Expensify (EXFY) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $33.3 million, down 14% year-over-year, with paid members averaging 684,000, both flat quarter-over-quarter but down from 742,000 a year ago.

• Net loss narrowed to $2.8 million from $11.3 million year-over-year; non-GAAP net income was $5.6 million and Adjusted EBITDA reached $10.2 million (31% margin).

• Free cash flow increased 10% quarter-over-quarter to $5.7 million, with operating cash flow at $9.3 million.

• Interchange revenue from Expensify Card grew 48% year-over-year to $4.0 million, with $0.5 million attributed to the new card program.

• Major product launches included the New Expensify platform, Expensify Card program, hybrid app, and Expensify Travel, all expected to drive future growth.

Financial highlights

• Revenue: $33.3 million in Q2 2024, down 14% year-over-year and flat quarter-over-quarter.

• Net loss: $2.8 million; non-GAAP net income: $5.6 million; Adjusted EBITDA: $10.2 million (31% margin).

• Operating cash flow: $9.3 million; free cash flow: $5.7 million, up 10% from Q1.

• Interchange revenue: $4.0 million, up 48% year-over-year, with $0.5 million from the new card program.

• Gross margin for Q2 2024 was 57%, up from 56% a year ago.

Outlook and guidance

• Annual free cash flow guidance raised to $15–16 million, up from previous $11–13 million.

• New Expensify and Expensify Travel expected to generate revenue starting in Q3 2024.

• Stock-based compensation projected at $5.8–9.3 million per quarter over the next year.

• Management expects full transition to the Updated Card Program by year-end 2024.

• Existing cash resources expected to be sufficient for at least the next 12 months.