Ended the year with 62% revenue growth and the largest quarterly increase in paid members since the start of the pandemic.

The release dated March 30, 2022, has been updated to include footnotes breaking out the company’s stock based compensation and the impact of the company’s IPO related bonus by financial statement line item. Additionally, the subhead should read 62% instead of 63%.

The updated release reads:

EXPENSIFY ANNOUNCES Q4 AND FULL YEAR FISCAL 2021 RESULTS

Ended the year with 62% revenue growth and the largest quarterly increase in paid members since the start of the pandemic.

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 fourth quarter and full year ended December 31, 2021.

“The major highlight of 2021 was releasing our Free Plan in October and growing it to more than 3,100 customers by year end,” says David Barrett, founder and CEO of Expensify. “We opened the floodgates into our product wider than they’ve ever been before, to individuals and businesses of all types, and it’s been a huge success in such a short amount of time. Free expense management, corporate cards, invoicing, bill pay, and travel booking all in one place – it’s the perfect foundation on which to build the reimagined, chat-centric future for our product.”

“We’re proud to have ended 2021 with a bang,” says Ryan Schaffer, Chief Financial Officer of Expensify. “The pandemic has been a sobering stress test on the resiliency of our viral business model, but we’ve shown that our bottom-up approach to member acquisition has the power to weather any storm. The results speak for themselves: product-led growth and word-of-mouth adoption propelled us to a 62% revenue increase in 2021.”

Financial

Q4 2021:

• Revenue was $40.4 million, an increase of 56.0% from the same period last year.
• An IPO-related bonus expense of $14.2 million impacted net (loss) income.
• Net (loss) income was $(21.9) million, compared to $1.7 million for the same period last year. The loss was primarily due to the IPO-related bonus.
  • Non-GAAP net income was $4.4 million. Non-GAAP net income excludes stock based compensation which was not excluded in prior periods.
• Adjusted EBITDA was $(6.9) million, compared to $10.2 million for the same period last year.
• Adjusted EBITDA excluding the IPO bonus was $7.3 million, compared to $10.2 million for the same period last year.

Full Year Fiscal 2021:

• Revenue was $142.8 million, an increase of 61.8% from the same period last year.
• An IPO-related bonus expense of $48.4 million impacted net (loss) income and Adjusted EBITDA.
• Net loss was $(13.6) million, compared to $(1.7) million for the same period last year. The loss was primarily due to the IPO-related bonus.
  • Non-GAAP net income was $49.4 million.
• Adjusted EBITDA was $9.5 million, compared to $26.8 million for the same period last year.
• Adjusted EBITDA excluding the IPO bonus was $58.0 million, compared to $26.8 million for the same period last year.

Business

• Paid members - saw major growth, with 711 thousand in the fourth quarter of 2021.
• Free plan - launched in October and grew to over 3,100 customers by December 2021. Includes expense management, the Expensify Card, next-day reimbursement, invoicing, bill pay, and travel booking.
• Expensify Card - adoption continued at a rapid pace and interchange increased by 185% in 2021.
• Cash back - introduced unlimited cash back on the Expensify Card, with an introductory rate of 4% followed by an ongoing rate of 2% across all purchases and categories.
• Invoicing and bill pay - completed Expensify’s expansion into accounts payable and receivable, rounding out its offerings as a full-service preaccounting platform.
• New.expensify.com - launched a sneak peek of Expensify’s future product that mixes chat and payments for easy financial collaboration across work and personal life.
• Expensify.org - funded more than 50 grassroots organizations fighting injustice in their communities, reimbursed thousands of families on SNAP/EBT for groceries and COVID-19 vaccinations, and donated clothing to people experiencing homelessness.
• Podcast - aired first season of “Live Rich, Have Fun, Save the World,” which features individual trailblazers pursuing the lofty goals aligned with Expensify’s three-part company mission.
• ESG - reached carbon neutrality via offsets in 2021 and set a goal of Net Zero emissions by 2030.
• Customer support - won “Best Customer Support” from TrustRadius.
• Operational efficiency - annualized revenue per employee topped $1.1MM.
  • Calculated as three months ended December 31, 2021 revenue multiplied by four (quarters), divided by 144 full-time employees as of December 31, 2021.

Financial Outlook

Expensify's outlook statements are based on current expectations. 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.

For the fiscal first quarter ending March 31, 2022, Expensify expects:

• Revenue between $38.6 million and $39.6 million.
• Average monthly paid members between 684 thousand and 702 thousand.

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 results at 2:00 p.m. Pacific Time today. 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, Adjusted EBITDA excluding the IPO-related bonus, and Non-GAAP net income.

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.

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.

We define Adjusted EBITDA excluding the IPO-related bonus as net income from operations excluding provision for income taxes, interest and other expenses, net, depreciation and amortization, stock based compensation, and IPO-related bonus costs.

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. In prior periods, 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.

The tables at the end of the 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, 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 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,” 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 economic, political and social impact of, and uncertainty relating to, the COVID-19 pandemic; the war in Ukraine and escalating geopolitical tensions as a result of Russia's invasion of Ukraine; 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 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, including the societal and economic impact of the COVID-19 pandemic, and geopolitical uncertainty and instability; 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 10 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.

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