Slide 1: Q4 2023 Earnings
Q4 2023 Earnings February 22nd, 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: FY23 Financials
Expensify FY23 Financials
Slide 4: FY 2023 Revenue, Average Paid Members, Net Interchange
FY 2023 Revenue Average Paid Members Net Interchange $150.7MM 732,000 $11.1MM
Slide 5: FY 2023 Cash Flow, Net Loss, Adj. EBITDA
FY 2023 Operating Cash Flow Free Cash Flow1 (Includes timing of customer funds) (Excludes timing of customer funds) $1.6MM $0.6MM Net Loss Non-GAAP Net Loss2 Adj. EBITDA3 $(41.7MM) $(0.5MM) $13.2MM 1 We define Free cash flow as net cash (used in) provided by operating activities excluding changes in
Slide 6: Q4 23 Financials
Expensify Q423 Financials
Slide 7: Q4 2023 Revenue, Paid Members, Net Interchange
Q4 2023 Revenue Average Paid Members Net Interchange $35.2MM 719,000 $3.1MM
Slide 8: Q4 2023 Cash Flow, Net Loss, Adj. EBITDA
Q4 2023 Operating Cash Flow Free Cash Flow1 (Includes timing of customer funds) (Excludes timing of customer funds) $(0.5MM) $(3.6MM) Net Loss Non-GAAP Net Income2 Adj. EBITDA3 $(7.5MM) $3.1MM $5.9MM 1 We define Free cash flow as net cash (used in) provided by operating activities excluding changes
Slide 9: Impact of cost cutting measures
Impact of cost cutting measures ● Operating Cash Flow, Free Cash Flow, Net Loss, Non-GAAP Net Income, and Adj. EBITDA all improved substantially q/q: ○ Operating Cash Flow improved by $4.9MM. (90.2% increase) ○ Free Cash Flow1 improved by $3.5MM. (49.3% increase) ○ Net Loss improved by $9.5MM. (55.9
Slide 10: FY 2024 Free Cash Flow Guidance
FY 2024 Free Cash Flow Guidance ● We’re initiating full year Free Cash Flow1 guidance to provide a more clear picture on the cash impact from recent cost reductions. ● FY 2023 Operating Cash Flow was $1.6MM. ● FY 2023 Free Cash Flow was $0.6MM. ● We project FY 2024 Free Cash Flow will be between $10
Slide 11: Q1 2024 January Paid Members
Q1 2024 Monthly Paid Members January Paid Members 690,000 Denotes January 2024 and January activity from previous years Note: There can be no assurances that the trends of previous first quarters are representative of future trends.
Slide 12: Expensify Card updates
Expensify Card updates ● Strong growth: Interchange derived from the Expensify Card grew 63% to $11.1M year over year. ● Channel superiority: Accounting Partners who onboard clients to the Expensify Card receive 50 basis points in revenue share for their clients. ● Program management: Established ne
Slide 13: FY23 & Q4 Business Highlights
FY23 & Q4 Business Highlights
Slide 14: Adds and churn were stable; expansion wasn't
Adds and churn were stable; expansion wasn't 2022 2023 2024 +85K +43K -62K -42K +42K -62K +4K Incremental paid Added Customer Churned Added Customer Churned Net users expansion users users contraction users growth members from:
Slide 15: +75% in top 100 SEO keywords
+75% in top 100 SEO keywords Note: SEO Keywords represent the amount of keywords that populate in the top 100 results for that search term.
Slide 16: +83% in first page SEO keywords
+83% 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.
Slide 17: +20% in SEO sessions
+20% in SEO sessions Note: SEO sessions means site traffic which came to our site directly from organic search
Slide 18: +35% m/m global reimbursement customers
+35% m/m global reimbursement customers
Slide 19: +250% y/y Expensify Chat companies
+250% y/y Expensify Chat companies
Slide 20: +100% y/y open source activity
+100% y/y open source activity Note: Represents open source developers contributing to our New Expensify code.
Slide 21: New Expensify
FY23 Product Update New Expensify
Slide 22: Strategies for Expensify's Success
Strategies for Expensify's Success 1 Capture the untapped 99%, starting with VSB/SMB 2 With a viral, bottom-up, word-of-mouth leadgen strategy 3 Monetized with high margin monthly subscriptions
Slide 23: 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 24: US Chamber of Commerce, April 2023
US Chamber of Commerce, April 2023 Source: https://www.uschamber.com/small-business/state-of-small-business-now.
