Earnings call transcript: Expensify misses Q2 2025 earnings, stock dips

Expensify Inc. reported a disappointing second quarter of 2025, with earnings per share (EPS) falling short of expectations and a slight revenue miss. The company posted an EPS of -$0.10, missing the forecasted $0.04, a surprise of -350%. Revenue came in at $35.8 million, slightly below the anticipated $36.22 million. Following the earnings release, Expensify’s stock dropped 2.02% in after-hours trading, closing at $1.94, near its 52-week low of $1.62. According to InvestingPro data, the stock has declined over 48% in the past six months, though analysis suggests the stock may be undervalued at current levels. InvestingPro subscribers have access to detailed Fair Value analysis and 12 additional ProTips for deeper insights into Expensify’s financial health.

Key Takeaways

• Expensify reported a net loss of $8.8 million for Q2 2025.
• The company saw a 44% growth in its travel product segment.
• Free cash flow increased by 10% year-over-year to $6.3 million.
• Expensify plans to expand its card services to the UK and EU.
• The company raised its free cash flow guidance to $19-23 million.

Company Performance

Expensify’s overall performance in Q2 2025 was marked by significant challenges, as the company reported a net loss of $8.8 million. Despite this, there were areas of growth, such as a 44% increase in its travel product segment and a 10% rise in free cash flow. InvestingPro data shows the company maintains a strong current ratio of 3.25 and holds more cash than debt on its balance sheet, providing financial flexibility for its expansion plans. The company’s focus on expanding its global bank support and currency capabilities reflects its strategy to enhance its market presence.

Financial Highlights

• Revenue: $35.8 million (year-over-year increase)
• EPS: -$0.10 (missed forecast of $0.04)
• Operating cash flow: $8.9 million
• Free cash flow: $6.3 million (10% increase from last year)
• Adjusted EBITDA: -$1.4 million

Earnings vs. Forecast

Expensify’s Q2 2025 EPS of -$0.10 fell short of the forecasted $0.04, marking a significant negative surprise of -350%. Revenue also missed expectations, coming in at $35.8 million compared to the projected $36.22 million. This performance represents a departure from previous quarters, where the company had shown more stable results.

Market Reaction

Following the earnings announcement, Expensify’s stock declined by 2.02% in after-hours trading, closing at $1.94. This places the stock closer to its 52-week low of $1.62. The market’s reaction reflects investor concerns over the earnings miss and the company’s ability to meet future expectations.

Outlook & Guidance

Despite the Q2 setbacks, Expensify increased its free cash flow guidance to $19-23 million, up from the previous $17-21 million. The company remains committed to investing in AI and product development, with plans to expand its card services to the UK and EU. Long-term strategies include developing a global payments engine and exploring a super app concept. With a beta of 1.73, the stock shows higher volatility than the market, making it crucial for investors to stay informed. Get comprehensive analysis and real-time updates with InvestingPro’s detailed research reports, covering over 1,400 US stocks including Expensify.

Executive Commentary

CEO David Barrett emphasized the company’s focus on financial AI, stating, "We’re working hard to become the world’s foremost expert in financial AI." CFO Ryan Shaver highlighted the company’s integrated product approach, saying, "We’re building one product that is tightly integrated with each other."

Risks and Challenges

• Continued net losses could impact investor confidence.
• Revenue miss raises questions about future growth potential.
• Expansion into new markets may face regulatory challenges.
• Dependence on AI development could pose technological risks.
• Market competition from larger financial technology firms.

Q&A

During the earnings call, analysts inquired about the impact of Expensify’s marketing efforts, particularly its involvement with the F1 movie, which generated over $100 million in marketing exposure. The company also addressed its AI and search strategy, emphasizing strong SEO positioning and optimization for AI search tools.

Full transcript - Expensify Inc (EXFY) Q2 2025:

Ryan Shaver, CFO, Expensify: Hi. Welcome to the q two two thousand twenty five Expensify earnings. I’m Expensify’s CFO, Ryan Shaver, and with me, I have founder and CEO, David Barrett. And now we’re gonna pass it over to Nikki for the legalese.

