(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425). | ||||||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12). | ||||||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)). | ||||||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)). |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Exhibit No. | Description | |||||||
99.1 | ||||||||
99.2 | ||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
Expensify, Inc. | ||||||||
By: | /s/ Ryan Schaffer | |||||||
Name: | Ryan Schaffer | |||||||
Title: | Chief Financial Officer |
Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 | ||||||||||||||||||||||||||||||||||||||||||||
Low | High | Low | High | Low | High | Low | High | ||||||||||||||||||||||||||||||||||||||||
Cost of revenue, net | $ | 2.4 | $ | 3.1 | $ | 2.3 | $ | 3.0 | $ | 2.2 | $ | 2.9 | $ | 1.9 | $ | 2.6 | |||||||||||||||||||||||||||||||
Research and development | 3.2 | 4.0 | 3.1 | 3.9 | 2.9 | 3.7 | 2.5 | 3.3 | |||||||||||||||||||||||||||||||||||||||
General and administrative | 1.2 | 1.5 | 1.2 | 1.5 | 1.1 | 1.4 | 1.0 | 1.3 | |||||||||||||||||||||||||||||||||||||||
Sales and marketing | 0.5 | 0.7 | 0.5 | 0.7 | 0.4 | 0.6 | 0.4 | 0.6 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 7.3 | $ | 9.3 | $ | 7.1 | $ | 9.1 | $ | 6.6 | $ | 8.6 | $ | 5.8 | $ | 7.8 | |||||||||||||||||||||||||||||||
As of June 30, | As of December 31, | ||||||||||
2024 | 2023 | ||||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 53,234 | $ | 47,510 | |||||||
Accounts receivable, net | 13,420 | 13,834 | |||||||||
Settlement assets, net | 48,301 | 39,261 | |||||||||
Prepaid expenses | 8,768 | 5,649 | |||||||||
Other current assets | 32,044 | 30,978 | |||||||||
Total current assets | 155,767 | 137,232 | |||||||||
Capitalized software, net | 16,006 | 12,494 | |||||||||
Property and equipment, net | 13,905 | 14,372 | |||||||||
Lease right-of-use assets | 5,783 | 6,435 | |||||||||
Deferred tax assets, net | 487 | 457 | |||||||||
Other assets | 924 | 5,794 | |||||||||
Total assets | $ | 192,872 | $ | 176,784 | |||||||
Liabilities and stockholders' equity | |||||||||||
Accounts payable | $ | 1,022 | $ | 1,425 | |||||||
Accrued expenses and other liabilities | 7,853 | 9,390 | |||||||||
Borrowings under line of credit | 15,000 | 15,000 | |||||||||
Current portion of long-term debt, net of original issue discount and debt issuance costs | 7,592 | 7,655 | |||||||||
Lease liabilities, current | 461 | 432 | |||||||||
Settlement liabilities | 38,877 | 33,990 | |||||||||
Total current liabilities | 70,805 | 67,892 | |||||||||
Lease liabilities, non-current | 6,118 | 6,467 | |||||||||
Other liabilities | 1,949 | 1,681 | |||||||||
Total liabilities | 78,872 | 76,040 | |||||||||
Commitments and contingencies | |||||||||||
Stockholders' equity: | |||||||||||
Preferred stock, par value $0.0001; 10,000,000 shares of preferred stock authorized as of June 30, 2024 and December 31, 2023; no shares of preferred stock issued and outstanding as of June 30, 2024 and December 31, 2023 | — | — | |||||||||
Common stock, par value $0.0001; 1,000,000,000 shares of Class A common stock authorized as of June 30, 2024 and December 31, 2023; 74,773,581 and 70,569,815 shares of Class A common stock issued and outstanding as of June 30, 2024 and December 31, 2023, respectively; 24,994,705 and 24,994,989 shares of LT10 common stock authorized as of June 30, 2024 and December 31, 2023, respectively; 5,923,033 and 7,333,619 shares of LT10 common stock issued and outstanding as of June 30, 2024 and December 31, 2023, respectively; 24,969,634 and 24,998,941 shares of LT50 common stock authorized as of June 30, 2024 and December 31, 2023, respectively; 7,498,076 and 7,321,894 shares of LT50 common stock issued and outstanding as of June 30, 2024 and December 31, 2023, respectively | 9 | 8 | |||||||||
