Press release

Expensify Announces Q4 and Full Year Fiscal 2022 Results

0
Sponsored by Businesswire

Expensify, Inc. (Nasdaq: EXFY), a payments superapp that helps individuals and businesses around the world simplify the way they manage money across expenses, corporate cards and bills, today announced results for its quarter and year ended December 31, 2022.

“We had a great year considering the challenging macroeconomic environment. The business continues to grow across multiple areas, despite volatility affecting all businesses but especially SMBs. We are heads down executing our long-term product roadmap, and could not be more excited about what we have in store. Pending an eventual return to normalcy, we remain confident with our long-term growth guidance,” said David Barrett, Founder & CEO of Expensify. “I continue to contribute 100% of my salary to the employee stock purchase program and the company has been buying back company stock, so we remain very bullish on the future.”

“This year proved Expensify is a very strong business able to generate positive cash flow in extremely challenging environments,” said Ryan Schaffer, Expensify’s CFO. “We had an operating cash flow margin of 19% and a free cash flow margin of 15%. We are proud to have repurchased $12.1 million in common stock, including net share settlement of equity awards, in 2022 and plan to keep generating positive cash flow and repurchasing in 2023. Needless to say, we feel we are in a strong position and remain excited for the future.”

Financial:

Full Year Fiscal 2022 Highlights

  • Revenue was $169.5 million, an increase of 19% compared to the same period last year.
  • Generated $32.9 million cash provided by operating activities and $26.3 million of free cash flow.
  • Net loss was $27.0 million, compared to $13.6 million for the same period last year. This was heavily driven by stock-based compensation expenses of $52.3 million which is expected to decrease in the future. (See stock-based compensation forecast below.)
  • Non-GAAP net income was $25.3 million.
  • Adjusted EBITDA was $42.5 million.
  • Interchange derived from the Expensify Card grew to $6.8 million, an increase of 118% compared to the same period last year.

Fourth Quarter 2022 Highlights

  • Revenue was $43.5 million.
  • Generated $6.6 million cash provided by operating activities and $6.0 million of free cash flow.
  • Net loss was $3.4 million, compared to $21.9 million for the same period last year. The loss in Q4 2022 was primarily driven by a stock-based compensation expense of $10.5 million. The loss in Q4 2021 was primarily driven by a stock-based compensation expense of $12.1 million and a one-time IPO-related bonus expense of $14.2 million. Stock-based compensation is expected to decrease going forward. (See stock-based compensation forecast below.)
  • Non-GAAP net income was $7.1 million.
  • Adjusted EBITDA was $11.2 million.
  • Interchange derived from the Expensify Card grew to $2.0 million, an increase of 91% compared to the same period last year.

Business

2022 Highlights

  • Revamped the ExpensifyApproved! channel – Made significant progress in the accounting channel:

    • Announced the Expensify CPA card with accountant-specific perks.
    • Assigned Partner Managers to the 500+ largest partner firms.
    • Announced ExpensiCon 3, bringing together 100 of the top minds in accounting and featuring headline speaker George Clooney.
  • Added Account Managers – Created account management program and rolled out Account Managers to nearly all paying customers.
  • Added onboarding phone support – All customers being onboarded get a response in two minutes or less.
  • Built a React Native community – To continue rapid advancement of new.expensify.com, which is being built by internal Expensify engineers and an external network including some of the world’s best React Native engineers.

    • Worked with hundreds of different open source React Native engineers from around the world.
    • Paid out over a million dollars to the open source engineers to work on the Expensify platform.
  • Buyback – As previously announced, the Executive Committee of our Board of Directors approved a share repurchase program with authorization to purchase up to $50.0 million of shares of our Class A common stock. We repurchased $12.1 million of our Class A common stock, including net share settlement of equity awards, in 2022.

