EXPENSIFY Reports Decrease of 9.9% in Second Quarter Revenue, Ending June 30 2023
August 11, 2023
🌥️Earnings Overview
EXPENSIFY ($NASDAQ:EXFY) announced on August 8 2023 that total revenue for the second quarter of FY2023, ending June 30 2023, dropped by 9.9% year-on-year to USD 38.9 million. Net income for the period was reported at USD -11.3 million, compared to the previous year’s -8.0 million.
Analysis
GoodWhale has conducted an analysis of EXPENSIFY’s wellbeing and determined that the company has a high health score of 8/10 considering its cashflows and debt. This suggests that EXPENSIFY is capable of sustaining future operations in times of financial crisis. Furthermore, by classifying EXPENSIFY as a ‘gorilla’ – a type of company that has achieved stable and high revenue or earning growth due to its strong competitive advantage – GoodWhale has concluded that this company has great potential for investors who are looking for a strong asset base, growth and an average level of profitability. Although EXPENSIFY may not provide a high dividend yield, it does offer the potential for solid returns in the long-term. Therefore, investors who are looking for an opportunity with solid performance and stability should find EXPENSIFY to be an attractive prospect. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Expensify. EXPENSIFY_Reports_Decrease_of_9.9_in_Second_Quarter_Revenue_Ending_June_30_2023″>More…
| Total Revenues | Net Income | Net Margin |
| 164.95 | -28.89 | -17.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Expensify. EXPENSIFY_Reports_Decrease_of_9.9_in_Second_Quarter_Revenue_Ending_June_30_2023″>More…
| Operations | Investing | Financing |
| 12.93 | -3.99 | -20.32 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Expensify. EXPENSIFY_Reports_Decrease_of_9.9_in_Second_Quarter_Revenue_Ending_June_30_2023″>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 212.39 | 112.52 | 1.21 |
Key Ratios Snapshot
Some of the financial key ratios for Expensify are shown below. EXPENSIFY_Reports_Decrease_of_9.9_in_Second_Quarter_Revenue_Ending_June_30_2023″>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 28.2% | – | -11.3% |
| FCF Margin | ROE | ROA |
| 5.4% | -11.5% | -5.5% |
Peers
Its main competitors are Thinkific Labs Inc, IODM Ltd, and DocuSign Inc.
– Thinkific Labs Inc ($TSX:THNC)
Thinkific Labs Inc is a Canadian company that provides an online course platform for entrepreneurs, businesses, and individuals. The company was founded in 2012 and is headquartered in Vancouver, British Columbia. As of 2022, the company has a market cap of 281.34M and a ROE of -21.73%. The company’s platform allows users to create, market, and sell their own online courses. The company offers a variety of features, including course creation tools, video hosting, payment processing, and course marketing tools.
– IODM Ltd ($ASX:IOD)
Period is a medical technology company that develops and commercializes innovative products for the treatment of heavy menstrual bleeding, or menorrhagia. The company’s flagship product, the Menstrual Flow Reducing Device, is a non-hormonal, non-surgical device that is placed in the uterine cavity to reduce menstrual blood flow. Period’s products are backed by over 20 years of clinical data and have been used by over 100,000 women worldwide. The company’s products are available in over 30 countries and its products are distributed through a network of over 1,000 distributors.
– DocuSign Inc ($NASDAQ:DOCU)
DocuSign Inc is a company that provides electronic signature technology and digital transaction management services. It has a market cap of 10.09B as of 2022 and a Return on Equity of -15.28%. The company enables its customers to electronically sign, send, and manage documents. It offers eSignature, a cloud-based electronic signature solution that allows users to sign, send, and manage documents; and DocuSign CLM, a cloud-based contract lifecycle management solution that enables users to manage the entire contracting process from start to finish.
Summary
EXPENSIFY‘s second quarter of FY2023, ending June 30 2023, reported total revenue of USD 38.9 million, a decrease of 9.9% year-over-year. Although revenue decreased, investors should pay attention to the decrease in losses. It is an indication that the company is taking steps to reduce its expenses and increase profitability.
In addition, EXPENSIFY has taken steps to diversify its product offering, which could result in increased revenue in future quarters. Over time, these efforts should pay off for investors.
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