QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||
(Address of Principal Executive Offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
x | Accelerated filer | ☐ | |||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
Emerging growth company |
Page | ||||||||
Item 1. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
1 |
As of September 30, | As of December 31, | ||||||||||
2023 | 2022 | ||||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, net | |||||||||||
Settlement assets, net | |||||||||||
Prepaid expenses | |||||||||||
Other current assets | |||||||||||
Total current assets | |||||||||||
Capitalized software, net | |||||||||||
Property and equipment, net | |||||||||||
Lease right-of-use assets | |||||||||||
Deferred tax assets, net | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities and stockholders' equity | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued expenses and other liabilities | |||||||||||
Borrowings under line of credit | |||||||||||
Current portion of long-term debt, net of original issue discount and debt issuance costs | |||||||||||
Lease liabilities, current | |||||||||||
Settlement liabilities | |||||||||||
Total current liabilities | |||||||||||
Lease liabilities, non-current | |||||||||||
Other liabilities | |||||||||||
Long-term debt, net of original issue discount and debt issuance costs | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (Note 4) | |||||||||||
Stockholders' equity: | |||||||||||
Preferred stock, par value $ | |||||||||||
Common stock, par value $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated deficit | ( | ( | |||||||||
Total stockholders' equity | |||||||||||
Total liabilities and stockholders' equity | $ | $ | |||||||||
See accompanying notes to Condensed Consolidated Financial Statements. | |||||
2 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Revenue | $ | $ | $ | $ | |||||||||||||||||||
Cost of revenue, net | |||||||||||||||||||||||
Gross margin | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Research and development | |||||||||||||||||||||||
General and administrative | |||||||||||||||||||||||
Sales and marketing | |||||||||||||||||||||||
Total operating expenses | |||||||||||||||||||||||
Loss from operations | ( | ( | ( | ( | |||||||||||||||||||
Interest and other expenses, net | ( | ( | ( | ( | |||||||||||||||||||
Loss before income taxes | ( | ( | ( | ( | |||||||||||||||||||
Benefit from (provision for) income taxes | ( | ( | ( | ||||||||||||||||||||
Net loss | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Net loss per share: | |||||||||||||||||||||||
Basic and diluted | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Weighted average shares of common stock used to compute net loss per share: | |||||||||||||||||||||||
Basic and diluted | |||||||||||||||||||||||
See accompanying notes to Condensed Consolidated Financial Statements. | |||||
3 |
Preferred stock | Common stock | Additional paid-in capital | Accumulated deficit | Total stockholders' equity | ||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2023 | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
Issuance of common stock on exercise of stock options | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Vesting of early exercised stock options | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Issuance of restricted stock units | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Repurchases of early exercised stock options | — | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||
Issuance of common stock under Matching Plan | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Issuance of common stock in connection with restricted stock units vesting | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Shares withheld from common stock issued to pay employee payroll taxes | — | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||
Balance at September 30, 2023 | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
See accompanying notes to Condensed Consolidated Financial Statements. | ||
4 |
Preferred stock | Common stock | Additional paid-in capital | Accumulated deficit | Total stockholders' equity | ||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
Issuance of common stock upon exercise of stock options | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Vesting of early exercised stock options | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Issuance of restricted stock units | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Repurchases of early exercised stock options | — | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||
Issuance of common stock under Matching Plan | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Issuance of common stock in connection with restricted stock units vesting | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Shares withheld from common stock issued to pay employee payroll taxes | — | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||
Balance at September 30, 2022 | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
See accompanying notes to Condensed Consolidated Financial Statements. | ||
5 |
Preferred stock | Common stock | Additional paid-in capital | Accumulated deficit | Total stockholders' equity | ||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||
Nine months ended September 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
Issuance of common stock on exercise of stock options | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Vesting of early exercised stock options | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Issuance of restricted stock units | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Repurchases of early exercised stock options | — | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||
Issuance of common stock under Matching Plan | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Issuance of common stock in connection with restricted stock units vesting | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Shares withheld from common stock issued to pay employee payroll taxes | — | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||
Repurchase and retirement of common stock | — | — | ( | — | ( | ( | ( | |||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||
Balance at September 30, 2023 | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
See accompanying notes to Condensed Consolidated Financial Statements. | ||
6 |
Preferred stock | Common stock | Additional paid-in capital | Accumulated deficit | Total stockholders' equity | ||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||
Nine months ended September 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
Issuance of common stock upon exercise of stock options | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Vesting of early exercised stock options | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Issuance of restricted stock units | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Repurchase of early exercised stock options | — | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||
Issuance of common stock under Matching Plan | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Issuance of common stock in connection with restricted stock units vesting | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Shares withheld from common stock issued to pay employee payroll taxes | — | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||
Balance at September 30, 2022 | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
See accompanying notes to Condensed Consolidated Financial Statements. | ||
7 |
Nine Months Ended September 30, | |||||||||||
2023 | 2022 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Reduction of operating lease right-of-use assets | |||||||||||
Loss on impairment, receivables and sale or disposal of equipment | |||||||||||
Stock-based compensation expense | |||||||||||
Amortization of original issue discount and debt issuance costs | |||||||||||
Deferred tax assets | ( | ||||||||||
Changes in assets and liabilities: | |||||||||||
Accounts receivable, net | ( | ||||||||||
Settlement assets, net | ( | ( | |||||||||
Prepaid expenses | |||||||||||
Related party loan receivable | |||||||||||
Other current assets | ( | ||||||||||
Other assets | ( | ||||||||||
Accounts payable | ( | ||||||||||
Accrued expenses and other liabilities | ( | ||||||||||
Operating lease liabilities | ( | ( | |||||||||
Settlement liabilities | |||||||||||
Other liabilities | |||||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Purchases of property and equipment | ( | ( | |||||||||
Software development costs | ( | ( | |||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Principal payments of finance leases | ( | ( | |||||||||
Principal payments of outstanding debt | ( | ( | |||||||||
Repurchases of early exercised stock options | ( | ( | |||||||||
Proceeds from common stock purchased under Matching Plan | |||||||||||
Proceeds from issuance of common stock on exercise of stock options | |||||||||||
Payments for employee taxes withheld from stock-based awards | ( | ( | |||||||||
Repurchase and retirement of common stock | ( | ||||||||||
Net cash used in financing activities | ( | ( | |||||||||
Net (decrease) increase in cash and cash equivalents and restricted cash | ( | ||||||||||
Cash and cash equivalents and restricted cash, beginning of period | |||||||||||
Cash and cash equivalents and restricted cash, end of period | $ | $ | |||||||||
Supplemental disclosure of cash flow information: | |||||||||||
Cash paid for interest | $ | $ | |||||||||
Cash paid for income taxes | $ | $ | |||||||||
Noncash investing and financing items: | |||||||||||
Stock-based compensation capitalized as software development costs | $ | $ | |||||||||
Right-of-use assets acquired through operating leases | $ | $ | |||||||||
Right-of-use assets acquired through finance leases | $ | $ | |||||||||
Reconciliation of cash and cash equivalents and restricted cash to the Condensed Consolidated Balance Sheets | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash included in other current assets | |||||||||||
Restricted cash included in settlement assets, net | |||||||||||
Total cash, cash equivalents and restricted cash | $ | $ | |||||||||
See accompanying notes to Condensed Consolidated Financial Statements. | |||||
8 |
9 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
United States | $ | $ | $ | $ | |||||||||||||||||||
All other locations | |||||||||||||||||||||||
Total revenue | $ | $ | $ | $ | |||||||||||||||||||
10 |
As of September 30, | As of December 31, | ||||||||||
2023 | 2022 | ||||||||||
Expensify Card posted collateral for funds held for customers | $ | $ | |||||||||
Cash in transit for funds held for customers | |||||||||||
Expensify.org restricted cash | |||||||||||
Income tax receivable | |||||||||||
Matching Plan escrow and other restricted cash | |||||||||||
Expensify Payments LLC restricted cash | |||||||||||
Deferred contract acquisition costs | |||||||||||
Other | |||||||||||
Other current assets | $ | $ | |||||||||
11 |
As of September 30, | As of December 31, | ||||||||||
2023 | 2022 | ||||||||||
Capitalized software development costs | $ | $ | |||||||||
Less: accumulated amortization | ( | ( | |||||||||
