Expensify, Inc. Q1 FY2025 earnings call

• Q1 revenue was $36.1M, up 8% y-o-y; free cash flow was $9.1M, a 75% y-o-y increase and 45% q-o-q increase. • Increased annual free cash flow guidance to $17M-$21M from $16M-$20M due to economic uncertainties. • Expensify Card grew to $5.1M, +43% y-o-y; Expensify travel up 166% q-o-q. • Announced full Spanish support in product UI and messaging, with more international support and languages coming. • Simplified pricing for collect plan: $5 per member per month, streamlining pricing for simpler customers. • AI features: Conversational corrections for receipt categorization, advanced policy violations via deep receipt analysis, fraud reduction via real-time travel fraud detection, and virtual CFO functionality being built out.

Revenue was $36.1 million, up 8% year-on-year. Average paid members were $657,000. Total interchange was 5.1%, up 43% year-on-year. Operating cash flow was $4.8 million, free cash flow was $9.1 million. GAAP net loss was $3.2 million, non-GAAP net income was $4.8 million, adjusted EBITDA was $8.4 million. Expensify Card grew to $5.1 million, a 43% year-on-year increase. Expensify travel saw a 166% quarter-over-quarter increase in Q1.

• Initiated annual free cash flow guidance of $16M-$20M in Q4, then increased to $17M-$21M due to economic tumult. • Guidance is conservative, will update as economic policy plays out.

• Economic tumult and impact of tariffs on the economy as a risk factor affecting business projections.

Q: Talked about macro and tariff impacts, resiliency in tough economy?

A: Well positioned with $9M free cash flow this year, restructured to weather tough times.

Q: Paid user number disconnect between revenue and paid users, how think about business?

A: Paid members still important, but diversified revenue streams beyond subscription.

Q: Formula One impact, when felt?

A: Q1 had little impact, expected to increase over time, more in Q3 than Q2.

Q: Verticals and customer base exposure to tariff headwinds?

A: Challenging to track exact impact, customers in wait-and-see mode.

Q: F1 movie accounting impact on cash flow and income statement?

A: Free cash flow impact largely felt, expense recognized when movie comes out, S&M expense higher next quarter due to payments