Expensify Inc. shares surged more than 50% on Wednesday after expense management companies made their debut in the open market.
After opening at $ 39.75 on Wednesday, it has risen to $ 42 recently.Stocks priced at $ 27 late Tuesday came at the company’s high end Raised range..The company grew up $ 70.2 million in the process of going publicAfter offering 2.6 million shares.
The company aims to simplify the expense reporting process, especially for small businesses that rely heavily on the paper process. The company also serves multinational companies, but most of its revenue comes from small businesses.
Chief Financial Officer Ryan Schaffer told MarketWatch that a typical business expense report would be an “email” that “scans receipts with a flatbed scanner” before employees submit it to their boss. , Excel, Manila folder “. Expensify offers a technology-driven service that allows employees to quickly take a photo of their receipt from their phone and send a report that is automatically emailed to their manager for approval and quick refund. To do.
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According to Schaffer, one way Expensify is differentiated is that it focuses on marketing products to its employees rather than its chief financial officer. “I don’t talk to the CFO about improving staff efficiency or payback,” he said. “We say we give our employees a lean expense report.”
That’s why Expensify generates 60% of its revenue from people who “download apps for free” without “asking their boss for permission.” After that, those employees often show services to their colleagues, and eventually their boss may buy a company-wide package. Expensify operates on a freemium model, so employees don’t pay anything for the service, but companies pay refunds or Intuit Inc. Pay for tools such as imports to.
The company also offers Expensify cards that allow merchant banks to monetize customer spending through exchanges or fees paid to card-issuing banks when cardholders make purchases. Expensify estimates that by next year, the total addressable market for cards will be $ 17 billion, according to the prospectus.
Expensify reported sales of $ 65 million in the first half of 2021 from $ 40.6 million in the first half of 2020. In addition, net income in the first half of 2021 increased from $ 3.5 million to $ 14.7 million. The first 6 months of 2020.
“Profit and growth don’t have to be enemies,” Schaffer said, calling Expensify a “rare and profitable technology company” and its profitability is based on generally accepted accounting principles (GAAP). I said there is. Revenue increased by 60% in the first six months of the year, but he and his team “don’t think they need to spend 100% of their revenue to continue their growth.”
The main motivation for Expensify’s IPO was to provide liquidity to investors rather than giving the company itself access to additional capital. “There are unlimited runways as a profitable business.”
While Expensify’s business was pandemic-influenced, Schaffer emphasized that it has a very wide range of business trips beyond cross-country flights for client meetings. A “typical” trip for Expensify customers may include a one-night drive from Toledo, Ohio to Fort Wayne, Indiana.
“Mileage is a huge expense to us,” he said.Home Depot Co., Ltd.
Is also one of the company’s top 10 merchants, driving around to pick up supplies before customers deliver them to the scene.
IPO is offered as Renaissance IPO ETF
S & P 500 increased by 5.6% in the last 3 months
It rose 5.4% in that span.
Spending the post-IPO stock price surge on a vote of trust in “rare and profitable tech companies”
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