Ended the year with 63% revenue growth and the
largest quarterly increase in paid members since the start of the
pandemic.
Expensify, Inc. (Nasdaq: EXFY), a payments superapp that helps
individuals and businesses around the world simplify the way they
manage money across expenses, corporate cards and bills, today
announced results for its fourth quarter and full year ended
December 31, 2021.
“The major highlight of 2021 was releasing our Free Plan in
October and growing it to more than 3,100 customers by year end,”
says David Barrett, founder and CEO of Expensify. “We opened the
floodgates into our product wider than they’ve ever been before, to
individuals and businesses of all types, and it’s been a huge
success in such a short amount of time. Free expense management,
corporate cards, invoicing, bill pay, and travel booking all in one
place – it’s the perfect foundation on which to build the
reimagined, chat-centric future for our product.”
“We’re proud to have ended 2021 with a bang,” says Ryan
Schaffer, Chief Financial Officer of Expensify. “The pandemic has
been a sobering stress test on the resiliency of our viral business
model, but we’ve shown that our bottom-up approach to member
acquisition has the power to weather any storm. The results speak
for themselves: product-led growth and word-of-mouth adoption
propelled us to a 62% revenue increase in 2021.”
Financial
Q4 2021:
- Revenue was $40.4 million, an increase of 56.0% from the same
period last year.
- An IPO-related bonus expense of $14.2 million impacted net
(loss) income.
- Net (loss) income was $(21.9) million, compared to $1.7 million
for the same period last year. The loss was primarily due to the
IPO-related bonus.
- Non-GAAP net income was $4.4 million. Non-GAAP net income
excludes stock based compensation which was not excluded in prior
periods.
- Adjusted EBITDA was $(6.9) million, compared to $10.2 million
for the same period last year.
- Adjusted EBITDA excluding the IPO bonus was $7.3 million,
compared to $10.2 million for the same period last year.
Full Year Fiscal 2021:
- Revenue was $142.8 million, an increase of 61.8% from the same
period last year.
- An IPO-related bonus expense of $48.4 million impacted net
(loss) income and Adjusted EBITDA.
- Net loss was $(13.6) million, compared to $(1.7) million for
the same period last year. The loss was primarily due to the
IPO-related bonus.
- Non-GAAP net income was $49.4 million.
- Adjusted EBITDA was $9.5 million, compared to $26.8 million for
the same period last year.
- Adjusted EBITDA excluding the IPO bonus was $58.0 million,
compared to $26.8 million for the same period last year.
Business
- Paid members - saw major growth, with 711 thousand in
the fourth quarter of 2021.
- Free plan - launched in October and grew to over 3,100
customers by December 2021. Includes expense management, the
Expensify Card, next-day reimbursement, invoicing, bill pay, and
travel booking.
- Expensify Card - adoption continued at a rapid pace and
interchange increased by 185% in 2021.
- Cash back - introduced unlimited cash back on the
Expensify Card, with an introductory rate of 4% followed by an
ongoing rate of 2% across all purchases and categories.
- Invoicing and bill pay - completed Expensify’s expansion
into accounts payable and receivable, rounding out its offerings as
a full-service preaccounting platform.
- New.expensify.com - launched a sneak peek of Expensify’s
future product that mixes chat and payments for easy financial
collaboration across work and personal life.
- Expensify.org - funded more than 50 grassroots
organizations fighting injustice in their communities, reimbursed
thousands of families on SNAP/EBT for groceries and COVID-19
vaccinations, and donated clothing to people experiencing
homelessness.
- Podcast - aired first season of “Live Rich, Have Fun,
Save the World,” which features individual trailblazers pursuing
the lofty goals aligned with Expensify’s three-part company
mission.
- ESG - reached carbon neutrality via offsets in 2021 and
set a goal of Net Zero emissions by 2030.
- Customer support - won “Best Customer Support” from
TrustRadius.
- Operational efficiency - annualized revenue per employee
topped $1.1MM.
- Calculated as three months ended December 31, 2021 revenue
multiplied by four (quarters), divided by 144 full-time employees
as of December 31, 2021.
Financial Outlook
Expensify's outlook statements are based on current
expectations. The following statements are forward-looking and
actual results could differ materially depending on market
conditions and the factors set forth under “Forward-Looking
Statements” below.
