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EXFY Nasdaq· Expensify Inc
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EXFY Nasdaq· Expensify Inc
Earnings report Q3 2023

Expensify's Revenue Declines by 14% in Q3 2023

Segments of revenue

Expensify generates revenue from subscription fees based on the usage of its cloud-based expense management software platform. The company offers both month-to-month and annual arrangements. The revenue is derived from the number of monthly active members and the level of service.

Strengths

Despite a decline in revenue, Expensify continues to maintain a significant user base, with an average of 719,000 paid members across 47,800 companies and over 200 countries and territories in Q3 2023. The company's cloud-based expense management software platform simplifies the way businesses manage their expenses, attracting users from organizations worldwide. Expensify has added over 13 million members to its community since its founding in 2008 and has processed and automated 1.5 billion expense transactions as of September 30, 2023.

Challenges

Expensify faced a decline in revenue of $6.0 million, or 14%, in Q3 2023 compared to the same period in 2022. This decrease can be attributed to a decrease in billable activity across the user base, including a decline in pay-per-use billable activity, which carries a higher average fee per member compared to annual members. Additionally, an increase in contra revenue related to cashback payments driven by the increased adoption and spend captured from members using the Expensify Card also contributed to the decline in revenue.

Noteworthy

Expensify's revenue decline in Q3 2023 is noteworthy as it reflects a challenging period for the company. The decrease in billable activity and the impact of cashback payments on contra revenue highlight the need for Expensify to address its revenue generation strategies and find ways to increase billable activity among its user base.

Summary

Expensify's revenue declined by 14% in Q3 2023 compared to the same period in 2022. The decrease can be attributed to a decline in billable activity and an increase in contra revenue related to cashback payments. Despite the revenue decline, Expensify maintains a significant user base and continues to simplify expense management for businesses worldwide. However, the company will need to address its revenue generation strategies and find ways to increase billable activity to overcome the challenges it currently faces.

Source documents

Form 10-Q  filed on Nov 08, 2023
7 pages scanned

Reference data

Company financials Q3 revenue 35.2M
Analyst estimates Q3 EPS missed by -177.60%
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