Capitalized software, net | $ | $ | |||||||||
As of September 30, | As of December 31, | ||||||||||
2023 | 2022 | ||||||||||
Computers and equipment | $ | $ | |||||||||
Furniture and fixtures | |||||||||||
Leasehold improvements | |||||||||||
Commercial building | |||||||||||
Land | |||||||||||
Construction in progress | |||||||||||
Total property and equipment | |||||||||||
Less: accumulated depreciation | ( | ( | |||||||||
Property and equipment, net | $ | $ | |||||||||
12 |
As of September 30, | As of December 31, | ||||||||||
2023 | 2022 | ||||||||||
Sales, payroll and other taxes payable | $ | $ | |||||||||
Professional fees | |||||||||||
Partner payouts and advertising fees | |||||||||||
Interest payable | |||||||||||
Restricted common stock liability for early stock option exercises | |||||||||||
Cashback rewards | |||||||||||
Matching Plan payroll liability | |||||||||||
Accrued expense reports | |||||||||||
Commissions payable | |||||||||||
Hosting and license fees | |||||||||||
Credit card processing fees | |||||||||||
Other | |||||||||||
Accrued expenses and other liabilities | $ | $ | |||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Finance lease cost: | |||||||||||||||||||||||
Amortization of ROU assets | $ | $ | $ | $ | |||||||||||||||||||
Interest on lease liabilities | |||||||||||||||||||||||
Total finance lease cost | |||||||||||||||||||||||
Operating lease cost | |||||||||||||||||||||||
Total lease cost | $ | $ | $ | $ | |||||||||||||||||||
13 |
As of September 30, | As of December 31, | ||||||||||
2023 | 2022 | ||||||||||
$ | $ | ||||||||||
$ | $ | ||||||||||
Weighted average remaining lease term (in years): | |||||||||||
Finance leases | |||||||||||
Operating leases | |||||||||||
Weighted average discount rate: | |||||||||||
Finance leases | % | % | |||||||||
Operating leases | % | % | |||||||||
Nine months ended September 30, | |||||||||||
2023 | 2022 | ||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
Operating cash flows from operating leases | $ | ( | $ | ( | |||||||
Operating cash flows from finance leases | $ | ( | $ | ( | |||||||
Financing cash flows from finance leases | $ | ( | $ | ( | |||||||
For the year ending: | Finance leases | Operating leases | |||||||||
Remainder of 2023 | $ | $ | |||||||||
2024 | |||||||||||
2025 | |||||||||||
2026 | |||||||||||
2027 | |||||||||||
Thereafter | |||||||||||
Total future lease payments | |||||||||||
Less: imputed interest | ( | ( | |||||||||
( | ( | ||||||||||
$ | $ | ||||||||||
14 |
15 |
For the year ending: | ||||||||
Remainder of 2023 | $ | |||||||
2024 | ||||||||
2025 | ||||||||
2026 | ||||||||
Thereafter | ||||||||
Total principal payments | ||||||||
Less: unamortized original issue discount and debt issuance costs | ( | |||||||
Less: Current portion of long-term debt, net of unamortized original issue discount and debt issuance costs | ( | |||||||
Long-term debt, net of unamortized original issue discount and debt issuance costs | $ | |||||||
16 |
17 |
18 |
Class A Common Stock | LT50 Common Stock | Weighted average grant date fair value per share | |||||||||||||||
Outstanding at December 31, 2022 | $ | ||||||||||||||||
RSUs granted | $ | ||||||||||||||||
RSUs vested | ( | ( | $ | ||||||||||||||
RSUs cancelled/forfeited/expired | ( | ( | $ | ||||||||||||||
Outstanding at September 30, 2023 | $ | ||||||||||||||||
19 |
Shares | Weighted average exercise price per share | Weighted average remaining contractual life (in years) | |||||||||||||||
Outstanding at December 31, 2022 | $ | ||||||||||||||||
Options exercised | ( | $ | |||||||||||||||
Options cancelled/forfeited/expired | ( | $ | |||||||||||||||
Outstanding at September 30, 2023 | $ | ||||||||||||||||
Exercisable at September 30, 2023 | $ | ||||||||||||||||
20 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Matching Plan shares | $ | $ | $ | $ | |||||||||||||||||||
Stock options | |||||||||||||||||||||||
Restricted stock units | |||||||||||||||||||||||
Stock-based compensation | $ | $ | $ | $ | |||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Cost of revenue, net | $ | $ | $ | $ | |||||||||||||||||||
Research and development | |||||||||||||||||||||||
General and administrative | |||||||||||||||||||||||
Sales and marketing | |||||||||||||||||||||||
Stock-based compensation expense | $ | $ | $ | $ | |||||||||||||||||||
21 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Numerator | |||||||||||||||||||||||
Net loss, basic and diluted | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Denominator | |||||||||||||||||||||||
Weighted average shares of common stock used to compute net loss per share, basic and diluted | |||||||||||||||||||||||
Net loss per share, basic and diluted | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
22 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Weighted-average stock options | |||||||||||||||||||||||
Matching shares | |||||||||||||||||||||||
Total | |||||||||||||||||||||||
23 |
24 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Expensify interchange amount | $ | 3,090 | $ | 1,877 | $ | 8,008 | $ | 4,805 | |||||||||||||||
Vendor fees | (281) | (169) | (724) | (426) | |||||||||||||||||||
Consideration from a vendor, net | $ | 2,809 | $ | 1,708 | $ | 7,284 | $ | 4,379 | |||||||||||||||
25 |
26 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(in thousands, except percentages, share and per share data) | |||||||||||||||||||||||
Revenue | $ | 36,494 | $ | 42,493 | $ | 115,479 | $ | 126,026 | |||||||||||||||
Cost of revenue, net(1) | 17,680 | 16,554 | 50,380 | 46,564 | |||||||||||||||||||
Gross margin | 18,814 | 25,939 | 65,099 | 79,462 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Research and development(1) | 6,607 | 3,416 | 17,119 | 10,701 | |||||||||||||||||||
General and administrative(1) | 14,245 | 15,898 | 38,386 | 45,335 | |||||||||||||||||||
Sales and marketing(1) | 12,860 | 12,342 | 36,757 | 37,958 | |||||||||||||||||||
Total operating expenses | 33,712 | 31,656 | 92,262 | 93,994 | |||||||||||||||||||
Loss from operations | (14,898) | (5,717) | (27,163) | (14,532) | |||||||||||||||||||
Interest and other expenses, net | (2,375) | (2,369) | (5,158) | (5,226) | |||||||||||||||||||
Loss before income taxes | (17,273) | (8,086) | (32,321) | (19,758) | |||||||||||||||||||
Benefit from (provision for) income taxes | 270 | (156) | (1,931) | (3,854) | |||||||||||||||||||
Net loss | $ | (17,003) | $ | (8,242) | $ | (34,252) | $ | (23,612) | |||||||||||||||
Net loss per share: | |||||||||||||||||||||||
Basic and diluted | $ | (0.21) | $ | (0.10) | $ | (0.42) | $ | (0.29) | |||||||||||||||
Weighted average shares of common stock used to compute net loss per share: | |||||||||||||||||||||||
Basic and diluted | 82,469,190 | 80,941,664 | 82,085,508 | 80,523,557 | |||||||||||||||||||
Net loss margin | (47) | % | (19) | % | (30) | % | (19) | % | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Cost of revenue, net | $ | 3,312 | $ | 4,667 | $ | 10,218 | $ | 14,278 | |||||||||||||||
Research and development | 2,901 | 1,931 | 7,562 | 6,230 | |||||||||||||||||||
General and administrative | 2,532 | 4,624 | 7,552 | 15,063 | |||||||||||||||||||
Sales and marketing | 1,522 | 2,142 | 5,280 | 6,222 | |||||||||||||||||||
Stock-based compensation expense | $ | 10,267 | $ | 13,364 | $ | 30,612 | $ | 41,793 | |||||||||||||||
27 |
Three Months Ended September 30, | Change | ||||||||||||||||||||||
2023 | 2022 | Amount | % | ||||||||||||||||||||
(in thousands, except percentages) | |||||||||||||||||||||||
Revenue | $ | 36,494 | $ | 42,493 | $ | (5,999) | (14) | % | |||||||||||||||
Three Months Ended September 30, | Change | ||||||||||||||||||||||
2023 | 2022 | Amount | % | ||||||||||||||||||||
(in thousands, except percentages) | |||||||||||||||||||||||
Cost of revenue, net | $ | 17,680 | $ | 16,554 | $ | 1,126 | 7 | % | |||||||||||||||
Gross margin | $ | 18,814 | $ | 25,939 | $ | (7,125) | (27) | % | |||||||||||||||
Gross margin % | 52 | % | 61 | % | |||||||||||||||||||
Three Months Ended September 30, | Change | ||||||||||||||||||||||
2023 | 2022 | Amount | % | ||||||||||||||||||||
(in thousands, except percentages) | |||||||||||||||||||||||
Research and development | $ | 6,607 | $ | 3,416 | $ | 3,191 | 93 | % | |||||||||||||||
28 |
Three Months Ended September 30, | Change | ||||||||||||||||||||||
2023 | 2022 | Amount | % | ||||||||||||||||||||
(in thousands, except percentages) | |||||||||||||||||||||||
General and administrative | $ | 14,245 | $ | 15,898 | $ | (1,653) | (10) | % | |||||||||||||||
Three Months Ended September 30, | Change | ||||||||||||||||||||||
2023 | 2022 | Amount | % | ||||||||||||||||||||
(in thousands, except percentages) | |||||||||||||||||||||||
Sales and marketing | $ | 12,860 | $ | 12,342 | $ | 518 | 4 | % | |||||||||||||||
Three Months Ended September 30, | Change | ||||||||||||||||||||||
2023 | 2022 | Amount | % | ||||||||||||||||||||
(in thousands, except percentages) | |||||||||||||||||||||||
Interest and other expenses, net | $ | (2,375) | $ | (2,369) | $ | (6) | — | % | |||||||||||||||
29 |
Three Months Ended September 30, | Change | ||||||||||||||||||||||
2023 | 2022 | Amount | % | ||||||||||||||||||||
(in thousands, except percentages) | |||||||||||||||||||||||
Benefit from (provision for) income taxes | $ | 270 | $ | (156) | $ | 426 | (273) | % | |||||||||||||||
Nine Months Ended September 30, | Change | ||||||||||||||||||||||
2023 | 2022 | Amount | % | ||||||||||||||||||||
(in thousands, except percentages) | |||||||||||||||||||||||
Revenue | $ | 115,479 | $ | 126,026 | $ | (10,547) | (8) | % | |||||||||||||||
Nine Months Ended September 30, | Change | ||||||||||||||||||||||
2023 | 2022 | Amount | % | ||||||||||||||||||||
(in thousands, except percentages) | |||||||||||||||||||||||
Cost of revenue, net | $ | 50,380 | $ | 46,564 | $ | 3,816 | 8 | % | |||||||||||||||
Gross margin | $ | 65,099 | $ | 79,462 | $ | (14,363) | (18) | % | |||||||||||||||
Gross margin % | 56 | % | 63 | % | |||||||||||||||||||
30 |
Nine Months Ended September 30, | Change | ||||||||||||||||||||||
2023 | 2022 | Amount | % | ||||||||||||||||||||
(in thousands, except percentages) | |||||||||||||||||||||||
Research and development | $ | 17,119 | $ | 10,701 | $ | 6,418 | 60 | % | |||||||||||||||
Nine Months Ended September 30, | Change | ||||||||||||||||||||||
2023 | 2022 | Amount | % | ||||||||||||||||||||
(in thousands, except percentages) | |||||||||||||||||||||||
General and administrative | $ | 38,386 | $ | 45,335 | $ | (6,949) | (15) | % | |||||||||||||||
Nine Months Ended September 30, | Change | ||||||||||||||||||||||
2023 | 2022 | Amount | % | ||||||||||||||||||||
(in thousands, except percentages) | |||||||||||||||||||||||
Sales and marketing | $ | 36,757 | $ | 37,958 | $ | (1,201) | (3) | % | |||||||||||||||
Nine Months Ended September 30, | Change | ||||||||||||||||||||||
2023 | 2022 | Amount | % | ||||||||||||||||||||
(in thousands, except percentages) | |||||||||||||||||||||||
Interest and other expenses, net | $ | (5,158) | $ | (5,226) | $ | 68 | (1) | % | |||||||||||||||
31 |
Nine Months Ended September 30, | Change | ||||||||||||||||||||||
2023 | 2022 | Amount | % | ||||||||||||||||||||
(in thousands, except percentages) | |||||||||||||||||||||||
