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S&P 500   4,205.45
DOW   33,093.34
QQQ   348.40
Stock market today: Markets mostly higher after Biden-McCarthy deal on US debt
[Strong Buy Alert] Is this laser stock in your portfolio? (Ad)
10 Ways Entrepreneurs Can Navigate a Down Economy
PwC Australia sidelines 9 directors as leak of tax information investigated
3 Free Stock Picks per Day (Ad)
South African president appoints judge to oversee weapons-for-Russia inquiry
Drought-struck Barcelona quenches thirst with costly desalination
3 Free Stock Picks per Day (Ad)
Poland imposes sanctions on 365 Belarusians over 'draconian' verdict against journalist
North Korea notifies neighboring Japan it plans to launch satellite in coming days
S&P 500   4,205.45
DOW   33,093.34
QQQ   348.40
Stock market today: Markets mostly higher after Biden-McCarthy deal on US debt
[Strong Buy Alert] Is this laser stock in your portfolio? (Ad)
10 Ways Entrepreneurs Can Navigate a Down Economy
PwC Australia sidelines 9 directors as leak of tax information investigated
3 Free Stock Picks per Day (Ad)
South African president appoints judge to oversee weapons-for-Russia inquiry
Drought-struck Barcelona quenches thirst with costly desalination
3 Free Stock Picks per Day (Ad)
Poland imposes sanctions on 365 Belarusians over 'draconian' verdict against journalist
North Korea notifies neighboring Japan it plans to launch satellite in coming days
S&P 500   4,205.45
DOW   33,093.34
QQQ   348.40
Stock market today: Markets mostly higher after Biden-McCarthy deal on US debt
[Strong Buy Alert] Is this laser stock in your portfolio? (Ad)
10 Ways Entrepreneurs Can Navigate a Down Economy
PwC Australia sidelines 9 directors as leak of tax information investigated
3 Free Stock Picks per Day (Ad)
South African president appoints judge to oversee weapons-for-Russia inquiry
Drought-struck Barcelona quenches thirst with costly desalination
3 Free Stock Picks per Day (Ad)
Poland imposes sanctions on 365 Belarusians over 'draconian' verdict against journalist
North Korea notifies neighboring Japan it plans to launch satellite in coming days

Will Expensify Get Even Cheaper To Buy? 

Will Expensify Get Even Cheaper To Buy? 

Expensify Moves Lower After Results Fail To Impress 

Expensify NASDAQ: EXFY caught our attention when it emerged from its post-IPO quiet period. A handful of name-brand sell-side analysts came out in support of the company with a consensus price target that implied more than 30% of upside for the stock. Now, in the wake of the company’s first earnings report as a publicly-traded company, the analysts have begun rethinking their positions if only to lower their price targets. Bank of America was the first to do it, lowering the price target to $42 from $45 and still predicting a healthy 25% of upside for the stock, and it may not be the last.

What this means to us is that, If you were interested in this company two weeks ago you should still be interested in it now. Expensify offers a unique means of consolidating corporate spending and its usage is growing. It may take another couple of quarters but we are expecting to see business momentum begin to build. 

Expensify Has A Robust 3rd Quarter, Guides For Growth 

Expensify had a great quarter if one that was more or less expected by the analysts. The company reported $37.4 million in net revenue for a gain of 72.4% over last year but only 115 basis points better than the Marketbeat.com consensus estimate. The gains came on a 4.4% sequential increase in average monthly users the company attributed to increased ad spending and the rollout of its Free version. The Free version allows SMB’s to deploy Expensify applications across their networks at no cost, a plan that is intended to drive usage of financial services like the Expensify cash-back card and drive total revenue. 


“The biggest news coming out of Q3 was the launch of our Free Plan for SMBs. It offers all the basics of Expensify for free – including corporate cards with up to 2% cashback, reimbursements, bill pay, invoicing, and travel booking ..,” said David Barrett, founder, and CEO of Expensify. “We're especially excited to watch our Free Plan spread naturally across organizations as a result of our viral, bottom-up business model and the immense greenfield opportunity that still remains in our target market.”

Moving down the report, the details are a little mixed but generally good. The company reported a net loss of $0.18 per share, $0.07 worse than expected, due to higher than expected bonus costs related to the IPO but the adjusted earnings were much better. Adjusted net income came in positive and up from the previous quarter on leveraged gains and revenue strength. 

Looking forward, the company is guiding for sequential growth driven by a 1% to 3.75% in average monthly members. This should produce revenue in the range of $38.3 to $39.2 or sequential revenue growth of 2.1% to 4.8% with only one thing to mar it. The analysts are expecting revenue near $38.8 million or very near the mid-point of the range. 

The Technical Outlook: Expensify Might Be Bottoming 

Shares of Expensify began to bottom when the analysts first came out with their bullish ratings and that action is continuing now. The earnings report caused price action to fall to a new low but buyers were ready for the move and confirmed support at the $34 level. If the market follows through on this action we expect to see the price move up to the $38 and $40 levels in the near to mid-term. If not, this market could be in for another new low. 

Will Expensify Get Even Cheaper To Buy? 

Should you invest $1,000 in Expensify right now?

Before you consider Expensify, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Expensify wasn't on the list.

While Expensify currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

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Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Expensify (EXFY)
2.1118 of 5 stars
$6.41+0.9%N/A-20.68Moderate Buy$14.19
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Thomas Hughes

About Thomas Hughes

Contributing Author: Technical and Fundamental Analysis

Thomas got his start with the markets while working as a Chef. In 2005 a chance invitation to attend the seminar “How To Buy And Sell Your Own Stocks” altered his worldview. Soon trading and stocks consumed his every waking moment to the point of excluding all else. Thomas now enjoys a much different lifestyle engaged in his true passion, uncovering great investments.
Contact Thomas Hughes via email at tmhughes.writeon@gmail.com.

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