Additional paid-in capital | 261,309 | 241,509 | |||||||||
Accumulated deficit | (147,318) | (140,773) | |||||||||
Total stockholders' equity | 114,000 | 100,744 | |||||||||
Total liabilities and stockholders' equity | $ | 192,872 | $ | 176,784 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Revenue | $ | 33,288 | $ | 38,884 | $ | 66,823 | $ | 78,985 | |||||||||||||||
Cost of revenue, net (1) | 14,363 | 16,925 | 28,947 | 32,700 | |||||||||||||||||||
Gross margin | 18,925 | 21,959 | 37,876 | 46,285 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Research and development (1) | 6,389 | 5,094 | 12,318 | 10,512 | |||||||||||||||||||
General and administrative (1) | 9,245 | 11,712 | 20,676 | 24,141 | |||||||||||||||||||
Sales and marketing (1) | 3,072 | 14,714 | 6,456 | 23,897 | |||||||||||||||||||
Total operating expenses | 18,706 | 31,520 | 39,450 | 58,550 | |||||||||||||||||||
Income (loss) from operations | 219 | (9,561) | (1,574) | (12,265) | |||||||||||||||||||
Interest and other expenses, net | (260) | (1,367) | (1,214) | (2,783) | |||||||||||||||||||
Loss before income taxes | (41) | (10,928) | (2,788) | (15,048) | |||||||||||||||||||
Provision for income taxes | (2,723) | (376) | (3,757) | (2,201) | |||||||||||||||||||
Net loss | $ | (2,764) | $ | (11,304) | $ | (6,545) | $ | (17,249) | |||||||||||||||
Net loss per share: | |||||||||||||||||||||||
Basic and diluted | $ | (0.03) | $ | (0.14) | $ | (0.08) | $ | (0.21) | |||||||||||||||
Weighted average shares of common stock used to compute net loss per share: | |||||||||||||||||||||||
Basic and diluted | 86,593,955 | 82,011,477 | 85,867,683 | 81,890,624 | |||||||||||||||||||
Three Months Ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Cost of revenue, net | $ | 2,886 | $ | 3,600 | $ | 5,818 | $ | 6,906 | |||||||||||||||
Research and development | 3,144 | 2,455 | 5,894 | 4,661 | |||||||||||||||||||
General and administrative | 1,703 | 2,376 | 3,405 | 5,020 | |||||||||||||||||||
Sales and marketing | 648 | 1,910 | 788 | 3,758 | |||||||||||||||||||
Total stock-based compensation expense | $ | 8,381 | $ | 10,341 | $ | 15,905 | $ | 20,345 | |||||||||||||||
Six Months Ended June 30, | |||||||||||
2024 | 2023 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net loss | $ | (6,545) | $ | (17,249) | |||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 3,053 | 2,789 | |||||||||
Reduction of operating lease right-of-use assets | 273 | 334 | |||||||||
Loss on impairment, receivables and sale or disposal of equipment | 537 | 402 | |||||||||
Stock-based compensation expense | 15,905 | 20,345 | |||||||||
Amortization of original issue discount and debt issuance costs | 28 | 49 | |||||||||
Deferred tax assets | (30) | (65) | |||||||||
Changes in assets and liabilities: | |||||||||||
Accounts receivable, net | 175 | 1,358 | |||||||||
Settlement assets, net | (7,876) | (5,244) | |||||||||
Prepaid expenses | 1,831 | 3,775 | |||||||||
Other current assets | 1,838 | (952) | |||||||||
Other assets | (80) | (88) | |||||||||
Accounts payable | (425) | 632 | |||||||||
Accrued expenses and other liabilities | (1,105) | 2,670 | |||||||||
Operating lease liabilities | 54 | (294) | |||||||||
Settlement liabilities | 4,887 | (1,382) | |||||||||
Other liabilities | 268 | 128 | |||||||||
Net cash provided by operating activities | 12,788 | 7,208 | |||||||||
Cash flows from investing activities: | |||||||||||
Purchases of property and equipment | — | (479) | |||||||||
Software development costs | (4,867) | (2,043) | |||||||||
Net cash used in investing activities | (4,867) | (2,522) | |||||||||
Cash flows from financing activities: | |||||||||||
