Payments and expense app Expensify reported a year-over-year drop in revenue and users during the second quarter, but executives expect its new app and travel booking capabilities to give it a boost in the third quarter.
The company reported $33.3 million in revenue for the second quarter, down 14 percent year over year, and it had 684,000 paid members in the quarter, down 8 percent. In an earnings call on Thursday, CFO Ryan Schaffer noted that those numbers have “leveled off” and were “effectively flat” compared with the previous quarter. He also noted that paid members as of July were up to 689,000, despite it being a “traditionally soft” month for the company.
For the third quarter, the company is in a position to begin generating revenue from its “New Expensify” app, which takes a “super app” strategy in combining capabilities for chat and expense—both business and personal—into a single platform. It also expects its travel booking capabilities, which it announced a few months ago, will contribute as a revenue stream for the quarter.
“We think it can scale up to the top of the market,” CEO David Barrett said in the earnings call. “It has very powerful functionality that can go head-to-head with anyone out there.”
The new Expensify Card program also will be a contributor to future revenues, as it earns 20 percent higher interchange for Expensify, and Expensify also is able to count that interchange as direct revenue, Schaffer said. So far, 34 percent of spend has migrated to the new card program, and total interchange for the quarter totaled $4 million—up 48 percent year over year.
Expensify reported a net loss of $2.76 million for the quarter, compared with a net loss of $11.3 million in the second quarter of 2023.
