Expense management platform Expensify reported strong performance for the third quarter, though its overall results were held down by expenses related to its recent initial public offering.
For the quarter ended Sept. 31, 2021, the company reported revenue of $37.4 million, up 72.6% from the same period a year earlier. It reported a net loss of $6.3 million, however, because of an IPO-related bonus expense of $26.3 million. Excluding that bonus, the company has EBITDA of $19.8 million.
The company also reported what it called its strongest growth in paid members since the start of the COVID-19 pandemic in March 2020, with average monthly paid members jumping to 667,000 from 639,000 in Q2.
“We saw strong paid member growth in Q3 as SMBs continue to bounce back from the pandemic, business-wise,” said CFO Ryan Schaffer, in a statement. “Combine that with a 200% year-over-year increase in Expensify Card interchange and we're very confident in our ability to continue executing our long-term vision.”
The company also highlighted a number of initiatives from the period.
“The biggest news coming out of Q3 was the launch of our Free Plan for SMBs,” said CEO and founder David Barrett, in a statement. “It offers all the basics of Expensify for free – including corporate cards with up to 2% cash back, reimbursements, bill pay, invoicing, and travel booking – so teams don't have to worry about their back office while they grow their business. We're especially excited to watch our Free Plan spread naturally across organizations as a result of our viral, bottom-up business model and the immense greenfield opportunity that still remains in our target market.”
Expensify also achieved carbon neutrality over the course of 2021, and pledged to reach zero emissions by 2030.
In Q4, meanwhile, it expects revenues somewhere between $38.2 million and $39.2 million, and to reach between 673,000 and 691,000 average monthly paid members.
