Expensify (EXFY) 17 Dec 212021 Q3 Earnings call transcript

[Call Starts Abruptly] And during the course of this call, management may make forward-looking statements within the meaning of the federal securities law. 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 these 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 non-GAAP net income, adjusted EBITDA and adjusted EBITDA excluding the IPO-related bonus, which are non-GAAP financial measures.

as non-GAAP of provide intended accordance this considered isolation these investors, information to with believe the in presentation for the information or GAAP. we financial presented useful measures for be financial While information substitute in a is not reconciliation adjusted most Please to EBITDA IPO-related to their a excluding GAAP release net measures. income, investor presentation or the refer non-GAAP the adjusted comparable press for today’s of EBITDA and bonus high stress. That was very discussion the over David. with that, turn But me to let

Thank you for that fascinating introduction.

maybe a so introduction, quick we So get started.

the So, David and am I Expensify. Barrett, Founder CEO of

have our of and We COO; our accountant. new Ryan Chief Financial technical senior is Officer; course,

we’re whole you team But started, have. here. We to answer why get dream can have conceivably any questions to the review here let’s

There go. we So, it. technology, love we

very heard level, you lot of reminder, many a of but here at phone this really the a high who there’s of course, as haven’t field. people a this, know So, on

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of three to considering Expensify. you’re if you of know. like in Now, sort main There’s investing need things

on the of and three things Now, product we main of know. can it. but of about kind there’s forever need and truly kind The advantages forever stuff, all that you to

of sort is tip the North we after there going opportunity feel an that like not that is entire that industry, market. going we’re the of after of enormous first the the absolutely we’re The enterprise, and the just snowy untapped

in up of of the of market a business of some the the on of That’s millions planet enormous every the of add adds But you all all so, maybe out world. because kind view problem. absolutely of And those is management traditional if to hundreds is companies couple to of thousand world, kind yes, the businesses however. were has it up players, hundred our that in expense customers single

it is it’s no like isn’t one So, way and basically anything. envelope; manila Excel. Concur that real we see for the The is Expensify a or e-mail something this. competition virtually It’s using

the And basically, corner nothing a going doing of opportunity, most the enterprise the And world not at is market. so after all. just of global small we’re

million We’re businesses XXX out going the after there. Fortune

Expensify’s completely model, industry. a everything the in than basically be strategy. is some it That’s a our is variation course, all on opportunity? everyone else that as how company whereas different mature everyone think traditional bottom-up because it call same of out there Now, a adoption is the employing else achieved that industry, cannot has missed acquisition is as this primary we upon the differentiation models. And through everyone question, model basic sales huge We in

high to You an maybe door. a all corner company basically and can like of goes subset reached managers sort specialists of know it model. small that that quota-carrying and a know to where CFO’s then salesperson a of be goes sale And a the and this. that’s we love it, a there’s things very commissioned it’s integration but only into traditional knocking on sales market, SCR, it or scalable model like model. of tiny, It’s to at salesperson, goes cost has BDR, calls least account also very high acquired The a a sale model, through tiny the because cost which this only opportunity of

essential through then about design their genuine friend, up they different. works and And Our and sign start without boss. their with they individual mouth. free the starts app of learning company a own submitting it say permission completely employee word Everything then is the to for downloading from they then just

So company basically, and means everyone we their XXX on sort a employee of can virally out were traditional same there grow to all because knocking doors we onboard different markets. This bottom every have companies CFO’s the door Whereas then the employee that can up. single company. never every else is reach in door, in is the every company that

companies never to raised that this We’re their until reaching it on and They company. searching basically a for individual the thinking management. of expense the never employee hand problem as put about were were agenda some

we’re of a users. all billion that that platform As reach we that, a X can building consequence of think

we’ve yet, to there financial possible. us we we’re yet. connect to cost. do the basically how it’s X platform. but tweet it’s is people from we a process never not automatically of talking know just currently it’s not it think conversations conversations Now, It’s that marginal people are close don’t volume think I at there already. the offline These billion couple bringing into billion photography, that possible a creating got possible link to link incredibly that incredibly Expensify online at those days ago new If common about we This through met, works. basically get And going a X we’re conversations. low when through customers bottom-up someone just high

stuff. completely yes, reporting maybe the And the the got But way is market kind smart customers and market we’ve in that got whole and the in everyone the expense that all to different we card, best us Expensify of there most so, reach that market a huge. for of we’ve importantly acquire whole everyone else and is difference yes, the else best allows is, than out

than much huge exist. We’re gunning be player for realizes a huge, to market it even for anyone else larger a

the quick spiel. that’s So

a talk QX. bit let’s Now,

everyone just it’s call. in. to thank on the for Well, you wanted dialing say I Thank great And David. to you, Great. see

in get let’s our had S-X, so, we And -- actually QX: So, QX started. We right? flash. had we these the numbers

