Slide 1: Q1 2024 Earnings
Q1 2024 Earnings May 9th, 2024
Slide 2: Disclaimer
Disclaimer All information included in this presentation is unaudited. FORWARD-LOOKING STATEMENTS Forward-looking statements in this presentation, which are not historical facts, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1955. These statemen
Slide 3: Q1 24 Financials
Expensify Q124 Financials
Slide 4: Q1 2024 Revenue, Paid Members, Net Interchange
Q1 2024 Revenue Average Paid Members Net Interchange $33.5MM 688,000 $3.5MM
Slide 5: Q1 2024 Cash Flow, Net Loss, Adjusted EBITDA
Q1 2024 Operating Cash Flow Free Cash Flow1 (Includes timing of customer funds) (Excludes timing of customer funds) $3.5MM $5.2MM Net Loss Non-GAAP Net Income2 Adj. EBITDA3 $(3.8MM) $3.7MM $7.1MM 1 We define Free cash flow as net cash (used in) provided by operating activities excluding changes in s
Slide 6: Free Cash Flow
Free Cash Flow1 ● In Q4, we initiated full year Free Cash Flow guidance to provide a more clear picture on the cash impact from overall cost reductions. ● We are now increasing that guidance to $11.0-13.0MM2 FY 2024 Free Cash Flow. Q13 Free Cash Flow was $5.2MM, a 242% increase from Q43. 1 We define
Slide 7: Expensify Card updates
Expensify Card updates ● Strong growth: Quarterly interchange derived from the Expensify Card grew 57% y/y to $3.5MM in Q1. ● Program management & accounting improvement: The company started transitioning members to its new card program in Q1. This transition is expected to conclude by the end of 20
Slide 8: Monthly Paid Members
Q1 2024 Monthly Paid Members April Paid Members 685,000 Denotes April 2024 and April activity from previous years Note: There can be no assurances that the trends of previous second quarters are representative of future trends.
Slide 9: Q1 Business Highlights
Expensify QI Business Highlights
Slide 10: Continued excellence
Continued excellence ● Fully dialed in Q4'23 cost optimizations ● Continued or improved core trends ● Focused investments on what's working best
Slide 11: +97% y/y SEO keyword Increase
+97% y/y SEO keyword Increase Note: SEO Keywords represent the amount of keywords that populate in the top 100 results for that search term.
Slide 12: +149% q/q in first page SEO keywords
+149% q/q in first page SEO keywords Note: First page SEO keywords represent search terms that result in Expensify content being shown on the first page of search results. Data reflects end of Q4 to end of Q1 2024.
Slide 13: +60% q/q global reimbursement customers
+60% q/q global reimbursement customers Note: Count of distinct companies triggering a global reimbursement in a each quarter
Slide 14: 57% y/y Net Interchange growth
57% y/y Net Interchange growth
Slide 15: New Expensify
Q1 Product Update New Expensify
Slide 16: Strategies for Expensify's Success
Strategies for Expensify's Success 1 Capture the untapped 99% of the market, starting with VSB/SMB 2 With a viral, bottom-up, word-of-mouth leadgen strategy 3 Monetized with high margin monthly subscriptions
Slide 17: 1.3B untapped users in the VSB/SMB
1.3B untapped users in the VSB/SMB Source: https://www.census.gov/data/tables/2022/econ/abs/2022-abs-company-summary.html. Census data collected in 2021.
Slide 18: Viral use cases address the whole market
Viral use cases address the whole market Chat Documents Payments
Slide 19: Superapps have super virality
Superapps have super virality
Slide 20: Bottom-up generates "unaddressable" leads
Bottom-up generates "unaddressable" leads Expensify's unique superapp design allows employees to submit expenses to companies not actively searching, expanding potential TAM.
Slide 21: Top-down closes with self service
Top-down closes with self service Paying unprompted employee request with business bank account seamlessly creates trial of paid workspace for company-wide adoption.
Slide 22: B2C converts clients to customers
B2C converts clients to customers Sending invoices to ordinary consumers causes customers to organically promote Expensify, restarting the bottom-up cycle.
Slide 23: P2P multiplies viral leads
P2P multiplies viral leads Consumer bill splitting allows non-paying users to organically promote Expensify to their peers, further expanding reach of bottom-up.
Slide 24: Travel can retain and expand revenue
Travel can retain and expand revenue Expensify Travel is the top feature request of large and growing customers, and a can be new source of transactional revenue
Slide 25: Superapp super-search
Superapp super-search Formal realtime workflows optimized via inbox, ad hoc batch analyses executed via search
Slide 26: In Review
Expensify In Review
Slide 27: Superapps require super tech
Superapps require super tech ● Bedrock ○ What: Blockchain-synchronized for extreme unpartitioned concurrency ○ Why: Enables seamless context switching between home, work, orgs ● React Native ○ What: Perfect consistency between desktop and mobile, web and native ○ Why: Eliminates need to install, str
Slide 28: Learn more at exfy.com/roadmap
Learn more at exfy.com/roadmap
Slide 29: In conclusion:
In conclusion: ● Q1'24 was a great quarter ○ Delivered strong Operating Cash Flow and FCF growth ○ Incredible New Expensify development progress ○ Began final stretch of polish, performance, and reliability ● Looking forward to Q2'24: ○ New Expensify will be fully in market ○ Expensify Travel will b
Slide 30: Q&A
Q&A
Slide 31: Expensify
Expensify
Slide 32: Appendix
Appendix
Slide 33: GAAP to Non-GAAP Reconciliation: Non-GAAP Net Income
GAAP to Non-GAAP Reconciliation: Non-GAAP Net Income Three months ended Three months ended March 31, 2024 March 31, 2023 (unaudited, in thousands) (unaudited, in thousands) Net loss $ (3,781) $ (5,945) Add: Stock-based compensation 7,524 10,004 Non-GAAP Net Income1 $ 3,743 $ 4,059 1 We define Non-GA
Slide 34: GAAP to Non-GAAP Reconciliation: Adjusted EBITDA
GAAP to Non-GAAP Reconciliation: Adjusted EBITDA Three months ended Three months ended March 31, 2024 March 31, 2023 (unaudited, in thousands) (unaudited, in thousands) Net loss $ (3,781) $ (5,945) Provision for income taxes 1,034 1,825 Interest and other expenses, 954 1,416 net Depreciation and amo
Slide 35: GAAP to Non-GAAP Reconciliation: Free Cash Flow
GAAP to Non-GAAP Reconciliation: Free Cash Flow Three months ended Three months ended Three months ended March 31, 2024 March 31, 2023 December 31, 2023 (unaudited, in thousands) (unaudited, in thousands) (unaudited, in thousands) Net cash provided by (used in) $ 3,471 $ 7,642 $ (543) operating acti
Slide 36: Estimated Stock-Based Compensation - Next 4 Quarters
Estimated Stock-Based Compensation (Millions) - Next 4 Quarters Q2 2024 Q3 2024 Q4 2024 Q1 2025 Low High Low High Low High Low High Cost of revenue, net $ 2.8 $ 3.5 $ 2.7 $ 3.4 $ 2.6 $ 3.3 $ 2.4 $ 3.1 Research and development 2.9 3.6 2.9 3.6 2.8 3.5 2.5 3.2 General and administrative 1.7 2.1 1.6 2.0
Slide 37: Expensify
Expensify