Fourth Quarter 2022 Highlights

  • Paid members – Paid members grew to 779,000, an increase of 10% from the same period last year.
  • ExpensiConX – Invited hundreds of React Native developers to ExpensiConX, a conference that will bring together some of the top React Native engineers in the world with the goal of building the next great collaborative fintech superapp, all in Curaçao. The event will take place in March 2023.
  • New Sales Development Representatives – Onboarded Sales Development Representatives (“SDRs”) across four different vendors. We’re in the process of scaling SDRs as we look to increase the amount of leads flowing to our Account Managers.
  • Continuing to scale Account Managers – More than doubled our Account Manager coverage to nearly all paying customers.

Financial Outlook

Expensify’s outlook statements are based on current estimates, expectations and assumptions and are not a guarantee of future performance. The following statements are forward-looking and actual results could differ materially depending on market conditions and the factors set forth under “Forward-Looking Statements” below. There can be no assurance that the Company will achieve the results expressed by this guidance.

We reaffirm our long term guidance provided in connection with our fourth quarter 2021 results of 25-35% revenue growth over a multi-year period, which assumes an eventual return to normalcy of the world economy.

Expensify is also providing an estimate on what stock based compensation is expected to look like for the next four fiscal quarters. Driven primarily by the pre-IPO grant of RSUs issued to all employees (which vest quarterly over eight years with approximately seven years remaining), stock based compensation is estimated as seen below:

Est. stock-based compensation (millions)

 

 

Q1 2023

 

Q2 2023

 

Q3 2023

 

Q4 2023

 

Low

 

High

 

Low

 

High

 

Low

 

High

 

Low

 

High

Cost of revenue, net

$

3.6

 

$

4.3

 

$

3.4

 

$

4.2

 

$

3.4

 

$

4.1

 

$

3.3

 

$

4.0

Research and development

 

2.0

 

 

2.4

 

 

1.9

 

 

2.3

 

 

1.9

 

 

2.3

 

 

1.8

 

 

2.3

General and administrative

 

2.4

 

 

2.9

 

 

2.3

 

 

2.8

 

 

2.3

 

 

2.8

 

 

2.2

 

 

2.7

Sales and marketing

 

1.7

 

 

2.1

 

 

1.7

 

 

2.0

 

 

1.6

 

 

2.0

 

 

1.6

 

 

1.9

Total

$

9.7

 

$

11.7

 

$

9.3

 

$

11.3

 

$

9.2

 

$

11.2

 

$

8.9

 

$

10.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Availability of Information on Expensify’s Website

Investors and others should note that Expensify routinely announces material information to investors and the marketplace using SEC filings, press releases, public conference calls, webcasts and the Expensify Investor Relations website at https://ir.expensify.com. While not all of the information that the Company posts to its Investor Relations website is of a material nature, some information could be deemed to be material. Accordingly, the Company encourages investors, the media and others interested in Expensify to review the information that it shares on its Investor Relations website.

Conference Call

Expensify will host a video call to discuss the financial results and business highlights at 2:00 p.m. Pacific Time today. An investor presentation and the video call information is available on Expensify’s Investor Relations website at https://ir.expensify.com. A replay of the call will be available on the site for three months.

Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), we provide certain non-GAAP financial measures, including adjusted EBITDA, non-GAAP net income, free cash flow and free cash flow margin.

We believe our non-GAAP financial measures are useful in evaluating our business, measuring our performance, identifying trends affecting our business, formulating business plans and making strategic decisions. Accordingly, we believe that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating our results of operations in the same manner as our management team. These non-GAAP financial measures are presented for supplemental informational purposes only, should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from similarly titled metrics or measures presented by other companies. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as substitutes for financial information presented under GAAP. There are a number of limitations related to the use of non-GAAP financial measures versus comparable financial measures determined under GAAP. For example, other companies in our industry may calculate these non-GAAP financial measures differently or may use other measures to evaluate their performance. All of these limitations could reduce the usefulness of these non-GAAP financial measures as analytical tools. Investors are encouraged to review the related GAAP financial measures and the reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures and to not rely on any single financial measure to evaluate our business. A reconciliation of each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP is at the end of this press release.

Adjusted EBITDA. We define adjusted EBITDA as net income from operations excluding provision for income taxes, interest and other expenses, net, depreciation and amortization and stock based compensation.