$XX.X that disclosed terms in looking And end we million. right, in we top million $XX.X $XX.X range, million. came So, we at are the to revenue, of actually at of

paid And again, at to that at members. members. paid of in And excited came top paid very range we about members, of we’re members had the So, in paid XXX,XXX terms XXX,XXX XXX,XXX that. we

QX excited very went. So about how

we’ve best for COVID-XX. member paid the seen the that growth of fact, QX start quarter was In since

$XXX revenue. bonus the was -- to numbers that thing did So, is the growing. was The since terms S-X, members That we’ve best year-on-year to a for I IPO was in us at doing revenue. Card that million but It this XX% some it’s time in this little March Expensify the we annualized QX fantastic, over on rate puts us did. One growth, different. spend seen in was that year-on-year brings of XXXX, causing growth a and still want paid XXX% interchange

we’re here page of it looks terms make profitability want sure all on I going forward. Expensify’s So, same the to in how and

bonus are as they them don’t value. require that had the that are long know, our liquid shareholder an a to LTE order in a So, LTE the such can disclosed purpose those time Expensify $XX.X convert of shares. to into that million shares. share to to exercise employees in that has a shares we for with the IPO QX, and And employees convert structure of shares purpose that the align for long-term and means that is employees was in S-X, their not to These that common,

get long-term heavily and things. very our the are of growth produce to and employees not incentivized all by going short-termism distracted So public by

we’ll let that we bonus Company, the best is we’ll the results in but ever speak money actually probably the for invest this think So, themselves.

highlight bonus. do IPO kind make we story true this can you that the similar that with to $XX.X pillars of GAAP of the So, of telling, $X.X EBITDA one you look numbers $X.X net adjusted efficient, is a IPO the of so IPO an do non-GAAP excluding IPO-related reason when it million important But bonus we income this is EBITDA, It’s think big -- bonus, loss. story with add right? we that but when of we’re responsible million million. in adjusted make a net EBITDA, wanted because that have we that get that we negative growth. was And understands profitably, IPO million had you we maybe net when that the back only grow not is not And $XX.X add negative everyone is Expensify our to income at loss. a in this you sure bonus bonus, being And fast,

to IPO We’re again. not going

So, really reflective not this again. but is -- coming the bonus won’t be IPO

EBITDA the income, on the the and account IPO when bonus business. net that think the more we much you the for fundamentals So, reflective is of

right? on Rule public the Now, base, high, markets, this have we ARR against stack you’re when a very Rule taking And the dense per we XX, that is reason reflects XXX%, over looking basis, growth extremely, because profitability. We’re bonus million extremely and in do bonus, top, you that which also IPO talent tech are XX employee a in at high $X of top, employee. peers our very very bringing our talented in our top the right? we’re at the look That range. of obviously at out And we if and up of we is when

team. So, we have a great

in and over is that them, have great a retaining We back David. invested think to investment. we it Pass

right. Great. All

big of development or period -- of a you have we over know, So, a you vision, that as vision a might time. know lot involves long and

is reporting very much a now, app, payments expense it’s not So just an superapp. Expensify

the listed of to pay for in expenses, every variation give designed We’re should it return. someone

seen as industries, these you completely all traditionally, Now will. products be like different different if here SKUs, up different completely

For platform. same use a built Expensify, We’ve a ways they universal of adapt wide of that common for payment variety are using digital all just the cases. can different engine

I the And different colors. and across top so, highlight you look if of kind a here few

So is the live app can functionality already use. Expensify you in that are first, blue. in the is and item These

the improve are And that these, today. all going real of still we’re obviously but so, features in market to

use through Concierge feature to you chat. our can Travel book travel So,

bill collect bills experience can anyone they invoice to, an them you Of whoever online. system send online. pay invoice course, else they Expensify can receive and process ledger Likewise, export basically and our and you an where payment using the send in to

also smart million Expensify management scales enterprise. everything course, platform, sole Card with up we have branches. course, which a our proprietors to card, expense Of The different from of And large a world-leading we have

here. all from are And What platform. or beta green kind all in working that same experience on now, bullets use, to so, that would built the features say, going common we’ve here. right all items we’re the And these left internal of in of already on exist are use these They across them. so this I are right the

an tax solution We with chunk use currently build you report on using our then payroll and just we month same So, actually they technology own our is world, for expense own submitted the it. some payroll automatically of In our paycheck a exact a top twice have. internally.