Provision for income taxes | $ | (1,931) | $ | (3,854) | $ | 1,923 | (50) | % | |||||||||||||||
Three Months Ended | Paid members | |||||||
September 30, 2023 | 719 | |||||||
September 30, 2022 | 761 | |||||||
32 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(in thousands, except percentages) | |||||||||||||||||||||||
Adjusted EBITDA | $ | (3,549) | $ | 8,970 | $ | 7,320 | $ | 31,333 | |||||||||||||||
Adjusted EBITDA margin | (10) | % | 21 | % | 6 | % | 25 | % | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(in thousands, except percentages) | |||||||||||||||||||||||
Non-GAAP net (loss) income | $ | (6,736) | $ | 5,122 | $ | (3,640) | $ | 18,181 | |||||||||||||||
Non-GAAP net (loss) income margin | (18) | % | 12 | % | (3) | % | 14 | % | |||||||||||||||
33 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(in thousands, except percentages) | |||||||||||||||||||||||
Net loss | $ | (17,003) | $ | (8,242) | $ | (34,252) | $ | (23,612) | |||||||||||||||
Net loss margin | (47) | % | (19) | % | (30) | % | (19) | % | |||||||||||||||
Add: | |||||||||||||||||||||||
(Benefit from) provision for income taxes | (270) | 156 | 1,931 | 3,854 | |||||||||||||||||||
Interest and other expenses, net | 2,375 | 2,369 | 5,158 | 5,226 | |||||||||||||||||||
Depreciation and amortization | 1,082 | 1,323 | 3,871 | 4,072 | |||||||||||||||||||
Stock-based compensation expense | 10,267 | 13,364 | 30,612 | 41,793 | |||||||||||||||||||
Adjusted EBITDA | $ | (3,549) | $ | 8,970 | $ | 7,320 | $ | 31,333 | |||||||||||||||
Adjusted EBITDA margin | (10) | % | 21 | % | 6 | % | 25 | % | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(in thousands, except percentages) | |||||||||||||||||||||||
Net loss | $ | (17,003) | $ | (8,242) | $ | (34,252) | $ | (23,612) | |||||||||||||||
Net loss margin | (47) | % | (19) | % | (30) | % | (19) | % | |||||||||||||||
Add: | |||||||||||||||||||||||
Stock-based compensation expense | 10,267 | 13,364 | 30,612 | 41,793 | |||||||||||||||||||
Non-GAAP net (loss) income | $ | (6,736) | $ | 5,122 | $ | (3,640) | $ | 18,181 | |||||||||||||||
Non-GAAP net (loss) income margin | (18) | % | 12 | % | (3) | % | 14 | % | |||||||||||||||
34 |
Nine Months Ended September 30, | ||||||||||||||
2023 | 2022 | |||||||||||||
(in thousands) | ||||||||||||||
Net cash provided by operating activities | $ | 2,102 | $ | 26,229 | ||||||||||
Net cash used in investing activities | (4,833) | (1,373) | ||||||||||||
Net cash used in financing activities | (10,371) | (2,102) | ||||||||||||
Net (decrease) increase in cash and cash equivalents and restricted cash | $ | (13,102) | $ | 22,754 | ||||||||||
35 |
36 |
37 |
38 |
Total number of shares purchased | Weighted-average price paid per share | Total number of shares purchased as part of publicly announced programs | Maximum number (or approximate dollar value) of shares that may yet be purchased under the program(1) | ||||||||||||||||||||
July 1 - 31, 2023 | — | $ | — | — | $ | 41,000,003 | |||||||||||||||||
August 1 - 31, 2023 | — | $ | — | — | $ | 41,000,003 | |||||||||||||||||
September 1 - 30, 2023 | — | $ | — | — | $ | 41,000,003 | |||||||||||||||||
Three months ended September 30, 2023 | — | — |
39 |
40 |
Incorporated by Reference | |||||||||||||||||||||||
Exhibit No. | Name | Form | File No. | Exhibit | Filing Date | ||||||||||||||||||
3.1 | 10-Q | 001-41043 | 3.1 | August 9, 2023 | |||||||||||||||||||
3.2 | 8-K | 001-41043 | 3.2 | November 15, 2021 | |||||||||||||||||||
31.1* | |||||||||||||||||||||||
31.2* | |||||||||||||||||||||||
32.1** | |||||||||||||||||||||||
32.2** | |||||||||||||||||||||||
101.INS* | Inline XBRL Instance Document. | ||||||||||||||||||||||
101.SCH* | Inline XBRL Taxonomy Extension Schema Document. | ||||||||||||||||||||||
101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | ||||||||||||||||||||||
101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document. | ||||||||||||||||||||||
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkable Document. | ||||||||||||||||||||||
104* | Cover Page Interactive Data File (embedded within the Inline XBRL document). | ||||||||||||||||||||||
* | Filed herewith. | |||||||||||||
** | Furnished herewith. The certifications attached as Exhibits 32.1 and 32.2 that accompany this Quarterly Report on Form 10-Q are deemed furnished and not filed with the SEC and are not to be incorporated by reference into any filing of the Company under the Securities Act or the Exchange Act, whether made before or after the date of this Quarterly Report on Form 10-Q, irrespective of any general incorporation language contained in such filing. |
41 |
EXPENSIFY, INC. | |||||||||||
Date: November 8, 2023 | By: | /s/ David Barrett | |||||||||
David Barrett | |||||||||||
President and Chief Executive Officer | |||||||||||
(Principal Executive Officer) | |||||||||||
Date: November 8, 2023 | By: | /s/ Ryan Schaffer | |||||||||
Ryan Schaffer | |||||||||||
Chief Financial Officer | |||||||||||
(Principal Financial Officer) |
/s/ David Barrett | ||||||||||||||
David Barrett | ||||||||||||||
Chief Executive Officer | ||||||||||||||
Date: November 8, 2023 | (Principal Executive Officer) |
/s/ Ryan Schaffer | ||||||||||||||
Ryan Schaffer | ||||||||||||||
Chief Financial Officer | ||||||||||||||
Date: November 8, 2023 | (Principal Financial Officer) |
/s/ David Barrett | ||||||||||||||
David Barrett | ||||||||||||||
Chief Executive Officer | ||||||||||||||
Date: November 8, 2023 | (Principal Executive Officer) |
/s/ Ryan Schaffer | ||||||||||||||
Ryan Schaffer | ||||||||||||||
Chief Financial Officer | ||||||||||||||
Date: November 8, 2023 | (Principal Financial Officer) |
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Income Statement [Abstract] | ||||
Revenue | $ 36,494 | $ 42,493 | $ 115,479 | $ 126,026 |
Cost of revenue, net | 17,680 | 16,554 | 50,380 | 46,564 |
Gross margin | 18,814 | 25,939 | 65,099 | 79,462 |
Operating expenses: | ||||
Research and development | 6,607 | 3,416 | 17,119 | 10,701 |
General and administrative | 14,245 | 15,898 | 38,386 | 45,335 |
Sales and marketing | 12,860 | 12,342 | 36,757 | 37,958 |
Total operating expenses | 33,712 | 31,656 | 92,262 | 93,994 |
Loss from operations | (14,898) | (5,717) | (27,163) | (14,532) |
Interest and other expenses, net | (2,375) | (2,369) | (5,158) | (5,226) |
Loss before income taxes | (17,273) | (8,086) | (32,321) | (19,758) |
Benefit from (provision for) income taxes | 270 | (156) | (1,931) | (3,854) |
Net loss, basic | (17,003) | (8,242) | (34,252) | (23,612) |
Net loss, diluted | $ (17,003) | $ (8,242) | $ (34,252) | $ (23,612) |
Net loss per share: | ||||
Basic (in dollars per share) | $ (0.21) | $ (0.10) | $ (0.42) | $ (0.29) |
Diluted (in dollars per share) | $ (0.21) | $ (0.10) | $ (0.42) | $ (0.29) |
Weighted average shares of common stock used to compute net loss per share: | ||||
Basic (in shares) | 82,469,190 | 80,941,664 | 82,085,508 | 80,523,557 |
Diluted (in shares) | 82,469,190 | 80,941,664 | 82,085,508 | 80,523,557 |
GENERAL INFORMATION |
9 Months Ended |
---|---|
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
GENERAL INFORMATION | GENERAL INFORMATION Description of the Business Expensify, Inc. ("Expensify") was incorporated in Delaware on April 29, 2009. Expensify offers a comprehensive expense management platform that integrates with a variety of third-party accounting applications, including QuickBooks Desktop, QuickBooks Online, Xero, NetSuite, Intacct, Sage, Microsoft Dynamics, MYOB and others. Expensify's product simplifies the way that employees and vendors manage and submit expense receipts and bills and provides efficiencies to companies for the payment of those bills. Expensify delivers its services over the internet to corporations and individuals under license arrangements and offers unique pricing options for small and medium-sized businesses ("SMBs") and enterprises on a per-active-member basis. Expensify also offers an Expensify charge card (the "Expensify Card"), which is primarily distributed to corporate customers in the United States ("U.S.") that subsequently distribute the card to their employees for business use. The Expensify Card allows customers to have real-time control over their employees' spending and compliance with spending limits in addition to eReceipt reporting on purchases. Basis of Presentation and Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of Expensify and its wholly-owned subsidiaries (the "Company") and have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") and the applicable rules and regulations of the Securities and Exchange Commission ("SEC") for interim reporting in conformity with the instructions to Form 10-Q and Article 10 of Regulation S-X. Certain information and footnote disclosures normally included in financial statements presented in accordance with GAAP have been condensed or omitted pursuant to such SEC rules. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2022 ("2022 Annual Report"). All intercompany transactions and balances have been eliminated in consolidation. In the opinion of management, the accompanying condensed consolidated financial statements reflect all normal and recurring adjustments that are necessary for the fair presentation of the Company's financial position, results of operations, equity, and cash flows for the periods presented. Results of operations for the three and nine months ended September 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023 or for any other future annual or interim period. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates and judgments are based on historical experience, forecasted events and various other assumptions that the Company believes to be reasonable under the circumstances. Estimates and judgments are evaluated on an ongoing basis. Actual results could differ from those estimates. Changes in estimates are recorded in the period in which they become known. Significant estimates and assumptions by management affect the Company’s classification of employee and employee-related expenses, the useful lives and recoverability of long-lived assets, income taxes, capitalization of internal-use software costs, stock-based compensation and the Company's incremental borrowing rate utilized to measure its lease right-of-use ("ROU") assets and lease liabilities. Updates to Significant Accounting Policies The Company’s significant accounting policies are discussed in Note 2 of the 2022 Annual Report. Since the date the 2022 Annual Report was filed with the SEC, there have been no material changes to the Company's significant accounting policies, including the status of recent accounting pronouncements adopted, other than those detailed below. Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments - Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments, with subsequent ASUs issued that clarify the guidance (collectively, "Topic 326"). Topic 326 requires an entity to utilize a new impairment model known as the current expected credit loss ("CECL") model to estimate its “lifetime expected credit losses" using a forward-looking approach and to record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. The CECL model is expected to result in more timely recognition of credit losses. Topic 326 also requires new disclosures for financial assets measured at amortized cost, loans and available-for-sale debt securities. As a result of no longer qualifying as an emerging growth company as of December 31, 2022, the Company was required to adopt Topic 326 retroactive to January 1, 2022. The Company was not required to amend quarterly filings issued subsequent to January 1, 2022 in which the Company filed under the legacy credit loss guidance of Accounting Standards Codification ("ASC") Topic 310. As such, the 2022 Annual Report was the first period under which the Company reported credit loss estimates in accordance with Topic 326. The adoption of Topic 326 did not have a material impact on the Company's financial position or results of operations as of and for the three and nine months ended September 30, 2022.
