Expensify, Inc. reported its financial results for the three and nine months ended September 30, 2024, revealing a decline in revenue alongside significant reductions in operating expenses, leading to improved profitability metrics compared to the previous fiscal period.

For the third quarter of 2024, Expensify generated revenue of $35.4 million, a decrease of 3% from $36.5 million in the same quarter of 2023. The nine-month revenue also fell to $102.2 million from $115.5 million, marking an 11% decline. The revenue drop was attributed to decreased billable activity, particularly in pay-per-use transactions, and increased contra revenue related to cashback payments from the Expensify Card. Despite the revenue decline, the company experienced a shift in interchange revenue due to the transition from its Legacy Card Program to the Updated Card Program, which launched in February 2024.

Total operating expenses for the third quarter of 2024 were significantly reduced to $18.0 million from $33.7 million in the prior year, while nine-month operating expenses decreased to $57.4 million from $92.3 million. This reduction was driven by lower general and administrative expenses, which fell by 36%, and a 75% decrease in sales and marketing expenses. Research and development expenses saw a slight increase of 5% for the nine-month period, reflecting ongoing investments in product development.

The company reported an income from operations of $288,000 for the third quarter, a notable turnaround from a loss of $14.9 million in the same quarter of 2023. For the nine months, however, the company recorded a loss from operations of $1.3 million, improved from a loss of $27.2 million in the prior year. The net loss for the third quarter was $2.2 million, down from $17.0 million in the same period last year, while the nine-month net loss decreased to $8.7 million from $34.3 million.

Cash and cash equivalents as of September 30, 2024, stood at $39.2 million, down from $47.5 million at the end of 2023. The company reported net cash provided by operating activities of $16.5 million for the nine months, a significant increase from $2.1 million in the same period of 2023, attributed to reduced marketing expenses and lower outsourcing costs.

Expensify's strategic developments included the full repayment of its term loan and revolving line of credit, enhancing its financial position. The company also continued to invest in AI technologies to optimize its operations, although it acknowledged associated risks, including data security concerns. As of September 30, 2024, Expensify had no outstanding indebtedness and $24.0 million available for additional borrowings under its revolving line of credit.