to your the you you, than consumer silo We inside it families Facebook haven’t things your extern the just just Likewise, we’re still is built an of yet group basically, so we where request be individual LinkedIn can to companies. functionality company and a then would much Concur. send between but on Salesforce want have it, it design be app more and like company, to and not connectivity the limited into a they or is to with And inside roommates, someone money this. but of church same Expensify’s our a your you not just isolated or know. like with all design working like pay but can launched a I else wallet the

for Expensify, flows. -- link and be accounts to a invoicing so, designed perspective odds company working And for us on every or but through the a processing, resolve and of connecting is financial company you trying then leap that, company from just work that is companies companies And not expense functionality basically use if underlying used virally the more of Expensify’s be that using should in is to companies between conversation going in through top payment accounts receivables using could two between especially payables be Expensify. submitting consumer And tension. to bill chat-first a report which world then, uses design, view Because a your our from some that us. people are all through to every department lets because our Expensify, course, that sort accounting wallet of the their consumer because basically we your friends

experience to a to never So, can of just products leave If conversation. product. is to itself. that the That have throughout that through back invoice, means is If pivotal me experience invoice. finance entire the you you an team you some things your a send resolve I have of infused payments part chat like paycheck chat part sort with I is a can your paycheck, chat talk to because this. and of you the just Chat our

functionality -- left are And quick I to to perspective of of just we from some I this where have multiple all more from the in a the give layers plan. a off accounting to want this off adds of of all social right growth But of know you functionality basically Now, road a here’s update map perspective. value. terms plan, product

it this the Of because to And functionality lets throughout growth industries. course, the different we is that’s marginal build key our zero grow us basically cost growth all virally.

Of as course, it transactional well. creates alternatives as income

processing, of And creates that course, basically, high-value And functionality. of all is so top basically the from bill transactions subscription then revenue from likewise, everything travel this invoicing, the end comes revenue. of

remind to all our So, you but This product there. new, it’s that want just this road map. is isn’t I

happened first what’s think we did QX just we lost Free most And thing call Plan. about so, our is recently, what the when in we we

Expensify built for out a customers. we while primarily we Card management service mature expense of this The But our started, When we Card business. The had very existing has Expensify to now. been Now, course,

design. it’s here. can and the built this What yet, that customers. new which actually we’re Free thing. QX a results in early means Expensify adopt having a just launched management but The allows we out maybe to to brand in break as We management. future, companies This the expense Card too This new you without is to going to card Plan, card-first because new adopt we cross Expensify So, adopt existing to expense not sell still primarily just launched it, is

seen corporate This Expensify faster which the when adopt this cash so class launched new Card. employees The in you be customers is kind us we’ve a confidence one things back allows one. gives The all not way adoptive whole like of we us card past. And to the a Plan, to is is on new haven’t over launched it’s of new of switch Likewise, a forward a new going built because your that drive that we adoption immediately of Free this in program, into Card Expensify day by

one to is use drive thing just this that order tools adoption is many of this just we in new QX. in faster that the a launched So, we and

back that guidance. with So, to

make are revenues members at actually million. screen? what -- $XX.X QX. to in In let’s make QX, on right -- at XXX,XXX. the to -- sorry, XXX,XXX are to Great. wanted the So, perfect. you I XXX that’s million -- Yes, expecting looking can’t talk between paid about thought to in move see we I it. I can I and and thing. to what $XX.X we’re sure for but sure come and expecting come And want we say want that I

we it comes be a growth look have the very been question So, way a into to all forward? often ask of -- people like we always driver together what layers, and is layer we’ve kind a cake. growth? What’s describing it going the tasty of So, does very get growth is of going number

beginning, So, have you bottom you that of at have foundation, seat the at the expansion. --

And and us of over churn. in pay time, Expensify first opposite. and more. and and familiar is time, expansion pays paid with is ever So, customers them -- then the they -- is Generally, at basically those is your lowest exciting unique get are expansion. dynamic grow, dollar ever they they ever us customer when months. the that more beginning. really mostly less, net existing less exact Seat less we companies And by which customers Expensify the lowest and most couple pay the a The most their has. everyone’s over eventually generally

the growth our large you’d acquisition. on driver of The a customers. customer layer next new expansion be up So, that of existing is add would

but they every seats QX, is virally we pay in our So, stopped buckets they But customers now new highest we adding and during all new quarter, up. what in month, the adding of started grow advertising we’ve pandemic. are we us, we through we’re Again, mouth new quarter customers. which And the advertising word tens back of added start be thousands nationwide a of because the time. every ton QX, won’t of the of that from

in just to now, We’re QX, in markets QX forward, those keep major X right going QX, we’re and scaling advertising. going

this we what what And that’s have we’re currently. is So, building.

