Payment and expense app Expensify’s revenue and paid users declined year over year in the third quarter, but executives said they are “optimistic” about upcoming quarters as recently launched products gain a foothold.
Revenue for the quarter totaled $35.4 million, down 3 percent year over year, and the number of paid members declined 5 percent year over year to 684,000. In an earnings call on Thursday, Expensify COO Anuradha Muralidharan said that “reflects some lingering challenges in the business,” but the company noted that business is “stable.” The number of paid users has been flat over the past two quarters, and third-quarter revenue was up 6 percent compared with the second quarter.
Muralidharan added that “near-term momentum makes us more optimistic about the upcoming quarters.” The new Expensify Card program is “almost fully deployed,” with 94 percent of the company’s card spend on the new program, which brings a higher rate of interchange to the company. Interchange from the card program was $4.6 million in the third quarter, up 48 percent year over year.
The company also expects to drum up more business with the New Expensify app, which combines payments, document sharing and chat capabilities. At NetSuite’s recent Suiteworld event, Expensify fielded 61 percent more leads than it did at the same event the year prior, Expensify CEO David Barrett said.
Expensify additionally has begun seeing revenue from its travel platform announced earlier this year, with the initial beta period for select customers complete and the company now expanding it to a “targeted group of midmarket customers.” While Barrett said the company is not ready to share what that revenue contribution is, it is potentially a large growth area for Expensify.
“It can become quite big,” Barrett said. “Every one of our customers has a travel requirement, so I think it has the potential for offering quite a lot of lift.”
