Expensify did something HIGHLY unusual when it came public.
It paid out ~50% of its IPO proceeds as a cash bonus to its employees.
This company is fascinating.
Here's an overview of the business in 10 slides:
The ticker is $EXFY
Expensify is focused on expense reports.
Its software simplifies reporting & data capture
It recently launched a card that requires NO documentation (which sounds awesome)
Its mission statement is great:
The company uses a SaaS business model
It targets end-users first.
Once they use it and like it, they convince their company to try it.
This leads to low customer acquisition costs, which is rare in SaaS.
Moat sources:
▪️Switching costs
▪️Brand
2020 was a slow growth year, which isn't surprising given the state of business travel.
The company's overall financial picture looks good:
▪️Founder-led
▪️Great glassdoor rating
▪️High inside ownership
▪️TAM is large
▪️Signs of optionality
▪️Profitable with room for margin expansion
▪️Growth is 100% organic
The stock hasn't done much since coming public
Not surprising given that it IPO'd in late 2021
The company is in growth mode, so its not returning capital to shareholders
Major risks:
▪️Competition
▪️Business travel environment
▪️Valuation (~22x sales)
3 things for investors to watch moving forward:
It got a decent score on my checklist. (The score will improve over time if the business executes)
It did better on @Brian_Stoffel_
Want a copy of our investing checklists?
brianferoldi.gumroad.com/l/zWXye
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