at invoicing. starting So, you that mentioned great add we excited and to bill look and it very pay each to add point on that you that expensive on hands And Expensify those offer, growth with replace functionality would lift that of a get also, payroll solution. foundation from the of then just we’re of that the we’re product, you we interchange discussed The the our Card, David to when of in kind suite the from be see users.

offer. actually for very is Expensify the So, inexpensive functionality

So, not the years, saying we price line, two I’m we do as think some but year, I’m with can well. not things next interesting saying in sometime down

time have, to So, all for the Q&A. slides that and we wanted leave we some is

So, over [indiscernible] to for I’m get kicked off throw Q&A. to going it to back us

So, Auty with Sterling J.P. our from is Morgan. first question

It’s you. guys. to see good Hi, Yes.

parts true reconciliation, so to model, non-GAAP a into just a want website? make because think by put So, sure, of was item. couple that GAAP bit of of a try so want us little a get there I item maybe supplement things. you line going I a help the Maybe there’s that line to think we our drive moving couple to with a on to out us non-GAAP that of actually are Just to all to get started,

So, checked. supplement didn’t it I see your on there website? a was I when

Yes.

website the right after on putting So, all up the we’ll be that call.

Fantastic. All All right. right.

hit factored potential And kind like have are differently. see to variants any you of different starting member the your for quarter here from especially noted? the into What fourth of what we’re different impacts or what’s Omicron regions -- to for paid COVID the additions start Looking -- thoughts?

Yes. Great question, Sterling.

in is when of customer base. how So, talking impact is about the we’re what on our important COVID

You look we are actually big variant where saw see there, are Where was no have what an the businesses have we’re a right? situation still So, to growing, traveling. at much a shut impact impact staying and down, doing? a is not spreading, but we to of very in is everything economy going when businesses still one open

thing my are an real traveling people But got not We post-vaccine a in there. impact they were where of just to is die last I have world real contract going still a a COVID week, that they’re So, very thing. that more very is COVID they -- because if been see but confidence vaccinated. they’ve less booster because to

think given basically, have kind consumers businesses I it’s business that vaccines the their a that back living boon order need confidence So, life. normal because huge been to to to they our go of to and

in But before. day-to-day So all going of be yet their concerned Omicron. that what obviously, very we are that’s having impact very be I lives, we to the like on we’re confident terms it’s people but to saw about think anything and traveling -- not it’s seen, still

That get contracted I wish COVID… makes booster. I sense. to I had week. was supposed Unfortunately, my I next it gotten

I’m so sorry.

to pricing But you’ve be, with you can follow-up attach levels rates would the card. got us the one and different -- talk

thinking questions of went Expensify in of through lot attach you’re trends from One as the what in terms the your get seeing us I in Card a embedded for what just The what’s investors quarter are is maybe and talk you of guidance? to about the

Yes.

adopting about. out new quick we’re pickup lot card, of did Plan, is we’re the Free excited we’ve rates not there a But also. guidance. didn’t this which rate seeing our at added from we And attach which we’re a we break in directionally, customers seeing So, really that which -- basically

as be paying had the customer card. previously, David to So mentioned, a to adopt you

Now, that’s not case anymore. the

card a that So, without functionality with a someone subscription having can come in for that. a of they and also comes get get free along and suite

kind to the of card. the boon So, of that’s growth another just

But you to did plan That And broken the which know, be So, future. just is out now, Sterling, to interchange for thing there. point we guidance year-on-year in growth more subscription purely out, XXX% that one stats card not out. breaking the was revenue sure I’m revenue. in include always

The next with Citi. question Radke is from Tyler

virtual as I cake to good for my question, like layer well you Thanks taking And have. you the as as the see well. physical cake layer and that

was on question my members. So, just paid the

saw back lot growth a positive member So, quarter levels. return to it of of terms paid in starting in sounded like things the you the to historical

close You got weeks about before up two you QX.

on good why end So heading with saw number where adds that dynamics same to guess, you kind the summer up. seasonality QX, might the vacations QX, otherwise the not and presumably, your impact of of QX? we’re visibility is in we some net dealing where going that I of wouldn’t -- into pretty see that especially you’re

-- our put to paid and good see QX. in So I obviously, still guidance member growth think going really we we’re

everything think a good So, seeing I in looking the is don’t slowdown really there. that we’re -- It’s business.

