Expensify, Inc.

Hi, welcome to the Q2 2025 Expensify Earnings. I'm Expensify CFO Ryan Shaver and with me I have founder and CEO David Barrett. And now we're going to pass it over to Nikki for the legalese.

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 forward-looking statements. Forward-looking statements in 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.

Great. Thank you, Nikki. All right, let's talk about the financials. Revenue was 35.8 million, which is up year on year, which is really exciting. Average paid members were 652,000, and total interchange was 5.3 million, which is also up year on year. Operating cash flow was 8.9 million. Free cash flow was 6.3 million. Again, the difference between those is free cash flow does not include customer funds. Our net loss was 8.8 million. Our non-GAAP net loss was 1.9 million. And our adjusted EBITDA was negative 1.4 million. Again, these numbers are impacted by the release of the movie, as we've discussed in previous earnings calls. The way movie accounting works is we've been making payments for multiple years, but the expense is all recognized this quarter. So the reason these numbers look Worse than they normally do is because we just recognized multiple years of payments all in one quarter. We expect next quarter for these to go back to normal. Like I just mentioned, our free cash flow is $6.3 million, a 10% increase from last year. Last quarter, we updated our guidance to 17 to 21 million in annual free cash flow. We're now increasing that free cash flow guidance to 19 to 23 million. As the year goes on, our confidence in this number increases and we continue to increase it. We'll let you know next quarter if there's any updates there. July payment members were 641,000. July is usually a pretty soft month. A lot of people are on summer vacation with their families. Usually not a great month for us. And so we saw that seasonality this quarter. Or we saw the seasonality in July, which was expected. Now let's talk about what everyone wants to hear about, the F1 movie. So I hope you saw it. It was a great movie. Let's talk about some highlights here. So Expensify was on screen for an estimated total of over 35 minutes, which is insane. We did this Super Bowl ad in 2019. We paid a lot of money for 30 seconds and our logo was only on screen for about two seconds of those 35 seconds because we had to make it entertaining and funny. So the logo, not a lot of time for the logo. This was very logo based and a huge increase from two seconds to 35 minutes. Given the box office numbers and the fact that we were on screen for 35 minutes, we estimate that the Expensify logo was on screen and viewable for 1.3 billion minutes over the last month and change. Additionally, we estimate over 100 million was spent marketing the movie in which our logo featured heavily. So you probably saw a lot of ads, probably saw our logo in those ads. We think over 100 million was spent doing that. promoting our logo by companies other than us, which is great, a great deal. Additionally, there was a lot of buzz around the movie, so the PR, what's called earned media, generated an estimated equivalent value of $61 million marketing dollars. What that means is, How much would it cost to get all the articles written about us, all the times it was talked about on the news, social media? If you were to take all that activity and then figure out how much would it cost to buy that, that cost would be $61 million. So the earn me around the movie, we estimate at this point is $61 million. The movie's also been greenlit for a second theatrical release at IMAX. Then it's going to go to Apple TV. So it'll continue to drive interest for a long time to come. So these numbers are just, as of right now, these are not the final numbers. And we think that it's going to continue to be seen by people, be loved by people, and continue to pay dividends for us as a business. One of the ways we measure the effectiveness of this investment we made is in brand awareness. So we do brand awareness studies. Basically, the general population is surveyed, so we're not surveying specifically accountants or any specific population, just you know normal everyday people because we grow through bottom-up adoption we market to just regular employed people and they hear about us they download the app and they bring into the business so that's a big piece of our business model so that's why we do these awareness surveys so you get as you can see the increase from april to july is quite significant over a 50 increase in our core demographic which is ages 18 to 54. And very excitingly, in basically the future, our future bottom-up adopters, 18 to 24, which is a hard demographic to get in front of, we saw a 350% increase in brand awareness. And again, this is unaided awareness. What that means is, in the survey they're asked, do you know anything about expense management do you use expense management and if they say no then you know they're ignored if they say yes the next question is okay can you name any of them so they're and then they type in the ones that they can name way more people were able to name Expensify by name than any other of our competitors in the space now obviously the next question is do you know any of these companies in a list? And that's much easier. So unaided awareness is the hardest metric to increase and we've seen huge increases there. So we're very excited. We think that this is going to be great for the business. Obviously way more people know about us now and we think that's going to kind of trickle down and create a halo effect, a positive halo effect on the business for a long time to come. Yep. Thanks. All right, now I'm going to pass it over to David.