October 16, 2021
Expensify, which was founded in 2008, filed for an initial public offering on Friday, Oct. 15. The company plans to list on the Nasdaq Global Market under the ticker symbol "EXFY." The company is known for its cloud software, which helps businesses manage their finances.
Expensify priced its IPO at $27 a share on Nov. 9 at a $2.18 billion.
Expensify offers different software tools to help businesses track, record and manage expenses.
Employees can report an expense for reimbursement by snapping a photo of a receipt. The software can take care of paying a customer's bills, it can create, send and manage invoices, and it can also book flights for business travel. In addition, Expensify has a business credit card and features that allow users to split bills, request payments and chat with friends.
In 2020, the company saw a total addressable market of roughly $21.5 billion in the U.S., U.K., Canada and Australia, according to the filing.
Like many software-as-a-service companies, Expensify is running at a break-even point right now. But its financials improved dramatically in the first half of 2021.
As with other fintech companies, Expensify has taken a hit from the COVID-19 crisis. But the pandemic also created opportunities.
The pandemic and the pivot to remote work led to "declines in revenue" and "a decrease in business travel and other expense-generating activity" as small and medium-sized businesses downsized or went out of business, the company said in its registration statement.
But Expensify said it also saw strong growth as the businesses that managed to survive and even thrive in the crisis turned to cloud-based vendors to help run their business. Still, as the company also noted in its IPO filing, "those growth rates may not be indicative of our future growth, and we may not be able to maintain profitability."
Then there's the competition. Expensify is up against tough rivals, including tech giants like Oracle (with its NetSuite product), SAP, Workday and Intuit.