We’re seeing. very we’re encouraged what with

So, feel is, range very about range but there. ability what the good perform to and we that is our it

the changes, back Okay, I think, the in then, just makes I cash first some quarter. incentives. cash with of announced back September sense. the higher here on the in incentives, -- headlines the guess, And

free that increase the economic that potential the secondly, card lower paid? as impact And about growth how near of this with free in term from become on kind time? paid to tier you about just how thinking to just Just users thinking this you a with before just potentially they your tier, that of volume perspective? Does near-term member then, are kind margins of go are payment over could kind

Yes.

question. great So,

take out. them last in, I’ll first So,

So, members. your free question about

opposite than subscription, actually done think going sign choose basis like actually is for on that their putting would on So, a it’s all a kind we tip that the we we free they net they if up pick business they can of to if -- really we if for And that the card the do that card, of to even it have the be be the good spend -- think members way. the these before spear. think that a had they better

our Free getting So, about our paid for at users. great that plan. Free Plan the subscription to -- members that point, And of affords kind we’re once is way it’s we designed But expect the the to excited certain the Plan started. also, is a opportunity, a free upgrade business

be -- the members So, subscription. in but cycle, members, still card start we’ve that to it and they customer card to think now we we them and subscription as life kind done expect then members off is what will upgrade

is If I now earlier the I what have agree trust in really than jump normally Expensify completely we view of Ryan way starting that’s basically said, to in because management that quick. at the become historically would but life, when think speaking, with think journey lower expense I and particular is it the you Free like we’re something Plan customer a company you environment. your a time

people this. of receipts things no like questioning brand-new couple it’s There’s the basically no for to like just other, think of trust a with very sort and each you of approvals like If company, high a and there’s needed.

group And haven’t so of expense Free targeting Plan that management. customers the historically now, for new is really a need a seen

the so, trust the starting you company, a inside further sort bit so experience Then you life expense issues kind sophisticated you duplications hiring like to got some of need and start like more you’ve to more people, cycle. and the this. Ryan’s value of -- paywalls, in things management. then, the things little once we’re of these And And earlier basically of essentially, you point, approvals need

you that want less but we could really This to cannibalize as just suggest And something could don’t sophisticated because have customers. I that make is sophisticated new supporting -- a this, so, existing Expensify isn’t revenue existing didn’t for of our customers class this something more view functionality. This clear.

touch to then we And I want the... think on

to Do take that? want you

answer designed XX% once say tiers just answer let’s all to introduced way some have by card short degree. of which cash is companies, we’ve back, enough degrade the of not achievable But adopt X% card. but margins going for we is tier, about those that there it is them, companies is, cash the nuanced we’ve the the the So, back, to

the to X% $XXX,XXX spend way for then dynamic aspirational a earned So, it’s give will it’s but have to gives And feeling companies designed the convert achievable. this won’t card, your a them to card really the that every it card. out in is the no company them than having company roll either give spend. is bit -- And your targets the across it And reason company noticed more there’s It employee. they’re it the not kind for employee every we’ve because other board a And you and it reward why a of in earn to manner. because be reward good reward earn they trying and who any of this to the because you we’ve pick tier incentivizing to makes the a adopt designed larger on more to across products, spend. platforms other which all of is on to

bit get of and they want. little get little the what a bit we companies a we of what want So,

down show. So, on as of road way. not yes, this And all the the told then, it but it’s and working we going you margins, down part going to it’s to take also take we’re --

becoming a with. our more play to little program gives which room us margin on working manager, We’re old

So, we where we our of win of are some, make that’s kind hoping some, we some and margin lose to back.

Yes. And exceeds flat cash basically cash basically think target. a back, your And if point. I that’s it’s It’s that it’s not spends. for certain all important a back very a program

the target, if And dollar so, beneath first only target, then there’s no the target. And don’t dollar your back. if second that a you’re you get cash if you beneath --

it’s is -- drives much that in platform, is absolutely the And people and know so more so and achievable it process so, spend basically But it on do get it. we the value-added.

it. Got

if So, slightly gross it’s dilutive? dollar accretive, margin even though percentage

exactly. Yes,

question Ikeda I Koji from hope of name right. is your Our I Bank said with America. next

Yes.

becoming you a public on much. Thank taking my Hey I a company. good. guys. for questions. so Congrats Hey I got guess, Ryan. And thanks You’re Hey David. couple.