Non-GAAP net income. We define non-GAAP net income as net income from operations in accordance with US GAAP excluding stock-based compensation and IPO-related bonus costs. Prior to the fourth quarter of 2021, this metric only excluded IPO-related bonus costs and did not exclude expenses related to stock-based compensation. However, management now believes that further excluding stock-based compensation from non-GAAP net income is useful to better understand the financial performance of our business and to facilitate a better comparison of our results to those of peer companies over multiple periods given that this item may vary between companies for reasons unrelated to overall operating performance. IPO-related bonus costs impacted the second, third and fourth fiscal quarters of 2021 but did not impact any quarters in 2022 and are not expected to impact future periods.

Non-GAAP net income margin. We define non-GAAP net income as non-GAAP net income divided by total revenue for the same period.

Free cash flow. We define Free cash flow as net cash provided by operating activities excluding changes in settlement assets and settlement liabilities, which represent funds held for customers and customer funds in transit, respectively, reduced by the purchases of property and equipment and software development costs.

Free cash flow margin. We define Free cash flow margin as Free cash flow divided by total revenue for the same period.

The tables at the end of the Consolidated Financial Statements provide reconciliations to the most directly comparable GAAP financial measure to each of these non-GAAP financial measures.

Forward-Looking Statements

Forward-looking statements in this press release, or made during the earnings call, which are not historical facts, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1955. These statements include statements regarding our strategy, future financial condition, future operations, projected costs, prospects, plans, objectives of management and expected market growth, our ability to meet our long-term guidance, the amount and timing of any share repurchases, our stock-based compensation estimates and the timing of when we expect the economy to return to normalcy and involve known and unknown risks that are difficult to predict. As a result, our actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “shall,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” “goal,” “objective,” “seeks,” “outlook,” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans, or intentions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: the impact on inflation on us and our members; our borrowing costs have and may continue to increase as a result of increases in interest rates; our expectations regarding our financial performance and future operating performance; our ability to attract and retain members, expand usage of our platform, sell subscriptions to our platform and convert individuals and organizations into paying customers; the timing and success of new features, integrations, capabilities and enhancements by us, or by competitors to their products, or any other changes in the competitive landscape of our market; the amount and timing of operating expenses and capital expenditures that we may incur to maintain and expand our business and operations to remain competitive; the sufficiency of our cash, cash equivalents and investments to meet our liquidity needs; our ability to make required payments under and to comply with the various requirements of our current and future indebtedness; our cash flows, the prevailing stock prices, general economic and market conditions and other considerations that could affect the specific timing, price and size of repurchases under our stock repurchase program or our ability to fund any stock repurchases; the war in Ukraine and escalating geopolitical tensions as a result of Russia’s invasion of Ukraine; our ability to effectively manage our exposure to fluctuations in foreign currency exchange rates; the increased expenses associated with being a public company; the size of our addressable markets, market share and market trends; anticipated trends, developments and challenges in our industry, business and the highly competitive markets in which we operate; our expectations regarding our income tax liabilities and the adequacy of our reserves; our ability to effectively manage our growth and expand our infrastructure and maintain our corporate culture; our ability to identify, recruit and retain skilled personnel, including key members of senior management; the safety, affordability and convenience of our platform and our offerings; our ability to successfully defend litigation brought against us; our ability to successfully identify, manage and integrate any existing and potential acquisitions of businesses, talent, technologies or intellectual property; general economic conditions in either domestic or international markets; our protections against security breaches, technical difficulties, or interruptions to our platform; our ability to maintain, protect and enhance our intellectual property; and other risks discussed in our filings with the SEC. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements set forth above. We caution you not to place undue reliance on any forward-looking statements, which are made only as of the date of this press release. We do not undertake or assume any obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable law. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.

About Expensify

Expensify is a payments superapp that helps individuals and businesses around the world simplify the way they manage money. More than 12 million people use Expensify’s free features, which include corporate cards, expense tracking, next-day reimbursement, invoicing, bill pay, and travel booking in one app. All free. Whether you own a small business, manage a team, or close the books for your clients, Expensify makes it easy so you have more time to focus on what really matters.