Nikki, Legal Representative, Expensify: Please note that all the information presented on today’s call is unaudited. And during the course of this call, management may make forward looking statements within the meaning of the federal securities laws. These statements are based on management’s current expectations and beliefs and involve risks and uncertainties that could cause actual results to differ materially from those described in forward looking statements. Forward looking statements in the earnings release that we issued today, along with the comments on this call, are made only as of today and will not be updated as actual events unfold. Please refer to today’s press release and our filings with the SEC for a detailed discussion of the risks that could cause actual results to differ materially from those expressed or implied in any forward looking statements made today.

Please also note that on today’s call, management will refer to certain non GAAP financial measures. While we believe these non GAAP financial measures provide useful information for investors, the presentation of this information is not intended to be considered in isolation or as a substitute for the financial information presented in accordance with GAAP. Please refer to today’s press release or the investor presentation for a reconciliation of these non GAAP financial measures to their most comparable GAAP measures.

Ryan Shaver, CFO, Expensify: Great. Thank you, Nikki. Alright. Let’s talk about the financials. Revenue was 35,800,000.0, which is up year on year, which is really exciting.

Average paid members were 652,000, and total interchange was 5,300,000.0, which is also up year on year. Operating cash flow was 8,900,000.0. Free cash flow is 6,300,000.0. Again, the difference between those is free cash flow does not include customer funds. Our net loss is 8,800,000.0.

Our non GAAP net loss was 1,900,000.0, and our adjusted EBITDA was one negative 1,400,000.0. Again, these numbers are impacted by the release of the movie as we’ve discussed in previous, earnings calls. The way movie accounting works is we’ve been making payments for multiple years, but the expense is all recognized this quarter. So the reason these numbers look worse than they normally do is because we just recognized multiple years of payments all in one quarter. We expect next quarter for these to go back to normal.

Like I just mentioned, our free cash flow is 6,300,000, a 10% increase, from last year. Last quarter, we updated our guidance to 17 to 21,000,000 in annual free cash flow. We’re now increasing that free cash flow guidance to 19 to 23,000,000. As the year goes on, our confidence in this number increases, and we continue to increase it. We’ll let you know next quarter, if there’s any updates there.

July payment members were 641,000. July is usually a pretty soft month. A lot of people are on summer vacation with their families. Usually not a great month for us, and so we saw that seasonality this quarter. Or we saw the seasonality in July, which was expected.

Now let’s talk about what everyone wants to hear about, the f one movie. So I hope you saw it. It was a great movie. Let’s talk about, some highlights here. So Expense High was on screen for an estimated total of over thirty five minutes, which is insane.

We did this, Super Bowl ad in 2019. We paid a lot of money for thirty seconds, and our logo was only on screen for about two seconds of this thirty five seconds because we had to make it entertaining and funny. So the logo not a lot of time for the logo. This was very logo based and a huge increase from two seconds to thirty five minutes. Given the box office numbers and the fact that we are on screen for thirty five minutes, we estimate that the ExpenseFi logo was on screen and viewable for one point three billion minutes, over the last, you know, month and change.

Additionally, we estimate over 100,000,000 was spent marketing the movie in which our logo featured heavily. So you probably saw a lot of ads. You probably saw a logo in those ads. We think over 100,000,000 was spent doing that, promoting our logo, by companies other than us, which is great. A great deal.

Additionally, there was a lot of buzz around the movie. So the PR, what’s called earned media, generate an estimated equivalent value of 61,000,000 marketing dollars. What that means is how much would it cost to get all the articles written about us, all the time sales on talked about on the news, social media. If you were to take all that activity and then figure out how much would it cost to buy that, that cost would be $61,000,000. So the earned me around the movie, we estimate, at this point, is $61,000,000.

The movie’s also been greenlit for a second theatrical release in IMAX, then it’s gonna go to Apple TV. So it’ll continue to drive interest for a long time to come. So these numbers are just as of right now, these are not the final numbers, and we think that it’s gonna continue to be seen by people, be loved by people, and continue to pay dividends for us as a business. One of the ways we measure the effectiveness of this investment we made is in brand awareness. So we do brand awareness set studies.

Basically, the general population is surveyed, so we’re not surveying specifically accountants or any specific population, just, you know, normal everyday people because we grow through bottom up adoption. We market to just regular employed people, and they hear about us. They download the app, and then they bring it into the business. So that’s a big piece of our business model. So that’s why we do these awareness surveys.

