Expensify, Inc. reported its financial results for the first quarter of 2025, revealing a revenue increase of 8% to $36.1 million, up from $33.5 million in the same period last year. The growth was primarily driven by a rise in interchange revenue associated with the company's Updated Card Program, which launched in February 2024. However, this increase was partially offset by a decline in billable activity and an uptick in contra revenue related to cashback payments, reflecting the growing adoption of the Expensify Card among users.
The company's cost of revenue rose significantly by 22% to $17.8 million, compared to $14.6 million in the prior year. This increase was attributed to a decrease in vendor consideration and higher operational costs. Consequently, gross margin decreased to 51% from 57% year-over-year. Despite these challenges, total operating expenses fell to $19.7 million from $20.7 million, leading to a reduced loss from operations of $1.5 million, compared to a loss of $1.8 million in the previous year. The net loss for the quarter was $3.2 million, or $0.03 per share, an improvement from a net loss of $3.8 million, or $0.04 per share, in Q1 2024.
Operationally, Expensify reported an average of 657,000 paid members across approximately 45,100 companies in over 200 countries and territories. The company processed 1.8 billion expense transactions on its platform as of March 31, 2025. The Expensify Card, which allows real-time control over employee spending, has been a key focus, with cashback rewards for cardholders amounting to $2.3 million in the quarter. The company continues to invest in product development, with research and development expenses decreasing by 10% to $5.4 million, reflecting a strategic shift in resource allocation.
Looking ahead, Expensify remains cautious about macroeconomic conditions, including inflation and potential recession risks, which could impact its customer base, primarily small and medium-sized businesses. The company has sufficient liquidity, with $59.6 million in cash and cash equivalents and no outstanding debt as of March 31, 2025. Expensify's management believes that existing resources will support its growth strategy for the foreseeable future, while also planning to continue enhancing its product offerings to attract new customers and retain existing ones.
About Expensify, Inc.
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