|
REVENUE AND CERTAIN STATEMENTS OF OPERATIONS COMPONENTS |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition and Deferred Revenue [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REVENUE AND CERTAIN STATEMENT OF OPERATIONS COMPONENTS | REVENUE AND CERTAIN STATEMENT OF OPERATIONS COMPONENTS Revenue by geographic region, based on billing address, was as follows (in thousands):
No individual customer represented more than 10% of the Company’s total revenue during the three and nine months ended September 30, 2023 and 2022. Cashback Rewards The Company offers a cashback rewards program to all Expensify Card customers based on volume of Expensify Card transactions and Software as a Service ("SaaS") subscription tier. Cashback rewards are earned on a monthly basis and paid out the following month. The Company considers the cashback payments to customers as consideration payable to a customer and it is recorded as a reduction to Revenue within the Condensed Consolidated Statements of Operations. Cashback rewards for the three months ended September 30, 2023 and 2022 was $1.8 million and $0.8 million, respectively. Cashback rewards for the nine months ended September 30, 2023 and 2022 was $4.8 million and $2.0 million, respectively. Consideration From a Vendor, Net The Company receives consideration from a vendor for monetizing Expensify Card activities. This consideration, net of credit card processing fees paid to the vendor, is included as a reduction to Cost of revenue, net within the Condensed Consolidated Statements of Operations. Consideration from a vendor, net for the three months ended September 30, 2023 and 2022 was $2.8 million and $1.7 million, respectively. Consideration from a vendor, net for the nine months ended September 30, 2023 and 2022 was $7.3 million and $4.4 million, respectively
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CERTAIN BALANCE SHEET COMPONENTS |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CERTAIN BALANCE SHEET COMPONENTS | CERTAIN BALANCE SHEET COMPONENTS Other Current Assets Other current assets consisted of the following (in thousands):
Capitalized Software, Net Capitalized software, net consisted of the following (in thousands):
Amortization expense related to capitalized software development costs is recorded in Cost of revenue, net on the Condensed Consolidated Statements of Operations. Amortization expense was $0.8 million and $0.6 million for the three months ended September 30, 2023 and 2022, respectively. Amortization expense was $2.3 million and $2.0 million for the nine months ended September 30, 2023 and 2022, respectively. Property and Equipment, Net Property and equipment, net consisted of the following (in thousands):
Depreciation expense related to property and equipment is recorded in General and administrative, Sales and marketing, and Interest and other expenses, net on the Condensed Consolidated Statements of Operations. Depreciation expense related to property and equipment for the three months ended September 30, 2023 and 2022 was $0.2 million and $0.5 million, respectively. Depreciation expense related to property and equipment for the nine months ended September 30, 2023 and 2022 was $1.1 million and $1.5 million, respectively. Accrued Expenses and Other Liabilities Accrued expenses and other liabilities consisted of the following (in thousands):
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COMMITMENTS AND CONTINGENCIES |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Finance and Operating Lease Arrangements During the nine months ended September 30, 2023, the Company entered into four operating lease agreements and renewed its finance lease. The components of lease cost reflected in the Condensed Consolidated Statements of Operations for all leases were as follows (in thousands):
Other information related to leases was as follows (in thousands, except as noted within):
Supplemental cash flow information related to leases was as follows (in thousands):
Maturities of lease liabilities as of September 30, 2023 were as follows (in thousands):
Amortizing Term Mortgage In August 2019, the Company entered into an $8.3 million amortizing term mortgage agreement with Canadian Imperial Bank of Commerce ("CIBC") for the Company's commercial building located in Portland, Oregon. The agreement requires principal and interest payments due each month over a five-year period. Interest accrues at a fixed rate of 5.00% per year until August 2024, at which point the remaining outstanding principal balance on the amortizing term mortgage is due in full. The borrowings are secured by the building. The outstanding balance of the amortizing term mortgage was $7.7 million and $7.8 million as of September 30, 2023 and December 31, 2022, respectively. 2021 Amended Term Loan In September 2021, the Company amended and restated its loan and security agreement with CIBC ("2021 Amended Term Loan") to refinance the existing non-amortizing and amortizing term loans, establish a single term loan of up to $75.0 million, consisting of a $45.0 million initial term loan effective immediately with an option to enter into an additional $30.0 million delayed term loan, and increase the monthly revolving line of credit to $25.0 million. The option for the delayed term loan expired in March 2023. The term loan and revolving line of credit mature in September 2026 and September 2024, respectively. Approximately $23.5 million of the loan proceeds were used to immediately repay the remaining balances under the amortizing and non-amortizing term loans at the time of the amendment, as well as commitment fees and other debt issuance costs associated with the amendment. The remaining proceeds from the initial term loan were utilized to fund the Company's normal business operations. Under the 2021 Amended Term Loan, the initial term loan of $45.0 million is payable over a 60-month period with principal and accrued interest payments due each quarter, commencing on September 30, 2021. The 2021 Amended Term Loan amortizes in equal quarterly installments of $0.1 million through September 30, 2024, $0.2 million beginning October 1, 2024 and $0.6 million beginning October 1, 2025, with any remaining principal balance due and payable on maturity. The amounts borrowed bear interest at the bank’s reference rate plus 2.25% (10.75% as of September 30, 2023) beginning on September 30, 2021 and continuing on a quarterly basis through maturity of the term loan. The borrowings are secured by substantially all the Company’s assets. As of September 30, 2023 and December 31, 2022, the outstanding balance of the term loan was $36.1 million and $44.5 million, respectively. During the nine months ended September 30, 2023, the Company made a prepayment of $8.0 million of the 2021 Amended Term Loan. As a result of this prepayment, the Company recorded an immaterial amount of loss on extinguishment within Interest and other expenses, net. The outstanding balance of $36.0 million and $0.1 million of accrued interest on the term loan were repaid in full on October 12, 2023. Monthly Revolving Line of Credit The line of credit agreement, as amended with the 2021 Amended Term Loan, provides borrowings up to $25.0 million. Borrowings under the line of credit bear interest at CIBC’s reference rate plus 1.00% (9.50% as of September 30, 2023) and are secured by substantially all of the Company’s assets. As of September 30, 2023 and December 31, 2022, there were $15.0 million of borrowings under the line of credit and $10.0 million of capacity available for additional borrowings. In connection with the amortizing term mortgage and the 2021 Amended Term Loan, the Company recorded an immaterial amount of debt issuance costs and the 2021 Amended Term Loan was subject to an original issue discount. These amounts are being amortized to interest expense over the term of the respective agreements using the effective interest method. As of September 30, 2023 and December 31, 2022, unamortized original issue discount and debt issuance costs were $0.1 million and $0.3 million, respectively. Future aggregate annual principal payments on long-term debt as of September 30, 2023 is expected to be as follows (in thousands):
Additionally, $15.0 million of outstanding borrowings under the line of credit are due in September 2024 upon maturity of the facility. As of September 30, 2023, the Company was not in compliance with all debt covenants, specifically the covenant restricting the amount of repurchases of common stock, which includes net share settlements of stock-based awards, the covenant related to the requirement to maintain all deposit, operating and collateral accounts with CIBC with certain exceptions during the period, and the minimum fixed charge coverage ratio covenant. A waiver was obtained from CIBC. The Company does not believe non-compliance with these covenants had any material impact on the Company or its operations. Defined Contribution Plans The Company sponsors a U.S. 401(k) defined contribution plan for all eligible employees who elect to participate. The Company is permitted to make discretionary profit sharing and 401(k) matching contributions as defined in the plan and as approved by the Board of Directors. Effective January 1, 2018, the Company matches up to 4.50% of each participant’s eligible compensation. No discretionary profit-sharing contributions were made during the three and nine months ended September 30, 2023 and 2022. The Company’s 401(k) matching contributions for each of the three months ended September 30, 2023 and 2022 was $0.2 million. The Company’s 401(k) matching contributions for the nine months ended September 30, 2023 and 2022 were $0.7 million and $0.6 million, respectively. Legal From time to time in the normal course of business, the Company may be involved in claims, proceedings and litigation. In the case of any litigation, the Company records a provision for a liability when management believes that it is both probable that a liability has been incurred, and the amount of the loss can be reasonably estimated. The Company reviews such provisions at least quarterly and adjusts such provisions to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular case. As of September 30, 2023, there were no legal contingency matters, either individually or in aggregate, that would have a material adverse effect on the Company’s financial position, results of operations or cash flows.