So you get as you can see, the increase from April to July is quite significant, over a 50% increase in our core demographic, which is ages eighteen to fifty four. And very excitingly, in our in the basically, the future, our future bottom up adopters, eighteen to twenty four, which is a hard demographic to, get in front of, we saw a 350% increase in brand awareness. And, again, this is unaided awareness. What that means is in the survey, they’re they’re asked, do you know anything about expense management? Do you use expense management?

And if they say no, then, you know, they’re ignored. If they say yes, the next question is, okay. Can you name any of them? So they’re and then they type in the ones that they can name. Way more people were able to name Expensify by name than any other, of our competitors in the space.

Now, obviously, the next question is, do you know any of these companies in a list? And that’s much easier. So unaided awareness is the hardest metric to increase, and we’ve seen huge increases there. So we’re very excited. We think that this is going to be great for the business.

Obviously, way more people know about us now, and we think that’s gonna kind of trickle down and create a halo effect, a positive halo effect on the business for a long time to come.

David Barrett, Founder and CEO, Expensify: Yep. Alright.

Ryan Shaver, CFO, Expensify: Now I’m gonna pass it over to David. Great.

David Barrett, Founder and CEO, Expensify: Let’s talk about q two. And so we’ve been hard at work. In particular, we’ve been pairing preparing for f one for a long time. And recognizing that f one is such a global sport. We put a lot of work into improving the Expensify’s availability and performance and just overall experience in a wide variety of f one sort of familiar sort of countries.

And so we’ve added support for over 10,000 banks globally, whole bunch of United States, a whole bunch all over the world, and just to make sure that because one of Expensify’s big differentiations is that we’re really good for third party, card support. Of course, we prefer to choose our Expensify card, if but you don’t, you can always bring your own card, that’s a huge thing. We’re the best for that in the industry, and so now we’re also expanding that strength, globally. Additionally, just, the nuts and bolts of being able to do reimbursements. Again, Expensify is very good for a reimbursement heavy company that maybe doesn’t issue corporate cards to their employees.

Now those reimbursements work even more countries around the world. We’ve added support for, buying Expensify in euro. So previously, you could buy it in, you know, pounds, US dollars, things like this, but now you can also support the euro as well. Again, just making it a little bit easier to adopt throughout Europe. Also very exciting, the Sensify card itself is being expanded to work in The UK and EU.

That’s coming out very soon here, and so we’re very, very excited about that. So overall, it’s about base making sure that the way we capture this long term investment in f one is about making sure that the markets where f one is really popular are also good markets for ExpenseFly. One thing I’ve been putting a lot of my time in, my top priority is working on our concierge AI. Now we’ve talked about it a lot in the past. I’d say probably the biggest change here is really dialing in sort of the the technical foundation of our AI.

Now I know it’s about a world word salad here, but for the buzzwords, basically saying one thing is making sure that concierge is multimodal, meaning that it can natively process not just chat, but also images and so forth. So if you upload an image, it can identify if it’s a screenshot of maybe our app or a screenshot of something else versus maybe it is a a receipt that he needs to take different action on. Things like this. Additionally, using technology called a tree of thought design, basically, one of the challenges for any AI system is allowing to do a wide variety of things. And this new technique basically uses a a hierarchical design that will categorize the intent of the user and then take it down to different sort of, train of reasoning for different types of intents, whether you’re, doing customer support, whether you’re trying to, like, modify expenses, whatever it might be.

We’re gonna have a lot more to say about that probably in the upcoming quarter, but this is a major focus of my personal time, and I know a lot of the company is very, excited about this. Another highlight is Expensify Travel has been doing really good. Just in the last quarter, up 44%. I think July has been very strong as well. I think overall, the way to think about Expensify Travel is it’s really the new Expensify Card in the sense that just like Expensify card has really shown that it can contribute in such a positive way to top line revenue and especially free cash flow generation.

