Slide 1: Q2 2023 Earnings
Q2 2023 Earnings August 8th, 2023
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: All-in-one payments platform
All in-one payments platform Helping individuals and businesses around the world simplify the way they manage money.
Slide 4: Long term growth strategy
Expensify Long term srowth strategy
Slide 5: How we do it: our customer acquisition model separates us
How we do it: our customer acquisition model separates us Company 1 Company 2 CFO CFO Company 3 CFO Organic Growth of Company Expensify Patient Zero (initial contact point) Starts Here Employees Referred through Patient Zero Employees Adopted after CFO Implementation Organic Growth of Organic Growth
Slide 6: Growth strategy
Growth strategy Continuing our organic international expansion Adding new viral loops as platform capabilities expand Increasing Expensify Card adoption for new and current customers Expanding the number of seats for current Expensify customers Acquiring new Expensify customers
Slide 7: Q2 Updates
Expensify Q2 Updates
Slide 8: Supercharging the accounting channel
Supercharging the accounting channel ● Expensicon 3 was a massive success. ○ An invite-only conference featuring successful accountants and thought leaders from top global accounting firms. ○ Signed preferred agreements with California Society of CPAs & Texas Society of CPAs. ○ Received great feedba
Slide 9: Supercharging general awareness
Supercharging general awareness ● SEO & paid digital advertising ○ We’re making big investments in SEO, SEM, and content marketing ● Conferences/Events ○ In addition to ExpensiCon 3, we have a busy conference circuit in H2 2023: Xerocon Global, SaaStr, Money2020, Netsuite Suiteworld, Intuit Quickboo
Slide 10: What we're doing to drive more loyalty
What we’re doing to drive more loyalty ● White-glove support ○ Every Expensify customer above 10 members now gets a dedicated account manager. ● Global Expansion ○ Expensify customers can now reimburse employees in over 154 different currencies across 200+countries. ○ Hundreds of customers have alre
Slide 11: Q2 Financials
Expensify Q2 Financials
Slide 12: Q2 2023 revenue, average paid members, gross interchange
Q2 2023 Revenue Average Paid Members Gross Interchange $38.9MM 742,000 $2.7MM
Slide 13: Q2 2023 cash flow, net loss and Adjusted EBITDA
Q2 2023 Operating Cash Flow Free Cash Flow1 (Includes timing of customer funds) (Excludes timing of customer funds) $(0.4)MM $1.1MM Net Loss Non-GAAP Net Loss2 Adj. EBITDA3 $11.3MM $1.0MM $2.2MM 1 We define Free cash flow as net cash (used in) provided by operating activities excluding changes in se
Slide 14: Monthly Paid Members
Q2 2023 Monthly Paid Members July Paid Members 719,000 Denotes July activity Note: There can be no assurances that the trends of previous third quarters are representative of future trends.
Slide 15: Q2 2023 financial commentary
Q2 2023 ● We continue to be free cash flow positive and are reducing our debt. ● Heavy investments in engineering and sales/marketing put temporary downward pressure on margins this quarter, but we expect margins to improve in future quarters. ● We’re in a “rebuilding” phase right now as we start th
Slide 16: Q&A
Q&A We are now hosting a FAQ on our Investors Relations page. Go to investors.expensify.com for more Q&A.
Slide 17: Expensify
Expensify
Slide 18: Appendix
Appendix
Slide 19: GAAP to Non-GAAP Reconciliation: Non-GAAP Net Loss
GAAP to Non-GAAP Reconciliation: Non-GAAP Net Loss Three months ended June 30, 2023 (unaudited, in thousands) Net loss $ (11,304) Add: Stock-based compensation 10,341 Non-GAAP Net loss1 $ (963) 1 We define Non-GAAP Net loss as net income (loss) excluding stock-based compensation.
Slide 20: GAAP to Non-GAAP Reconciliation: Adjusted EBITDA
GAAP to Non-GAAP Reconciliation: Adjusted EBITDA Three months ended June 30, 2023 (unaudited, in thousands) Net loss $ (11,304) Provision for income taxes 376 Interest and other expenses, net 1,367 Depreciation and amortization 1,376 Stock-based compensation 10,341 Adjusted EBITDA $ 2,156 Note: We d
Slide 21: GAAP to Non-GAAP Reconciliation: Free Cash Flow
GAAP to Non-GAAP Reconciliation: Free Cash Flow Three months ended June 30, 2023 (unaudited, in thousands) Net cash used in operating activities $ (434) (Increase) decrease in changes in customer assets and liabilities Settlement assets (2,561) Settlement liabilities (644) Adjusted operating cash fl
Slide 22: Estimated Stock-Based Compensation - Next Quarters
Estimated Stock-Based Compensation (Millions) - Next 4 Quarters Q3 2023 Q4 2023 Q1 2024 Q2 2024 Low High Low High Low High Low High Cost of revenue, net $ 3.4 $ 4.1 $ 3.3 $ 4.0 $ 3.2 $ 3.9 $ 3.1 $ 3.7 Research and development 3.1 3.6 3.0 3.6 2.9 3.5 2.7 3.3 General and administrative 2.1 2.5 2.0 2.4
Slide 23: Expensify
Expensify