Expensify, Inc. · NASDAQ:EXFY

Expensify — Q4 2024 Earnings Presentation

52 slides from Expensify's earnings presentation, Feb 27, 2025

  1. Slide 1: Q4 2024 Earnings

    Q4 2024 Earnings February 27th, 2025

  2. 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

  3. Slide 3: Q4 24 Financials

    Expensify Q424 Financials

  4. Slide 4: Q4 2024 Revenue, Average Paid Members, Interchange

    Q4 2024 Revenue Average Paid Members Interchange $37.0MM 687,000 $5.1MM

  5. Slide 5: Q4 2024 Cash Flow, Net Loss, Adj. EBITDA

    Q4 2024 Operating Cash Flow Free Cash Flow1 Includes timing of customer funds) Excludes timing of customer funds) $7.4MM $6.3MM Net Loss Non-GAAP Net Income2 Adj. EBITDA3 $(1.3MM) $8.7MM $12.4MM 1 We define Free cash flow as net cash (used in) provided by operating activities excluding changes in

  6. Slide 6: FY 2024 Revenue, Average Paid Members, Interchange

    FY 2024 Revenue Average Paid Members Interchange $139.2MM 686,000 $17.2MM

  7. Slide 7: FY 2024 Cash Flow, Net Loss, Adj. EBITDA

    FY 2024 Operating Cash Flow Free Cash Flow1 Includes timing of customer funds) Excludes timing of customer funds) $23.9MM $23.9MM Net Loss Non-GAAP Net Income2 Adj. EBITDA3 $(10.1MM) $23.5MM $39.4MM 1 We define Free cash flow as net cash (used in) provided by operating activities excluding changes

  8. Slide 8: Free Cash Flow

    Free Cash Flow1 ● Q4 FCF was $6.3MM, a 272% increase y/y. ● For FY24, FCF was $23.9MM, a 4200% increase y/y. ● FY24 ended 99% higher than the upper end of our initial $10.0  $12.0MM guidance. ● Accordingly, we are starting FY25's guidance higher than we started FY24 ○ We are initiating FY 2025 FCF

  9. Slide 9: Expensify Card updates

    Expensify Card updates ● Strong growth: Interchange derived from the Expensify Card grew 11% q/q to $5.1MM. FY24 interchange grew 54% y/y to $17.2MM. ● Program management & accounting improvement: The company finalized transitioning members to its new card program during Q4. ● Substantially all Expe

  10. Slide 10: Q1 2025 January Paid Members

    Q1 2025 Monthly Paid Members January Paid Members 665,000 Denotes Jan 2025 and Jan activity from previous years Note: There can be no assurances that the trends of previous first quarters are representative of future trends.

  11. Slide 11: FY24 Business Highlights

    Expensify FY24 Business Highlights

  12. Slide 12: FY24 Business Highlights

    FY24 Business Highlights: ● The Expensify Card ○ The Expensify card grew 54% y/y producing $17.2MM in total interchange, and the company migrated substantially all of its customers to the new card program which recognizes interchange as revenue. ● Free Cash Flow1 ○ The company increased FY24 FCF by

  13. Slide 13: Then & Now: An IPO Retrospective

    Then & Now An IPO Retrospective

  14. Slide 14: What hasn't changed?

    Expensify What hasn't changed?

  15. Slide 15: Opportunity is Still Enormous, Still Untapped

    Opportunity is Still Enormous, Still Untapped

  16. Slide 16: Viral Leadgen is Still an Extremely Scalable Method

    Viral Leadgen is Still an Extremely Scalable Method

  17. Slide 17: Payments Superapp is Still a Data Superhub

    Payments Superapp is Still a Data Superhub

  18. Slide 18: ...what has changed?

    Expensify ...what has changed?

  19. Slide 19: AI has finally arrived… and it's all based on chat

    AI has finally arrived… and it's all based on chat.

  20. Slide 20: Chat-First UI = AI-First Experience

    Chat-First UI = AI-First Experience

  21. Slide 21: Concierge is AI chat that knows your private world

    Concierge is AI chat that knows your private world.

  22. Slide 22: Concierge is AI chat in a financial context

    Concierge is AI chat in a financial context.