I think travel is going to do the same thing. I believe it’s actually outperforming the initial days of ExpenseFi card, and so I’m just very excited about that. And then, of course, finally, we’ve always had a long term strategy of positive cash flow generation and that we use as to, you know, steadily repurchase shares, return some of that money back to investors. And so all of this is in in line with this a high level strategy that we’ve had for a long time. But basically, to kind of review the the big plan here, step one is we’ve invested for years to build this entirely new technology foundation that we think can power the next, you know, decade of growth of Expensify, and that this is a major, major upgrade to the fundamental technology of the app, of the of the products to have what we call kind of a real time infrastructure, meaning that if two people are looking at the page at the same time, the things will update automatically.

Think like Google Docs or other sort of more real time applications, but bring that into the expense management space. It’s a chat centric design, which is really important because that allows you to collaborate in real time on any object in the application, but also collaborate with our AI, which is increasingly important. And, fundamentally, it’s just a it’s a cross platform design. Everything works extremely well, not just on desktop, but all of the functionality works on mobile. This is a major differentiation in the industry, and we’ve seen this as really resonating with customers that they don’t have to pull out a laptop to do things.

It was an increasingly mobile workforce and admins on the road and so forth. And as there’s just more capabilities in the product, if you need to issue a card, stop a card, whatever it might be, you can do everything on the road as well. Anyway, everything I just mentioned there, all of this sort of fundamental upgrade to the technology platform itself is done. It’s in production. It’s being used by customers, and so that’s been a huge lift, but, thankfully, it’s behind us.

All of our attention right now is focused on, I’d say, two things. One is just migrating customers from Classic to new Expensify. Our business model, as Ryan mentioned earlier, is a bottom up business model. It’s just all driven by word-of-mouth. It’s all about basically encouraging people to talk to their friends, and then their friends adopt Expensify inside their company as an individual.

And then we turn every expense report into a marketing message directly to the decision maker. And so this has been our business model from the start. It’s what sort of empowers us all along. And the word-of-mouth is a fundamental numbers game. You need to get enough people talking about you to their friends in order to generate that long term lead stream.

And so it’s so important for us to get back to growth. It requires getting our customers onto Expensify onto new Expensify so that our existing users have something to talk about. Word-of-mouth is about novelty to a degree, and one of the most novel things is adopting a new platform, seeing all the new capabilities, and seeing the result of our investments into this new functionality. So it’s incredibly important for us to get all of our customers from classic to new. That’s where so much of our attention is.

On the other side, as I mentioned, that, we’ve made some bold claims about trying to become, you know, we think the world’s foremost expert in, financial AI, which is a bold claim, I understand. But we’re working very hard to make that true. And so a lot of our time is being spent on focusing on not just the fundamental AI technology itself. Because I think that the key to making a good AI even smarter than the super intelligence already out there is to tightly integrate it with the data that you have such that you can act upon it in a real time manner, collaborate on it with the AI. It’s a very different design.

And I think you’re gonna see a lot of applications going forward are gonna look more and more like Expensify because the UI of AI is chat. And if anything you can do to infuse chat throughout your system puts your system more in touch with the capabilities of AI and allows your customers to communicate with AI in more context. So anyway, we’re gonna have a lot more to talk about that in the future. It’s just something that I’m personally very excited by. And then I would say in the future, after we’ve migrated our customers from classic to new, after we’ve rolled out this AI and infused it throughout the application, Then, of course, there’s still the don’t forget about the super app design.

You know, right now, we’re focused on expense, card travel, but we haven’t given up on our ambitions on invoicing, bill pay, even payroll in the future, things like this. And so the goal is to build out this platform that has a universal and global payments engine, and then we can use this engine for a wide variety of use cases, not just the ones that we currently support, but those in the future as well. And then because of sort of this singular design behind all of this, we think that we can offer all of these use cases in a really compelling fashion at a super low price and a very low cost of sale. So if we can roll out eight products for nine bucks a month, we think that’s an incredibly compelling value proposition to customers, and so that’s still major part of the future strategy. And then finally after that, I think the long term lead generation is really about simplifying this functionality down for the consumer such that it’s not just about talking to your friends who are in other companies about doing expense reports, but talking to your family, talking to anyone and and anyone who spends money and trying to be relevant to a much broader range of people.

