Expensify, Inc.

Well, hello, everyone. Welcome, welcome, welcome to the Q1 2022 earnings call for ExpenseFi. I am David Barrett, founder and CEO of ExpenseFi. We have Ryan, our CFO, Manu, our COO, and Trent here from Technical Accounting. We are here to answer all the other questions that you have, and so let's get started. Oh, just a second. Let's try this again. There we go. First, we're going to start off with some fascinating disclaimers read by our Friend here.

Before we begin, please note that all the information presented on today's call is unaudited. And during the course of this call, management may make forward-looking statements within the meaning of the federal securities laws. These statements are based on management's current expectations and beliefs and involve risks and uncertainties that could cause actual results to differ materially from those described in these forward-looking statements. Schaffer. Forward-looking statements on the earnings release that we issued today, along with the comments on this call, are made only as of today and will not be updated as actual events unfold. Please refer to today's press release and our filings with the SEC for a detailed discussion of the risks that could cause actual results to differ materially from those expressed or implied in any forward-looking statements made today. Please also note that on today's call, management will refer to certain non-GAAP financial measures. While we believe these non-GAAP financial measures provide useful information for investors, the presentation of this information is not intended to be considered in isolation or as a substitute for the financial information presented in accordance with GAAP. Please refer to today's press release or the investor presentation for a reconciliation of these non-GAAP financial measures to their most comparable GAAP measures. With all that, hand it back to you, David.

Great. All right. So we are coming to you live from the Bank of Expensify here in Portland, our lovely office up here in the great, great north. So first, we're going to start off just talking about, you know, a reminder of why we're all here. Basically, what is the heart to Expensify's sort of secret for success? And it rests on three major pillars. The first is that we believe the market size is enormous. The opportunity is huge. We think that basically of all All the companies in the world, virtually none of them do anything yet. Almost every company in the world is still struggling with expense management, and we think that all of them are going to switch to some platform, and we're gunning for it. So we think there's a huge opportunity, and we have a business model that can acquire it all. This business model is unique to Expensify. All of our competition has the same classic top-down enterprise sales model, and shocker, it only really works in the enterprise. The vast majority of the opportunity is outside of that and is inaccessible to the traditional business models. And so we think that we have a unique opportunity to capture the overwhelming majority of the market. Third, we think this market is huge. We think that we can link a billion people together on a common platform. If Instagram can link a billion people through photos, we think we can do the same through money. And so to kind of dig into that a bit more, the market is enormous. And it's not just the enterprise. We think that we can go into the overwhelming opportunity size of the SMB. The SMB is by far the biggest and best part of the market, the highest margin part of the market. And so, yes, we can go anywhere. We have enterprise customers. We have all sorts of customers. But we think the greatest part of the opportunity is the SMB, where we are uniquely optimized and focused on. Our model basically involves brand advertising and freemium acquisition to create really efficient lead generation. And then we have a super efficient high-velocity sales model. It involves inside sales team, partners, and, of course, our just automatic self-service subscriptions. And we think that all of this is what leads to our super profitable growth over time. As a reminder, our business model works by individual employees signing up for Expensify in the company before being asked or asking permission, just basically signing up and giving the shot. This turns every expense report into a highly targeted marketing message directly to the decision maker. And so this is a way that we can generate leads in the companies of all sizes, basically without having to pay for them, and thus being able to close them, turning every employee of other companies into a salesperson for Expensify. Come on, Clicker, you can do it. There we go. So Expensify's model, we're the only ones who can reach the full market. We're the only ones who can make five super important claims. First, we have true enterprise scale. We can go up to the very top of the market, support the large multinational public companies like ourselves. But we also have a consumer-grade design. We can meet the bottom of the market and support basically the small VSPs and individuals as they're just entering into the entrepreneurial space, the side hustle phase, things like this. We have global reach. We support all currencies. We're all sort of corporate card feeds. We have not just a native corporate card, our Expensify card, but also native corporate travel as well, built into our concierge. And finally, all of this is free. We're the only company that can make these five claims, and we think this is very unique to Expensify, and this is a key part of why we think we can capture the whole market. We think there's a huge, huge opportunity out there about uniting all these previously disparate financial use cases into a single flow. Everything from unstructured chat to P2P wallet functionality like Venmo, corporate travel, invoicing, bill processing, corporate card, payroll expense. We think we can link all of this onto a common platform because they're all the same variations upon the same common theme. It's a list of expenses that you give to someone and you pay in return. And so we're taking it all. So maybe just to kind of, that was a quick refresher for everyone who doesn't already know the most you can do. And just to kind of touch on a couple of different business updates. First is we launched our CPA card. CPA card is the very first corporate card built exclusively for accountants and their clients. And so this card has a number of perks designed specifically for accountants, like reimbursing AICPA memberships, CPE credits, and things like this. Also has dedicated and special pricing for accountants to manage the firms. And so this is the first into the industry. We're taking this out through our extensive partner network out to all the accounting firms in the world, and we're super excited about the tracks and so forth. Second, let's talk about that free plan. And so the free plan isn't new, but we're going to talk about some exciting sort of growth we've had in it. So the free plan we would like to say is the freest of free plans around. It has more free functionality than anything else in the market. It has all sorts of administrative features to manage not just your expense reporting and not just reimbursements, but also has a corporate card. You can send invoices. You can pay bills. So you can collect revenue and sort of support everything. You do corporate travel. It has everything built into a single platform that is completely free. and the Expense Rate Free Plan is designed for companies, again, small businesses and the start of their journey when they're brand new and just getting started, but is a complete platform for everything. And so we like to say that our free customers pay us in a few different ways. First, if you use the Expensify card, you're generating interchange for us. And so basically every use of the Expensify card is making us interchange. Even though it's free for the customer, it makes us cash. Second, they're paying us in viral lead gen. Every time you send an invoice, you're sending it to the accounts payable group of a different company. And so invoicing and bill processing, allows us to leapfrog between the accounting departments in different companies. And so basically just to use the free plan, you can't help but promote us to everyone around you. Third, of course, is you pay us in word of mouth and branding. To use Expensify, because it touches such a potent pinpoint, you just can't help but talk about it. And so we would much rather that you're using Expensify for free than continuing to use Excel or use a competitor. And so basically locks up and establishes your brand dominance in the market. And then, of course, you don't stay free forever. Eventually, if your company is successful, you keep hiring, you're growing, your complexity hits a certain point where you cross one of our paywalls. Then you become a fully paid subscription. So the free plan is an incredible plan that we're super excited about. And with that, I think I will turn it over to Guy.