Slide 1: Q2 2022 Earnings
Q2 2022 Earnings August 11th, 2022 1
Slide 2: Q2 2022 Earnings
Q2 2022 Earnings August 11th, 2022 2
Slide 3: 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 4: Three secrets to Expensify's long-term success
Three secrets to Expensify's long-term success 1 Enormous untapped market opportunity 2 Unique bottom-up acquisition model 3 Billion-user platform ambition
Slide 5: Full court press on whole market, not just enterprise
Full court press on whole market, not just enterprise $7.1B Enterprise US TAM 1000+ EEs UK: $2.3B $1.5B Mid-Market US TAM 500-1000 EEs AU: $1.6B CA: $1.7B $12.0B SMB US TAM 10-499 EEs $2.4B VSB US TAM 1-9 EEs US: $16.0B Note: EEs = Employees. VSB = Very Small Businesses. Figures represent our estima
Slide 6: Freemium leads + efficient sales = Profitable growth
Freemium leads + efficient sales = Profitable growth ing rtis ve s M' Ad /A les Sa Subscriptions Pa r tne rs Fre e Pla n
Slide 7: Bottom-up sales reaches the rest of the market
Bottom-up sales reaches the rest of the market Top Down Bottom Up
Slide 8: Only Expensify can reach the full market
Only Expensify can reach the full market A B C D Expensify Enterprise scale ✓ ✓ Consumer grade ✓ ✘ ✓ ✓ Global reach ✓ ✓ Native card+travel ✓ Free ✓ ✓ ✓
Slide 9: Consolidating a billion-member payment opportunity
Consolidating a billion-member payment opportunity
Slide 10: A fintech like no other
A fintech like no other When others zig into the rocks, we zag into calm waters.
Slide 11: A more difficult market highlights our unique strengths
A more difficult market highlights our unique strengths ● Default rates are soaring ○ They lent to, lost on, and then dropped 10,000's of risky customers ○ We lend mostly to existing, long-term, creditworthy customers ● Interest rates are skyrocketing, but interchange rates are static ○ They have co
Slide 12: We are years ahead of the competition
We are years ahead of the competition ● We have been software-first from the start ○ While they were frantically buying worthless card customers at a loss… ○ … we were pocketing profits while massively upgrading our software. ● We have been subscription-first from the start ○ While they were flailing wi
Slide 13: Culture + Retention = Different
Culture + Retention = Different Our ability to attract, grow, and retain talent is a competitive advantage.
Slide 14: Strong employee culture doesn't happen on accident
Strong employee culture doesn’t happen on accident Fast Company’s World Best Changing Ideas Workplace Awarded for Expensify’s Employee-controlled Awarded by compensation program in 2022 Fortune & San Francisco Chronicle in 20221 ● The average Expensify employee tenure is over 5 years. ● The average
Slide 15: Accounting + FOMO = ExpensiCon
Accounting + FOMO = ExpensiCon A luxury show of force to demonstrate commitment to the accounting profession.
Slide 16: The invite-only retreat where accounting and fintech leaders gather
The invite-only retreat where global accounting and fintech leaders gather to decide the future ● ExpensiCon has paid for itself, many times over. ○ Each attendee has generated more net-new subscription revenue for us than their seat costs us, before day 1.1 ● ExpensiCon cements market consensus. ○ I
Slide 17: Q2 Performance
Q2 Performance Strong user growth and operating cash flow
Slide 18: Q2 2022 continues to show strong long term growth
Q2 2022 continues to show strong long term growth 754K $43.1M Paid Members Revenue $172M Annualized Revenue1 Unless otherwise denoted, figures are actuals for the three months ended June 30th, 2022. 1 Calculated as three months ended June 30th, 2022 revenue multiplied by four (quarters).
Slide 19: Q2'22 set paid member high-water mark over Q1'20 record
Q2‘22 set paid member high-water mark over Q1'20 record Monthly Paid Members Q2 Paid Members 754K Omicron
Slide 20: Expensify Card continues to grow at rapid rate
Expensify Card continues to grow at rapid rate 142% 40% Y/Y interchange growth Sequential quarter interchange growth All metrics, unless noted otherwise, are actuals for the three months ended June 30th, 2022.
Slide 21: 2022 Q2 generated significant cash & profit (Adj EBITDA)
2022 Q2 generated significant cash & profit (Adj EBITDA) $15.9M Operating Cash Flow $(8.0M) $6.1M $11.7M 27% 1 Net Loss Non-GAAP Net Income Adj. EBITDA 2 Adj. EBITDA Margin3 All metrics, unless noted otherwise, are actuals for the three months ended June 30th, 2022. 1 We define Non-GAAP Net Income as n
Slide 22: Continue to maintain strong long-term guidance
Continue to maintain strong long-term guidance ● We reaffirm our long term guidance provided in connection with our fourth quarter 2021 results of 25-35% revenue growth over a multi-year period. 25-35% Long Term Growth Guidance Note: The Company's guidance is based on a number of estimates, expectat
Slide 23: In summary: Q2 was awesome.
In summary: Q2 was awesome. ● Strong cash flow and profitable (adj EBITDA) ● Highest quarter for paid member growth (now exceeding pre-COVID numbers) ● Expensify Card up 142% from last year ● We believe we are more recession-proof than competitors with plenty of momentum.
Slide 24: Q&A
Q&A
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Slide 26: Appendix
Appendix
Slide 27: GAAP to Non-GAAP Reconciliation: Non-GAAP Net Income
GAAP to Non-GAAP Reconciliation: Non-GAAP Net Income Six months ended June 30, 2022 (unaudited, in thousands) Net (loss) income $ (7,994) Add: Stock based compensation 14,048 IPO related bonus1 – Non-GAAP Net income2 $ 6,054 1 Reflects amounts paid in Q2 related to a one-time special bonus paid to ea
Slide 28: GAAP to Non-GAAP Reconciliation: Adjusted EBITDA
GAAP to Non-GAAP Reconciliation: Adjusted EBITDA Six months ended June 30, 2022 (unaudited, in thousands) Net (loss) income $ (7,994) Net (loss) income margin (19)% (Benefit) provision for income taxes 2,065 Interest and other expenses, net 1,955 Depreciation and amortization 1,582 Stock-based compen
Slide 29: FY22 Estimated Stock-Based Compensation (Millions)
FY22 Estimated Stock-Based Compensation (Millions) Q3 2022 Q4 2022 Q1 2023 Low High Low High Low High Cost of revenue, net $ 4.4 $ 5.1 $ 3.6 $ 4.3 $ 3.4 $ 4.1 Research and development 1.8 2.0 1.4 1.7 1.4 1.6 General and administrative 5.1 5.9 4.2 4.9 4.0 4.7 Sales and marketing 1.9 2.2 1.5 1.8 1.5 1
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