For the fiscal first quarter ending March 31, 2022, Expensify
expects:
- Revenue between $38.6 million and $39.6 million.
- Average monthly paid members between 684 thousand and 702
thousand.
Availability of Information on
Expensify’s Website
Investors and others should note that Expensify routinely
announces material information to investors and the marketplace
using SEC filings, press releases, public conference calls,
webcasts and the Expensify Investor Relations website at
https://ir.expensify.com. While not all of the information that the
Company posts to its Investor Relations website is of a material
nature, some information could be deemed to be material.
Accordingly, the Company encourages investors, the media and others
interested in Expensify to review the information that it shares on
its Investor Relations website.
Conference Call
Expensify will host a video call to discuss the results at 2:00
p.m. Pacific Time today. The video call information is available on
Expensify’s Investor Relations website at https://ir.expensify.com.
A replay of the call will be available on the site for three
months.
Non-GAAP Financial
Measures
In addition to financial measures prepared in accordance with
U.S. generally accepted accounting principles (“GAAP”), we provide
certain non-GAAP financial measures, including Adjusted EBITDA,
Adjusted EBITDA excluding the IPO-related bonus, and Non-GAAP net
income.
We believe our non-GAAP financial measures are useful in
evaluating our business, measuring our performance, identifying
trends affecting our business, formulating business plans and
making strategic decisions. Accordingly, we believe that these
non-GAAP financial measures provide useful information to investors
and others in understanding and evaluating our results of
operations in the same manner as our management team. These
non-GAAP financial measures are presented for supplemental
informational purposes only, should not be considered a substitute
for financial information presented in accordance with GAAP, and
may be different from similarly titled metrics or measures
presented by other companies. Non-GAAP financial measures have
limitations as analytical tools and should not be considered in
isolation or as substitutes for financial information presented
under GAAP. There are a number of limitations related to the use of
non-GAAP financial measures versus comparable financial measures
determined under GAAP. For example, other companies in our industry
may calculate these non-GAAP financial measures differently or may
use other measures to evaluate their performance. All of these
limitations could reduce the usefulness of these non-GAAP financial
measures as analytical tools. Investors are encouraged to review
the related GAAP financial measures and the reconciliations of
these non-GAAP financial measures to their most directly comparable
GAAP financial measures and to not rely on any single financial
measure to evaluate our business. A reconciliation of each non-GAAP
financial measure to the most directly comparable financial measure
stated in accordance with GAAP is at the end of this press
release.
We define Adjusted EBITDA as net income from operations
excluding provision for income taxes, interest and other expenses,
net, depreciation and amortization and stock based
compensation.
We define Adjusted EBITDA excluding the IPO-related bonus as net
income from operations excluding provision for income taxes,
interest and other expenses, net, depreciation and amortization,
stock based compensation, and IPO-related bonus costs.
We define non-GAAP net income as net income from operations in
accordance with US GAAP excluding stock-based compensation and
IPO-related bonus costs. In prior periods, this metric only
excluded IPO-related bonus costs and did not exclude expenses
related to stock-based compensation. However, management now
believes that further excluding stock-based compensation from
non-GAAP net income is useful to better understand the financial
performance of our business and to facilitate a better comparison
of our results to those of peer companies over multiple periods
given that this item may vary between companies for reasons
unrelated to overall operating performance.
The tables at the end of the Financial Statements provide
reconciliations to the most directly comparable GAAP financial
measure to each of these non-GAAP financial measures.
