Expensify(EXFY) - 2024 Q4 - Annual Results

Financial Performance - Q4 revenue increased by 5% quarter-over-quarter, with FY24 net loss down 76% year-over-year[3]. - FY24 adjusted EBITDA reached $39.4 million, up 199% year-over-year[3]. - Revenue for Q4 2024 was $37,004,000, a 5.1% increase from $35,208,000 in Q4 2023[29]. - Total revenue for the year ended December 31, 2024, was $139,236,000, down 7.6% from $150,687,000 in 2023[29]. - The net loss for the year ended December 31, 2024, was $10,055 thousand, a significant improvement from a net loss of $41,456 thousand in 2023, representing a reduction of approximately 76.8%[31]. - Non-GAAP net income for FY24 was $23.5 million, compared to a net loss of $10.1 million[8]. - Adjusted EBITDA for the year ended December 31, 2024, was $39,372 thousand, compared to $13,174 thousand in 2023, indicating an increase of approximately 198.5%[32]. - The net loss margin for the year ended December 31, 2024, improved to 7% from 28% in 2023[33]. Cash Flow and Liquidity - Operating cash flow and free cash flow for FY24 were both $23.9 million, exceeding the high end of the forecast by 19%[3]. - The net cash provided by operating activities for the year ended December 31, 2024, was $23,877 thousand, a substantial increase from $1,559 thousand in 2023[31]. - Free cash flow for the year ended December 31, 2024, was $23,863 thousand, compared to $555 thousand in 2023, reflecting a notable increase[34]. - Free cash flow guidance for FY25 is estimated between $16.0 million and $20.0 million[11]. - Cash and cash equivalents rose to $48,772,000 as of December 31, 2024, compared to $47,510,000 in 2023[27]. - The cash and cash equivalents and restricted cash at the end of the period were $90,834 thousand, down from $96,658 thousand at the end of 2023[31]. Expenses and Liabilities - Operating expenses for Q4 2024 totaled $18,391,000, a decrease of 25.5% compared to $24,686,000 in Q4 2023[29]. - Research and development expenses for the year ended December 31, 2024, were $24,638,000, up from $23,368,000 in 2023[29]. - Total stock-based compensation expense for the year ended December 31, 2024, was $33,537,000, down from $41,212,000 in 2023[29]. - The company reported a total current liabilities reduction from $67,892,000 in 2023 to $38,010,000 in 2024[27]. - The company reduced its debt by $22.7 million in 2024, achieving a debt-free status[3][15]. Membership and Revenue Streams - Paid members decreased by 4% year-over-year to 687,000, but showed a slight increase from Q3 2024[15]. - Expensify Card spend grew by 44% year-over-year, with interchange revenue increasing by 54% year-over-year to $17.2 million[3][8]. - The company launched a travel product, adding new revenue opportunities[15]. Operational Efficiency - AI-driven support expanded to provide 80% of tier 1 support, significantly reducing human escalations[15]. - Gross margin for Q4 2024 was $18,856,000, slightly up from $18,700,000 in Q4 2023[29]. - The adjusted operating cash flow margin for the year ended December 31, 2024, was 17%, up from 1% in 2023[34].