In its first earnings report since its initial public offering, Navan reported a 29 percent-year over-year increase in revenue alongside a $225 million loss in the third quarter of its fiscal year.
Revenue for the quarter, which ended Oct. 31, totaled $195 million, up from $151.1 million in the third quarter of its 2024 fiscal year. That includes usage revenue of $180 million, up 29 percent year over year, and subscription revenue of $15 million, up 26 percent. International customers represented 37 percent of total revenue in the quarter, CFO Amy Butte said.
Gross booking volume in the quarter increased 40 percent year over year to $2.6 billion, and its payment volume grew 12 percent year over year to $1.1 billion.
Navan did not see an impact to business related to travel disruptions during the U.S. government shutdown, Butte said. While there was some pullback in travel in November, that was offset by higher airfares as airlines cut capacity. After the shutdown ended, volume rebounded to normal levels, she said.
"The current business travel environment remains robust, and our expectation is that these conditions will persist through the remainder of our fiscal year, ending Jan. 31," Butte said.
Navan reported a net loss of $225 million for the third quarter, significantly more than a loss of $42 million in the third quarter of its 2024 fiscal year. That loss included almost a $100 million loss on extinguishment of debt, and some expenses also were up significantly year over year. Sales and marketing costs for the quarter were $94.9 million, up from $58.1 million in the third quarter of the 2024 fiscal year, and research and development costs were $51.2 million in the quarter, up from $33 million a year prior.
Navan on Monday also announced that Butte, who became Navan's CFO in June 2024 in advance of the IPO, is departing the company.
"Amy helped build out our finance organization and prepare the company for the public markets," co-founder and CEO Ariel Cohen said in the earnings call. "With our listing now complete and the business carrying strong momentum, it was the right time for her to move on to find her next opportunity."
Butte will step down as CFO on Jan. 9, and SVP of strategic finance and chief accounting officer Anne Giviskos will serve as interim CFO while Navan's board conducts a search for a new CFO. Butte will act as a strategic advisor to Navan during that search.