In a recent filing with the Securities and Exchange Commission, Ryan Schaffer, the Chief Financial Officer of Expensify , Inc. (NASDAQ:), disclosed the sale of 12,500 shares of Class A Common Stock. The shares were sold at a price of $2.50 each, amounting to a total transaction value of $31,250.
The transaction occurred on November 8, 2024, and was conducted under a pre-established Rule 10b5-1 trading plan, which Schaffer adopted on February 29, 2024. Following this sale, Schaffer holds 159,295 shares directly.
Additionally, Schaffer exercised stock options to acquire 12,500 shares at a price of $0.97 per share, which were then sold as part of the aforementioned transaction. This exercise was part of a stock option plan initially vested in monthly installments starting in May 2019. After these transactions, Schaffer holds a total of 220,283 shares of Expensify’s Class A Common Stock.
In other recent news, Expensify, the financial services company, reported a mixed bag of Q3 results. The firm witnessed a 6.3% quarterly increase in total revenue, reaching $35.4 million, despite a 3% year-over-year decrease. The number of average paid members remained stable at 684,000, marking a 5% drop from the previous year. A bright spot in the report was the 48% year-over-year surge in interchange revenue from the Expensify Card, which amounted to $4.6 million.
These recent developments also include the company’s revised free cash flow guidance for the year, which has been increased to between $19 million and $20 million. This revision reflects Expensify’s confidence in its operational efficiencies and new product offerings. On the downside, the firm experienced a 5% year-over-year decrease in average paid members and a 3% year-over-year decline in total revenue.
Looking ahead, Expensify is optimistic about future growth, especially with the ramp-up of its new platform and expansion of existing customer usage. The firm is also nearing full deployment of the Expensify Card by the end of 2024 and has received positive feedback for its recently launched Expensify Travel.
InvestingPro Insights
The recent insider transaction by Expensify’s CFO Ryan Schaffer occurs against a backdrop of mixed financial signals for the company. According to InvestingPro data, Expensify’s market capitalization stands at $237.53 million, reflecting its current position in the market.
Despite the recent share sale by the CFO, there are some positive indicators for Expensify. An InvestingPro Tip highlights that the company holds more cash than debt on its balance sheet, suggesting a strong liquidity position. This aligns with another tip indicating that Expensify’s liquid assets exceed short-term obligations, which could provide financial flexibility in the near term.
However, investors should note that Expensify has not been profitable over the last twelve months, with a negative P/E ratio of -15.45. This is reflected in the company’s operating income margin of -5.29% for the last twelve months as of Q3 2024. On a more optimistic note, analysts predict that the company will be profitable this year, according to another InvestingPro Tip.
The stock has shown significant volatility, with a strong return of 45.9% over the last month and a large price uptick of 58.93% over the last six months. This recent performance is noteworthy, especially considering that the stock price has fallen significantly over the last five years.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Expensify, which could provide deeper insights into the company’s financial health and market position.
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