Expensify, Inc.

Consolidated Balance Sheets

(unaudited, in thousands, except share and per share data)

 

 

As of December 31,

 

 

2022

 

 

2021

Assets

 

 

 

Cash and cash equivalents

$

103,787

 

 

$

98,398

 

Accounts receivable, net

 

16,448

 

 

 

15,713

 

Settlement assets, net

 

35,838

 

 

 

21,880

 

Prepaid expenses

 

8,825

 

 

 

7,436

 

Related party loan receivable

 

 

 

 

14

 

Other current assets

 

22,217

 

 

 

14,201

 

Total current assets

 

187,115

 

 

 

157,642

 

Capitalized software, net

 

6,881

 

 

 

6,359

 

Property and equipment, net

 

14,492

 

 

 

15,930

 

Lease right-of-use assets

 

745

 

 

 

2,202

 

Deferred tax assets, net

 

344

 

 

 

370

 

Other assets

 

664

 

 

 

710

 

Total assets

$

210,241

 

 

$

183,213

 

Liabilities and stockholders’ equity

 

 

 

Accounts payable

$

1,059

 

 

$

3,752

 

Accrued expenses and other liabilities

 

9,070

 

 

 

11,046

 

Borrowings under line of credit

 

15,000

 

 

 

15,000

 

Current portion of long-term debt, net of original issue discount and debt issuance costs

 

551

 

 

 

549

 

Lease liabilities, current

 

800

 

 

 

1,549

 

Settlement liabilities

 

33,882

 

 

 

21,680

 

Total current liabilities

 

60,362

 

 

 

53,576

 

Lease liabilities, non-current

 

 

 

 

802

 

Other liabilities

 

1,204

 

 

 

153

 

Long-term debt, net of original issue discount and debt issuance costs

 

51,434

 

 

 

52,067

 

Total liabilities

 

113,000

 

 

 

106,598

 

Commitments and contingencies (Note 12)

 

 

 

Stockholders’ equity:

 

 

 

Preferred stock, par value $0.0001; 10,000,000 shares of preferred stock authorized as of December 31, 2022 and 2021, respectively; no shares of preferred stock issued and outstanding as of December 31, 2022 and 2021

 

 

 

 

 

Common stock, par value $0.0001; 1,000,000,000 shares of Class A common stock authorized as of December 31, 2022 and 2021; 68,238,245 and 67,844,060 shares of Class A common stock issued and outstanding as of December 31, 2022 and 2021, respectively; 24,997,561 and 25,000,000 shares of LT10 common stock authorized as of December 31, 2022 and 2021, respectively; 7,336,191 and 7,332,640 shares of LT10 common stock issued and outstanding as of December 31, 2022 and 2021, respectively; 24,999,020 and 25,000,000 shares of LT50 common stock authorized as of December 31, 2022 and 2021, respectively; 6,854,931 and 6,224,160 shares of LT50 common stock issued and outstanding as of December 31, 2022 and 2021, respectively

 

7

 

 

 

6

 

Additional paid-in capital

 

194,807

 

 

 

142,515

 

Accumulated deficit

 

(97,573

)

 

 

(65,906

)

Total stockholders’ equity

 

97,241

 

 

 

76,615

 

Total liabilities and stockholders’ equity

$

210,241

 

 

$

183,213

 

 

 

 

 

Expensify, Inc.

Consolidated Statements of Operations

(unaudited, in thousands, except share and per share data)

 

 

Three Months Ended December 31,

 

Year ended December 31,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

Revenue

$

43,469

 

 

$

40,364

 

 

$

169,495

 

 

$

142,835

 

Cost of revenue, net(1)

 

16,105

 

 

 

19,925

 

 

 

62,669

 

 

 

53,693

 

Gross margin

 

27,364

 

 

 

20,439

 

 

 

106,826

 

 

 

89,142

 

Operating expenses:

 

 

 

 

 

 

 

Research and development(1)

 

2,991

 

 

 

2,850

 

 

 

13,692

 

 

 

10,988

 

General and administrative(1)

 

13,155

 

 

 

24,915

 

 

 

