Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $35.1 million, with a net loss of $2.3 million and non-GAAP net income of $4.3 million [4] - Average paid members increased to 642,000, with a rise to 653,000 in October [4] - Operating cash flow was $4.2 million, and free cash flow was $1.2 million, slightly lower than previous quarters due to seasonal timing [4] - The company reiterated its fiscal year 2025 free cash flow guidance of $19 million to $23 million [4] Business Line Data and Key Metrics Changes - The "Expense by Travel" segment saw bookings grow by 36% from Q2 and 95% since Q1, indicating strong performance in this area [5] - The company repurchased approximately $3 million worth of Class A common stock [6] Market Data and Key Metrics Changes - The company is now the official travel and expense partner of the Brooklyn Nets, showcasing its growing market presence [5] Company Strategy and Development Direction - The company is focused on migrating existing customers to the new Expensify platform, targeting 90% feature parity with the Classic version [7][8] - The design of the new Expensify anticipates modern AI integration, aiming for a hybrid system that combines AI and human support [12][14] - The company emphasizes a chat-first design for AI interactions, aiming to enhance user experience and functionality [26][37] Management's Comments on Operating Environment and Future Outlook - Management acknowledged potential risks from government shutdowns affecting travel but noted that it could lead to increased spending in certain scenarios [41][42] - The company is optimistic about the migration to new Expensify and expects significant progress by the end of the year [48][50] Other Important Information - The company is focused on reducing support costs by migrating customers to the new platform, which is expected to handle issues more efficiently than Classic [53][54] Q&A Session Summary Question: Insights on chat as the UI for AI and competitive advantages - Management highlighted the importance of built-in AI functionality within the product, allowing users to interact contextually without leaving their current task [31][33] Question: Impact of government shutdowns on travel - Management noted that uncertainty is generally not favorable for business, but the impact would depend on how travelers adjust their plans [40][42] Question: Migration progress from Classic to New Expensify - Less than 50% of revenue is currently from New Expensify, with a focus on migrating existing customers while ensuring their comfort with the transition [47][48] Question: Incremental monetization and cost savings from concierge agent - Management indicated that migrating to New Expensify should reduce support costs and enhance monetization opportunities through improved functionality [53][55]

Financial Performance - Q2 2025 revenue reached $35.8 million[14] - The company had 652,000 average paid members in Q2 2025[15] - Total interchange for Q2 2025 was $5.3 million[17] - Q2 2025 operating cash flow was $8.9 million[20] - Free cash flow for Q2 2025 was $6.3 million, a 10% increase year-over-year[23, 26] - Non-GAAP net loss for Q2 2025 was $(1.9) million[20] - Adjusted EBITDA for Q2 2025 was $(1.4) million[24] - The company is increasing its FY 2025 free cash flow guidance to a range of $19.0 million to $23.0 million[26] Marketing Impact - The company estimates that the F1 movie generated an equivalent value of $61.0 million in marketing dollars[36] - The F1 movie increased unaided brand awareness by 50% among the core demographic (ages 18-54)[37] - The F1 movie increased unaided brand awareness by 350% among the next generation of bottom-up adopters (ages 18-24)[42]

Q1 2025 Earnings May 8th, 2025 Disclaimer All information included in this presentation is unaudited. FORWARDLOOKING STATEMENTS Forward-looking statements in this presentation, 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, future cash flow, projected costs, prospects, plans, objectives of management, expected m ...

Financial Data and Key Metrics Changes - Revenue for Q4 2024 was $37 million, representing a 5% increase both quarter-over-quarter and year-over-year [11][12] - Average paid members increased slightly to 687,000, while interchange revenue reached $5.1 million, a 62% increase year-over-year [12][11] - Operating cash flow was $7.4 million, and free cash flow was $6.3 million, with a net loss of $1.3 million [12][14] - For fiscal year 2024, total revenue was $139.2 million, with a net loss of $10.1 million and non-GAAP net income of $23.5 million [14][15] - Free cash flow for fiscal year 2024 was $23.9 million, a 4,200% increase year-on-year [14][15] Business Line Data and Key Metrics Changes - The Expensify card grew 11% quarter-on-quarter to $5.1 million, with interchange growing 54% year-on-year to $17.2 million [18][19] - The company successfully completed the migration of its card program, simplifying its accounting structure [19][20] - The launch of Expensify Travel is expected to add fee-based and transactional revenue opportunities, with high customer enthusiasm noted [21][22] Market Data and Key Metrics Changes - In January, the number of paid members was 665,000, which is lower than Q4 but consistent with seasonal trends [20][21] - The company noted significant seasonality in Q1, which is expected [20] Company Strategy and Development Direction - The company continues to focus on bottom-up adoption and the payment super app strategy, which remains a sound approach [24][25] - AI integration is a significant focus, with the introduction of chat-based functionalities aimed at enhancing user experience and operational efficiency [25][26] - The company aims to leverage its unique data access for AI training, enhancing its competitive edge in expense management [39][40] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving profitability soon, with a focus on improving operational efficiency through AI [12][15] - The initial guidance for 2025 is set at $16 million to $20 million in free cash flow, reflecting a conservative approach due to macroeconomic uncertainties [17][18] - The company is excited about the potential of its AI-driven features, which are expected to enhance user engagement and operational efficiency [25][26] Other Important Information - The company has reduced its debt by $22.7 million and is now debt-free, which is a significant achievement [22][23] - The company is committed to continuous improvement and innovation, with a focus on AI and automation to enhance its service offerings [48][49] Q&A Session Summary Question: Understanding AI capabilities and integration with third-party systems - Management confirmed that existing AI capabilities like concierge and SmartScan are operational, while more advanced features are under development [68][69] - Integration with third-party systems like Slack is possible, but the core functionalities are best utilized within the Expensify app [72][73] Question: Driving broader adoption of the chat functionality - Management noted that customer migration to the new system has been sticky, with users generally satisfied with the experience [77][78] - The chat-centric features are expected to demonstrate value and encourage broader adoption through proactive engagement [80][81] Question: Adoption and future outlook for Expensify Travel - Initial enthusiasm for Expensify Travel has been high, with account managers reporting significant interest following the launch [84][85] - The company anticipates that, similar to the Expensify card, travel services will grow and contribute meaningfully to revenue over time [86]