That’s ultimately what creates the the household name, the the broad awareness of Expensify, and the ability to do something with it, talk to their friends, and the word-of-mouth that can generate positive lead generation for years and years to come. Anyway, it’s a plan that we’ve had, a plan that we’ve been working on, and I think we feel very confident in the plan in the future. Other than that, I think that’s about it. So I think we’ll open up for questions.

Moderator, Expensify: Perfect. First up, we have Citi. I believe George, are you on the line with us?

George, Analyst, Citi: I’m here. Hi, David, Ryan, Nikki. Thanks for having me here.

David Barrett, Founder and CEO, Expensify: Hey, George. Good to see you.

George, Analyst, Citi: Yeah. Good to see you guys too. Maybe just to start with the the exciting news, f one movie. I think I’m one of the few people in the planet who has still hasn’t seen it, so I’m glad it’s coming back to theaters. I’ll have to catch it in the second round.

You know, you guys talked a lot about some of the brand awareness increases there. At least in terms of its conversion to paying users, it seems like that metric hasn’t, you know, moved much yet as at least as it relates to this this initiative. Can you just talk to us about what you’re expecting on that front? Is this kind of like a a still to come maybe in the next quarter or two, or is this more of a a slow and steady type of, improvement? How should we think about that?

Ryan Shaver, CFO, Expensify: Yep. Great question. So the movie came out with, I believe, three business days left in the quarter, so basically the end of q two. So in terms of impact for q two, not a lot. Right?

These all these numbers that we talked about today, those are things that we’ve seen in, you know, since the movie has been released. So some they they’re not in the q two results, so we would expect the impact from the movie to be, in the future. And, again, with a big brand awareness play, it’s not performance marketing. Right? This isn’t AdWords, so it’s not a, you know, direct one to one.

It’s kind of a a longer time horizon. And so we expect that this will kind of, you know, rising tide lifts all ships, produce kind of a a halo effect on everything we do, going forward in the future.

George, Analyst, Citi: Okay. Okay. That’s helpful. And then maybe just sticking on this this marketing topic, I think one of the topical things in in the the space of the PLG software has been changes to the Google search algorithm, kind of that AI blurb surfacing up top and changes to to web traffic that that’s, you know, that that’s engendered. Is is that at all relevant for your guys’ business, and have have you guys seen any metrics as it relates to that?

Any adjustments to how you guys are thinking about marketing from that channel?

David Barrett, Founder and CEO, Expensify: Sure. And so expense mean, before ChatGPT, we’ve always invested very heavily in SEO. And so I think we’ve got incredibly good just general search engine sort of placement across a huge range of keywords. I think we’ve talked about that in past years or past quarters and so forth. A nice thing about that is because all of the AIs are trained with the Internet because the Internet is already talking about Expensify.

That means the AIs themselves talk primarily about Expensify. I don’t have the data off the top of my head, but I know that, we’ve looked into it in the past, and Expensify just ranks very highly in Chatty, BT, Claude, Gemini, and so forth. And so I think that our SEO strategy has already put us into a good position to be recommended as a top option by these tools. And furthermore, we’ve doubled down on that by making sure they’re optimizing for the tools even more. And so I I’m with you in terms of the future of search is really about these chat based AIs, and we are certainly not gonna be left unaware about that.

And so we’re definitely preparing for that and taking advantage of that now.

George, Analyst, Citi: Okay. Great. Thanks for taking the questions here.

David Barrett, Founder and CEO, Expensify: Of course.

Moderator, Expensify: Great. Aaron, I believe I have you on the line, as a dial in, so let me get you unmuted here. Aaron, can

George, Analyst, Citi: hear me?

Aaron, Analyst: Thank you, guys. I can hear you. Can you hear me? Yes. That’s okay.

Put 14% of your payroll into GAAP R and D this quarter, 9% adjusted. Ramp was closed in March, so 50% of payroll goes into R and D there. Do you think the small scale of your business is a headwind to keeping up with the pace of product delivery we’re seeing from scaled vendors in the space?

Ryan Shaver, CFO, Expensify: That’s a good question. I think that we have an an extremely large, you know, group of our employees, focused on r and d. And I think we’re trying to build maybe different different products. Right? We’re building one product that is tightly integrated with each other, and I think the rest of the market’s building more siloed products so that, you know, you have your expense, then you have a different product, which is your invoicing, and they are all kind of like mini companies within one large company.

