Expensify, Inc. Q3 FY2025 earnings call

Financials

• Revenue: $35.1 million
• Average paid members: 642,000
• Total interchange: $5.4 million
• Operating cash flow: $4.2 million
• Free cash flow: $1.2 million
• Net loss: $2.3 million
• Non-GAAP net income: $4.3 million
• Adjusted EBITDA: $6.5 million

Business Highlights

• Marquee customer win: Brooklyn Nets as Official Travel and Expense partner
• Expensify Travel bookings: Grew 36% Q2 to Q3 and 95% Q1 to Q3
• Share repurchase: 1.5 million Class A common stock repurchased for approx. $3 million

Product Update

• Migration to New Expensify: Targeting 90% feature parity with Classic, nearly all customer data migrated, nudging customers to New Expensify, closing new customers on New Expensify
• Concierge AI: Hybrid system (AI + human agents), contextual AI built into the product, general intelligence for multimodal functions, detecting AI-generated receipts, conversational corrections

Revenue was $35.1 million. Average paid members were 642,000 and total interchange was $5.4 million. Operating cash flow was $4.2 million. Free cash flow was $1.2 million. Net loss was $2.3 million. Non-GAAP net income was $4.3 million, and adjusted EBITDA was $6.5 million. Q4 paid members in October were 653,000, up from the Q3 average. Fiscal year 2025 free cash flow guidance remains $19 million to $23 million.

• Reiterated fiscal year 2025 free cash flow guidance: $19 million to $23 million
• Q4 paid members in October: 653,000, up from Q3 average

• Potential impact of government shutdowns on travel, which could be a timing risk

Q: Thoughts on chat as UI for AI, learnings and advantages over others?

A: David Barrett emphasized Concierge AI is built into the product contextually, allowing natural language interaction in any context, unlike others that are built on top.

Q: Impact of government shutdowns on travel?

A: Ryan Schaffer said it's a timing risk, depends on whether it affects travelers' plans Q: Migration of customers to New Expensify, revenue contribution, timeline, incremental monetization, cost savings?

A: Ryan Schaffer said less than 50% of revenue on New Expensify currently. David Barrett mentioned targeting 90% feature parity by end of year. Anticipated cost savings from Concierge agent and increased monetization potential with New Expensify's travel functionality