  23. Slide 23: Chat AI + Superapp Data = Expensify

    Chat AI + Superapp Data = Expensify ● We process all of a company's payments ○ expense, card, bills, invoice ● We are in every employee's pocket ○ finance, sales, C-suite ● We know where everyone is and will be ○ travel duty of care ● We know how the company is organized ○ entities, departments, tea

  24. Slide 24: Our humble goal: Fintech AI Supremacy

    Our humble goal: Fintech AI Supremacy

  25. Slide 25: Superintelligence in 3 Easy Steps

    Superintelligence in 3 Easy Steps 1. Deep AI Automate minimal-judgement repeatable tasks ○ Tech: Backtest against large human-generated datasets ○ Effect: Trains proprietary AI on domain-specific nuances ○ Side-effect: Creates immediate (and dramatic) cost savings

  26. Slide 26: "Deep AI" delivered strong initial FCF gains

    "Deep AI" delivered strong initial FCF gains ● SmartScan: Increased speed and accuracy, at 25% the cost ○ Before: OCR + human engineered parsers + human fallback ○ Today: LLM backtested on historical receipts

  27. Slide 27: Nearly removed humans from SmartScan loop

    Nearly removed humans from SmartScan loop

  28. Slide 28: Nearly removed humans from SmartScan loop

    Nearly removed humans from SmartScan loop +LLM

  29. Slide 29: "Deep AI" delivered strong initial FCF gains

    "Deep AI" delivered strong initial FCF gains ● SmartScan: Increased speed and accuracy, at 25% the cost ○ Before: OCR + human engineered parsers + human fallback ○ Today: LLM backtested on historical receipts ● Concierge: Faster, more natural chats with ~80% fewer human interventions1 ○ Before: Huma

  30. Slide 30: Chat-First UI = AI-First Experience

    Chat-First UI = AI-First Experience

  31. Slide 31: Fully automated First Responder tier

    Fully automated First Responder tier +LLM

  32. Slide 32: "Deep AI" delivered strong initial FCF gains

    "Deep AI" delivered strong initial FCF gains ● SmartScan: Increased speed and accuracy, at 25% the cost ○ Before: OCR + human engineered parsers + human fallback ○ Today: LLM backtested on historical receipts ● Concierge: Faster, more natural chats with ~80% fewer human interventions1 ○ Before: Huma

  33. Slide 33: "Deep AI" delivered strong initial FCF gains

    "Deep AI" delivered strong initial FCF gains ● SmartScan: Increased speed and accuracy, at 25% the cost ○ Before: OCR + human engineered parsers + human fallback ○ Today: LLM backtested on historical receipts ● Concierge: Faster, more natural chats with ~80% fewer human interventions1 ○ Before: Huma

  34. Slide 34: Artificial Engineers writing Real Code

    Artificial Engineers writing Real Code OpenAI uses Expensify open-source repo for their most advanced coding challenge

  35. Slide 35: Innovate > Automate > Outsource.

    Innovate > Automate > Outsource. When everyone's focus is automating or outsourcing their jobs, everyone is "AI ready". Expensify Core Team (x120) Sales Support Engineering SmartScan Concierge Open Source Community US Agents First Responders Freelance Contributors International Agents Second Respond

  36. Slide 36: Superintelligence in 3 Easy Steps

    Superintelligence in 3 Easy Steps 1. Deep AI Automate minimal-judgement repeatable tasks ○ Tech: Backtest against large human-generated datasets ○ Effect: Trains proprietary AI on domain-specific nuances ○ Side-effect: Creates immediate (and dramatic) cost savings 2. Surface AI Add "one-shot" user

  37. Slide 37: Conversational corrections

    Conversational corrections Tap, pick, answer, or describe how to fix anything.

  38. Slide 38: Superintelligence in 3 Easy Steps

    Superintelligence in 3 Easy Steps 1. Deep AI Automate minimal-judgement repeatable tasks ○ Tech: Backtest against large human-generated datasets ○ Effect: Trains proprietary AI on domain-specific nuances ○ Side-effect: Creates immediate (and dramatic) cost savings 2. Surface AI Add genuinely usefu

  39. Slide 39: Everyone will get a Virtual CFO

    Everyone will get a Virtual CFO ● Realtime fraud protections ○ "Head's up, Alice's corporate card is showing some unusually large and frequent purchases, but she mentioned here in #social she's on vacation in Maui. Should I block her card to be safe?" ● Continuous flux analysis ○ "I'm monitoring thi

  40. Slide 40: The AI singularity is a Tidal Wave. New Expensify is a surfboard.

    The AI singularity is a Tidal Wave. New Expensify is a surfboard.