First one Ryan. for you

about thinking Just the guidance methodology.

end. With ride came in And thinking essentially million million, that the you million. showed have the coming million we And slides, we’re and in right flash of top in about $XX.X November, that and it the range with IPO range QX, $XX.X done you $XX.X about $XX.X December. launching below

So go I into the guidance And as guess, that how methodology revenue? thinking establishing the we is forward more should importantly, for guidance too, future we be about methodology about results, thinking with how QX? you are quarterly

Great question, Koji.

we say, pretty would I So, conservative. are,

the from Midwest. both We’re

intention get in realistic what try some not forecast always is and We’ve sort some in inflated guidance our our So, our is to of provided to an and boost. believe provide order guidance achievable we short-term to maybe range.

we out we seeing, then of going and market. communicate you to kind reality number, So, to We’re to in going won’t we’re always there, and we’re ever big very us the get see what right? hope and that’s what some be putting grounded

guess, could just question, number So, and a when how then work are at scenarios thoroughly we and of very just looking your actual, looking of then at to based on simply, how are forward look guidance. and quarter we go, different figuring the the trending at, projecting remainder design that’s our things we We’re how I we’re out how guidance? answer our more

very reality. it’s So, it’s achievable. wishful It’s in very not rooted And thinking.

the just long a I we’re Midwestern -- building on like business, we’re term. sensibility focused the feel Yes. of like

not done to you can of share I the that for for job think job. attitudes inflate short-term a of to of But you is. is value kind things haven’t you call That’s really and credit feel it. earnings that sort yet our our things that’s drive and not we movement. what there’s One how of out get use lot an can try

to value. working very long-term produce We’re

is do so, achievable of all achievable growth And everything is focused forecast. -- and on really we sustainable,

think, that’s, trying do This the And quarter, the next forward. our intent to give is so, -- to I about very presentation going we’re and Ryan. agree I entirely going that with realistic a much of

Got it.

be So, to clear. just follow-up just a there,

you and I’m you when slightly range So, do to or set how trying the you’re and fall midpoint above? say out that think to high achievable, just that of going to about understand end to always maybe to mean achievable? try range a it’s going

to going there going going we’re this saying we’re what we’re that get Koji, think, in into range the don’t so. I mean, granularity be on get on to guidance right, to is range, percentile Yes. to. we’re I because the that

Yes. enough. Fair Fair enough.

to the wanted, I but going you think that exactly range. know that’s to we’re I stick not answer

you. Got Ryan. Thanks,

Okay. last processor, be payment And in your potential about maybe when how of for be is kind with them. I I that in And you’re change conversations we could contract know or that discussions interchange me. progressing? The a then mean, one thinking could just GAAP? with revenue incorporated

I’m a an we Yes. able share. clip. it good in But, as that earnings implemented, now. at in really call, to I we’ll all yet. giving have next think It’s get progressing close think pretty to ETA ETA the XXXX, granular It’s I’m going comfortable a you just which little Maybe right as is we don’t to well. more have

to And to and confident as change that’s as up well in going expense We have interchange that the obviously, into happen. going that we better some you tell revenue to Yes. we’re advance move going the because contract a it’s things. cost soon revenue, of is feel a of date, from we impact and would

make that sure So, to notice. you advance significant want have we

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Bracelin Sandler. from with question next Piper The is Brent

could of card Maybe questions, the couple with start here. we’ll you, free here if I on A David strategy.

think it. stages you’re the launching So, of in just early QX, like about

about the you directions. have like think kind a you base of I As very installed go strategy large couple users. it can seems of free here, of do One, different a

there’s other to hand, larger go the opportunity and acquire even users. On new an

try an today? base, think through Just card strategy So, to year? really customers monetize the with intent trying about of footprint or XXXX see to of kind non-Expensify current new and that kind you think free to nonpaid the accelerate kind you the target for opportunity plans, your as next installed users, as of to really free the is do users

the say, is new through. marketing. obviously, Sure. of is I would mentioned, a the mean come can customer We Free key Plan Free these Ryan new marketing. And customers tremendous Plan up, the amount of overwhelming the message about as dial I acquisition.

then markets customers are new up, ad the product you word-of-mouth starting have amount one, see of upgrade of heard a already in. journey, we’re in friends. us kind Because you your And seeing the never wording into I there’s But their of and also, kind a so, strong that who that would you of tremendous advertising just degree word-of-mouth Plan an before, we’re all signing say, major the Free a if that will. to there’s markets customers’ happens And when effect which brand the multiplier is two all also that requires conditions, of relevant around. of base course,

there’s wide cases you’re look something friends Like, be your on secondarily, reaction talk So, just then because to we to bad to get that’s has sort of why like about it which the is of movements, consumer And about a friends. refers that product, everyone friends. to relevant you going their from one to no you, such thing. us cases, good something diversity bad because we a including want use have

And all so and not to us message Plan about. this campaign, an such before, having people but us to of talk a and about sort this compelling heard give exciting functionality, the know is and back the who get people part all us and of of something just Free out, to who’ve marketing never remind do cash to