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STOCK INCENTIVE PLANS |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK INCENTIVE PLANS | STOCK INCENTIVE PLANS 2009 and 2019 Stock Plans In 2009, the Board of Directors approved the 2009 Stock Plan ("2009 Stock Plan"). As amended in 2015, the 2009 Stock Plan permitted the Company to grant up to 16,495,150 shares of common stock. In January 2018, the Company increased the number of shares of common stock reserved under the 2009 Stock Plan by 535,130 shares, from 16,495,150 shares to 17,030,280 shares. In April 2019, the Board of Directors approved the adoption of the 2019 Stock Plan ("2019 Stock Plan", and together with the 2009 Stock Plan, "Stock Plans"). The 2019 Stock Plan permitted the Company to grant up to 8,173,970 additional shares, increasing the overall common stock reserved for grant under the Stock Plans to 25,204,250 shares. In September 2021, the Board of Directors approved the grant of 8,679,380 restricted stock units under the 2019 Stock Plan, covering an aggregate of 4,339,690 shares of each of Class A and LT50 common stock effective immediately prior to the effectiveness of the Company's IPO Registration Statement on Form S-1 ("IPO Registration Statement") on November 9, 2021. On November 9, 2021, the Board of Directors amended and restated the 2019 Stock Plan to, among other things, increase the common stock reserved for issuance under the 2019 Stock Plan to an aggregate of 16,856,770 shares of Class A and LT50 common stock. Following the completion of the initial public offering of the Company’s Class A common stock ("IPO"), the Company did not and does not intend to make any further grants under the Stock Plans. However, the Stock Plans will continue to govern the terms and conditions of the outstanding awards granted under the Stock Plans. Upon the expiration, forfeiture, cancellation, withholding of shares upon exercise or settlement of an award to satisfy the exercise price or tax withholding, or repurchase of any shares of Class A common stock underlying outstanding stock-based awards granted under the 2009 Stock Plan or of Class A or LT50 common stock underlying outstanding stock-based awards granted under the 2019 Stock Plan, an equal number of shares of Class A common stock will become available for grant under the 2021 Incentive Award Plan ("2021 Plan") and the Company's 2021 Stock Purchase and Matching Plan ("Matching Plan" and together with the 2021 Plan, "2021 Incentive Plans"). 2021 Incentive Plans In November 2021, the Board of Directors adopted, and its stockholders approved, the 2021 Incentive Plans, which both became effective immediately before the effectiveness of the IPO Registration Statement and use a combined share reserve. Under the 2021 Incentive Plans, 11,676,932 shares of Class A common stock were initially reserved for issuance pursuant to a variety of stock-based awards, including incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock awards, restricted stock units ("RSUs"), and other forms of equity and cash compensation under the 2021 Plan and purchase rights and matching awards under the Matching Plan. The number of shares initially reserved for issuance or transfer pursuant to awards under the 2021 Incentive Plans will be increased upon the expiration, forfeiture, cancellation, withholding of shares upon exercise or settlement of an award to satisfy the exercise price or tax withholding, or repurchase of any shares of Class A common stock underlying outstanding stock-based awards granted under the 2009 Stock Plan or of Class A or LT50 common stock underlying outstanding stock-based awards granted under the 2019 Stock Plan. The number of shares of Class A common stock reserved for issuance under the 2021 Incentive Plans as of September 30, 2023 and December 31, 2022 was 22,282,735 shares and 17,336,973 shares, respectively. The number of shares will automatically increase each subsequent January 1 through January 1, 2031, by the lesser of (A) 6% of the aggregate number of shares of all classes of common stock outstanding on the immediately preceding calendar year end, or (B) such lesser number of shares as determined by the Company’s Board of Directors or compensation committee; provided, however, that no more than 87,576,990 shares of Class A common stock may be issued upon the exercise of incentive stock options. Matching Plan The Matching Plan operates using consecutive three-month offering periods that commenced on March 15, 2022. Employees, consultants and directors (collectively, "Service Providers") of the Company can participate in the Matching Plan by electing to contribute compensation through payroll deductions or from fee payments or may be granted discretionary awards under the Matching Plan. On the last day of the offering period the contributions made during the offering period are used to purchase shares of Class A common stock. The price at which Class A common stock is purchased under the Matching Plan equals the average of the high and low trading price of a share of Class A common stock as of the last trading day of the offering period. At the end of each offering period, the Company may provide a discretionary match up to 1/10 of a share of Class A common stock for each share of Class A common stock purchased by or issued to a Service Provider under the Matching Plan that is retained through the end of the applicable offering period. No fractional shares will be issued by the Company. The Company will round to the nearest full share for shares purchased by a Service Provider as well as any matched shares issued to a Service Provider under the Matching Plan. The match rate applicable to each offering period shall be limited to 1.50% of the shares of any class of capital stock outstanding as of the exercise date applicable to such offering period. The Company estimates the fair value of matched shares provided under the Matching Plan using the Black-Scholes option-pricing model on the date of grant. The Company recognizes stock-based compensation expense related to the matched shares pursuant to its Matching Plan on a straight-line basis over the applicable three-month offering period. Service Providers who participated in the Matching Plan for the offering period ended September 14, 2023 purchased a total of 275,210 Class A common shares, based on a purchase price of $3.84, resulting in gross cash proceeds to the Company of $1.1 million. Service Providers who participated in the Matching Plan for the offering period ended September 14, 2022 purchased a total of 73,959 Class A common shares, based on a purchase price of $16.70, resulting in gross cash proceeds to the Company of $1.2 million. For the offering period ended September 14, 2023, the Company elected to match each share of Class A common stock purchased by or issued under the Matching Plan with 1/20 of a share of Class A common stock. During the three months ended September 30, 2023, the Company granted a total of 35,732 of Class A common stock as a matching contribution under the Matching Plan, net of a total of 9,054 shares withheld for taxes. During the nine months ended September 30, 2023, the Company granted a total of 72,578 shares of Class A common stock as a matching contribution under the Matching Plan, net of a total of 15,871 shares withheld for taxes. For the offering period ended September 14, 2022, the Company elected to match each share of Class A common stock purchased by or issued under the Matching Plan with 1/20 of a share of Class A common stock. During the three and nine months ended September 30, 2023, the Company granted a total of 6,465 and 10,041 shares of Class A common stock as a matching contribution under the Matching Plan, respectively. The Company has made discretionary contributions under the Matching Plan to eligible Service Providers. During the three months ended September 30, 2023, the Company granted a total of 299,713 shares of Class A common stock as discretionary contributions under the Matching Plan, net of a total of 29,020 shares withheld for taxes. During the nine months ended September 30, 2023, the Company granted a total of 375,024 shares of Class A common stock as discretionary contributions under the Matching Plan, net of a total of 64,411 shares withheld for taxes. Restricted Stock Units On September 24, 2021, under the 2019 Stock Plan, the Company approved the grant of Class A and LT50 common stock RSUs to Service Providers effective November 9, 2021, the date the Company amended its Certificate of Incorporation, to include, among other things, LT50 common stock. RSUs granted to Service Providers on November 9, 2021 that were approved in September 2021 vest upon the satisfaction of both a performance and service condition. The performance condition was satisfied immediately prior to the effectiveness of the IPO Registration Statement. The service condition is satisfied over eight years with 1/8 of the grant having vested on September 15, 2022 and quarterly vesting of 1/32 of the grant every December 15, March 15, June 15 and September 15 (each, a "Specified Quarterly Date") thereafter until fully vested, in each case subject to continued service to the Company. All RSUs granted to Service Providers after the IPO, under the 2021 Plan, have a service condition only, which is satisfied over eight years from the vesting commencement date corresponding to one of the Specified Quarterly Dates nearest the date of grant, with 1/8 of each grant vesting on the first anniversary of the vesting commencement date and 1/32 of each grant vesting in equal quarterly installments thereafter until fully vested, in each case, subject to continued service to the Company. Pursuant to the Company's Non-Employee Director Compensation Program, which was adopted under the 2021 Incentive Plans, the Company granted 55,731 Class A common stock RSUs for the nine months ended September 30, 2023. A total of 27,108 Class A common RSUs vested during the nine months ended September 30, 2023 related to previously granted RSU awards as the quarterly service conditions were satisfied. During the nine months ended September 30, 2023, RSU activity for Service Providers and non-employee directors was as follows:
As of September 30, 2023, there was $161.9 million of unamortized stock-based compensation cost related to unvested RSUs, which is expected to be recognized over the remaining weighted average life of 5.58 years. As of December 31, 2022, there was $204.2 million of unamortized stock-based compensation cost related to unvested RSUs, which was expected to be recognized over the remaining weighted average life of 6.23 years. Stock Options The Stock Plans and the 2021 Plan provide for the grant of incentive and nonstatutory stock options to employees, non-employee directors and consultants of the Company. Under the Stock Plans and the 2021 Plan, the exercise price of incentive stock options must be equal to at least 110% of the fair market value of the common stock on the grant date for a “ten-percent holder” or 100% of the fair market value of the common stock on the grant date for any other participant. The exercise price of nonstatutory options granted must be equal to at least 100% of the fair market value of the Company’s common stock on the date of grant. The Company has only granted options under the Stock Plans. Options typically vest over four years and are exercisable at any time after the grant date, provided that Service Providers exercising unvested options receive restricted common stock that is subject to repurchase at the original exercise price upon termination of service. The repurchase right lapses in accordance with the vesting schedule of the exercised option. Early exercises of options prior to vesting are not deemed to be substantive exercises for accounting purposes and accordingly, amounts received for early exercises of unvested options are recorded as a liability. These repurchase terms are considered to be a forfeiture provision and do not result in variable accounting. There was an immaterial amount of exercised restricted common stock repurchased during the nine months ended September 30, 2023 and 2022. As of September 30, 2023 and December 31, 2022, there were 482,607 and 813,311 shares subject to repurchase, respectively, related to unvested stock options that had been early exercised. As of September 30, 2023 and December 31, 2022, the Company recorded a liability related to shares subject to repurchase of $0.7 million and $1.3 million, respectively, which is included within Accrued expenses and other liabilities in the accompanying Condensed Consolidated Balance Sheets. These amounts are reclassified to Common stock and Additional paid-in capital as the underlying shares vest. A summary of the Company's stock option activity was as follows:
The total pretax intrinsic value of options exercised during the nine months ended September 30, 2023 and 2022 was $1.2 million and $10.3 million, respectively. The total pretax intrinsic value of options outstanding at September 30, 2023 and December 31, 2022 was $13.2 million and $46.0 million, respectively. The intrinsic value is the difference between the estimated fair market value of the Company’s common stock at the date of exercise and the exercise price for in-the-money options. As of September 30, 2023, there was $4.9 million of unrecognized stock-based compensation cost related to unvested stock options, which is expected to be recognized over a weighted average period of 0.86 years. As of December 31, 2022, there was $8.1 million of unrecognized stock-based compensation cost related to unvested stock options, which was expected to be recognized over a weighted average period of 1.21 years. Cash received from option exercises and purchases of shares under the Stock Plans for the nine months ended September 30, 2023 and 2022 was $0.2 million and $0.7 million, respectively. Stock-Based Compensation The following table summarizes the stock-based compensation recognized for options granted under the 2009 Stock Plan, options and RSUs granted under the 2019 Stock Plan, RSUs granted under the 2021 Plan and matching and discretionary shares issued under the Matching Plan (in thousands):
Stock-based compensation expense is allocated based on the cost center to which the award holder spent time during the reported periods. Stock-based compensation expense is included in the following components of expenses on the accompanying Condensed Consolidated Statements of Operations (in thousands):
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INCOME TAXES |
9 Months Ended |
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Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES For the three and nine months ended September 30, 2023, the Company prepared its interim tax provision by applying a year-to-date effective tax rate, which the Company believes results in the best estimate of the annual effective tax rate. For the three months ended September 30, 2023 and 2022, the Company recorded a benefit from income taxes of $0.3 million and a provision for income taxes of $0.2 million, respectively, which resulted in effective tax rates of 1.6% and (1.9)%, respectively. For the nine months ended September 30, 2023 and 2022, the Company recorded a provision for income taxes of $1.9 million and $3.9 million, respectively, which resulted in effective tax rates of (6.0)% and (19.5)%, respectively. The principal reasons for the difference between the statutory rate and the effective rate for 2023 were primarily due to non-deductible stock-based compensation, the change in valuation allowance, and Section 162(m) of the Internal Revenue Code ("IRC") compensation limitations. The principal reasons for the difference between the statutory rate and the effective rate for 2022 were primarily due to non-deductible stock-based compensation, as well as the change in valuation allowance, Section 162(m) of the IRC compensation limitations and state taxes. The Company follows the provisions of ASC 740-10, Accounting for Uncertainty in Income Taxes. ASC 740-10 prescribes a comprehensive model for the recognition, measurement, presentation and disclosure in financial statements of uncertain tax positions that have been taken or expected to be taken on a tax return. As of September 30, 2023 and December 31, 2022, the Company recorded an uncertain tax position liability of $1.3 million and $1.2 million, respectively, within Other liabilities on the Condensed Consolidated Balance Sheets. This liability includes an immaterial amount of interest and penalties as of September 30, 2023 and no interest and penalties as of December 31, 2022.
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NET LOSS PER SHARE |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NET LOSS PER SHARE | NET LOSS PER SHARE The following table sets forth the computation of basic and diluted net loss per share (in thousands, except share and per share data):
The rights, including the liquidation and dividend rights, of the holders of Class A, LT10 and LT50 common stock are identical, except with respect to voting, conversion and transfer rights. Each share of Class A common stock is entitled to one vote per share, each share of LT10 common stock is entitled to 10 votes per share and each share of LT50 common stock is entitled to 50 votes per share. Each share of LT10 and LT50 common stock is convertible into one share of Class A common stock voluntarily at the option of the holder after the satisfaction of certain requirements, which includes a 10-month notice period for LT10 common stock and a 50-month notice period for LT50 common stock to convert to Class A common stock, or automatically upon certain events. The Class A common stock has no conversion rights. As the liquidation and dividend rights are identical for Class A, LT10 and LT50 common stock, the undistributed earnings are allocated on a proportional basis based on the number of weighted average shares within each class of common stock during the period and the resulting net loss per share attributable to common stockholders will be the same for the Class A, LT10 and LT50 common stock on an individual or combined basis. The following potentially dilutive shares were not included in the calculation of diluted shares outstanding as the effect would have been anti-dilutive:
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EQUITY |
9 Months Ended |
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Sep. 30, 2023 | |
Equity [Abstract] | |
EQUITY | EQUITY On May 10, 2022, the Executive Committee of the Board of Directors approved a share repurchase program with authorization to purchase up to $50.0 million of shares of Class A common stock ("2022 Share Repurchase Program"). The Company may repurchase shares from time to time through open market purchases, in privately negotiated transactions or by other means, including the use of trading plans intended to qualify under Rule 10b5-1 of the Securities Exchange Act of 1934 ("Exchange Act"), in accordance with applicable securities laws and other restrictions. The actual timing, manner, price and total amount of future repurchases will depend on a variety of factors, including business, economic and market conditions, corporate and regulatory requirements, prevailing stock prices, restrictions under the terms of loan agreements and other considerations. The 2022 Share Repurchase Program does not obligate the Company to acquire any particular amount of Class A common stock, and the program may be suspended or terminated at any time by the Company at its discretion without prior notice. During the nine months ended September 30, 2023, the Company repurchased 504,493 shares of Class A common stock under the 2022 Share Repurchase Program, at a total cost to the Company of $3.0 million. The Company did not repurchase shares during the three months ended September 30, 2023.
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RELATED PARTY TRANSACTIONS |
9 Months Ended |
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Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONSDuring the nine months ended September 30, 2023 and 2022, Expensify, Inc. contributed $0.2 million and $2.3 million, respectively, to its wholly-owned subsidiary, Expensify.org, a nonprofit benefit organization established by the Company. There was an immaterial amount of commitments from Expensify, Inc. that remained open for contribution as of September 30, 2023 and December 31, 2022. There are no other significant related party transactions for the Company as of September 30, 2023, except as noted elsewhere in these condensed consolidated financial statements. |
GENERAL INFORMATION (Policies) |
9 Months Ended |
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Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of Expensify and its wholly-owned subsidiaries (the "Company") and have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") and the applicable rules and regulations of the Securities and Exchange Commission ("SEC") for interim reporting in conformity with the instructions to Form 10-Q and Article 10 of Regulation S-X. Certain information and footnote disclosures normally included in financial statements presented in accordance with GAAP have been condensed or omitted pursuant to such SEC rules. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2022 ("2022 Annual Report"). All intercompany transactions and balances have been eliminated in consolidation. In the opinion of management, the accompanying condensed consolidated financial statements reflect all normal and recurring adjustments that are necessary for the fair presentation of the Company's financial position, results of operations, equity, and cash flows for the periods presented.