  41. Slide 41: Conclusion: Great Quarter, Exciting Year

    Conclusion: Great Quarter, Exciting Year ● Completed major investments in deep AI. ● We meaningfully increased our profitability (adj EBITDA. ● Weʼre now debt free. ● We transitioned essentially all spend to to the new Expensify Card. ● We launched Expensify Travel, transforming us into a complete

  42. Slide 42: Q&A

  43. Slide 43: Expensify

    Expensify

  44. Slide 44: Appendix

    Appendix

  45. Slide 45: GAAP to Non-GAAP Reconciliation: Non-GAAP Net Income

    GAAP to Non-GAAP Reconciliation: Non-GAAP Net Income Year ended Year ended December 31, 2024 December 31, 2023 (unaudited, in thousands) (unaudited, in thousands) Net loss $ 10,055 $ 41,456 Add: Stock-based compensation expense 33,537 41,212 Non-GAAP Net Income Loss1 $ 23,482 $ 244 1 We defi

  46. Slide 46: GAAP to Non-GAAP Reconciliation: Non-GAAP Net Income

    GAAP to Non-GAAP Reconciliation: Non-GAAP Net Income Three months ended Three months ended December 31, 2024 December 31, 2023 (unaudited, in thousands) (unaudited, in thousands) Net loss $ 1,312 $ 7,204 Add: Stock-based compensation expense 10,002 10,600 Non-GAAP Net Income Loss1 $ 8,690 $ 3,

  47. Slide 47: GAAP to Non-GAAP Reconciliation: Adjusted EBITDA

    GAAP to Non-GAAP Reconciliation: Adjusted EBITDA Year ended Year ended December 31, 2024 December 31, 2023 (unaudited, in thousands) (unaudited, in thousands) Net loss $ 10,055 $ 41,456 Provision for income taxes 7,663 2,980 Interest and other expenses, 1,572 5,327 net Depreciation and amortizat

  48. Slide 48: GAAP to Non-GAAP Reconciliation: Adjusted EBITDA

    GAAP to Non-GAAP Reconciliation: Adjusted EBITDA Three months ended Three months ended December 31, 2024 December 31, 2023 (unaudited, in thousands) (unaudited, in thousands) Net loss $ 1,312 $ 7,204 Provision for income taxes 1,238 1,049 Interest and other expenses, 539 169 net Depreciation and

  49. Slide 49: GAAP to Non-GAAP Reconciliation: Free Cash Flow

    GAAP to Non-GAAP Reconciliation: Free Cash Flow Year ended Year ended December 31, 2024 December 31, 2023 (unaudited, in thousands) (unaudited, in thousands) Net cash provided by operating activities $ 23,877 $ 1,559 Increase) decrease in changes in customer assets and liabilities Settlement assets

  50. Slide 50: GAAP to Non-GAAP Reconciliation: Free Cash Flow

    GAAP to Non-GAAP Reconciliation: Free Cash Flow Three months ended Three months ended December 31, 2024 December 31, 2023 (unaudited, in thousands) (unaudited, in thousands) Net cash provided by (used in) operating $ 7,402 $ 543 activities Increase) decrease in changes in customer assets and liab

  51. Slide 51: Estimated Stock-Based Compensation - Next 4 Quarters

    Estimated Stock-Based Compensation (Millions) - Next 4 Quarters Q1 2025 Q2 2025 Q3 2025 Q4 2025 Low High Low High Low High Low High Cost of revenue, net $ 2.7 $ 3.4 $ 2.4 $ 3.1 $ 2.4 $ 3.1 $ 2.3 $ 3.0 Research and development 2.4 3.1 2.2 2.9 2.2 2.9 2.1 2.8 General and administrative 1.3 1.7 1.2 1.6

  52. Slide 52: Expensify

    Expensify

Expensify — Q4 2024 Earnings Presentation on 6ix