Slide 1: Q4 & FY 2022 Earnings
Q4 & FY 2022 Earnings February 23rd, 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: Long term strategy
Long term strategy
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: Bottom-up sales reaches the rest of the market
Bottom-up sales reaches the rest of the market Company 1 Company 2 Company 3 CFO CFO CFO Organic Growth of Expensify Starts Here Company Organic Growth of Organic Growth of Company Company Patient Zero (initial contact point) Employees Referred through Patient Zero Employees Adopted after CFO Implem
Slide 7: 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 8: Consolidating payment opportunities
Consolidating payment opportunities
Slide 9: 2022 Highlights
2022 Highlights Strong growth through tough headwinds
Slide 10: Expensify remains resolute despite the economy
Expensify remains resolute despite the economy. ● The Market ○ "Gitlab cuts 7% of workforce." ○ "Google Parent Alphabet to Cut 12,000 Jobs." ○ "McKinsey to eliminate 2000 Jobs." ○ "LinkedIn Lays Off Staff Amid Hiring Slowdown." ● Expensify ○ We're hiring. ○ We’re generating cash (~$1.2MM1 revenue/em
Slide 11: Supercharging the Accounting Channel
Supercharging the Accounting Channel ● Even a small firm is an enterprise-sized opportunity: ○ Each firm has dozens of accountants ○ Each accountant has dozens of SMB clients ● Announced the Expensify CPA card with accountant-specific perks. ● Assigned Partner Managers to the 500+ largest partner fi
Slide 12: Supercharging our Sales Efforts
Supercharging our Sales Efforts ● Scaled Account Managers, so that nearly all of revenue is now overseen by an AM. ● Added onboarding phone support, ensuring all customers being onboarded get a response in two minutes or less. ● Created an outbound SDR program, using multiple vendors built to scale
Slide 13: Supercharging our Contributor Community
Supercharging our Contributor Community ● Built a React Native community - To continue rapid advancement of Expensify Chat (new.expensify.com), which is being built by internal Expensify engineers and an external network including some of the world’s best React Native engineers. ● Worked with hundre
Slide 14: FY & Q4 Performance
FY 22 & Q4 Performance
Slide 15: FY 2022 Revenue and Gross Interchange
FY 2022 Revenue Y/Y revenue growth $169.5MM 19% Gross Interchange Y/Y interchange growth $6.8MM 118%
Slide 16: FY 2022 Cash Flow and Profitability
FY 2022 Operating Cash Flow Free Cash Flow1 (Includes timing of customer funds) (Excludes timing of customer funds) $32.9MM $26.3MM Net Loss Non-GAAP Net Income2 Adj. EBITDA3 $(27.0MM) $25.3MM $42.5MM 1 We define Free cash flow as net cash (used in) provided by operating activities excluding changes
Slide 17: 4Q 2022 Revenue, Paid Members and Interchange
4Q 2022 Revenue Average Paid Members $43.5MM 779K Gross Interchange Interchange growth $2.0MM 91%
Slide 18: 4Q 2022 Cash Flow and Profitability
4Q 2022 Operating Cash Flow Free Cash Flow1 (Includes timing of customer funds) (Excludes timing of customer funds) $6.6MM $6.0MM Net Loss Non-GAAP Net Income2 Adj. EBITDA3 $(3.4MM) $7.1MM $11.2MM All metrics, unless noted otherwise, are actuals for the three months ended December 31st, 2022. 1 We d
Slide 19: January exhibiting Q1 PPU seasonality
January exhibiting Q1 PPU seasonality Monthly Paid Members January Paid Members 745,000 Note: There can be no assurances that the trends of previous first quarters are representative of future trends.
Slide 20: Positive early results in our push for annual subscriptions
Positive early results in our push for annual subscriptions ● New users trending towards more annual subscriptions vs. pay-per-use ("PPU") ○ Subscription vs. PPU rate improved in Q4. Prior quarters had more growth in PPU than subscription. ● Multiple efforts to increase subscription ○ Sales team now
Slide 21: Fiscal 2022: Steadfast performance in uncertain times
FY Fiscal 2022: Steadfast performance in uncertain times ● Strong free cash flow and profitable (adj EBITDA) ● Paid members continue to grow ● Expensify Card up 118% from last year ● Exciting product roadmap to open up more use cases among customers
Slide 22: Q&A
Q&A We are now hosting an FAQ on our Investors Relations page. Go to investors.expensify.com for more Q&A.
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Slide 24: Appendix
Appendix
Slide 25: GAAP to Non-GAAP Reconciliation: Non-GAAP Net Income
GAAP to Non-GAAP Reconciliation: Non-GAAP Net Income Three months ended Year ended December 31, December 31, 2022 2022 (unaudited, in thousands) (unaudited, in thousands) Net (loss) income $ (3,397) $ (27,009) Add: Stock based compensation 10,539 52,332 IPO related bonus1 – - Non-GAAP Net income2 $
Slide 26: GAAP to Non-GAAP Reconciliation: Adjusted EBITDA
GAAP to Non-GAAP Reconciliation: Adjusted EBITDA Three months ended December Year ended December 31, 31, 2022 2022 (unaudited, in thousands) (unaudited, in thousands) Net (loss) income $ (3,397) $ (27,009) Provision for income taxes 2,512 6,366 Interest and other expenses, net 185 5,411 Depreciation
Slide 27: GAAP to Non-GAAP Reconciliation: Free Cash Flow
GAAP to Non-GAAP Reconciliation: Free Cash Flow Three months ended Year ended December 31, December 31, 2022 2022 (unaudited, in thousands) (unaudited, in thousands) Net cash provided by operating activities $ 6,647 $ 32,876 (Increase) decrease in changes in customer assets and liabilities Settlemen
Slide 28: Estimated Stock-Based Compensation - Next 4 Quarters
Estimated Stock-Based Compensation (Millions) - Next 4 Quarters Q1 2023 Q2 2023 Q3 2023 Q4 2023 Low High Low High Low High Low High Cost of revenue, net $ 3.6 $ 4.3 $ 3.4 $ 4.2 $ 3.4 $ 4.1 $ 3.3 $ 4.0 Research and development 2.0 2.4 1.9 2.3 1.9 2.3 1.8 2.3 General and administrative 2.4 2.9 2.3 2.8
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