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Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates and judgments are based on historical experience, forecasted events and various other assumptions that the Company believes to be reasonable under the circumstances. Estimates and judgments are evaluated on an ongoing basis. Actual results could differ from those estimates. Changes in estimates are recorded in the period in which they become known. Significant estimates and assumptions by management affect the Company’s classification of employee and employee-related expenses, the useful lives and recoverability of long-lived assets, income taxes, capitalization of internal-use software costs, stock-based compensation and the Company's incremental borrowing rate utilized to measure its lease right-of-use ("ROU") assets and lease liabilities.
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Recent Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments - Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments, with subsequent ASUs issued that clarify the guidance (collectively, "Topic 326"). Topic 326 requires an entity to utilize a new impairment model known as the current expected credit loss ("CECL") model to estimate its “lifetime expected credit losses" using a forward-looking approach and to record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. The CECL model is expected to result in more timely recognition of credit losses. Topic 326 also requires new disclosures for financial assets measured at amortized cost, loans and available-for-sale debt securities. As a result of no longer qualifying as an emerging growth company as of December 31, 2022, the Company was required to adopt Topic 326 retroactive to January 1, 2022. The Company was not required to amend quarterly filings issued subsequent to January 1, 2022 in which the Company filed under the legacy credit loss guidance of Accounting Standards Codification ("ASC") Topic 310. As such, the 2022 Annual Report was the first period under which the Company reported credit loss estimates in accordance with Topic 326. The adoption of Topic 326 did not have a material impact on the Company's financial position or results of operations as of and for the three and nine months ended September 30, 2022.
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REVENUE AND CERTAIN STATEMENTS OF OPERATIONS COMPONENTS (Tables) |
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Revenue Recognition and Deferred Revenue [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Revenue from Geographic Areas | Revenue by geographic region, based on billing address, was as follows (in thousands):
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CERTAIN BALANCE SHEET COMPONENTS (Tables) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Current Assets | Other current assets consisted of the following (in thousands):
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Schedule of Capitalized Software, Net | Capitalized software, net consisted of the following (in thousands):
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Schedule of Property and Equipment, Net | Property and equipment, net consisted of the following (in thousands):
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Schedule of Accrued Expenses and Other Liabilities | Accrued expenses and other liabilities consisted of the following (in thousands):
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COMMITMENTS AND CONTINGENCIES (Tables) |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Lease Cost | The components of lease cost reflected in the Condensed Consolidated Statements of Operations for all leases were as follows (in thousands):
Supplemental cash flow information related to leases was as follows (in thousands):
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Schedule of Supplemental Balance Sheet Information | Other information related to leases was as follows (in thousands, except as noted within):
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Schedule of Finance Lease Maturity | Maturities of lease liabilities as of September 30, 2023 were as follows (in thousands):
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Schedule of Operating Lease Maturity | Maturities of lease liabilities as of September 30, 2023 were as follows (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Principal Payments on all Long-term Debt | Future aggregate annual principal payments on long-term debt as of September 30, 2023 is expected to be as follows (in thousands):
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STOCK INCENTIVE PLANS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of RSU Rollforward | During the nine months ended September 30, 2023, RSU activity for Service Providers and non-employee directors was as follows:
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||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock Option Roll-forward | A summary of the Company's stock option activity was as follows:
|
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Schedule of Stock-based Compensation Expense | The following table summarizes the stock-based compensation recognized for options granted under the 2009 Stock Plan, options and RSUs granted under the 2019 Stock Plan, RSUs granted under the 2021 Plan and matching and discretionary shares issued under the Matching Plan (in thousands):
Stock-based compensation expense is allocated based on the cost center to which the award holder spent time during the reported periods. Stock-based compensation expense is included in the following components of expenses on the accompanying Condensed Consolidated Statements of Operations (in thousands):
|
NET LOSS PER SHARE (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted net loss per share (in thousands, except share and per share data):
|
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Schedule of Anti-dilutive Securities | The following potentially dilutive shares were not included in the calculation of diluted shares outstanding as the effect would have been anti-dilutive:
|
REVENUE AND CERTAIN STATEMENTS OF OPERATIONS COMPONENTS - Total Revenue by Geographic Area (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Disaggregation of Revenue | ||||
Revenue | $ 36,494 | $ 42,493 | $ 115,479 | $ 126,026 |
United States | ||||
Disaggregation of Revenue | ||||
Revenue | 33,255 | 38,955 | 105,377 | 114,862 |
All other locations | ||||
Disaggregation of Revenue | ||||
Revenue | $ 3,239 | $ 3,538 | $ 10,102 | $ 11,164 |
REVENUE AND CERTAIN STATEMENTS OF OPERATIONS COMPONENTS - Narratives (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Disaggregation of Revenue | ||||
Consideration from a vendor, net | $ 2.8 | $ 1.7 | $ 7.3 | $ 4.4 |
Cashback Rewards | ||||
Disaggregation of Revenue | ||||
Cashback rewards | $ 1.8 | $ 0.8 | $ 4.8 | $ 2.0 |
CERTAIN BALANCE SHEET COMPONENTS - Other current assets (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Schedule Of Other Current Assets | ||
Expensify Card posted collateral for funds held for customers | $ 10,731 | $ 11,509 |
Cash in transit for funds held for customers | 6,643 | 2,361 |
Income tax receivable | 4,241 | 2,471 |
Matching Plan escrow and other restricted cash | 101 | 52 |
Deferred contract acquisition costs | 85 | 0 |
Other | 210 | 204 |
Other current assets | 27,934 | 22,217 |
Expensify Payment LLC | Affiliated Entity | ||
Schedule Of Other Current Assets | ||
Restricted cash | 97 | 102 |
Subsidiaries | Expensify.Org | ||
Schedule Of Other Current Assets | ||
Restricted cash | $ 5,826 | $ 5,518 |
CERTAIN BALANCE SHEET COMPONENTS - Capitalized software, net (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Capitalized software development costs | $ 19,520 | $ 14,052 |
Less: accumulated amortization | (9,273) | (7,171) |
Capitalized software, net | $ 10,247 | $ 6,881 |
CERTAIN BALANCE SHEET COMPONENTS - Narratives (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Amortization expense | $ 0.8 | $ 0.6 | $ 2.3 | $ 2.0 |
Depreciation | $ 0.2 | $ 0.5 | $ 1.1 | $ 1.5 |
CERTAIN BALANCE SHEET COMPONENTS - Property and equipment, net (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Property, Plant and Equipment | ||
Total property and equipment | $ 23,237 | $ 22,019 |
Less: accumulated depreciation | (8,639) | (7,527) |
Property and equipment, net | 14,598 | 14,492 |
Computers and equipment | ||
Property, Plant and Equipment | ||
Total property and equipment | 170 | 178 |
Furniture and fixtures | ||
Property, Plant and Equipment | ||
Total property and equipment | 1,916 | 1,698 |
Leasehold improvements | ||
Property, Plant and Equipment | ||
Total property and equipment | 7,937 | 6,948 |
Commercial building | ||
Property, Plant and Equipment | ||
Total property and equipment | 6,493 | 6,493 |
Land | ||
Property, Plant and Equipment | ||
Total property and equipment | 4,151 | 4,151 |
Construction in progress | ||
Property, Plant and Equipment | ||
Total property and equipment | $ 2,570 | $ 2,551 |
CERTAIN BALANCE SHEET COMPONENTS - Accrued expenses and other liabilities (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Sales, payroll and other taxes payable | $ 4,479 | $ 2,721 |
Professional fees | 2,380 | 1,473 |
Partner payouts and advertising fees | 1,967 | 669 |
Interest payable | 1,328 | 1,318 |
Restricted common stock liability for early stock option exercises | 700 | 1,283 |
Cashback rewards | 633 | 223 |
Matching Plan payroll liability | 173 | 195 |
Accrued expense reports | 155 | 291 |
Commissions payable | 152 | 0 |
Hosting and license fees | 129 | 75 |
Credit card processing fees | 40 | 22 |
Other | 518 | 800 |
Accrued expenses and other liabilities | $ 12,654 | $ 9,070 |
COMMITMENTS AND CONTINGENCIES - Narratives (Details) |
Sep. 30, 2023
lease
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
Number of operating lease agreements (lease) | 4 |
COMMITMENTS AND CONTINGENCIES - Summary of Lease Cost (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Finance lease cost: | ||||
Amortization of ROU assets | $ 77 | $ 198 | $ 472 | $ 593 |
Interest on lease liabilities | 3 | 5 | 7 | 19 |
Total finance lease cost | 80 | 203 | 479 | 612 |
Operating lease cost | 277 | 173 | 707 | 531 |
