP net income was $8.7 million, and adjusted EBITDA was $12.4 million. The company emphasized a conservative approach to its 2025 guidance, considering macroeconomic uncertainties, but expressed confidence in hitting the projected numbers.Expensify Corporate Events
Stock BuybackBusiness Operations and StrategyFinancial Disclosures
Expensify Announces New $50 Million Share Buyback
Positive
Feb 27, 2025
On February 27, 2025, Expensify announced a new $50 million share repurchase program to replace its 2022 program, which was set to expire in March 2025. The company reported significant financial improvements for fiscal year 2024, including a 76% reduction in net loss and a 199% increase in adjusted EBITDA. Expensify also highlighted its advancements in AI technology, which have enhanced operational efficiency and customer service, and expressed its ambition to lead in AI within the fintech industry.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.