Forward-Looking
Statements
Forward-looking statements in this press release, which are not
historical facts, are forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1955. These
statements include statements regarding our strategy, future
financial condition, future operations, projected costs, prospects,
plans, objectives of management and expected market growth and
involve known and unknown risks that are difficult to predict. As a
result, our actual results, performance or achievements may differ
materially from those expressed or implied by these forward-looking
statements. In some cases, you can identify forward-looking
statements because they contain words such as “may,” “will,”
“shall,” “should,” “expects,” “plans,” “anticipates,” “could,”
“intends,” “target,” “projects,” “contemplates,” “believes,”
“estimates,” “predicts,” “potential,” “goal,” “objective,” “seeks,”
or “continue” or the negative of these words or other similar terms
or expressions that concern our expectations, strategy, plans, or
intentions. Such forward-looking statements are necessarily based
upon estimates and assumptions that, while considered reasonable by
us and our management, are inherently uncertain. Factors that may
cause actual results to differ materially from current expectations
include, but are not limited to: the economic, political and social
impact of, and uncertainty relating to, the COVID-19 pandemic; the
war in Ukraine and escalating geopolitical tensions as a result of
Russia's invasion of Ukraine; our expectations regarding our
financial performance and future operating performance; our ability
to attract and retain members, expand usage of our platform, sell
subscriptions to our platform and convert individuals and
organizations into paying customers; the timing and success of new
features, integrations, capabilities and enhancements by us, or by
competitors to their products, or any other changes in the
competitive landscape of our market; the amount and timing of
operating expenses and capital expenditures that we may incur to
maintain and expand our business and operations to remain
competitive; the sufficiency of our cash, cash equivalents and
investments to meet our liquidity needs; our ability to make
required payments under and to comply with the various requirements
of our current and future indebtedness; our ability to effectively
manage our exposure to fluctuations in foreign currency exchange
rates; the increased expenses associated with being a public
company; the size of our addressable markets, market share and
market trends; anticipated trends, developments and challenges in
our industry, business and the highly competitive markets in which
we operate; our expectations regarding our income tax liabilities
and the adequacy of our reserves; our ability to effectively manage
our growth and expand our infrastructure and maintain our corporate
culture; our ability to identify, recruit and retain skilled
personnel, including key members of senior management; the safety,
affordability and convenience of our platform and our offerings;
our ability to successfully defend litigation brought against us;
our ability to successfully identify, manage and integrate any
existing and potential acquisitions of businesses, talent,
technologies or intellectual property; general economic conditions
in either domestic or international markets, including the societal
and economic impact of the COVID-19 pandemic, and geopolitical
uncertainty and instability; our protections against security
breaches, technical difficulties, or interruptions to our platform;
our ability to maintain, protect and enhance our intellectual
property; and other risks discussed in our filings with the SEC.
All forward-looking statements attributable to us or persons acting
on our behalf are expressly qualified in their entirety by the
cautionary statements set forth above. We caution you not to place
undue reliance on any forward-looking statements, which are made
only as of the date of this press release. We do not undertake or
assume any obligation to update publicly any of these
forward-looking statements to reflect actual results, new
information or future events, changes in assumptions or changes in
other factors affecting forward-looking statements, except to the
extent required by applicable law. If we update one or more
forward-looking statements, no inference should be drawn that we
will make additional updates with respect to those or other
forward-looking statements.
About Expensify
Expensify is a payments superapp that helps individuals and
businesses around the world simplify the way they manage money.
More than 10 million people use Expensify's free features, which
include corporate cards, expense tracking, next-day reimbursement,
invoicing, bill pay, and travel booking in one app. All free.
Whether you own a small business, manage a team, or close the books
for your clients, Expensify makes it easy so you have more time to
focus on what really matters.
Expensify, Inc.