Total lease cost | $ 357 | $ 376 | $ 1,186 | $ 1,143 |
COMMITMENTS AND CONTINGENCIES - Summary of Related to Leases (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Commitments and Contingencies Disclosure [Abstract] | ||
Finance lease ROU asset (included within Lease right-of-use assets) | $ 398 | $ 461 |
Operating lease ROU asset (included within Lease right-of-use assets) | $ 6,209 | $ 284 |
Weighted average remaining lease term (in years): | ||
Finance leases | 2 years 11 months 1 day | 6 months 29 days |
Operating leases | 9 years 4 months 20 days | 5 months 1 day |
Weighted average discount rate: | ||
Finance leases | 8.10% | 2.50% |
Operating leases | 8.30% | 5.30% |
Finance Lease, Right-of-Use Asset, Statement of Financial Position | Lease right-of-use assets | Lease right-of-use assets |
Operating Lease, Right-of-Use Asset, Statement of Financial Position | Lease right-of-use assets | Lease right-of-use assets |
COMMITMENTS AND CONTINGENCIES - Cashflow Disclosures (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ (466) | $ (595) |
Operating cash flows from finance leases | (7) | (19) |
Financing cash flows from finance leases | $ (482) | $ (593) |
COMMITMENTS AND CONTINGENCIES - Amortizing Term Mortgage Narratives (Details) - USD ($) $ in Thousands |
1 Months Ended | ||
---|---|---|---|
Aug. 31, 2019 |
Sep. 30, 2023 |
Dec. 31, 2022 |
|
Schedule of Capitalization, Long-term Debt | |||
Long-term debt, net of original issue discount and debt issuance costs | $ 35,579 | $ 51,434 | |
Mortgages | |||
Schedule of Capitalization, Long-term Debt | |||
Loaned amount | $ 8,300 | ||
Debt instrument, term (in years) | 5 years | ||
Interest rate (as a percent) | 5.00% | ||
Long-term debt, net of original issue discount and debt issuance costs | $ 7,700 | $ 7,800 |
COMMITMENTS AND CONTINGENCIES - Monthly revolving line of credit Narratives (Details) - USD ($) |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2023 |
Dec. 31, 2022 |
Sep. 30, 2021 |
|
Line of Credit Facility | |||
Borrowings under line of credit | $ 15,000,000 | $ 15,000,000 | |
Unamortized debt issuance cost | 132,000 | 300,000 | |
Long-term debt, maturity, year one | 8,234,000 | ||
2021 Amended Term Loan | |||
Line of Credit Facility | |||
Debt issuance cost | 0 | ||
Issuance discount | 0 | ||
Revolving Credit Facility | 2021 Amended Term Loan | Line of Credit | |||
Line of Credit Facility | |||
Maximum borrowing capacity | 25,000,000 | $ 25,000,000 | |
Borrowings under line of credit | 15,000,000 | 15,000,000 | |
Remaining borrowing capacity | 10,000,000 | $ 10,000,000 | |
Long-term debt, maturity, year one | $ 15,000,000 | ||
Revolving Credit Facility | 2021 Amended Term Loan | Line of Credit | Reference Rate | |||
Line of Credit Facility | |||
Variable rate (as a percent) | 1.00% | ||
Effective interest rate (as a percent) | 9.50% |
COMMITMENTS AND CONTINGENCIES - Future aggregate annual principal payments on all long-term debt (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Long-term Debt, Fiscal Year Maturity | ||
Remainder of 2023 | $ 150 | |
2024 | 8,234 | |
2025 | 1,238 | |
2026 | 34,188 | |
Thereafter | 0 | |
Total principal payments | 43,810 | |
Less: unamortized original issue discount and debt issuance costs | (132) | $ (300) |
Less: Current portion of long-term debt, net of unamortized original issue discount and debt issuance costs | (8,099) | (551) |
Long-term debt, net of unamortized original issue discount and debt issuance costs | $ 35,579 | $ 51,434 |
COMMITMENTS AND CONTINGENCIES - Defined Contribution Plans Narratives (Details) - United States - USD ($) |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Jan. 01, 2018 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Defined Contribution Plan | |||||
Employer discretionary matching | $ 0 | $ 0 | $ 0 | $ 0 | |
Employer contributions | $ 200,000 | $ 200,000 | $ 700,000 | $ 600,000 | |
Maximum | |||||
Defined Contribution Plan | |||||
Employer contribution (as a percent) (up to) | 4.50% |
STOCK INCENTIVE PLANS - RSU Narratives (Details) - Restricted stock units - USD ($) $ in Millions |
9 Months Ended | 12 Months Ended | |
---|---|---|---|
Sep. 24, 2021 |
Sep. 30, 2023 |
Dec. 31, 2022 |
|
Share-based Compensation Arrangement by Share-based Payment Award | |||
Vesting period (in years) | 8 years | ||
Share-based compensation expense not yet recognized | $ 161.9 | $ 204.2 | |
Share-based compensation not yet recognized, recognition period (in years) | 5 years 6 months 29 days | 6 years 2 months 23 days | |
Tranche One | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Vesting percentage (percent) | 12.50% | ||
Future Tranches | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Vesting percentage (percent) | 3.125% | ||
Common Class A | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Granted (in shares) | 55,731 | ||
Vested (in shares) | 383,721 | ||
Common Class A | 2021 Stock Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Granted (in shares) | 55,731 | ||
Vested (in shares) | 27,108 |
STOCK INCENTIVE PLANS - RSU Rollforward (Details) |
9 Months Ended |
---|---|
Sep. 30, 2023
$ / shares
shares
| |
Weighted average grant date fair value per share | |
Beginning balance (in dollars per share) | $ / shares | $ 33.88 |
Granted (in dollars per share) | $ / shares | 8.17 |
Vested (in dollars per share) | $ / shares | 32.74 |
Cancelled/forfeited/expired (in dollars per share) | $ / shares | 40.95 |
Ending balance (in dollars per share) | $ / shares | $ 32.61 |
Restricted stock units | Common Class A | |
RSU Rollforward | |
Beginning balance (in shares) | 3,379,657 |
Granted (in shares) | 55,731 |
Vested (in shares) | (383,721) |
Cancelled/forfeited/expired (in shares) | (190,424) |
Ending balance (in shares) | 2,861,243 |
Restricted stock units | Common Stock, LT50 | |
RSU Rollforward | |
Beginning balance (in shares) | 3,304,643 |
Granted (in shares) | 0 |
Vested (in shares) | (352,576) |
Cancelled/forfeited/expired (in shares) | (190,424) |
Ending balance (in shares) | 2,761,643 |
STOCK INCENTIVE PLANS - Stock-Based Compensation by Award Type (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Share-based payment arrangement, expense | ||||
Stock-based compensation | $ 11,087 | $ 13,364 | $ 32,831 | $ 41,793 |
Matching shares | ||||
Share-based payment arrangement, expense | ||||
Stock-based compensation | 1,697 | 24 | 3,018 | 41 |
Stock options | ||||
Share-based payment arrangement, expense | ||||
Stock-based compensation | 842 | 970 | 2,616 | 2,969 |
Restricted stock units | ||||
Share-based payment arrangement, expense | ||||
Stock-based compensation | $ 8,548 | $ 12,370 | $ 27,197 | $ 38,783 |
STOCK INCENTIVE PLANS - Stock-Based Compensation Income Statement Location (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Share-based payment arrangement, expense | ||||
Stock-based compensation expense | $ 10,267 | $ 13,364 | $ 30,612 | $ 41,793 |
Cost of revenue, net | ||||
Share-based payment arrangement, expense | ||||
Stock-based compensation expense | 3,312 | 4,667 | 10,218 | 14,278 |
Research and development | ||||
Share-based payment arrangement, expense | ||||
Stock-based compensation expense | 2,901 | 1,931 | 7,562 | 6,230 |
General and administrative | ||||
Share-based payment arrangement, expense | ||||
Stock-based compensation expense | 2,532 | 4,624 | 7,552 | 15,063 |
Sales and marketing | ||||
Share-based payment arrangement, expense | ||||
Stock-based compensation expense | $ 1,522 | $ 2,142 | $ 5,280 | $ 6,222 |
STOCK INCENTIVE PLANS - Stock-based Compensation Narratives (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Stock-based compensation capitalized as software development costs | $ 2,219 | $ 1,093 | ||
Software Development | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Stock-based compensation capitalized as software development costs | $ 800 | $ 500 | $ 2,200 | $ 1,100 |
INCOME TAXES - (Details) - USD ($) |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Dec. 31, 2022 |
|
Income Tax Disclosure [Abstract] | |||||
Provision for income taxes | $ (270,000) | $ 156,000 | $ 1,931,000 | $ 3,854,000 | |
Effective income tax rate (in percent) | (1.60%) | 1.90% | 6.00% | 19.50% | |
Accrual for uncertain tax positions | $ 1,300,000 | $ 1,300,000 | $ 1,200,000 | ||
Income tax examination, penalties and interest expense | $ 0 | $ 0 |
NET LOSS PER SHARE - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Numerator | ||||
Net loss, basic | $ (17,003) | $ (8,242) | $ (34,252) | $ (23,612) |
Net loss, diluted | $ (17,003) | $ (8,242) | $ (34,252) | $ (23,612) |
Denominator | ||||
Weighted-average shares of common stock used to compute net loss per share, basic (in shares) | 82,469,190 | 80,941,664 | 82,085,508 | 80,523,557 |
Weighted-average shares of common stock used to compute net loss per share, diluted (in shares) | 82,469,190 | 80,941,664 | 82,085,508 | 80,523,557 |
Net loss per share, basic (in dollars per share) | $ (0.21) | $ (0.10) | $ (0.42) | $ (0.29) |
Net loss per share, diluted (in dollars per share) | $ (0.21) | $ (0.10) | $ (0.42) | $ (0.29) |
NET LOSS PER SHARE - Anti-dilutive Securities (Details) - shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Antidilutive securities (in shares) | 4,166,678 | 5,221,652 | 4,673,936 | 5,952,390 |
Weighted-average stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Antidilutive securities (in shares) | 4,166,033 | 5,211,342 | 4,660,837 | 5,941,182 |
Matching shares | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Antidilutive securities (in shares) | 645 | 10,310 | 13,099 | 11,208 |
EQUITY (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
May 10, 2022 |
|
Equity, Class of Treasury Stock | |||||
Repurchases of early exercised stock options | $ 8 | $ 5 | $ 21 | $ 25 | |
2022 Share Repurchase Program | Class A common stock | |||||
Equity, Class of Treasury Stock | |||||
Shares authorized for repurchase | $ 50,000 | ||||
Shares repurchased (in shares) | 504,493 | ||||
Repurchases of early exercised stock options | $ 3,000 |
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Expensify.Org | Affiliated Entity | ||
Related Party Transaction | ||
Payment of commitments to related party | $ 0.2 | $ 2.3 |
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