Expensify, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Expensify, Inc. has filed its annual 10-K report for the fiscal year ending December 31, 2023.</b>

AI Summary

Expensify, Inc. (EXFY) filed a Annual Report (10-K) with the SEC on February 27, 2024. Expensify, Inc. filed its 2023 Form 10-K on February 27, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal business address is 401 SW 5th Avenue, Portland, OR 97204. The company's phone number is (520) 271-0858. Expensify, Inc. is classified under SIC code 7372 (Prepackaged Software).

Why It Matters

For investors and stakeholders tracking Expensify, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Expensify's financial performance, business operations, and risk factors for the fiscal year 2023, crucial for investors to assess the company's health and future prospects. The detailed financial data and disclosures within the 10-K are essential for investors and analysts to make informed decisions regarding Expensify's stock and its position within the software industry.

Risk Assessment

Risk Level: medium — Expensify, Inc. shows moderate risk based on this filing. The company's financial performance and future outlook are subject to various risks detailed in the 10-K, including market competition and operational challenges, which could impact its stock value.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand Expensify's performance and potential challenges.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-02-27 — Filing Date (Date of submission)
• 7372 — SIC Code (Industry classification)

Key Players & Entities

• Expensify, Inc. (company) — Filer name
• 401 SW 5th Avenue, Portland, OR 97204 (address) — Business and mailing address
• 7372 (industry_code) — Standard Industrial Classification (SIC) code
• 20231231 (date) — Fiscal year end
• 2024-02-27 (date) — Filing date

FAQ

Industry Context

Expensify operates in the software industry, specifically focusing on expense management solutions for businesses.

Regulatory Implications

The filing is made in accordance with the Securities Exchange Act of 1934, requiring public companies to submit annual reports.

What Investors Should Do

1. Review Expensify's 2023 financial statements for revenue, net income, and other key metrics.
2. Analyze the risk factors section to understand potential challenges and their impact on the company.
3. Compare Expensify's performance and disclosures to industry peers.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-02-27: Filing Date — Date Expensify, Inc. submitted its 10-K filing.

Year-Over-Year Comparison

This is the initial 10-K filing for Expensify, Inc. as a public company, covering the fiscal year 2023.

Key Financial Figures

• $0.0001 — stered Class A Common Stock, par value $0.0001 per share EXFY The Nasdaq Stock Market

Filing Documents

• exfy-20231231.htm (10-K) — 2035KB
• exhibit31-10xk2023.htm (EX-3.1) — 166KB
• exhibit43-10xk2023.htm (EX-4.1) — 47KB
• exhibit211-10xk2023.htm (EX-21.1) — 2KB
• exhibit231-10xk2023.htm (EX-23.1) — 4KB
• exhibit311-10xk2023.htm (EX-31.1) — 10KB
• exhibit312-10xk2023.htm (EX-31.2) — 10KB
• exhibit321-10xk2023.htm (EX-32.1) — 5KB
• exhibit322-10xk2023.htm (EX-32.2) — 5KB
• exhibit971-10xk2023.htm (EX-97.1) — 32KB
• exfy-20231231_g1.jpg (GRAPHIC) — 156KB
• 0001476840-24-000016.txt (&nbsp;) — 10794KB
• exfy-20231231.xsd (EX-101.SCH) — 62KB
• exfy-20231231_cal.xml (EX-101.CAL) — 109KB
• exfy-20231231_def.xml (EX-101.DEF) — 344KB
• exfy-20231231_lab.xml (EX-101.LAB) — 932KB
• exfy-20231231_pre.xml (EX-101.PRE) — 643KB
• exfy-20231231_htm.xml (XML) — 1320KB

Risk Factors

Item 1A. Risk Factors 20

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 63

Cybersecurity

Item 1C. Cybersecurity 63

Properties

Item 2. Properties 64

Legal Proceedings

Item 3. Legal Proceedings 64

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 65 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 66

[Reserved]

Item 6. [Reserved] 67

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 68

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 85

Financial Statements and Supplementary Data

Item 8 Financial Statements and Supplementary Data 86

Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 149

Controls and Procedures

Item 9A. Controls and Procedures 149

Other Information

Item 9B. Other Information 149

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 150 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 151

Executive Compensation

Item 11. Executive Compensation 152

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 152

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 152

Principal Accountant Fees and Services

Item 14 Principal Accountant Fees and Services 152 PART IV

Exhibit and Financial Statement Schedules

Item 15. Exhibit and Financial Statement Schedules 153

Form 10-K Summary

Item 16. Form 10-K Summary 155

Signatures

Signatures 156 1 Table of Contents Special Note Regarding Forward Looking Statements This Annual Report on Form 10-K contains forward-looking statements about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this Annual Report on Form 10-K, including statements regarding our strategy, future financial condition, future operations, projected costs, prospects, plans, objectives of management and expected market growth, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "shall," "should," "expects," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," "goal," "objective," "seeks," or "continue" or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans, or intentions. There are a number of risks, uncertainties, and other important factors, many of which are beyond our control, that could cause our actual results to differ materially from the forward-looking statements contained in this Annual Report on Form 10-K. Such risks, uncertainties and other important factors include, among others: the impact of inflation on us and our members; our borrowing costs have and may continue to increase as a result of increases in interest rates; our expectations regarding our financial performance and future operating performance; our ability to attract and retain members, expand usage of our platform, sell subscriptions to our platform and convert individuals and organizations into paying customers; the timing and success of new features, integrations, capabilities and enhancements by us, or by competitors to their products, or any other changes in the competitive landscape of our market; the amount and timing of operating expenses and capital expenditures t

Business

Item 1. Business OVERVIEW Expensify is a leading cloud-based expense management software platform that helps the smallest to the largest businesses simplify the way they manage money. Every day, people from all walks of life in organizations around the world use Expensify to scan and reimburse receipts from flights, hotels, coffee shops, office supplies and ride shares. Since our founding in 2008, we have added over 15 million members to our community, and processed and automated over 1.5 billion expense transactions on our platform as of December 31, 2023, freeing people to spend less time managing expenses and more time doing the things they love. For the quarter ended December 31, 2023, an average of 719,000 paid members across an average of 47,000 companies and over 200 countries and territories used Expensify to make money easy. Small and medium-sized businesses ("SMBs") are the cornerstone of the global economy, making up almost all businesses and the majority of employment in Organisation for Economic Co-operation and Development ("OECD") member countries. Despite their significance to the global economy, the vast majority of SMBs still rely on manual, inefficient processes to manage the critical back office functions that power their businesses every day. Expense management, which refers to the collection, processing, auditing and reimbursement of employee expenses, is one of the last great holdouts of paper-based back office processes, with employees stuffing actual physical receipts into an envelope and handing it to their accountant. As SMBs seek to modernize back office functions like expense management to better compete in today's digital economy, we believe they will look for comprehensive technologies that are easy to discover, implement, purchase, manage and use. At the same time, individual employees are becoming a powerful source of change as they increasingly expect to bring their own choice of technology into the workplace. Since the beginnin

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View this 10-K filing on SEC EDGAR