Consolidated Balance
Sheets
(unaudited, in thousands, except
share and per share data)
As of December 31,
2021
2020
Assets
Cash and cash equivalents
$
98,398
$
34,401
Accounts receivable, net
15,713
10,024
Settlement assets
21,880
14,308
Prepaid expenses
7,436
927
Related party loan receivable, current
14
600
Other current assets
14,201
3,404
Total current assets
157,642
63,664
Capitalized software, net
6,359
3,722
Property and equipment, net
15,930
15,363
Lease right-of-use assets
2,202
3,733
Deferred tax assets, net
370
418
Other assets
710
833
Total assets
$
183,213
$
87,733
Liabilities, convertible preferred
stock and stockholders' equity (deficit)
Accounts payable
$
3,752
$
2,328
Accrued expenses and other liabilities
11,046
3,535
Borrowings under line of credit
15,000
15,000
Current portion of long-term debt, net of
issuance costs
549
2,454
Lease liabilities, current
1,549
1,575
Settlement liabilities
21,680
14,308
Total current liabilities
53,576
39,200
Lease liabilities, non-current
802
2,350
Deferred tax liabilities, net
—
916
Other liabilities
153
877
Long-term debt, net of issuance costs
52,067
30,321
Total liabilities
106,598
73,664
Commitments and contingencies (Note
12)
Convertible preferred stock, par value
$0.0001; 0 and 4,203,139 shares authorized, issued and outstanding
as of December 31, 2021 and 2020, respectively; (aggregate
liquidation preference of $0 and $24,929,457 as of December 31,
2021 and 2020, respectively)
—
45,105
Stockholders' equity (deficit):
Common stock, par value $0.0001;
1,000,000,000 and 95,000,000 shares of Class A common stock
authorized as of December 31, 2021 and 2020, respectively;
67,844,060 and 29,366,940 shares of Class A common stock issued and
outstanding as of December 31, 2021 and 2020, respectively;
25,000,000 and 0 shares of LT10 common stock authorized as of
December 31, 2021 and 2020, respectively; 7,332,640 and 0 shares of
LT10 common stock issued and outstanding as of December 31, 2021
and 2020, respectively; 25,000,000 and 0 shares of LT50 common
stock authorized as of December 31, 2021 and 2020, respectively;
6,224,160 and 0 shares of LT50 common stock issued and outstanding
as of December 31, 2021 and 2020, respectively
6
—
Additional paid-in capital
142,515
21,312
Accumulated deficit
(65,906
)
(52,348
)
Total stockholders' equity (deficit)
76,615
(31,036
)
Total liabilities, convertible preferred
stock and stockholders' equity (deficit)
$
183,213
$
87,733
Expensify, Inc.
Consolidated Statements of
Income
(unaudited, in thousands, except
share and per share data)
Three months ended December
31,
Year ended December
31,
2021
2020
2021
2020
Revenue
$
40,364
$
25,737
$
142,835
$
88,072
Cost of revenue, net
19,925
8,533
53,693
32,414
Gross margin
20,439
17,204
89,142
55,658
Operating expenses:
Research and development
2,850
2,083
10,988
6,728
General and administrative
24,915
8,655
60,742
33,372
Sales and marketing
13,109
2,074
27,664
9,888
Total operating expenses
40,874
12,812
99,394
49,988
(Loss) income from operations
(20,435
)
4,392
(10,252
)
5,670
Interest and other expenses, net
(920
)
(558
)
(3,480
)
(2,718
)
(Loss) income before income taxes
(21,355
)
3,834
(13,732
)
2,952
Benefit (provision) for income taxes
(532
)
(2,092
)
174
(4,662
)
Net (loss) income
$
(21,887
)
$
1,742
$
(13,558
)
$
(1,710
)
Less: income allocated to participating
securities
—
(1,742
)
—
—
Net loss attributable to Class A, LT10 and
LT50 common stockholders
$
(21,887
)
$
—
$
(13,558
)
$
(1,710
)
Net loss per share attributable to Class
A, LT10 and LT50 common stockholders:
Basic and diluted
$
(0.82
)
$
—
$
(0.36
)
$
(0.06
)
Weighted-average shares of common stock
used to compute net loss per share attributable to Class A, LT10
and LT50 common stockholders:
Basic and diluted
26,776,561
28,402,996
38,039,222
27,424,480
Expensify, Inc.