58,490

 

 

 

60,742

 

Sales and marketing(1)

 

11,918

 

 

 

13,109

 

 

 

49,876

 

 

 

27,664

 

Total operating expenses

 

28,064

 

 

 

40,874

 

 

 

122,058

 

 

 

99,394

 

(Loss) income from operations

 

(700

)

 

 

(20,435

)

 

 

(15,232

)

 

 

(10,252

)

Interest and other expenses, net

 

(185

)

 

 

(920

)

 

 

(5,411

)

 

 

(3,480

)

(Loss) income before income taxes

 

(885

)

 

 

(21,355

)

 

 

(20,643

)

 

 

(13,732

)

(Provision for) benefit from income taxes

 

(2,512

)

 

 

(532

)

 

 

(6,366

)

 

 

174

 

Net loss attributable to Class A, LT10 and LT50 common stockholders

$

(3,397

)

 

$

(21,887

)

 

$

(27,009

)

 

$

(13,558

)

 

 

 

 

 

 

 

 

Net loss per share attributable to Class A, LT10 and LT50 common stockholders:

 

 

 

 

 

 

 

Basic

$

(0.04

)

 

$

(0.82

)

 

$

(0.33

)

 

$

(0.36

)

Diluted

$

(0.04

)

 

$

(0.82

)

 

$

(0.33

)

 

$

(0.36

)

Weighted-average shares of common stock used to compute net (loss) income per share attributable to Class A, LT10 and LT50 common stockholders:

 

 

 

 

 

 

 

Basic

 

81,567,647

 

 

 

26,776,561

 

 

 

80,786,725

 

 

 

38,039,222

 

Diluted

 

81,567,647

 

 

 

26,776,561

 

 

 

80,786,725

 

 

 

38,039,222

 

 

 

 

 

 

 

 

 

(1) Includes stock-based compensation expense as follows:

 

 

Three Months Ended December 31,

 

Year ended December 31,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

Cost of revenue, net

$

4,125

 

 

$

3,445

 

 

$

18,403

 

 

$

4,115

 

Research and development

 

1,645

 

 

 

1,135

 

 

 

7,875

 

 

 

1,617

 

General and administrative

 

2,787

 

 

 

6,238

 

 

 

17,850

 

 

 

7,356

 

Sales and marketing

 

1,982

 

 

 

1,261

 

 

 

8,204

 

 

 

1,486

 

Total stock-based compensation expense

$

10,539

 

 

$

12,079

 

 

$

52,332

 

 

$

14,574

 

 

 

 

 

 

 

 

 

Expensify, Inc.

Consolidated Statements of Cash Flows

(unaudited, in thousands)

 

 

Year Ended December 31,

 

 

2022

 

 

2021

 

 

2020

Cash flows from operating activities:

 

 

 

 

 

Net loss

$

(27,009

)

 

$

(13,558

)

 

$

(1,710

)

Adjustments to reconcile net loss to cash provided by operating activities:

 

 

 

 

 

Depreciation and amortization

 

5,388

 

 

 

5,197

 

 

 

3,248

 

Reduction of operating lease right-of-use assets

 

666

 

 

 

741

 

 

 

1,311

 

Loss on impairment, receivables and sale or disposal of equipment

 

881

 

 

 

319

 

 

 

162

 

Stock-based compensation

 

52,332

 

 

 

14,574

 

 

 

17,837

 

Amortization of original issue discount and debt issuance costs

 

42

 

 

 

32

 

 

 

32

 

Deferred tax assets

 

26

 

 

 

48

 

 

 

2,437

 

Deferred tax liabilities

 

 

 

 

(916

)

 

 

916

 

Changes in assets and liabilities:

 

 

 

 

 

Accounts receivable, net

 

(1,341

)

 

 

(6,006

)

 

 

(2,170

)

Settlement assets, net

 

(7,796

)

 

 

173

 

 

 

2,878

 

Prepaid expenses

 

(1,389

)

 

 

(6,509

)

 

 

270

 

Related party loan receivable

 

14

 

 

 

586

 

 

 

 

Other current assets

 

2,875

 

