Payments and expenses specialist Expensify reported a year-on-year drop in revenue and users during the second quarter, but company leaders expect its New Expensify app and travel booking capabilities to give it a boost in the third quarter.
The company reported $33.3 million in revenue for the second quarter, down by 14 per cent on Q2 of 2023, while paid members dropped by 8 per cent to 684,000 in the quarter.
Expensify CFO Ryan Schaffer noted that these numbers have "levelled off" and were "effectively flat", compared with the previous quarter. He added that paid members were up to 689,000 in July, despite it being a "traditionally soft" month for the company.
For the third quarter, Expensfiy said it would start generating revenue from its New Expensify platform, which takes a "super app" strategy in combining capabilities for chat and expense into a single platform.
Expensify also expects its new travel booking capabilities, which are built on Spotnana technology and launched in May, will contribute as a revenue stream for the quarter.
“We think it can scale up to the top of the market,” said CEO David Barrett during the earnings call. “It has very powerful functionality that can go head-to-head with anyone out there.”
The new Expensify Card programme will also be a key contributor to the company’s future revenues, as it earns 20 per cent higher interchange fees for Expensify, said Schaffer.
Expensify reported a net loss of $2.76 million for the second quarter, compared with a net loss of $11.3 million in Q2 of 2023.