Consolidated Statements of
Cash Flows
(unaudited, in thousands)
Year Ended December
31,
2021
2020
Cash flows from operating activities:
Net (loss) income
$
(13,558
)
$
(1,710
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation and amortization
5,197
3,248
Reduction of operating lease right-of-use
assets
741
1,311
Loss on impairment, receivables and sale
or disposal of equipment
319
162
Stock-based compensation
14,574
17,837
Amortization of debt issuance costs
32
32
Deferred tax assets
48
2,437
Deferred tax liabilities
(916
)
916
Changes in assets and liabilities:
Accounts receivable
(6,006
)
(2,170
)
Settlement assets
173
2,878
Prepaid expenses
(6,509
)
270
Other current assets
(4,100
)
(1,393
)
Related party loan receivable
586
—
Other assets
124
(248
)
Accounts payable
1,424
(714
)
Accrued expenses and other liabilities
7,511
1,774
Operating lease liabilities
(801
)
(1,374
)
Settlement liabilities
7,372
(16,548
)
Other liabilities
(725
)
877
Net cash provided by operating
activities
5,486
7,585
Cash flows from investing activities:
Purchase of property and equipment
(2,706
)
(2,488
)
Proceeds from sale or disposal of property
and equipment
—
2
Software development costs
(4,908
)
(1,809
)
Net cash used by investing activities
(7,614
)
(4,295
)
Cash flows from financing activities:
Principal payments of finance leases
(774
)
(808
)
Principal payments of term loan
(25,191
)
(319
)
Proceeds from term loan
45,000
—
Principal payments of line of credit
—
(1,000
)
Proceeds from line of credit
—
9,613
Repurchases of common stock
—
—
Vesting of restricted common stock
567
—
Proceeds from initial public offering, net
of underwriters' discounts and commissions
57,458
—
Proceeds from issuance of common stock on
exercise of stock options
3,505
1,301
Net cash provided by financing
activities
80,565
8,787
Net increase in cash and cash
equivalents
78,437
12,077
Cash and cash equivalents and restricted
cash, beginning of period
46,878
34,801
Cash and cash equivalents and restricted
cash, end of period
$
125,315
$
46,878
Supplemental disclosure of cash flow
information:
Cash paid for interest
$
3,082
$
2,929
Cash paid for income taxes
$
6,922
$
150
Noncash investing and financing items:
Commercial building and land acquired with
long-term debt (net of issuance costs of $8,226)
$
—
$
—
Right-of-use assets acquired with lease
liabilities
$
—
$
1,260
Reconciliation of cash, cash equivalents
and restricted cash to the consolidated balance sheets
Cash and cash equivalents
$
98,398
$
34,401
Restricted cash included in other current
assets
8,651
1,955
Restricted cash included in other
assets
47
48
Restricted cash included in settlement
assets
18,219
10,474
Total cash, cash equivalents and
restricted cash
$
125,315
$
46,878
Expensify, Inc.
Reconciliation of GAAP to
Non-GAAP Financial Measures
(unaudited, in thousands)
Adjusted EBITDA
Three months ended December
31,
Year ended December
31,
2021
2020
2021
2020
(in thousands, except
percentages)
(in thousands, except
percentages)
Net (loss) income
$
(21,887
)
$
1,742
$
(13,558
)
$
(1,710
)
Add:
(Benefit) provision for income taxes
$
532
$
2,092
(174
)
4,662
Interest and other expenses, net
920
558
3,497
2,718
Depreciation and amortization
1,465
895
5,197
3,248
Stock-based compensation
12,079
4,886
14,574
17,837
Adjusted EBITDA
$
(6,891
)
$
10,173
$
9,536
$
26,755
Adjusted EBITDA Excluding the IPO-Related
Bonus
Three months ended December
31,
Year ended December
31,
2021
2020
2021
2020
(in thousands, except
percentages)
(in thousands, except
percentages)
Net (loss) income
$
(21,887
)
$
1,742
$
(13,558
)
$
(1,710
)
Add:
(Benefit) provision for income taxes
$
532
$
2,092
(174
)
4,662
Interest and other expenses, net
920
558
3,497
2,718
Depreciation and amortization
1,465
895
5,197
3,248
Stock-based compensation
12,079
4,886
14,574
17,837
IPO-related bonus expense
14,190
—
48,416
—
Adjusted EBITDA Excluding the IPO-Related
Bonus
$
7,299
$
10,173
$
57,952
$
26,755
Non-GAAP net income
Three months ended December
31,
Year ended December
31,
2021
2020
2021
2020
(in thousands, except
percentages)
(in thousands, except
percentages)
Net (loss) income
$
(21,887
)
$
1,742
$
(13,558
)
$
(1,710
)
Add:
Stock-based compensation
12,079
4,886
14,574
17,837
IPO-related bonus expense
14,190
—
48,416
—
Non-GAAP net income
$
4,382
$
6,628
$
49,432
$
16,127
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version on businesswire.com: https://www.businesswire.com/news/home/20220330005845/en/
Investor Relations Contact
Nick Tooker investors@expensify.com
Press Contact
James Dean press@expensify.com
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