 

 

(4,100

)

 

 

(1,393

)

Other assets

 

(81

)

 

 

124

 

 

 

(248

)

Accounts payable

 

(2,693

)

 

 

1,424

 

 

 

(714

)

Accrued expenses and other liabilities

 

(1,537

)

 

 

7,511

 

 

 

1,774

 

Operating lease liabilities

 

(758

)

 

 

(801

)

 

 

(1,374

)

Settlement liabilities

 

12,202

 

 

 

7,372

 

 

 

(16,548

)

Other liabilities

 

1,054

 

 

 

(725

)

 

 

877

 

Net cash provided by operating activities

 

32,876

 

 

 

5,486

 

 

 

7,585

 

Cash flows from investing activities:

 

 

 

 

 

Purchase of property and equipment

 

(585

)

 

 

(2,706

)

 

 

(2,488

)

Proceeds from sale or disposal of property and equipment

 

5

 

 

 

 

 

 

2

 

Software development costs

 

(1,619

)

 

 

(4,908

)

 

 

(1,809

)

Net cash used in investing activities

 

(2,199

)

 

 

(7,614

)

 

 

(4,295

)

Cash flows from financing activities:

 

 

 

 

 

Principal payments of finance leases

 

(793

)

 

 

(774

)

 

 

(808

)

Principal payments of term loan

 

(595

)

 

 

(25,191

)

 

 

(319

)

Proceeds from term loan

 

 

 

 

45,000

 

 

 

 

Principal payments of line of credit

 

 

 

 

 

 

 

(1,000

)

Proceeds from line of credit

 

 

 

 

 

 

 

9,613

 

Vesting of restricted common stock

 

 

 

 

567

 

 

 

 

Proceeds from initial public offering, net of underwriters’ discounts, commissions and offering costs

 

 

 

 

57,458

 

 

 

 

Repurchases of early exercises of common stock

 

(25

)

 

 

 

 

 

 

Proceeds from common stock purchased under Matching Plan

 

3,672

 

 

 

 

 

 

 

Proceeds from issuance of common stock on exercise of stock options

 

795

 

 

 

3,505

 

 

 

1,301

 

Payments for employee taxes withheld from stock-based awards

 

(5,335

)

 

 

 

 

 

 

Repurchase and retirement of common stock

 

(6,000

)

 

 

 

 

 

 

Net cash (used in) provided by financing activities

 

(8,281

)

 

 

80,565

 

 

 

8,787

 

Net increase in cash and cash equivalents and restricted cash

 

22,396

 

 

 

78,437

 

 

 

12,077

 

Cash and cash equivalents and restricted cash, beginning of period

 

125,315

 

 

 

46,878

 

 

 

34,801

 

Cash and cash equivalents and restricted cash, end of period

$

147,711

 

 

$

125,315

 

 

$

46,878

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

Cash paid for interest

$

3,912

 

 

$

3,082

 

 

$

2,929

 

Cash paid for income taxes

$

975

 

 

$

6,922

 

 

$

150

 

Noncash investing and financing items:

 

 

 

 

 

Right-of-use assets acquired with lease liabilities

$

 

 

$

 

 

$

1,260

 

Reconciliation of cash and cash equivalents and restricted cash to the Consolidated Balance Sheets:

 

 

 

 

 

Cash and cash equivalents

$

103,787

 

 

$

98,398

 

 

$

34,401

 

Restricted cash included in other current assets

 

19,542

 

 

 

8,651

 

 

 

1,955

 

Restricted cash included in other assets

 

 

 

 

47

 

 

 

48

 

Restricted cash included in settlement assets, net

 

24,381

 

 

 

18,219

 

 

 

10,474

 

Total cash and cash equivalents and restricted cash

$

147,710

 

 

$

125,315

 

 

$

46,878

 

 

 

 

 

 

 

Expensify, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(unaudited, in thousands, except percentages)

 

Adjusted EBITDA

 

Three Months Ended December 31,

 

Year ended December 31,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

Net (loss) income

$

(3,397

)

 

$

(21,887

)

 

$

(27,009

)

 