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capture then in way say, idea the customers we seen it’s of the automatically. we’re the this of not new where the So, kind would versus growth. like before drive don’t from us never new ads the and in about to I consensus you market advertising break out just everyone market think is -- agrees basically trying share of people our lion’s that once market, who’ve basically about best we’re just to word-of-mouth

or the is will And a if overwhelming inevitably, splitting, very mind. market or the management converts so, acquisition. an of this might whatever we’re like that consumer the straightforward yes, bill topic But conversation be just of view want be, up, in expense creating we processing a a or bill sense such or our the best It’s some invoicing when payroll see us, around to that creating any of top comes about those ad broader. bit

tell they one we’re the that about. friend So, the

should follow-up sense. this lot on just a a in just clear ‘XX? building Ryan, about the that think of And QX company, Like, of kind big in how P&L invest, going trickle through ramp here but room you’ve -- helpful. this makes roll be being is to that’s on got think is QX? as you to a guess, advertising spend, through there. the then, and trying a in Very How Totally walk up, of bit is going as us I we rolling ramp good then a to be profitable news or to the through big would a

Yes.

directionally tell explicit working. giving of without guidance how you on kind So I’ll it’s spend, marketing

check-in. So, we of it down in pandemic. off QX. up kind terms looking it’s I’d started We kind starting probably is to QX. like the or ramping the accelerate say time takes it really in We the function of cut QX skyrockets, is startup going that machine doubled when this for -- if it I’d to of when just on quickly in say because during more in you’re get

So, we’re up. starting back that

greater of start in be and QX really hum expect kind So, to get to QX than XXXX. we

is question JMP from next with Pat Walravens Securities. The

Congratulations.

two First questions. one I have --

one first so just almost a beautiful. that is it’s for I looks room virtual background. here is the like It So, the mean, --

questions you So, David, what put just is the Expensify I’ll out lounge. Why it? both have front. do

kinds pretty guys, my allowance? Expensify in there base. do the expense card is for then mostly the you zillion fundamental. these of Why have greenfield are though lounge? question So, a number And what’s the Even these it’s of you two or space vendors

investors just sort remind you is? differentiation what can competitive So, your of

of order. Maybe Sure. those I’ll take both in

San from you in live XXth beautiful office And to this in basically, lounge. Kearny mention, on district Expensify yes, first the forgot And the off, as see, at financial I San Francisco so can of XX we are floor downtown the Francisco. broadcasting

view people Now, And say incredible the goes come this I I an more time in important part a to story I that notwithstanding, an than to workplace the want office. whole can But there’s future. our particular is with mean, moment. of that would COVID this. play back is

to want office. a whatever -- any to place it’s to longer Now where to office, your don’t that The to -- come is. café, back requirement They back but anymore. no compete home has modern to office that your it’s with come they in office -- want place be home, a a

it going customer able will employees. the essentially our us Expensify -- to allow And But so, lounge, then this something basically, once work to all and like world. to in to lounge, high-end lounges around just of of happen, be come Basically, we’ve created a COVID open customers. up place we’re And out airport for is own to co-working think is not restrictions the this. our once meets like any mass existing going where

know and have them get they a to them, beside us. know work we can And we So, course, can can to of time. really get great

a here. great we old-fashioned, so a mean cappuccino, make So, time have we great and

sort have going then, And here. mirror. to future. to about that in course, in [indiscernible] more talk that coming rearview of And to more once I wait I’d of be So, cannot the like the love about COVID out it’s there’s is more

about talking differentiation. Secondarily,

universal. expenses, way problem before So, And business, there, with this like synonymous you’ve some yes, system, revenue. has because but expenses. only or there’s track a your an out Expense million every again have something to business accountant have of an is players you is done accounting keep management

because that course, to, really The when I It’s Like it, what you’ve few products to freaking market. would entrepreneurs, just And anyone of build. set out it’s but see it’s the of before, fail I what because they build say buy is problems. new huge so, realize said to feel to that built there’s They easiest And lot a hard, the a like ability no easy, people who very are companies thing down again, cares. of acquire as and talk to a course, impossible. is customers. business. these Getting comes couldn’t building in product one they to I the our differentiation also

It’s they’re very, company. if of inevitably, -- those across the same just and And see basically so, one because how there identical X,XXX business based go or and players, millions small we because very the or a million yes, different they if to the XX I’d say, get same successfully that’s a anyone players a mind, names problem company starting struggle block. whether that it’s with the do product of model our easiest out But that is you exact with build products there’s competitors, same one And we like with XX everything. care? X in same part

the customers compete. pool will, of is They end with in whole very swimming customers view same it’s if a same, that, against ostensibly large the limited very, a set And other the over And so, all But bunch players. their is because we fighting we super of shallow you each noisy. guess, sense way those yes, There is a the model them, very I we swim are the in business pool. that it will reach. are

just on pool. the the of opposite end We’re

at because And I going -- we’re think like float our on here And We’re nice over deep over what’s in like it’s great. about the chilling this that. end, was here.