Principal payments of finance leases | (63) | (404) | |||||||||
Principal payments of outstanding debt | (75) | (8,300) | |||||||||
Payments for debt issuance costs | (71) | — | |||||||||
Repurchases of early exercised stock options | (32) | (13) | |||||||||
Proceeds from common stock purchased under Matching Plan | 2,004 | 2,076 | |||||||||
Proceeds from issuance of common stock on exercise of stock options | 53 | 125 | |||||||||
Payments for employee taxes withheld from stock-based awards | — | (1,524) | |||||||||
Repurchase and retirement of common stock | — | (3,000) | |||||||||
Net cash provided by (used in) financing activities | 1,816 | (11,040) | |||||||||
Net increase (decrease) in cash and cash equivalents and restricted cash | 9,737 | (6,354) | |||||||||
Cash and cash equivalents and restricted cash, beginning of period | 96,658 | 147,710 | |||||||||
Cash and cash equivalents and restricted cash, end of period | $ | 106,395 | $ | 141,356 | |||||||
Supplemental disclosure of cash flow information: | |||||||||||
Cash paid for interest | $ | 903 | $ | 2,912 | |||||||
Cash paid for income taxes | $ | 2,439 | $ | 2,251 | |||||||
Noncash investing and financing items: | |||||||||||
Stock-based compensation capitalized as software development costs | $ | 1,561 | $ | 1,399 | |||||||
Purchases of property and equipment and capitalized software in accounts payable and accrued expenses | $ | 290 | $ | 373 | |||||||
Right-of-use assets acquired through operating leases | $ | — | $ | 6,402 | |||||||
Reconciliation of cash and cash equivalents and restricted cash to the Condensed Consolidated Balance Sheets | |||||||||||
Cash and cash equivalents | $ | 53,234 | $ | 97,795 | |||||||
Restricted cash included in other current assets | 30,591 | 20,986 | |||||||||
Restricted cash included in settlement assets, net | 22,570 | 22,575 | |||||||||
Total cash, cash equivalents and restricted cash | $ | 106,395 | $ | 141,356 | |||||||
Three Months Ended June 30, | |||||||||||
2024 | 2023 | ||||||||||
Net loss | $ | (2,764) | $ | (11,304) | |||||||
Net loss margin | (8) | % | (29) | % | |||||||
Add: | |||||||||||
Provision for income taxes | 2,723 | 376 | |||||||||
Interest and other expenses, net | 260 | 1,367 | |||||||||
Depreciation and amortization | 1,590 | 1,376 | |||||||||
Stock-based compensation | 8,381 | 10,341 | |||||||||
Adjusted EBITDA | $ | 10,190 | $ | 2,156 | |||||||
Adjusted EBITDA margin | 31 | % | 6 | % | |||||||
Three Months Ended June 30, | |||||||||||
2024 | 2023 | ||||||||||
Net loss | $ | (2,764) | $ | (11,304) | |||||||
Net loss margin | (8) | % | (29) | % | |||||||
Add: | |||||||||||
Stock-based compensation | 8,381 | 10,341 | |||||||||
Non-GAAP net income (loss) | $ | 5,617 | $ | (963) | |||||||
Non-GAAP net income (loss) margin | 17 | % | (2) | % | |||||||
Three Months Ended June 30, | Three Months Ended March 31, | ||||||||||||||||
2024 | 2023 | 2024 | |||||||||||||||
Net cash provided by (used in) operating activities | $ | 9,317 | $ | (434) | $ | 3,471 | |||||||||||
Operating cash flow margin | 28 | % | (1) | % | 10 | % | |||||||||||
(Increase) decrease in changes in assets and liabilities: | |||||||||||||||||
Settlement assets | 1,756 | 2,561 | 6,120 | ||||||||||||||
Settlement liabilities | (3,317) | 644 | (1,570) | ||||||||||||||
Adjusted operating cash flow | 7,756 | 2,771 | 8,021 | ||||||||||||||
Less: | |||||||||||||||||
Purchases of property and equipment | — | (451) | — | ||||||||||||||
Software development costs | (2,038) | (1,173) | (2,829) | ||||||||||||||
Free cash flow | $ | 5,718 | $ | 1,147 | $ | 5,192 | |||||||||||
Free cash flow margin | 17 | % | 3 | % | 15 | % | |||||||||||
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