And we’re building just something different, which is one product, basically, one payments engine that can handle everything in the back office, no matter what you need. So it’s very integrated. It doesn’t require as many people. Do you

David Barrett, Founder and CEO, Expensify: Yeah. I agree with that. And I think that you’re right. With with respect to r and d, I think that is tricky from an allocation’s perspective because so much of our work is about improving technology that’s already in in production. And so the the separation between Waveflow with r and d and sort of expanding something for new use cases as opposed to just, as Ryan was saying, standing up an entirely new system.

It just produces kind of different allocations. Now I’m not gonna I’m not an accountant here, but I’d say that, fundamentally, I know I spend all my time in r and d and a lot of people do as well. But I understand that the, the accounting of how that comes out for a public company versus a private company might sort of produce different results as well. Mhmm.

Aaron, Analyst: That’s really helpful. And then I guess a similar question to follow-up. Do you think the increasing application of AI or product development for expense management use cases has the potential to erode the moat you’ve built around SMB and VSP customers where, historically, you’ve been the only one who could get the unit economics to work down market, but might take some of that cost out.

David Barrett, Founder and CEO, Expensify: That’s that’s interesting. I kinda think it’s the opposite in that I mean so a lot of ink has been spilled in this topic, and we could talk forever about it. But I think that we’re going through a shift in user experience design. Just kind of like, you know, initially, it was all desktop software, and there’s a bunch of patterns built up around that. And then it went to web, and then, basically, all the software was reinterpreted through more of a web centric design.

And then then mobile came out, and then all those existing software is reinterpreted through sort of more of a small screen application design. And I think we’re going through kind of a fourth transition here where every application is going to be reimagined through a chat centric design. And I think I kinda like where you’re going in terms of it can be kind of a normalizing effect because it strips away so many differences, and that, like, historically, like, the difference between an enterprise app and a consumer app just looks quite visually different. Whereas for an AI chat centric environment, they might look quite similar. I’m but I think it’s actually the difference, however, is it is much easier to make a simple product complicated than to make a complicated product simple.

And I think that the enterprise space is primarily focused on building complicated products sold to, a part of the market that can weather and endure and appreciate that complexity. It’s very hard for an existing product, especially very existing complicated products, to be reduced down to the simplicity of a chat based interface. Now I think that’s why we’ve worked so hard for a long time We’re speaking from experience here. It’s not a straightforward process to make something this simple, and it’s not a straightforward process to make something as infused with AI throughout the entire thing.

When you look at, I think, you know, again, Every company’s there’s a lot of good companies out there, and we’re all taking our our swing at this world. But I think that we’re gonna see most of them, take sort of a, a chat agent on the side where, basically, your application’s largely unchanged, and then there’s, like, a clippy, like, thing that appears in the side that basically tries to navigate around. And I think people take that design because that’s an easy technical design to do, because it separates your AI functionality from the rest of UI. And I think we’re gonna see a lot of the it’s more enterprise competition doing that because there’s they’re forced into it by their architectural decisions.

We’ve taken a very, very different path. Concierge is truly at every part of our application, and it’s infused in a very, very deep level. No one has a a design like us. And I think that’s what I was saying earlier on. I think you’re gonna see more and more applications kind of moving in a direction like Expensify, that kind of, you know, Windows 95 clippy style AI just doesn’t gonna do the trick.

It’s not gonna get you the kind of integrated experience that’s going to compel, the next generation of customers. And so I think it’s actually, it’s it’s very hard for them to come down to simplify their product to go to the SMB, but I think it’s much easier for us because we’ve already put the work in there and already built our business in the SAP. We’ve already seen it’s much easier for us to sort of attack the enterprise. And that’s how we get our enterprise customers historically is that we get them while they’re small, and then we just hold on to them forever. And so it’s I’d rather be in our position going after their market than in their market going after ours.

Ryan Shaver, CFO, Expensify: And, also, it doesn’t fundamentally change their business model. They still have huge sales teams. So that

David Barrett, Founder and CEO, Expensify: The economics aren’t

Ryan Shaver, CFO, Expensify: changing. Still fielding a huge sales arm, basically. So it could enable a new challenger to come in and do what we’re doing, but we haven’t seen competitors do that. They’ve come at it from a different, you know, card first angle, but that’s not AI based. I mean, that’s just they have a card angle versus an AI angle.