$

(13,558

)

Add:

 

 

 

 

 

 

 

Provision for income taxes

 

2,512

 

 

 

532

 

 

 

6,366

 

 

 

(174

)

Interest and other expenses, net

 

185

 

 

 

920

 

 

 

5,411

 

 

 

3,480

 

Depreciation and amortization

 

1,316

 

 

 

1,465

 

 

 

5,388

 

 

 

5,197

 

Stock-based compensation

 

10,539

 

 

 

12,079

 

 

 

52,332

 

 

 

14,574

 

Adjusted EBITDA

$

11,155

 

 

$

(6,891

)

 

$

42,488

 

 

$

9,519

 

 

 

 

 

 

 

 

 

Adjusted EBITDA Excluding the IPO-Related Bonus

 

Three Months Ended December 31,

 

Year ended December 31,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

Net (loss) income

$

(3,397

)

 

$

(21,887

)

 

$

(27,009

)

 

$

(13,558

)

Add:

 

 

 

 

 

 

 

Provision for income taxes

 

2,512

 

 

 

532

 

 

 

6,366

 

 

 

(174

)

Interest and other expenses, net

 

185

 

 

 

920

 

 

 

5,411

 

 

 

3,480

 

Depreciation and amortization

 

1,316

 

 

 

1,465

 

 

 

5,388

 

 

 

5,197

 

Stock-based compensation

 

10,539

 

 

 

12,079

 

 

 

52,332

 

 

 

14,574

 

IPO-related bonus expense

 

 

 

 

14,191

 

 

 

 

 

 

48,416

 

Adjusted EBITDA Excluding the IPO-Related Bonus

$

11,155

 

 

$

7,300

 

 

$

42,488

 

 

$

57,935

 

 

 

 

 

 

 

 

 

Non-GAAP Net Income and Non-GAAP Net Income Margin

 

Three Months Ended December 31,

 

Year ended December 31,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

Net (loss) income

$

(3,397

)

 

$

(21,887

)

 

$

(27,009

)

 

$

(13,558

)

Net (loss) income margin

 

(8

)%

 

 

(54

)%

 

 

(16

)%

 

 

(9

)%

Add:

 

 

 

 

 

 

 

Stock-based compensation

 

10,539

 

 

 

12,079

 

 

 

52,332

 

 

 

14,574

 

IPO-related bonus expense

 

 

 

 

14,191

 

 

 

 

 

 

48,416

 

Non-GAAP net income

$

7,142

 

 

$

4,383

 

 

$

25,323

 

 

$

49,432

 

Non-GAAP net income margin

 

16

%

 

 

11

%

 

 

15

%

 

 

35

%

 

 

 

 

 

 

 

 

Expensify, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(unaudited, in thousands, except percentages)

 

Adjusted Operating Cash Flow and Free Cash Flow

 

 

Three Months Ended December 31,

 

Year ended December 31,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

Net cash (used in) provided by operating activities

$

6,647

 

 

$

(29,094

)

 

$

32,876

 

 

$

5,486

 

Operating cash flow margin

 

15

%

 

 

(72

)%

 

 

19

%

 

 

4

%

(Increase) decrease in changes in assets and liabilities:

 

 

 

 

 

 

 

Settlement assets

 

(2,300

)

 

 

(3,517

)

 

 

7,796

 

 

 

(173

)

Settlement liabilities

 

2,501

 

 

 

3,327

 

 

 

(12,202

)

 

 

(7,372

)

Adjusted operating cash flow

$

6,848

 

 

$

(29,284

)

 

$

28,470

 

 

$

(2,059

)

Less:

 

 

 

 

 

 

 

Purchases of property and equipment

 

(118

)

 

 

(104

)

 

 

(585

)

 

 

(2,706

)

Software development costs

 

(713

)

 

 

(511

)

 

 

(1,619

)

 

 

(4,908

)

Free cash flow

$

6,017

 

 

$

(29,899

)

 

$

26,266

 

 

$

(9,673

)

Free cash flow margin

 

14

%

 

 

(69

)%

 

 

15

%

 

 

(5

)%