margins. fight sales I can RFP process. Like, do the it’s so, your go those enterprise, up think we very because great We’ll And their we can we lean to over side. go can to

the manner sell want be they in will We sold. to customer whatever

like an so, of go model RFP want they a want just that through their of want product and but onboard free they to because don’t where none They get acquire markets themselves. just things get ours a we we’re to able all to They And this. customers process. self-service want

economics over that pick better more faster better the believe will And limits for so, you capture again, go in the have sort product things you from this. because is dollar of the unit markets Expensify of strategy into run. long card a reason differentiation, But smart perspective, and can our an investor the is which investor our would we else someone your we and like why and

speak the themselves. numbers And so, again, for what I think that’s -- and

products. differentiation our to far is makes get say, feature up model one to that that’s would than and that is customer most the the business our what lockstep our So, that I is important I more guess support have I The next in than customer think model with product model. easier the the propagate because next signs our Though we one. last built

last Yun Capital. Kim from question our Loop then, And with is

your first, as So call congrats on a company. earnings public first

the like the as we conference of calls knowing know public this you gets exciting other feels remarks, and numbers, business can increases, within some activity well as we you activity not but your earnings as that prepared David, of T&E But that better your perhaps it paying already boost season. to the when someone your that mentioned empty Although accelerates? are it’s economy on the but part members expand seeing as the get existing Obviously, expect business customers, more should lead that ARPU accelerate. a also to

Yes. Yun. Great question,

-- for So see exceed exceed for if as higher customers significant discount you for we give we in an as a yes, sign grow they rate. that, But annual so, everyone, that a at customers general, subscriptions. a just reminder overage subscription. quickly, the they will their is up And

But quickly. increase of customer. ARPU. it, So, very our time, see very we them in will size, over up they they’re that see amount when thereby expect paying we pull when subscription customers that quickly more customers their higher decreasing ARPU. which do does rate, we see short grow their We pulls time, that And paying per up of grow would amount

Yun. right You’re there,

still these international that guys most in doing of cities, When saw revenue there? if the you good of some a the is can talk trends of amongst high-profile your then, I and I U.S. lot what you based is for a kind about which And just pretty seeing of S-X traction surprising, for your work Great. kind initiation, international you’re had business given was

just have your the about could -- you your the talk outside So, in traction U.S.? you of business overall that

yes. Sure,

of we of sort ours. do is through revenue overseas, that X% So, some our not about effort of and intentional

Our word-of-mouth viral spread. business of model, kind we just

and friends of and also talk. people have their and overseas. And friends XX started were we and to we in Melbourne those million have in they talk Sydney, get customers then and their they So, users, friends London to some

we the even UK, significant have a throughout of years, in the -- though revenue Canada, last of Zealand. Australia, over couple So, we amount actually our haven’t New tried,

I is Netherlands we’ll growing continue that that. think to I us. one see a So, for mean,

overseas, sales we in -- it’s we but have force don’t growing yes, a not So from are UK. the

Now, no on the revenue aren’t to that. not But zone to UK. employees in how employees business Expensify in customer on for we our things grow there’s focused They our there’s on in at growing just in -- support provide just business revenue based a have general. a is Portland. the and Similar on focused That’s try coverage revenue time one there. who its It like model. to is growing growing generally in Portland own

very continue excited the we international about do presents there. that to we’re well opportunity and itself going think that to we’re the So, markets, in really

to expand you presence? Do that on marketing international dollars plan spending incremental

Yes, Great do. question. Yes. we

yet, but that haven’t the on road map. We is

right. All sounds you. Congratulations. Okay. It great. Thank

questions. Thank you. Great

And last question. that the was

I’ll hand back So, up. it David to to wrap

San been this here. company. think has been again, very from Great. excited to Expensify we’ve lounge. be a public Very I Well, to quite It’s to be exciting Francisco a excited live to journey. come you And the

As we IPO said, we want this to once. do

the ditch do of and idea trying entrepreneurs build something then are basically something else. it not just We’re and that to serial

the We’re for haul. here long

our every is Our sustainable, means employees on of really long-term, focused long-term Ryan that stock growth. as one efficient plan, mentioned,

hope long And have delicious very calls And we can these we a that for so, intend to have time. cake. I

think I with that, So that’s it.

fun. it’s Thank So, you. been

you. Thank

everyone. you, Thank