David Barrett, Founder and CEO, Expensify: Agreed. Yeah. I think they they had their big play, and it was a card first angle, and they leaned really far over their skis to push it, and they did a great job with that. But I think that that’s their thing. Their thing is card based.

I I’m with you. I think our thing is more AI based, and I would be more concerned about some new entrant, sort of stealing the the industry than than them.

Aaron, Analyst: That’s great perspective. Thank you, guys.

Ryan Shaver, CFO, Expensify: Yep. Thank you.

Moderator, Expensify: Fabulous. Lake Street, I believe. Max, are you on the line?

Max, Analyst, Lake Street: Yes. Hey, guys. Thanks for taking my questions. First one is kind of a two parter around go to market strategy. Just with the new F1 movie, I’m curious to know, I’m not sure if you guys get this and track this information, but in terms of new customer adds, maybe information that the team would have, but what percentage of these new adds maybe joined Expensify because of the F1 exposure?

And then on top of that, I know word-of-mouth is kind of a big deal with you guys and getting the Expensify name out there. I mean, is there any other investment initiatives you guys can implement to kinda gain traction like the legacy subscription business?

Ryan Shaver, CFO, Expensify: Hey. Great question. So, we don’t have any f one based new customer had information to share right now in q two because, again, it came out, you know, right at the end.

Max, Analyst, Lake Street: I guess maybe maybe for July and August, I guess.

Ryan Shaver, CFO, Expensify: We don’t have anything to share right now. It’s something that we can definitely talk about in the future. But to answer your other question, which is do we have other kind of follow on plans to f one? We are we do certainly have, you know, more marketing plans in place that we’re gonna we’re gonna do. Obviously, not the scale of this, you know, blockbuster movie, but, you know, this isn’t a one and done, you know, see in a couple years type of thing.

Yeah. We’re gonna we’re gonna continue to, invest in marketing and also, you know, try to harvest this great awareness that we’ve created.

David Barrett, Founder and CEO, Expensify: Yeah. I mean, we’ve been obviously, have a cash flow positive business for a reason. I think it’s has built up quite a nice war chest even while paying off our debt. And so I think that we have shown that we’re very willing to take big swings, when we think there’s a big swing to be taken. And so we don’t have any announcements right now, but certainly, you know, this isn’t the first time we’ve done something big, and it won’t be the last.

Max, Analyst, Lake Street: Yeah. And then last one for me, and I’ll get back in the queue. But it looks like the expense by travel’s trending well. Is there any other color you can add around that?

Ryan Shaver, CFO, Expensify: So we just I just got back from GBTA, the Global Business Travel Alliance Conference, and it went great. Like we said before, a lot of customer enthusiasm. We saw great quarter on quarter growth. And even in July, we saw a huge growth just, you know, month on month. So it is growing extremely well, and customers are trying it, loving it.

It’s kind of a a flywheel in terms of, you know, the the sales cycle’s a little longer. You know, they do demos. They do a a pilot, and then they start to roll it out, and then it grows and grows. So I think we’re starting to see that. So, nothing specific to share on them what we already did, but I guess the the color commentary is that it is, continuing to accelerate, and it’s great.

Max, Analyst, Lake Street: Alright. Thanks, guys.

Moderator, Expensify: Great. And then I have our last one. I apologize. I’m not sure who it is of our last few analysts, but I’ve got someone on a 415 dial in. I’ll give you just a second to try and unmute here.

David Barrett, Founder and CEO, Expensify: A little bit of a mystery caller. You know? I like it.

Moderator, Expensify: They’re authenticated, but it didn’t come through.

David Barrett, Founder and CEO, Expensify: Long time listener, first time caller kind of situation.

Nikki, Legal Representative, Expensify: That’s cool.

Moderator, Expensify: Alright. Let’s wrap it up.

David Barrett, Founder and CEO, Expensify: Cool. Alright. Well, thank you so much, everyone. As always, it’s a pleasure. Very excited to be sharing the results of q two and looking forward to, q three.

Ryan Shaver, CFO, Expensify: Alright. Thank you.

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