Slide 25: Chat is viral
Expensify Chat is viral Chat
Slide 26: Payments are viral
Payments are viral Chat Payments
Slide 27: Document management is viral
Document management is viral Chat Documents Payments
Slide 28: Chat + Pay + Docs = Viral expense mgmt
Chat + Pay + Docs = Viral expense mgmt Chat Documents Payments
Slide 29: New Expensify flexes core strengths
New Expensify flexes core strengths Chat Documents Payments
Slide 30: 100% of a company uses chat
Alice's Apples / Chats A #admins #admins Just thinking about your idea a little more—wou, J tmarkcting-team Todd: | thought of a new marketing initiative that. #custom u all get a chance to look at this? Tracey: Did y Concierge & Hey there, tm Concierge! ny que A Welcome to #admins! Collaboration am
Slide 31: Payments at work, and at play
Alice's Apples / Chats #admins Just thinking dea a little more—wou, Concierge & Hey there, Im Concierge! If you A Welcome to #admins! Collaboration among Alice's Apples admins starts here! # Use #admins to chat about topics such as workspace configurations and more. omething.
Slide 32: Native storage of financial documents
Native storage of financial documents
Slide 33: Chat adds a moat around every feature
Chat adds a moat around every feature ● Realtime expense processing: Chat-first always-on design enables immediate processing of incoming expenses without procrastination or needless batching ● Collaborative billpay and invoicing: Not only pays the bill, but archives the contract negotiation chat, a
Slide 34: VSB/SMB + Viral + Subs = LT Growth
VSB/SMB + Viral + Subs = LT Growth ● The VSB/SMB market is untapped and unaddressed by the competition: ○ We are the only player actively targeting this enormous, untapped market. There is no organized competition. ● Bottom-up viral leadgen is the only way to address the whole market: ○ We are the o
Slide 35: Chat-first design enables AI-first UI
Chat-first design enables AI-first UI
Slide 36: Learn more at exfy.com/roadmap
Learn more at exfy.com/roadmap
Slide 37: Q&A
Q&A
Slide 38: Expensify
Expensify
Slide 39: Appendix
Appendix
Slide 40: GAAP to Non-GAAP Reconciliation: Non-GAAP Net Income (Loss)
GAAP to Non-GAAP Reconciliation: Non-GAAP Net Income (Loss) Three months ended Three months ended Year ended September 30, 2023 December 31, 2023 December 31, 2023 (unaudited, in (unaudited, in (unaudited, in thousands) thousands) thousands) Net loss $ (17,003) $ (7,488) $ (41,740) Add: Stock-based
Slide 41: GAAP to Non-GAAP Reconciliation: Adjusted EBITDA
GAAP to Non-GAAP Reconciliation: Adjusted EBITDA Three months ended Three months ended Year ended September 30, 2023 December 31, 2023 December 31, 2023 (unaudited, in (unaudited, in thousands) (unaudited, in thousands) thousands) Net loss $ (17,003) $ (7,488) $ (41,740) Provision for (benefit (270)
Slide 42: GAAP to Non-GAAP Reconciliation: Free Cash Flow
GAAP to Non-GAAP Reconciliation: Free Cash Flow Three months ended Three months ended Year ended September 30, 2023 December 31, 2023 December 31, 2023 (unaudited, in thousands) (unaudited, in thousands) (unaudited, in thousands) Net cash used in (provided by) $ (5,106) $ (543) $ 1,559 operating act
Slide 43: Estimated Stock-Based Compensation - Next 4 Quarters
Estimated Stock-Based Compensation (Millions) - Next 4 Quarters Q1 2024 Q2 2024 Q3 2024 Q4 2024 Low High Low High Low High Low High Cost of revenue, net $ 2.7 $ 3.3 $ 2.5 $ 3.2 $ 2.5 $ 3.2 $ 2.5 $ 3.2 Research and development 3.1 3.9 3.0 3.7 2.9 3.6 2.8 3.5 General and administrative 1.5 1.9 1.4 1.8
Slide 44: Expensify
Expensify